The Hang Seng lost 237.69 points or 1.24% to finish at 18,934.36 on Thursday, snapping two-day gains, pressured by a statement from US Fed Chair Powell that he expects two or more rate hikes toward the end of the year.

The central bank's chief added that the turmoil in the US banking sector was not over yet as there were still some funding vulnerabilities. Traders were also nervous ahead of China's PMI reading for June later this week, as uneven economic recovery lingers. Separately, Beijing reportedly has passed a sweeping foreign policy law that enshrines its right to impose "countermeasures" against actions that it deems a threat, the latest move from China to bolster its position amid strained relations with the West.

All sectors ended in the red, amid sharp losses from Li Ning (-6.6%), ENN Energy (-6%), Wuxi Biologics (-5.3%), JD Logistics (-5.2%), Country Garden Hlds. (-4.9%), AIM Vaccine (-4.7%), Budweiser Brewing (-4.5%), and Meituan (-2.4%).

Source : Trading Economic