Around the World's Markets: Hong Kong

STOCKS CLOSED down after news that the government was one step closer to unloading some of its portfolio of blue chip stocks increased selling pressure in an already falling market.

The Hang Seng index ended down 271.61 points or 2.08 per cent at 12,760.46.

"The announcement this afternoon has affected sentiment a bit. It's another reason to sell," said one analyst.