Hong Kong - Hong Kong stocks sank 2.5 per cent Thursday, wiping out the previous day's gains, after a speculated rescue package for China's economy failed to materialize.

The Hang Seng Index ended the day at 20,392, down 539 points. Turnover was 55.7 billion Hong Kong dollars (7 billion US dollars).

The fall more than reversed the gains of Wednesday and took the index back down to its lowest level in more than a year.

Analysts said the market fell after a rumoured 400-billion-yuan (58.43-million-dollar) boost to aid China's economy and stock market, which had fuelled Wednesday's gains, failed to materialize and pessimism set in again.

Property stocks were again most affected by the change in sentiment with tycoon Li Ka-shing's Cheung Kong (Holdings) falling 2.8 per cent to close at 101.10 Hong Kong dollars.

During the midday break, the company reported a 35-per-cent fall in net profit in the first half of the year from the same period last year.

Rival Sun Hung Kai Properties fell by 3.92 per cent to 100.6 Hong Kong dollars.

China Mobile dropped 3.7 per cent to 91 Hong Kong dollars, and HSBC fell 2.6 per cent to 117.80 Hong Kong dollars. (dpa)