Hong Kong stocks closed lower on Monday, weighed down by losses in insurers and banks following Beijing's new multibillion-yuan capital injection plan, while chip makers continue to rally.
The benchmark Hang Seng Index fell 237 points, or 0.93 percent, to 25,413 points, delivering a full-day market turnover of HK$209 billion.
Tech gauge dropped 0.92 percent to 4,527 points.
Chip makers continued their rally, with Hua Hong Grace Semiconductor (1347) advancing 4.92 percent and Semiconductor Manufacturing International Corporation (0981) rising 1.64 percent.
Tech heavyweights delivered mixed performances. Baidu (9888) and Xiaomi (1810) extended their losses, falling 4.69 percent and 3.31 percent, respectively. Xiaomi is set to unveil new foldable smartphones and other products this evening. Meituan (3690) slid 2 percent, while JD.com (9618) edged 1.45 percent lower. Tencent (0700) and Alibaba (9988) slipped 0.99 percent and 0.45 percent, respectively.
BYD Electronics surged 6.84 percent to top the blue-chip gainers, followed by Li Auto (2015), which rose 5.4 percent. In contrast, Geely Auto (0175) fell 2.84 percent.
Insurance and banking stocks came under pressure after five state-owned insurers and three banks announced plans to raise up to 360 billion yuan (HK$420.61 billion) through capital injections from the Ministry of Finance and other shareholders. Agricultural Bank of China (1398) and Industrial and Commercial Bank of China (1288) dropped 2.45 percent and 2.47 percent, respectively.
Other Hong Kong-listed Chinese insurers and banks also took a hit. China Life (2628) declined 1.1 percent, while Ping An Insurance (2318) fell 1.57 percent. China Merchants Bank (3968), China Construction Bank (0939), and Bank of China (3988) dropped 2.72 percent, 2.31 percent, and 1.98 percent, respectively.
In the mainland, the Shanghai Composite Index edged up 0.07 percent, or 2.58 points, to 3,932, while the Shenzhen Composite Index rose 1.91 percent to 13,774 points.
