By Ding Qi (chinadaily.com.cn)
Updated: 2007-08-16 16:49

Many believed that the A-share market was affected by recent plunging neighboring markets due to continued concerns over US sub prime mortgage issues. The theory became increasingly convincing as major indices across the Asian market suffered major losses again today.

The Hong Kong Hang Seng Index plunged 3.29 percent today. The Nikkei 225 index of Japan as well as South Korea's benchmark index also fell more than 2 percent in early trading.

In addition, there are reports that the Ministry of Finance planned to issue 600 billion yuan of special treasury bonds as early as next week to buy a part of the nation's huge foreign exchange reserves. Although the bonds will not directly pour into the market, investors still worry about the liquidity drought. That may make many investors more cautious in face of historically high levels of index fluctuation.

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