Hong Kong down, Lenovo crumbles

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Hong Kong - Hong Kong shares suffered their biggest daily tumble in nearly 1-1/2 years in strong volumes, with Chinese growth-sensitive sectors sliding as investors returned on Tuesday from the Lunar New Year holiday, catching up with losses elsewhere.

The Hang Seng Index ended down 2.9 percent at 21,397.8 points in its biggest single-day loss since July 23, 2012.

The China Enterprises Index of the top Chinese listings in Hong Kong dived 3.1 percent to 9,509.7 points.

Losses on Tuesday left both benchmarks just hovering above technical support at levels last seen in July and August at around 21,300 for the Hang Seng benchmark and 9,400 for the H-share index.

Turnover faded after a robust morning session, with a good portion coming for Lenovo Group alone as its shares plunged 16.4 percent in its biggest one-day decline since January 2009.

A series of brokers downgraded Lenovo's shares on fears recent deals would dilute earnings amid reports of another joint venture with Sony.

Lenovo declined to comment on the report, while Sony said it was “inaccurate”. - Reuters

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