Hong Kong stocks fell for a second straight session on Tuesday as restrictions on Chinese investments in key US industries fueled a sell-off in technology shares.

The Hang Seng Index fell 1.32%, or 307.59 points, to close at 23,034.02. The Hang Seng China Enterprises Index slid 1.39%, or 119.69 points, at 8,499.19.

US President Donald Trump signed a national security presidential memorandum last Friday directing the US Foreign Investment Committee to limit Chinese investments in critical American niches, including semiconductors, AI, quantum computing, aerospace, and biotechnology.

Concerns about expanded efforts to restrict Beijing's technological capabilities further dampened market sentiment.

As part of efforts to constrain China's semiconductor industry, US officials recently met with their Japanese and Dutch counterparts to prevent Tokyo Electron and ASML engineers from servicing semiconductor equipment in China, Bloomberg News reported Tuesday.

Meituan (HKG:3690) led decliners with an almost 5% retreat, followed by Alibaba (HKG:9988) and JD.com (HKG:9618) with a drop of nearly 4% each.

Meanwhile, shares of Tencent (HKG:0700) and SMIC (HKG:0981, SHA:688981) closed 2.5% and 1.5% lower, respectively, on Tuesday.