Hong Kong Markets falls on Credit Suisse, SVB turmoil

Hong Kong share market finished session lower on Thursday, 16 March 2023, on tracking negative cues from Wall Street overnight, as turmoil surrounding major Swiss bank Credit Suisse stirred concern that problems in the U.S. financial system, caused by the collapse of two regional banks, could spread to Europe.

At closing bell, the benchmark Hang Seng Index dropped 335.96 points, or 1.72%, to 19,203.91. The Hang Seng China Enterprises Index declined 77.39 points, or 1.18%, to 6,482.47.

Stocks dropped throughout the day, with banks and insurers led losses, after Credit Suisse's said it had found "material weakness" in its financial reporting in previous years. HSBC slipped 2.4% to HK$53.90, while its subsidiary Hang Seng Bank declined 2% to HK$115.60 and Bank of China (Hong Kong) slumped 3.9% to HK$24.90. AIA Group lost 5.1% to HK$76.40 and peer Ping An Insurance slid 3.3% to HK$50.50.

 

Chinese tech stocks also weakened amid signs the US-China tech war is worsening, with Tencent losing 2.5% to HK$336 and chip maker Shanghai Fudan Microelectronics dropping 1.9% to HK$31.65 and Hua Hong Semiconductor fell 3.3% to HK$31.80.

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