Hong Kong's three major stock indices all fell collectively. As of the midday close, the Hang Seng Index dropped 1.06% to 24,533.33, the Hang Seng Tech Index fell 1.75%, and the China Enterprises Index declined 0.89%.
On the board, tech internet stocks broadly declined, with Lenovo falling over 5% and Baidu dropping more than 4%. Memory concept stocks tumbled, with the Southern Maximum Two Times Long Hynix product plunging over 17%. Gold stocks generally declined, with China Gold International falling 6%. The application software sector weakened, with Zhipu dropping over 8%.
Memory concept stocks tumbled, with the Southern Maximum Two Times Long Hynix product plunging over 17%. Affected by a sharp plunge in U.S. artificial intelligence and semiconductor stocks, South Korea's KOSPI index fell dramatically, dropping over 8% and triggering a circuit breaker mechanism. The index broke below the 5,000-point mark, hitting a nearly 10-month low. South Korea's Ministry of Finance stated that it does not rule out spillover effects from the U.S. stock market decline on global markets. Necessary measures will be taken to prevent the stock market from deviating from fundamentals and experiencing excessive volatility.
Gold stocks generally declined, with China Gold International falling 6%. The World Bank's latest report shows that gold and silver prices are expected to remain at historical highs around 2027, but investors should not expect a repeat of the explosive rally and severe volatility seen in 2026. The bank estimates that gold's average price this year will reach $4,600 per ounce, up 33.6% from 2025; it will then fall 7.6% to $4,250 per ounce in 2027, and decline another 5.9% to $4,000 per ounce in 2028. This assessment represents a slight downward revision from the April forecast.
The application software sector weakened, with Zhipu dropping over 8%. On Thursday U.S. Eastern Time, the three major U.S. stock indices all fell sharply, with the Dow dropping 3.44%, the Nasdaq falling 5.52%, and the S&P 500 declining 4.35%, marking its largest single-day drop since April 2025. For companies closely tied to AI infrastructure investment, the market environment is deteriorating further. Persistently rising interest rates, rapidly swelling capital expenditure demands, and the Democratic Party's major victory in congressional elections are combining to fuel growing investor concerns that a large number of companies in the market may find themselves overburdened with debt and unable to generate sufficient revenue growth.
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