China’s Tighter Capital Controls Shake Hong Kong Financial Stocks

Listed shares of major financial institutions in Hong Kong faced selling pressure on Friday as concerns grew over Beijing’s stricter capital controls impacting global financial firms with significant exposure to mainland China. AIA Group saw a more than 3% decline, HSBC Holdings fell nearly 2%, Standard Chartered dropped around 3%, and Bank of East Asia lost over 2% amidst reports of increased scrutiny on offshore account openings and cross-border fund flows. The selloff in Hong Kong mirrored weakness in London-listed financial stocks following reports that mainland Chinese residents were encountering more restrictions opening offshore accounts with major Hong Kong banks….