The benchmark Hang Seng Index to fall 5.15 per cent on Wednesday to close at 14,266.6 points, or 774.57 points down on the day, reported dpa.
Turnover was 54 billion Hong Kong dollars (6.92 billion dollars).
The index crashed 6.5 per cent to 14,038.41 points, its lowest level since July 2005, before recovering slightly before the close.
Concerns about corporate profits came after several companies, including China's Huaneng Power International, Jiangxi Copper and Singamas Container (Holdings) warned they faced tougher times ahead.
Investors were also spooked by the decision by Hong Kong's stock market watchdog to probe Chinese conglomerate Citic Pacific after the firm said foreign exchange losses from unauthorized currency trading could top 15.5 billion Hong Kong dollars.
The Securities and Futures Commission gave no details about the investigation which follows strong criticism by banking analysts of the Citic Pacific's hedging policy.
Shares in Citic Pacific plunged a further 24.69 per cent to 4.90 Hong Kong dollars, after the share price crashed 55 per cent on Tuesday, when the company confirmed details of the foreign exchange losses.
The Beijing-headquartered Citic Group has pledged to help the Hong Kong-listed company with a 1.5-billion-dollar loan.