Hong Kong share prices closed down 5.2 percent Wednesday as they were dragged by further CITIC Pacific fallout following its reported HK$15.5 billion in currency investment losses announced Monday.

The benchmark Hang Seng Index (HSI) fell 774.57 points to 14,266.60 and turnover was light at HK$54.09 billion.

CITIC Pacific fell 24.69 percent after the Securities and Futures Commission said it had launched an investigation into CITIC Pacific's improper currency bets.

Earlier in the day, shares in Huaneng Power International, the mainland's largest listed electricity power supplier, fell more than 10 percent after it posted a quarterly loss on soaring coal prices and said it expects a record loss for the whole of this year. The stock cut back losses to 8.8 percent by late morning.

Peer Datang Power gave up 10.4 percent.

Cement manufacturer Anhui Conch tumbled 6.5 percent after its third quarter earnings came in well below analysts' expectations. While Anhui Conch's third-quarter net profits grew 13.3 percent, year-on-year, its earnings declined 18 percent from the previous three months as the price of cement fell.

"We think the softening demand is more severe than previously assumed, and, therefore, have turned more cautious on the cement-price outlook," said Nick Lai, an analyst with JPMorgan.

Rival National Building Materials shed 5.2 percent.

Shares in Jiangxi Copper slid 7.1 percent after the mainland's largest producer of the metal posted a larger-than-expected 26.9 percent fall in its third-quarter net profits. The stock fell 39 cents to HK$4.41, its lowest level since early 2006.

"We believe the fourth-quarter risk is on the downside, as the October copper price is down 27 percent from third-quarter levels. We remain negative on Jiangxi Copper," Goldman Sachs analyst Song Shen said.

Shares in Dah Chong Hong Holdings surged more than 60 percent after the company said its financial position is sound and its parent, CITIC Pacific, may sell its stake in the firm.

AFP

(HK Edition 10/23/2008 page2)