HK Stock Market Move | Hong Kong banking stocks decline; STANCHART (02888) and HSBC HOLDINGS (00005) both fell more than 4% at one point.

Hong Kong banking stocks declined, with STANCHART and HSBC both falling more than 4% at one point this morning. As of press time, STANCHART (02888) fell 3.65% to HK$221.6; HSBC HOLDINGS (00005) fell 3.27% to HK$145. On the news front, global bond markets suffered a sell-off, with the benchmark 10-year U.S. Treasury yield hitting 5.365% on Wednesday, while the 30-year U.S. Treasury yield also hit a new high since May 2002. In addition, on October 7 local time, the Stoxx Europe Banking Index fell sharply in tandem with the sovereign bond sell-off, hitting a new low since July. It is worth noting that UK Chancellor of the Exchequer Rachel Reeves will announce her first budget on October 28, with persistent market rumors that the government may impose a "windfall tax" on banks or raise tax rates. Separately, HSBC is reportedly planning to significantly cut jobs in its UK wealth management business, reducing a large number of financial advisers and other professionals, in a push to use AI to help serve customers.