HK Stock Market Move | Hong Kong banking stocks fall again as potential UK tax hikes unsettle the sector, with markets also worried about sovereign debt losses.

Hong Kong banking stocks fell again. As of press time, STANCHART (02888) dropped 4.38% to HK$213.8; HSBC HOLDINGS (00005) fell 3.07% to HK$145.1; DAHSING BANKING (02356) declined 1.96% to HK$13.53; BOC HONG KONG (02388) slipped 0.20% to HK$50.05. On the news front, reports in early October said the UK is considering raising the bank surcharge. It is understood that HSBC and Standard Chartered will disclose their third-quarter results on October 27 and 28 respectively, while the UK Autumn Budget will be announced on October 28, when it will be officially revealed whether taxes will be raised. Huatai noted that since the end of September, Hong Kong banking stocks have corrected markedly, with the sector's adjustment mainly driven by valuations of local Hong Kong banks. The Middle East situation has pushed up oil prices, concerns over fiscal sustainability in major economies have intensified, and expectations of further rate hikes by overseas central banks have reignited, jointly triggering a global bond selloff. The market is worried about valuation losses on sovereign bonds held by banks, as well as pressure on credit exposures in relevant regions from high interest rates; a potential UK tax hike on banks would further weigh on valuations.