Hong Kong - Hong Kong leader Donald Tsang said Wednesday the territory was facing a "financial tsunami" and said the city would need tenacity and perseverance to ride it out.

Speaking at a Chinese National Day ceremony, he said people in the city of 6.9 million needed to summon up the spirit China displayed after the Sichuan earthquake in May to face the crisis ahead.

"We were uplifted by the great strength and unity displayed by the whole nation in its aftermath," he told a gathering of 2,000 people at the reception.

"From the earthquake in (Sichuan) to the staging of the Olympic Games in Beijing and the successful launch and return of Shenzhou-7, the Chinese nation has once again shown the world tenacity and perseverance.

"As we face the financial crisis, such tenacity and perseverance are particularly meaningful to us."

Hong Kong's Hang Seng Index is at its lowest level for nearly two years and has lost nearly half of its value since peaking at just below 32,000 in October last year. (dpa)