Hong Kong Stocks Sink 544 Points as Tech, Chip Stocks Plunge
AM730 · 2 SOURCESabout 2 hours ago2 MIN
Summary
The Hang Seng Index dropped 544 points to 25,465 on Tuesday morning, erasing gains from a five-session rally that had accumulated nearly 900 points . The index opened 229 points lower at 25,780, failing to hold the 26,000 level, and extended losses to as much as 578 points at the session low of 25,430 before recovering slightly . Turnover reached HK$167.9 billion in the half-day session . The Tech Index fell 183 points to 4,582, representing a decline of over 3.8%, with nearly all constituent stocks finishing lower .
Key Points
- Alibaba (9988) plummeted 9.76% to HK$111, the biggest decliner among Hang Seng and Tech Index constituents, after announcing an HK$80 billion share placement — its first such capital raise since listing .
- Tencent (0700) fell 3.76% to HK$439.8, Meituan (3690) dropped 3% to HK$82.45, and Xiaomi (1810) retreated 4.07% to HK$27.84 .
- Chipmakers bore the brunt of selling pressure, with SMIC (0981) sliding 6.62% to HK$67.7 and Hua Hong Hongli (1347) declining 5.23% to HK$108.8 after joining the Hang Seng Index .
- AI large language model stocks Zhipu and MiniMax suffered steeper losses, falling over 8% and 9% respectively .
- Sinopec (0386) rose over 4% to become the best-performing blue chip after releasing earnings, while China Life (2628) gained over 2% . Pop Mart (9992) bucked the trend with a 3.02% gain to HK$153.5 .
Why It Matters
The sharp pullback reflects renewed caution among investors toward high-growth tech names after Alibaba's massive share issuance raised concerns about dilution and broader capital market dynamics . With regional geopolitical tensions unresolved and the US market showing fragility, Hong Kong equities face mounting headwinds that could test the durability of recent recovery attempts .
The sharp pullback reflects renewed caution among investors toward high-growth tech names after Alibaba's massive share issuance raised concerns about dilution and broader capital market dynamics . With regional geopolitical tensions unresolved and the US market showing fragility, Hong Kong equities face mounting headwinds that could test the durability of recent recovery attempts .