There probably isn't too much downside from here. The performance of other Asian markets is quite encouraging so I think the index may hold above 16,000 and maybe rise to 16,250 later in the day.

H shares held well yesterday even if there was panic selling in Tokyo and other Asian markets yesterday.

The decline today was a disappointing end to the year. The weak performance was attributable to weak Asian stocks as well as profit-taking after recent gains.

Regional markets are higher in the afternoon which helped the Hong Kong market up.

I think the market could test 15,900 today but profit-taking will set in at that level.

The market seems to have found support at 15,300 this morning. I think the fact that Nasdaq recovered on bargain hunting in some tech stocks in late trade on Wednesday has stopped stocks falling so sharply here.