Hong Kong - Hong Kong stocks fell more than 3 per cent for the second day running on worries over more sell-offs of Chinese banking stocks and new profit-warnings.

The blue-chip Hang Seng Index fell by 571.5 points, or 3.8 per cent, to end the day at 14,415.91. Turnover was 55.5 billion Hong Kong dollars (7.13 billion US dollars.)

Analysts blamed the sell-off of stocks of China banks, more bad news from local companies and a poor performance on Wall Street overnight.

News that the Royal Bank of Scotland was considering selling off its stake in the Bank of China sent the mainland lender plunging 8.41 per cent to 1.96 Hong Kong dollars.

The bad news comes just one day after the Li Ka Shing Foundation, the charity arm of Hong Kong's richest man, sold 2 billion shares in the bank.

Cathay Pacific shares also nose-dived after the airline issued its second profit warning, blaming fuel hedging losses and weak passenger volume. Shares fell by 7.62 per after Cathay Pacific said it expected losses of 7.6 billion - almost triple hedging losses in a profit warning two months ago.

Mainland computer firm Lenovo fell by 25.97 per cent to 1.91 Hong Kong dollars after the company said it expected to post a loss for the third quarter and that it would be shedding 11 per cent of its workforce. (dpa)