At closing bell, the benchmark Hang Seng Index fell 279.46 points, or 1.32%, to 20,844.74. The Hang Seng China Enterprises Index was down 129.27 points, or 1.77%, to 7,191.64.
Market sentiments rattled on renewed Covid concerns after Shanghai reported its first case of the highly infectious BA.5 omicron sub-variant. China had discovered its first case of a highly transmissible Omicron sub-variant in Shanghai and that new cases had jumped to 63 in the China's largest city from 52 a day earlier.
Traders were nervous that the discovery of the new sub-variant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, and more Covid lockdowns may lie ahead.
Investors are also bracing for the macro data including U.S. consumer inflation on Wednesday, and comments from Federal Reserve Officials later in the week that could throw light on the path of monetary policy in the US. A high inflation reading would add pressure for the Fed to step up its already aggressive pace of interest rate increases.
Casino stocks fell sharply on the back of worsening Covid trends in China, including a week-long shutdown of casinos in Macau. Wynn Macau retreated 6.7% to HK$4.89, while SJM Holdings, which owns The Grand Lisboa, shed 6.7% to HK$3.23. Galaxy Entertainment lost 4.9% to HK$45.30 and Sands China fell 8.2% to HK$17.14.
Chinese tech stalwarts sank on penalties imposed by regulators. China's antitrust watchdog fined Chinese tech giants including Alibaba, Tencent and Bilibili for failing to comply with anti-monopoly rules on the disclosure of past transactions, according to a statement on Sunday. Tencent Holdings sank 2.9% to HK$342.40 while JD.com tumbled 4.4% to HK$235. Alibaba Group Holding weakened 5.8% to HK$114.
Powered by Capital Market - Live News