Falls on Wall Street last night and profit-taking in H-shares, many of which had a strong run lately, are the major reasons for the market's fall today.
Fresh worries about rising inflation in the US and the extent to which the US Federal Reserve will raise interest rates are weighing down the market heavily.
Exxon Mobil reported record profit and people expect the same thing for oil producers' 2005 profit.
People are still very keen on buying China shares as it's the biggest growth story -- and Hong Kong is catching the coattails of China's growth.
Bank stocks were lifted today due to better than expected earnings from Bank of East Asia, but interest rate worries hurt property stocks.
I expect the market to open higher after Wall Street's gains, and it will mainly be led by property stocks as interest rate worries seem to be easing after the release of the US Fed minutes.
The market has gone crazy, especially in the property sector. Investors are trying to believe that interest rates may be peaking and are forgetting that the oil price is more than US$62 per barrel.
The potential is huge, yet the pitfalls are bottomless. After years of communism, some companies borrow without the intention of ever paying the money back. It's a very high-risk market.
The collapse of stocks in Japan has caused a domino effect in Hong Kong and investors are looking for a reason to sell.
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