HONG KONG, July 22 — Hong Kong shares sank today following recent gains as hopes faded for a big cut in Federal Reserve interest rates.

The Hang Seng Index fell 1.37 per cent, or 394.14 points to 28,371.26.

The benchmark Shanghai Composite Index lost 1.27 per cent, or 37.23 points, to 2,886.97, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, closed 1.78 per cent, or 27.84 points, down at 1,532.43. — AFP