MTR Corporation (00066) dropped more than 3%, leading blue-chip declines. As of press time, the stock was down 3.16% at HK$30.68, with turnover of HK$160 million.

On the news front, MTR Corporation announced on October 2 that it had reached a settlement arrangement with the Hong Kong government regarding matters related to early construction delays on two projects — the High Speed Rail (Hong Kong Section) and the Sha Tin to Central Link (SCL). Under the arrangement, the company will make a one-off payment of HK$2.25 billion to the government this year for the High Speed Rail (Hong Kong Section) project. For the SCL project, both parties agreed not to pursue mutual claims over construction delays, with no additional payments involved.

A CLSA research report noted that this amount represents approximately 1% of the bank's forecast 2026 net asset value and the company's current market capitalization. The payment will be recorded in the profit and loss statement for the second half of fiscal year 2026, potentially causing a 11% decline in net profit for fiscal year 2026. The bank's core view remains unchanged, maintaining that balance sheet pressure may lead to dividend cuts and/or equity issuance.