First Shanghai Securities strategist Linus Yip Sheung-chi said The Hang Seng Index may fall below 20,000 in the short term after dropping 446.3 points to end the day at 20,484.37. "There is no buying interest in the market," said Tung Tai Securities associate director Kenny Tang Sing-hing, adding that the market may not see a revival until after the Olympics.

According to the Census & Statistics Department of Hong Kong, the domestic export value of basic metals and fabricated metal products rose 15.9 percent and chemicals and chemical products rose 6.4 percent. However,the domestic export value of machinery, equipment, apparatus, parts and components fell 14.1 percent on a year earlier and textiles dropped 35.7 percent in this year. For consumer electrical and electronic products, the domestic export value dipped 15.5%, to $2.9 billion, while wearing apparel fell 26.7%, to $2.7 billion.

Hong Kong's foreign currency sovereign rating was recently upgraded by credit-rating agency, Standard & Poor's. The upgrade is linked to Standard & Poor's advancement of mainland China's foreign currency rating from "AA" to "AA+" which could help to integrate Hong Kong's economy and further improvement in the Mainland's credit strengths.

OPEC President Mr.Chakib Khelil said " the crude prices above $120 a barrel because of the US strong currency and tensions on Iran" Khelil also added, if the dollar continues to strengthen and the political situation in Iran improves, then the long-term prices will be about 78 dollars.

The EFTA which consists of four countries, Switzerland, Norway, Iceland and Lichtenstein has suggested Malaysia to form FTA blog. According to Minister of International Trade and Industry Tan Sri Muhyiddin Yassi,Hong Kong and Switzerland have an eye on new markets in financial services and the high-precision technology industry In Malaysia.

On Thursday, Hong Kong's government said export sales of goods both to the U.S. and China fell far short of expectations. Hong Kong's exports fell 0.6 percent in June after a 10.3 percent annual increase in last month. Sale of office machines fell 15 percent, and electrical machinery and appliances, which both are Hong Kong's top exports, fell 7.9 percent.Telecommunication gadgets fell 6.5 percent.

To offset the effects of rising inflation in Hong Kong, Chief Executive Donald Tsang Yamkuen announced an HK$11 billion inflation relief package. Tsang's ten-point plan includes a student subsidy and assistance for lower income groups to buy food. The revaluation of the Hong Kong dollar was also discussed. However, even if the Hong Kong dollar appreciated 10%, inflation would not be significantly lowered.

To curb the effects of inflation in Hong Kong, which stood at 5.7 percent in May, Chief Executive Donald Tsang Yam-kuen is to announce a HK$5 billion inflation relief package. The relief package will include free rent, additional fruit money for the elderly, and an increase in the School Textbook Assistance Scheme. Recipients of Comprehensive Social Security Assistance will receive an extra month's allowance and people in public housing will get an exemption from paying rent for one month.

Health officials ordered to kill all the market poultry in Hong Kong on Wednesday to against one of the largest outbreaks of the bird flu virus in years. It was unclear how many birds would be killed or how many were infected, but around 3,500 chickens were for sale by nearly 470 retail vendors citywide as of Tuesday night.

Hong Kong's benchmark,Hang Seng Index was down 455.6 pts or 1.8%, at 24,375.8, Hang Seng China Enterprise Index, was down 404.4 pts or 2.9%, at 13,622.0, and the Shanghai Composite Index was down 22.6 pts or 0.65%, at 3,436.4 after China telecom firms announced their restructuring details. China Unicom (762) plunged $2.6 or 14.1%, at 15.88. China Netcom (906) slumped $3.45 or 12.8%, at $23.6. China Telecom slumped $0.72 or 12.7%, at $4.95.