HK Stock Market Move | Hong Kong banking stocks extend recent declines; Fitch revises France's rating outlook to negative; market concerns over valuation losses on sovereign bonds.

Hong Kong banking stocks extended their recent declines. As of press time, BOC HONG KONG (02388) fell 3.88% to HK$48.54; BANK OF E ASIA (00023) fell 3.82% to HK$17.12; STANCHART (02888) fell 3.70% to HK$213.4; HSBC HOLDINGS (00005) fell 2.43% to HK$132.4. On the news front, the UK Chancellor of the Exchequer recently said the UK government will raise the current surcharge levied on banks from 3% to 6%, below the 8% previously estimated by industry players. The tax increase will also apply for only 15 months, starting in January next year and ending on March 31, 2028. The industry still warns that the move lacks principle and could harm international competitiveness. It is worth noting that Fitch on October 30 revised France's sovereign rating outlook to "negative" from "stable," warning that deteriorating fiscal conditions combined with political fragmentation are weakening the prospects for stabilizing France's debt. The market is concerned about valuation losses on sovereign bonds held by banks.