Hong Kong stocks closed lower on Wednesday, as global growth prospects, stubbornly high inflation and tighter financial conditions hurt sentiment.

Market participants will monitor US Federal Reserve chair Jerome Powell’s testimony to Congress later in the session, with investors looking for further clues about whether another 75-basis-point rate hike is on the cards in July. 

Hong Kong’s benchmark Hang Seng Index dropped 2.56 percent to 21,008.34 points at the close, while the Hang Seng China Enterprises Index lost 2.84 percent.

The tech sector was among the biggest loser, with Hang Seng Tech Index plunging 4.37 percent.

Shares of pharmaceutical e-commerce platform operator Alibaba Health Information Technology Ltd closed down 13.85 percent at HK$4.79 ($0.61), and its rival JD Health International Inc tumbled 14.84 percent to HK$53.4.

Hong Kong-listed live streaming services providers also tumbled. Shares of Kuaishou Technology lost 4.08 percent to HK$82.35 at the close.