Hong Kong stocks plummeted more than 1,000 points in Monday's morning trading, following slumps in global markets.
Dow Jones Industrial Average fell for four consecutive days and the index slumped more than 500 points last Friday, hitting a 10- month low.
John Tsang, Hong Kong's financial secretary, alerted member of the public to beware of the possible new financial crisis in his blog posted on Sunday.
Hang Seng Index (HSI) further plunged 803 points or 3.6 percent to 21,605 this morning after decline for six straight trading days, hitting 1.5-year low. Hang Seng China Enterprises Index dropped below 10,000. It opened at 9,797, down 397 points or 3.9 percent, falling to the lowest level in more than a year.
All HSI constituent stocks opened down. The heavyweight HSBC Holdings gave up 3.4 percent. AIA opened 3.8 percent lower, falling for six consecutive trading days. HKEX dived 5.6 percent. China Overseas collapsed 5.8 percent.
Chinese financial stocks were under heavy pressure. China Life and Ping An slid 5.1 percent and 4.6 percent. ICBC and CCB lowered 3 percent and 4.1 percent. However, PICC P&C opened up one percent, bucking the market downtrend.
As the oil prices fell below 40 U.S. dollars a barrel on the New York Mercantile Exchange -- the first time since the financial crisis in 2009 -- the oil stocks collapsed. CNOOC and PetroChina sank 5.3 percent and 4 percent.