Hong Kong stocks fell on Monday as concerns about the banking sector weighed on investor sentiment. The Hang Seng Index closed down 2.3% at 23,335.78, with financials leading the decline.

Banking stocks were particularly hard hit amid worries about potential losses related to subprime mortgages and credit market turmoil. HSBC, the largest component of the Hang Seng, fell sharply.

“Investors are worried about the stability of the financial system,” said an analyst at a local brokerage. “There are still a lot of uncertainties about the extent of the losses that banks may face.”

Property stocks also came under pressure as investors worried about the impact of rising interest rates on the property market.

The decline in Hong Kong shares mirrored weakness in other Asian markets, which were also affected by concerns about the global economic outlook.

Some analysts believe that the market may be oversold in the short term, but they caution that further volatility is likely in the coming weeks.

“It’s difficult to predict where the market will go in the near term,” said another analyst. “But it’s clear that investors are very nervous right now.”

Here are some key points from today’s trading:

• The Hang Seng Index fell 2.3%.
• Banking stocks led the decline.
• Property stocks also came under pressure.
• Market volatility is expected to continue.

Investors are advised to exercise caution and to consult with their financial advisors before making any investment decisions.