Hong Kong Blue Chips Dropped

Hong Kong blue chips fell 2.5 percent and China plays dropped 2.7 percent on Monday as sharp declines in global equities prompted investors to book profits in recent gainers such as oil refiner Sinopec Corp.

But recent high flyer PetroChina Co Ltd, the country's top oil producer, had reversed earlier losses to move into positive territory.

Lin predicts the market would continue its rebound in the afternoon to finish the session 500 points lower, compared with its more than 1,000-point opening loss.

The benchmark Hang Seng Index had fallen 744.22 points to 28,720.83 by midday. The China Enterprises Index of mainland companies listed in Hong Kong fell 540.40 points to 19,181.98.