Tech stocks came under broad pressure this morning, dragging the Hang Seng Tech Index down by more than 4% to a low of 3,829.18 points, marking its weakest level since September 24, 2024.
So far this year, the Hang Seng Tech Index has fallen more than 30% cumulatively.
As of press time, Alibaba-W (09988) dropped 5.3% to HK$98.2, while Tencent (00700) fell 3.2% to HK$381.2.
On the news front, Chinese concept stocks collectively declined in the overnight U.S. market, with the Nasdaq Golden Dragon China Index, which tracks the performance of Chinese concept stocks, closing down sharply by 2.35%.
Notably, northbound funds withdrew significantly from tech stocks yesterday. On October 21, southbound capital recorded a net sell of over HK$4.4 billion in Hong Kong stocks, with tech stock sales accounting for more than half of the northbound outflow. Tencent saw a net sell of HK$1.706 billion yesterday, the largest among northbound net sells; Alibaba also recorded a net sell of HK$878 million, ranking third in individual stock net sells.
Wen Tianna, CEO of Boda Capital International, stated that U.S. inflation data has heightened interest rate hike expectations, rising U.S. Treasury yields are pressuring growth stock valuations, and Hong Kong tech stocks (especially internet platforms) are increasing AI capital expenditures, which is suppressing profit margins and cash flow in the short term. The market harbors doubts about the return cycle. Currently, the Hang Seng Tech Index is structurally weighted toward traditional internet and e-commerce, with limited AI hardware exposure, having missed part of the global AI mainline rally over the past year.
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