Hong Kong - Hong Kong shares fell by more than 7 per cent in the first hour of trading Thursday in one of the city's worst financial weeks on record.

The Hang Seng Index, was down by 1,301.05 points or 7.38 per cent at 16,336.4 points at lunchtime Thursday. Turnover was a robust 48.5 billion Hong Kong dollars.

The sharp decline followed falls of 5.4 per cent Tuesday and another 3.63 per cent Wednesday. The market was closed for a public holiday Monday.

Analyst Francis Lun, general manager of Fulbright Securities, told government-run radio station RTHK he expected the decline in the index to continue for days to come.

"This kind of loss of confidence happens perhaps once in a decade," he said. "There will be no end to the decline until the American market shows some support, it will not bottom out.

"There is a complete collapse of confidence. The financial crisis in the US is hitting everyone and everyone is running for cover. If the largest insurance company (AIG) can fail, than no one is safe."

The Hang Seng Index has shed nearly 50 per cent of its value since peaking at an all-time high of just below 32,000 points at the end of October 2007. (dpa)