Fear-induced trading pushes Hong Kong stocks down

Hong Kong shares dropped to their lowest since July 2010 following the downgrade of US’ credit rating.

A Reuters report said, “The Hang Seng Index fell for the fifth straight session, ending down 2.2 percent at 20,490.6 points, sinking the benchmark further into oversold territory on the charts as its relative strength index (RSI) value sank to its second-lowest since January last year.”

Hong Hao, a global strategist at CICC, was quoted as saying, "People are trading on fear at the moment."

View the report here.