Hong Kong's stock market slipped on Tuesday with a drop in HSBC shares after a surprise loan loss dragging on the market while mainland markets were closed ⁠for a holiday.

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)



Edited by Thomas McAlinden