Hong Kong stocks tumbled on Oct 2, with the Hang Seng Index sinking 640.98 points, or 2.6%, to 23,972.29, as heavy losses in financial and technology stocks dragged the benchmark below the 24,000-mark. The decline was its steepest in more than six months.
Financial heavyweights led the sell-off. HSBC Holdings plunged 5.4% to HK$149.50, while AIA Group fell 6% to HK$69.20 and Standard Chartered dropped 6% to HK$229.80. Banking stocks came under pressure amid concerns over possible new UK bank taxes and elevated global bond yields.
Technology counters also weakened as surging US Treasury yields reduced investors’ appetite for growth stocks. Alibaba fell 2.1% to HK$104.40, JD.com declined 1.3% to HK$102.90 and Baidu lost 3% to HK$83.20. The Hang Seng Tech Index slid 2.3% to 4,157.94.
Selling pressure was amplified by thin liquidity as mainland Chinese markets remained closed for the Golden Week holiday, suspending southbound Stock Connect flows that typically provide support for Hong Kong equities. The Hang Seng China Enterprises Index also fell 2.3% to 8,030.54.
