Hong Kong stocks plunge to one-month low as financial stocks fall on tightened regulations

Hong Kong stocks declined on the first trading day after Easter holidays, breaking the 24,000 point threshold for the first time in a month, as financial stocks tumbled amid tightened regulations and lingering geopolitical uncertainties in North Korea and France.

The Hang Seng Index closed 1.4 per cent or 337.1 points down at 23,924.5, catching up with the losses in the mainland market on Friday and Monday when the Hong Kong market was closed for public holidays. The Hang Seng China Enterprises Index, or the H-share Index, lost 1.6 per cent and fell to a two-month low of 10,043.5.

Meanwhile equities tumbled in the mainland stock market to the lowest level in two months.

The Shanghai Composite Index extended its losing streak for three days in a row, and was down 0.8 per cent to 3,196.7. The benchmark closed below the 3,200 threshold for the first time since February 10. The CSI 300 Index, which tracks large companies in Shanghai and Shenzhen, shed 0.5 per cent to 3,462.7, the lowest level so far this month. The Shenzhen Component Index lost 0.4 per cent to 10,411.4, while the Nasdaq-like ChiNext fell 1.1 per cent to 1,848.2.

Financial sector stocks were the major losers on Tuesday amid tightened regulations and probes on top regulatory officials, said Hanna Li Wai-han, strategist at UOB Kay Hian Hong Kong.

“The China Banking Regulatory Commission has been tightening banking supervision, while the probes on financial regulatory leaders added to investor concerns.”