Hong Kong  - Hong Kong leader Donald Tsang Tuesday announced a 12-strong task force of business leaders and politicians to tackle the impact of what he called the "financial tsunami."

The task force, which will be headed by Tsang and his financial secretary, will meet regularly to decide on policies to help shield the wealthy city of 6.9 million from the global economic slump.

He appointed Standard Chartered Bank chairman Mervyn Davies and Victor Fung, head of trading conglomerate Li & Fung, among others.

Hong Kong stock prices have fallen dramatically since the onset of the global financial crisis, losing nearly 13 per cent of their value Monday for the biggest one-day drop in 11 years.

"The challenges ahead of us are daunting. The damage the financial tsunami has inflicted on the global economy has yet to be fully revealed," Tsang said.

"We need to evaluate the situation, consider ways to respond, identify new opportunities, and ultimately enhance our international competitiveness."

The task force will hold its first meeting on November 3. dpa hp tl pw