The Hong Kong stock market has just hit an uncomfortable level.
Hong Kong's Hang Seng index fell 2.7 per cent on Tuesday to its lowest close of the year after a public holiday the previous day.
Investors and analysts said there were multiple reasons for Tuesday's sell-off. Here are some of the key factors:
-- US Treasury yields rose. On Monday, the yield on the 10-year Treasury note hit 4.7 per cent intraday for the first time since October 2007. Jason Lui, head of East Asia strategy at BNP Paribas, says the strong returns available in the US government bond market make Hong Kong stocks less attractive. "International investors may consider reallocating their positions to the U.S.," Lui said.
-- Foreign investors are bearish. Many Chinese companies are listed in Hong Kong. While China's economy is showing signs of activity after months of sluggish growth, it still has a long way to go. A severe downturn in the property market and tensions between the US and China have hit investor sentiment around the world. Mark Matthews, head of Asian research at Julius Baer, said: "People are pulling back from China right now." "It's good and bad," Matthews says.
-- Chinese mainland holidays. Mainland Chinese markets were closed for the National Day holiday. There was less trading activity in the market.
Hong Kong's stock market has badly underperformed other major Asian markets this year. Japanese stocks are in a bull market, while markets in India, South Korea and Taiwan are also up.