Hong Kong - Hong Kong shares fell 2.3 per cent Tuesday as dismal bank results and the announcement of HSBC Holdings PLC's discounted rights offering dragged prices down.

The blue-chip Hang Seng Index lost 283.58 points, or 2.3 per cent, to close at 12,033.88. Turnover was 42.99 billion Hong Kong dollars (5.54 billion US dollars).

Tuesday's losses followed a 3.86 per cent slump Monday and was led by falling prices for the banks HSBC, Hang Seng Bank Ltd and Standard Chartered PLC.

HSBC Holdings Plc, Europe's largest bank, said Monday that it would seek to raise a record 12.5 billion pounds (17.7 billion dollars) in cash from shareholders through a rights issue.

The announcement shocked investors because HSBC had been regarded as one of the best-capitalized banking institutions in the current crisis. (dpa)