Financial Secretary John Tsang warns the Hong Kong stock market will continue to be volatile, as the Hang Seng Index plunged to 11,015.84 today, down 1,602.54 points on the previous close.

Noting transactions were conducted in an orderly manner, Mr Tsang said today's fall was caused by fund redemption and had little connection with short-selling activities.

He said the Government will closely monitor the situation and introduce effective measures when necessary.