Hong Kong stocks plummeted on Monday, driven by renewed fears of widespread lockdowns in mainland China. The Hang Seng Index suffered the most significant losses in the region, reflecting investor concerns about the potential economic repercussions of further COVID-19 restrictions.

The market’s negative reaction underscores the sensitivity to any signs of a return to strict lockdown measures, which previously disrupted supply chains and economic activity. Investors are closely monitoring the situation in China, as any escalation could further dampen economic prospects.

Analysts suggest that the market’s volatility is likely to persist in the near term, pending greater clarity on China’s approach to managing the pandemic. The performance of Hong Kong stocks will remain closely tied to developments in mainland China.