Hong Kong stocks fell on Thursday, dragged down by banking shares amid concerns about the economic outlook. The Hang Seng Index closed down 0.5 percent at 20,682.55.

HSBC, Bank of China (Hong Kong) and ICBC Asia all saw significant losses, contributing to the overall market decline. Investors are also wary of potential new regulations that could impact the banking sector’s profitability.

Analysts noted that trading volume was relatively light, suggesting a lack of strong conviction among investors. The market is expected to remain volatile in the near term, with economic data releases and regulatory announcements likely to be key drivers.

Other sectors also experienced weakness, including property and retail. However, some technology stocks bucked the trend, posting modest gains.

Overall, the market sentiment remains cautious, with investors closely monitoring global economic developments and policy changes.