At closing bell, the benchmark Hang Seng Index fell 275.64 points, or 1.57%, to 17,297.94. The Hang Seng China Enterprises Index dropped 98.72 points, or 1.65%, to 5,872.38.
Market risk aversion selloff triggered as the social unrest in China has fuelled concerns over the social instability in the country and that the road to reopening could be a bumpy one. The COVID protests have flared across China and spread to several cities in the wake of a deadly fire in Urumqi in the country's far west, with hundreds of demonstrators and police clashing in Shanghai on Sunday night.
Worries over the unprecedented wave of civil disobedience in a country where in-person protests are rare, the rising COVID cases, as well as how Beijing will react to the situation kept investors on edge.
China reported 40,052 daily new cases on Sunday, topping 40,000 for the first time, according to the health ministry, prompting widespread lockdowns and other curbs on movement and business across the country.
Investors shrugged off the central bank's announcement on Friday on cutting banks' required reserve ratio (RRR) to aid a struggling economy. On Friday, the People's Bank of China (PBOC), the nation's central bank, said it would cut the reserve requirement ratio (RRR) for banks by 25 basis points (bps), effective from Dec. 5.
Among blue chips, Alibaba Group Holding tumbled 3.4% to HK$72.20 and Tencent Holdings dropped 1.1% to HK$270 while JD.com crashed 4.3% to HK$190.10.
Macau casino stocks gained after the city's six existing operators won new 10-year concessions. Sands China surged 8.4% to HK$18.80 while Galaxy Entertainment climbed 0.5% to HK$43.05. Meituan added 2.1% to HK$139.40.
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