China-related shares in Hong Kong took a battering last week as Beijing's official media acknowledged the illegal outflow of money to play stocks for the first time, heightening fears that a crackdown is looming.

The indexes for red chips, mainland-backed companies incorporated in Hong Kong, and H shares - companies incorporated in China, but listed in Hong Kong - have nosedived. Investors are worried that the flow of mainland money, which has been powering a rally in China stocks in recent weeks, could soon be turned off. Analysts have indicated a sense of uncertainty and jitters throughout the investment community.