Hong Kong stocks fell to an over-three-month low yesterday as both old and new economy shares fell, with HSBC (0005) falling to a 25-year-low at HK$29.30 and Xiaomi (1810) sinking nearly 7 percent.
The Hang Seng Index lost 504 points to close at 23,950 after it opened higher in the morning. The mainboard turnover was HK$114.9 billion.
Shares of banks slumped. Hong Kong shares of HSBC touched 25-year lows and finished 5.33 percent lower, and Standard Chartered (2888) lost 6.18 percent, following media reports that they and other banks moved large sums of allegedly illicit funds over nearly two decades despite red flags about the origins of the money.
The sub-index of the Hang Seng tracking the financial sector ended 2.14 percent lower.
All but three index constituents fell yesterday. Xiaomi closed at HK$20.60, down 6.58 percent, after investment banks lowered their recommendation of the handset and electronic appliances maker. Alibaba (9988) fell by 2.82 percent to HK$262.
Mainland automaker BYD (1211) hit a record high of HK$117 before the stock turned to drop 7.51 percent, closing at HK$102.20.
Macau gaming shares edged down as analysts from Credit Suisse lowered their estimation of Macau's gaming revenue for this year. Sands China (1928) was down 4.83 percent to HK$31.55.
Country Garden (2007) was the best-performing blue chip, rising 1.06 percent to HK$9.50.
Index heavyweight Tencent (0700) slid 1.62 percent to HK$516.50 after the company said its WeChat may not be able to have new users in the United States, as the White House challenged a court ruling preventing a ban on the messaging app.
Tencent has been evaluating the potential impact of a ban since the US Department of Commerce issued an order to block WeChat downloads on national security grounds. But US Magistrate Judge Laurel Beeler temporarily halted President Donald Trump's WeChat ban. She said a challenge to the proposed ban has "shown serious questions going to the merits of the First Amendment claim" so "the balance of hardships tips in the plaintiffs' favor."
Meanwhile, Tencent has wholly acquired China's biggest game-streaming platform Huya, mainland media reported. Tencent, which also owns over a third of Huya's rival Douyu, has been driving a merger of the two platforms, Reuters reported last month.
The HSI fell 504 points. SING TAO
