(Bloomberg) -- Risks are mounting for Hong Kong’s stock market, the world’s fourth-largest, after the biggest plunge for the benchmark gauge in five years. China’s shock decision last week to impose a law cracking down on dissent has led to a flare up of protests in the city, sparked concern over capital outflows and increased tensions with the U.S. That’s placed Hong Kong, and its financial markets, on the front lines of a growing clash between the world’s two largest economies. The Hang Seng Index plummeted 5.6% on Friday, its worst drop since July 2015 when a bubble popped in China. A gauge of real estate companies sank the most since the global financial crisis, underscoring concern over whether investors will shift assets overseas, especially given sky-high prices for property. Currency traders piled into derivatives that profit from Hong Kong dollar weakness. © Bloomberg Hong Kong stocks valued at less than 10 times profit The slump left the Hang Seng trading at 9.5...
