HONG KONG, Jan. 13 (Xinhua) -- Hong Kong stocks shed 578.04 points, or 2.59 percent, to close at 21,748.60 on Wednesday after China's central bank raised bank reserve ratio requirements after the market close the previous day.

    The Hong Kong market was also dragged by overnight losses on the United States markets. The benchmark Hang Seng Index opened down 1.42 percent and widened its losses to 2.24 percent by lunch break, and further to 2.59 percent by market close.

A citizen looks at a board displaying the Hang Seng Index in Hong Kong, south China, Jan. 13, 2010. Hong Kong stocks shed 578.04 points, or 2.59 percent, to close at 21,748.60 on Wednesday after China's central bank raised bank reserve ratio requirements after the market close the previous day. (Xinhua/Song Zhenping) Photo Gallery>>>

    Turnover totaled 97.62 billion HK dollars (12.52 billion U.S. dollars), one of the highest in recent months.

    The Chinese central bank said after the market Tuesday that the bank reserve ratio requirements will be raised by 50 basis points starting from next Monday.

    Thirty-eight of the 42 blue chip stocks lost ground on Wednesday, with market heavyweight HSBC down 1.45 HK dollars, or 1.58 percent, at 90.2 HK dollars.

    The Chinese mainland banking giants led the losses, with leading commercial lender ICBC tumbling 3.58 percent at 5.93 HK dollars, China Construction Bank down 3.89 percent at 6.17 HK dollars, and Bank of China down 3.62 percent at 3.99 HK dollars.

    Mainland-based insurance player China Life lost 2.62 percent, and Ping An slipped 4.93 percent.

    The property sub-index turned out the hardest hit by the tightening worries among the four major stock categories, moving down 3.93 percent to end at 27,366.05.

    Cheung Kong, the business conglomerate headed by Hong Kong's richest man Li Ka-shing, closed 2.76 percent lower at 98.8 HK dollars. Sun Hung Kai Properties, the leading residential housing developer in Hong Kong, was down 3.75 percent.

    China Mobile bucked the trend to finish 0.91 percent higher on improving outlook for its 3G operation, offsetting part of the losses in the Hang Seng Index.

    Industry leader Cathay Pacific Airways Limited bucked the trend to rise 0.08 HK dollars at 13.94 HK dollars after reporting a surge in December cargo tonnage.

    Tencent moved up 1.36 percent on a rating upgrade. Foxconn International surged 4.5 percent to close at 9.99 HK dollars on comments that growth visibility improved. (7.8 HK dollars = 1 U.S. dollar)

Special Report:  Global Financial Crisis