April 20 (Reuters) - Hong Kong shares posted their biggest loss in four months on Monday, weighed down by an afternoon plunge in Shanghai stocks, even as China’s central bank took its boldest policy move yet to bolster the slowing economy.
The People’s Bank of China on Sunday cut banks’ reserve requirements by the biggest amount since the depths of the global financial crisis.
Hong Kong stocks opened higher but fell in afternoon trade, following mainland markets which were weighed down by fears of regulatory crackdown on illegal margin financing.
The Hang Seng index fell 2.0 percent, to 27,094.93, its biggest daily loss since December, 2014.
The China Enterprises Index lost 2.9 percent, to 14,111.34 points. It was the index’s biggest fall in three months.
Among the most actively traded stocks on Hong Kong’s main board were Ping Shan Tea, up 5.4 percent to HK$0.06, and China Jinhai, up 40.3 percent to HK$1.01.
Total trading volume of companies included in the HSI index was 3.2 billion shares. (Samuel Shen and Pete Sweeney; Editing by Jacqueline Wong)