Hong Kong Stocks Slide as Xiaomi Falls 3%, Tech Sector Under Pressure
Crhk · 3 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong equities retreated on Tuesday morning as the Hang Seng Index fell 106 points to 25,306 in early trading, with technology stocks bearing the brunt of selling pressure . Xiaomi shed more than 3% to HK$26.62 despite unveiling new products at its autumn flagship launch event, including a new electric vehicle and foldable smartphone . The broader tech sector showed weakness, with Tencent, Alibaba, Baidu and Kuaishou all declining, while AI concept stocks experienced significant pullbacks . In contrast, gold miners rallied as investors sought safe-haven assets amid broader market uncertainty .
Key Points
- Hang Seng Index opened down 161 points and traded at 25,306, down 106 points, with turnover at HK$48.7 billion
- State-owned software maker DeepSeek launched a low-price AI model, sending Smartglsum up 4.5% to HK$823.5 while Minimax fell over 1% to HK$344.8
- Tencent continued its share buyback program, repurchasing 228,000 shares worth approximately HK$100 million on Monday
- Gold stocks outperformed with Zijin Mining rising over 3% to HK$37.08, China Gold International up over 4% to HK$270, and Zijin Gold International gaining over 3% to HK$165.4
- Henderson Land Development dropped 6% to HK$109.7 despite reporting an 11% increase in full-year profit and declaring a final dividend of HK$2.93
Why It Matters
The divergence between tech stocks and gold miners highlights shifting investor sentiment as concerns about valuation multiples in the AI sector mount . Xiaomi's decline despite aggressive new product launches underscores the market's focus on fundamentals over product announcements, potentially signaling a recalibration of expectations for China's consumer electronics sector ahead of the holiday shopping season .
The divergence between tech stocks and gold miners highlights shifting investor sentiment as concerns about valuation multiples in the AI sector mount . Xiaomi's decline despite aggressive new product launches underscores the market's focus on fundamentals over product announcements, potentially signaling a recalibration of expectations for China's consumer electronics sector ahead of the holiday shopping season .