HONG KONG: Hong Kong stocks plunged Friday following a rout on Wall Street fuelled by worries over the banking sector, while traders are also awaiting the release of key US jobs data.
The Hang Seng Index dived 3.04 percent, or 605.82 points, to 19,319.92, wiping out all the gains made so far this year.
The Shanghai Composite Index sank 1.40 percent, or 46.02 points, to 3,230.08, while the Shenzhen Composite Index on China’s second exchange shed 1.24 percent, or 26.16 points, to 2,087.17.
US lenders were sent into a tailspin Thursday after SVB Financial Group, which specialises in venture-capital financing, announced a stock offering and offloaded securities to raise much-needed cash as it struggles with falling deposits.
The firm’s shares collapsed 60 percent in New York as it said it lost $1.8 billion following the sales.
Hong Kong stocks end with losses
In a bid to prevent a run on the bank, SVB CEO Greg Becker asked clients to stay calm during a conference call Thursday, Bloomberg News reported, citing someone familiar with the matter.
The news came as crypto banking giant Silvergate said it planned to close as the sector faces more turmoil.
In Hong Kong, HSBC and Standard Chartered ended down more than three percent, while Hang Seng Bank fell more than four percent.
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