HONG KONG. Oct 9 Share prices plunged on the Hong Kong Stock Exchange Thursday in response to inflation warnings by US Federal Reserve Chairman Alan Greenspan reports AP.

The key Hang Seng Index of blue chips fell 565 40 points, or 3.8 per cent, closing at 14.273 12. after rising 27 76 points Wednesday

The Fed chairman said an interest rate Increase may be needed to cool down the US economy The Dow Jones Industrial Average finished one per cent lower after Greenspan spoke Wednesday

Traders said investors used the weak US stock market as an excuse to push the home stock market lower

"People also squared their positions, ahead of a long holiday. which deepened losses, said Kenny Tang, research head of CA Pacific Group Ltd.

Turnover was 15 06 billion Hong Kong dollars (1.9 billion US dollars), compared with Wednesday s 10 95 billion Hong Kong dollars (1 4 billion US dollars.

Among major sub indexes, financial plunged 730.31 points to 18.033.14. while utilities lost 501.65 points to 12.387.51.

Properties slumped 758.21 points to 24.225.03. and commercials and industrials shed 428.7 points to 8.996.14.