Hong Kong stocks fall most in two months amid simmering US-China tensions as HSBC slumps to lowest since 2009
- HSBC slumps 5.3 per cent to close at the lowest since 2009 amid concerns about Beijing punishment
- Guolian Securities soars 36 per cent after announcing plans to acquire bigger mainland rival Sinolink Securities
The Hang Seng Index dropped 2.1 per cent to 23,950.69 at the close of trading, capping its steepest loss since July 24. HSBC provided the biggest drag on the city’s benchmark, after Global Times newspaper reported that the British bank could be included in China’s list of “unreliable entities” for endangering national security.
The Shanghai Composite Index slipped 0.6 per cent to 3,316.94.
Over the weekend, President Donald Trump said he had approved the bid by Oracle for the American business of TikTok, the Chinese video-sharing app that is seen by the White House as a threat to national security. Meanwhile, traders were also keeping a close watch on the developments in US fiscal stimulus talks and China’s loan prime rate, one of its benchmarks on lending rates, which was left unchanged this month.
“Risk is trading uncomfortably [and with] uncertainty,” said Stephen Innes, a strategist at AxiCorp. “It is questionable just how high sentiment can fly this week as the drip-feed of negatives continues to weigh on risk sentiment.”