Hang Seng Tech Index drops 2% as Alibaba, XPeng lead sell-off

The Hang Seng Tech Index slid 2% in afternoon trading on Wednesday, dragged by a broad sell-off in Hong Kong-listed technology heavyweights that erased early-week gains.

"The sell-off reflects renewed caution toward Chinese tech names after a period of consolidation, with profit-taking concentrated in the most liquid names," said Kevin Ip, an equity strategist tracking HK markets.

XPeng (小鹏汽车, 9868.HK) led the decline, falling more than 6%, while Alibaba Group (阿里巴巴, 9988.HK) dropped over 5%. The broader Hang Seng Index also came under pressure, though losses were more contained than in the tech-heavy gauge. Trading volumes picked up in the afternoon session as selling accelerated, with turnover on course to exceed the 20-day average.

The move coincided with weakness in mainland A-share markets, where the CSI 300 fell 1.2%, and a softer tone in US equity futures ahead of the Federal Reserve's rate decision later Wednesday. The offshore yuan weakened past 7.26 per dollar, adding to headwinds for Chinese equities. The sell-off in Hong Kong tech names also tracked a broader regional decline, with South Korea's Kospi and Japan's Nikkei 225 both trading lower.

This article is for informational purposes only and does not constitute investment advice.