To The Moon

Hong Kong's three major stock indices opened lower and extended their losses throughout the trading session.

By the market close, the Hang Seng Index had dropped 1.15% to 24,961.95 points, the Hang Seng Tech Index declined 1.75%, and the Hang Seng China Enterprises Index fell 0.77%.

Across the market, technology and internet stocks were mostly lower, with Baidu Inc falling over 3%, NetEase, Inc. and Xiaomi Corporation down more than 2%, and Tencent Holdings Ltd losing over 1%, while Meituan managed a gain of more than 1%.

Domestic bank stocks showed strength, with Zhongyuan Bank Co., Ltd. surging over 6%.

Semiconductor stocks experienced a collective downturn, with Semiconductor Manufacturing International Corporation (SMIC) plunging more than 7%.

The artificial intelligence sector also pulled back, with Minimax tumbling over 16%.

Domestic Bank Stocks Outperform

The domestic banking sector saw gains, led by Zhongyuan Bank's rise of over 6%.

Analysis suggests that as market volatility increases, the defensive value of high-dividend assets becomes more prominent, and the rationale for allocating to such dividend-paying stocks is expected to strengthen.

Research indicates that the current dividend yields for H-shares of major state-owned banks are generally in the 5%-6% range, which remains significantly attractive for allocation compared to the continuously declining risk-free interest rate.

Semiconductor Sector Under Pressure

Chip stocks faced a broad sell-off, with SMIC dropping more than 7%.

This followed a mostly lower session for U.S. semiconductor stocks overnight, where the Philadelphia Semiconductor Index closed down over 2%, Broadcom Inc. crashed more than 12%, and Micron Technology, Inc. fell sharply by over 7%.

Broadcom's latest revenue figures came in slightly below market expectations, casting a shadow over the AI investment boom that has been driving the market and leading investors to reassess whether future growth expectations for AI infrastructure investment have already been overextended.

AI Sector Experiences Pullback

The artificial intelligence sector corrected, with Minimax declining over 16%.

This move came after the domestic AI large model company MiniMax announced that, starting June 1, 2025, its API service billing model would be fully transitioned from the original "per-call" basis to a "per-Token" basis.

This change quickly sparked a strong reaction among developer and enterprise user communities, leading to a wave of concentrated complaints as many users expressed dissatisfaction through official community channels and social media platforms.

Faced with public pressure, MiniMax's parent company, Xiyu Technology, issued an official apology via its channels on the evening of June 2.