Hang Seng slides 319 points on tech losses and UK bank tax plan
Hong Kong stocks fell 1.32 per cent on Tuesday, with the Hang Seng Index closing at 23,867 points, dragged by tech heavyweights and UK bank tax fears. Lenovo plunged nearly 10 per cent, while HSBC and Standard Chartered dropped after reports of a planned UK levy.
Hong Kong shares extended their losses at the close on Tuesday, dragged down by technology and financial heavyweights, with Lenovo (0992) falling nearly 10 per cent and reports that the UK plans to levy a tax on banks.
The benchmark Hang Seng Index shed 319 points, or 1.32 per cent, to 23,867 points, with full-day turnover at HK$190 billion. The tech gauge dipped 1.52 per cent to 4,045 points.
UK Chancellor of the Exchequer John Healey plans to impose a tax on banks in his first budget, to be announced on October 28, according to foreign media reports. The proceeds would fund a temporary cost-of-living support programme for specific groups. Shares of UK-headquartered banks HSBC (0005) and Standard Chartered (2888) fell 3.34 per cent and 4.29 per cent, respectively, on the news.
HSBC will hold a board committee meeting next Tuesday to review the announcement of its third-quarter 2026 earnings and whether to pay a third interim dividend on its ordinary shares for 2026.
Amid recent broader global tech sell-offs, technology heavyweights continued their losses, with Lenovo plunging 9.98 per cent as the worst-performing blue chip. CATL (3750) sank 6.58 per cent ahead of its third-quarter earnings report due later on Tuesday, and Pop Mart (9992) declined 4 per cent. Other major tech firms, including Alibaba (9988) and Tencent (0700), fell 3.58 per cent and 1.77 per cent, respectively.
Meanwhile, biopharma stock Hansoh Pharmaceutical (3692) advanced 8.32 per cent, closing as the best-performing blue chip. WuXi Biologics (2269) and JD Health (6618) also rose 3.84 per cent and 3.22 per cent, respectively.
On the mainland, the Shanghai Stock Exchange Composite Index rose 4.45 points, or 0.12 per cent, to 3,735 points, while the Shenzhen Stock Exchange Composite Index slipped 0.14 per cent to 11,801 points.