HSI Tumbles 370 Points on AI Selloff as Jensen Huang Exit Rattles Markets
SingTao · 3 SOURCESabout 11 hours ago2 MIN
Summary
Hong Kong's Hang Seng Index plunged 370 points or 1.6% to close at 23,637 on Friday, marking its third consecutive session of losses with an accumulated decline of 920 points or 3.7% . The benchmark opened lower by 136 points, breaching the psychologically important 24,000 level from the start of trading . The selloff was triggered by news that Nvidia CEO Jensen Huang announced his resignation, sending shockwaves through the AI sector and dragging down technology stocks across the board . Trading volume amounted to HK$195.8 billion, while northbound capital inflows persisted for the third consecutive day at HK$2.333 billion . The tech index fell 118 points or 3% to 3,813, while state-owned enterprises index shed 119 points or 1.5% to 7,937 .
Key Points
- Nvidia CEO Jensen Huang's resignation announcement sent AI stocks into a tailspin, with semiconductor supplier Shenghong Technology (2476) plunging 13.5% and Zhongji Xuchuang (3308) tumbling 9.4%
- The Hang Seng Index closed at 23,637, down 370 points or 1.6%, with a weekly decline of 844 points, while the tech index fell 6.5% for the week
- Major tech giants Tencent (700), Alibaba (9988), Meituan (3690), and Xiaomi (1810) all fell between 3.1% and 3.7%
- SMIC (981) bucked the trend with a 6.5% weekly gain, making it the best-performing blue chip, while Longfor (960) was the worst with a 14.3% decline
- Oil stocks rallied on Middle East tensions as Trump stated the US doesn't need an Iran deal, with PetroChina (857) rising 2.8% to HK$10.33
Why It Matters
The synchronized decline in Hong Kong tech stocks following Huang's resignation highlights the market's vulnerability to external shocks from the US technology sector, with implications for portfolio allocations across the region . Blue Water Capital's chief investment officer Lee Chak-ming noted that Hong Kong's "weak foundation" stemming from interest rate pressures and sluggish mainland economic recovery leaves the market exposed, with the HSI facing potential support tests at 23,000 and 22,500 levels .