Hong Kong stocks extended its losses to six consecutive sessions and closed 2.17 percent lower on Tuesday on accelerating declines in China's December exports and imports.

The benchmark Hang Seng Index dipped 40.73 points, or 0.29 percent, to open at 13,930.27, tracking Wall Street's overnight losses and lower openings in Asia markets.

The HSI once reversed losses to reclaim the key 14,000 in the morning session and rallied to the day's highest 14,118.93 before finishing the morning break at 13,980.91, up 9.91 points, or 0.07 percent.

Market sentiment remained fragile ahead of earnings reports of the fourth quarter. Investors' confidence was further battered by China's latest trade figures released on Tuesday afternoon.

The General Administration of Customs of China said the country's exports fell 2.8 percent year-on-year to 111.16 billion U.S. dollars while imports plunged 21.3 percent to 72.18 billion U.S. dollars.

The rates of decline for exports and imports in December both accelerated from November, crashing the HSI when trading was resumed in the afternoon session.

The index dropped as much as 326.46 points, or 2.33 percent, to the day's lowest 13,644.54 before picking up a bit to close at 13,668.05, down 302.95 points, or 2.17 percent.

Among 42 components of the Hang Seng Index, declining companies greatly outnumbered gainers 36 to 5, with utilities company CLP Holdings unchanged at 52.4 HK dollars.

Turnover rose to 47.28 billion HK dollars (6.1 billion U.S. dollars) from Monday's 46.26 billion HK dollars (5.93 billion U.S. dollars).

Market heavyweight HSBC, which accounts for the largest weighting of the index, fell 1.02 percent to 73 HK dollars, dragging down the index by 19.13 points alone.

China Mobile, the bourse's largest stock by capitalization, sank 1.77 percent to 72.2 HK dollars, sending down the index by 34points.

HKEx, the stock market's sole operator, declined 1.87 percent to 73.35 HK dollars.

China Enterprises Index, a gauge that reflects the performance of 43 companies registered in the Chinese mainland, plunged 230.7 points, or 3.16 percent, to close at 7,080.53 amid the weak trade figures in December.

Most of China's banks and insurers extended their losses. ICBC, China's largest lender, lost 1.45 percent to 3.41 HK dollars. China Construction Bank continued to move downwards, down 1.07 percent to 3.69 HK dollars after the recent sell offs by institutional investors. Bank of Communications slumped 5.04 percent to 5.09 HK dollars. China Merchants Bank sank 2.96 percent to 12.48 HK dollars.

Bank of China recovered 0.54 percent to 1.85 HK dollars.

China Life, the country's largest insurance company, lost 3.3 percent to 22 HK dollars. Ping An, China's second largest insurer after China, lost 3.67 percent to 34.1 HK dollars.

China's energy companies were all lower as oil prices fall. PetroChina, the largest oil producer in China, lost 3.89 percent to 6.42 HK dollars. Sinopec, Asia's largest refiner, weakened 3.76percent to 4.35 HK dollars. CNOOC, China's largest offshore oil company, went down 2.96 percent to 6.89 HK dollars. (7.75 HK dollars = 1 U.S. dollar)

Source: Xinhua