Hong Kong - Hong Kong shares slumped by more than 4 per cent Monday as the bailout deal for the US economy failed to excite officials in the former British colony.

The blue-chip Hang Seng Index shed 801.41 points, or 4.29 per cent, to close at 17,880.68 points. Turnover was a weak 54.96 billion Hong Kong dollars (7.07 billion US dollars).

The price falls mirrored regional losses and were led by property stocks which tumbled on worries over the housing market and an increase in mortgage rates by HSBC.

Earlier in the day, Hong Kong government officials gave a muted welcome to the 700 billion US dollar deal agreed in Washington early Monday Hong Kong time.

Hong Kong's financial secretary John Tsang said he hoped the rescue package could be implemented quickly so that it would stabilize not only the US economy but the global financial system.

But Hong Kong Monetary Authority chief executive Joseph Yam said he was unsure whether the deal would be enough to stabilize the world's money markets. (dpa)