The benchmark Hang Seng Index closed down 197 points, or 0.76 percent, at 25,898 on turnover of HK$122.23 billion.
The China enterprises index was 43 points, or 0.5 percent, lower at 8,730 while the tech index was 47 points, or 0.94 percent, down at 4,929.
HSBC shares ended HK$7.40, or 5.16 percent, down at HK$136 after the lender reported an unexpected US$400 million loss on private credit loans linked to a fraud case in Britain.
The market mood was wary while a fragile Mideast ceasefire was in the balance as Iran and the United States launched new attacks and wrestled for control of the Strait of Hormuz.
Despite the backdrop, new listings are booming and Star Sports Medicine stock finished its debut session nearly 120 percent higher than its offer price.
The China-based medical device company, which specialises in clinical sports medicine, raised HK$827.4 million, with the Hong Kong public offering 7,823 times subscribed.
“The IPO market is still hot,” said Kenny Ng, a securities strategist at China Everbright Securities International.
Shares in battery-maker Contemporary Amperex Technology led Hang Seng gains with a 3.7 percent rise. Last week it said it signed a three-year sales deal for sodium-ion batteries, a new technology that promises a safer, cheaper alternative to lithium-ion.
Regional trading volumes were subdued due to holidays in Japan and South Korea. MSCI’s Asia ex-Japan index slipped 0.3 percent.
The offshore yuan held steady at 6.83 per dollar, even as other emerging market currencies around Asia slumped. It is the best-performing Asian currency against the greenback since the Middle East conflict erupted on February 28.
Mainland stock, bond, currency and commodity markets reopen on Wednesday. (Reuters)
