Hong Kong stocks slipped on Friday after risk sentiment dimmed on Wall Street as bad loans at two US banks heightened concerns about the credit market.

The Hang Seng Index fell 2.5%, while the Hang Seng Technology Index fell 4.1%.

In terms of star stocks, SMIC fell 7%; Pop Mart, XPeng, Meituan, Alibaba, Baidu, BYD, Kuaishou, Li Auto, Xiaomi, NetEase, Bilibil, and Mixue Group fell 4%; JD.com fell 3%; Tencnet fell 2%; while NIO rose 2%.

Shares of US regional lenders tumbled after fallout from the collapse of subprime auto lender Tricolor Holdings spread beyond Wall Street. Zions Bancorp fell 13% after a $50 million charge-off tied to a California Bank & Trust loan, while Western Alliance Bancorp dropped 11% after revealing exposure to the same borrowers.

The moves highlighted growing concerns about the US credit market, serving as the clearest evidence of the nervous undercurrents recently plaguing Wall Street, after stocks rallied to record high levels. That’s adding to a list of worries facing investors, including the US government shutdown, fears of an AI bubble and renewed trade tensions between the US and China.