SHANGHAI: Hong Kong shares closed lower on Tuesday, with the Hang Seng index witnessing its biggest daily drop in five months, as worsening Ukraine crisis and fears over a fresh round of regulatory crackdowns in the tech sector rattled sentiment. At the close of trade, the Hang Seng index was down 650.07 points or 2.69% at 23,520.00, logging the steepest slump since Sept. 20. The Hang Seng China Enterprises index fell 2.19% to 8,270.69.

Leading the losses, the IT sector dipped 1.76% and the financial sector slumped 3.18%.

Investors dumped riskier equity assets after Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent.

Investor worries over the potential for a fresh wave of regulatory crackdowns in China’s tech firms set off steep drops in tech shares, including food delivery giant Meituan, which was among the worst H-share decliners. Chinese authorities have told state-owned firms and banks to start a fresh round of checks on their financial exposure and other links to Ant Group Co Ltd, Bloomberg News reported on Monday, citing people familiar with the matter.