Hong Kong-listed shares of major financial firms declined on Friday due to worries that Beijing’s tighter capital controls could hurt cross-border wealth management and banking operations. Shares of AIA Group dropped more than 3 percent shortly after the open, while HSBC Holdings fell nearly 2 percent. Standard Chartered lost around 3 percent and Bank of East Asia declined more than 2 percent. The moves followed reports of stricter checks on offshore account openings and fund transfers for mainland Chinese residents. Regulators have also directed banks to improve due diligence and close suspicious accounts. The changes come after earlier actions against unlicensed brokers and form part of efforts to monitor capital outflows. Investors are watching for any lasting effects on earnings at banks and insurers active in the region.
