Hong Kong shares dive early on bird flu fears, placement concerns.

(From Xinhua Financial News - China Focus)

HONG KONG (AFX-ASIA) - Share prices fell sharply in early trade amid fears there may be a large scale outbreak of bird flu in China that could affect Hong Kong's economic recovery and on concerns major firms may take advantage of recent gains to place stocks and raise cash, dealers said.

At 10.39 am, the Hang Seng Index dived 254.06 points or 1.91 pct to 13,035.31 after trading within a range from 12,985.70 to 13,158.26 on mainboard turnover of 5.64 bln hkd.

The Hang Seng February contract was at 13,029.

Kenny Tang, associate director at Tung Tai Securities, said the fears there may be a large …