Key Takeaways:
- HSI closes 405 points lower at 22,671, falling below the 23,000 level
- BABA-W drops 5.8% below HKD 90; SUNNY OPTICAL plunges 9.1%
- Regional selloff deepens as KOSPI slides 5.8%, Nikkei drops 4.2%
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HSI sinks 405 points to 22,671 as tech rout spreads across Asia
The Hang Seng Index fell 405 points, or 1.76%, to 22,671 on Friday, its lowest in a year, as a tech-driven selloff swept across Asia.
"The rollout of more supportive policies, progress in tackling excessive competition, and a rising share of overseas revenue would all help boost profit margins," Meng Lei, China equity strategist at UBS, said, adding that he expects earnings growth for all onshore shares to accelerate to 11% this year from 3.9% last year.
The tech-heavy Hang Seng Tech Index tumbled 150 points, or 3.41%, to 4,255, while the Hang Seng China Enterprises Index fell 147 points, or 1.94%, to 7,460. Turnover reached HK$342.1 billion. On the mainland, the Shanghai Composite Index dropped 93 points, or 2.26%, to 4,027, and the Shenzhen Component Index slid 561 points, or 3.44%, to 15,782. China's CSI Artificial Intelligence Index fell 4.6%, while the CSI 5G Communication Index tumbled 5.8%. Non-ferrous metal shares declined 4.4% and liquor stocks dropped 3.1%.
The selloff erased most of the week's earlier gains, putting the HSI on track for a 5.2% weekly decline — its worst since April 2025. The HSTECH lost 7.6% for the week. Traders pointed to three catalysts: news that OpenAI's initial public offering had been delayed, Apple Inc.'s product price hikes announced overnight, and broad profit-taking in global chip and AI supply chain stocks after a sharp rally.
Leading tech stocks came under broad pressure. Alibaba Group Holding Ltd. (阿里巴巴, 9988.HK) sank 5.79% to HKD 89.5, falling below the HKD 90 threshold. Tencent Holdings (騰訊控股, 0700.HK) declined 2.28%, and JD.com Inc. (京東集團, 9618.HK) dropped 2.79%. Meituan (美團, 3690.HK) initially rose as much as 3% in afternoon trading after the company said its value had been severely underestimated and announced plans for a share buyback, but reversed course to close 2.8% lower at HKD 64.25.
Apple Inc. concept stocks were among the hardest hit after the iPhone maker raised prices on Mac, iPad and home devices. Sunny Optical Technology Group Co. (舜宇光學科技, 2382.HK) plunged 9.1% to HKD 60.9, making it the worst-performing blue chip of the session. AAC Technologies Holdings Inc. (瑞聲科技, 2018.HK) cratered 5.86%, Cowell E Holdings Inc. (高偉電子, 1415.HK) shed 7.99%, and Fit Hon Teng Ltd. (鴻騰精密, 6088.HK) slid 7.79%.
NetEase Inc. (網易, 9999.HK) bucked the downtrend, surging 3.14% after HSBC Global Investment Research said the company would become eligible for inclusion in the Southbound Stock Connect following its dual primary listing.
The regional selloff was severe. South Korea's Kospi slumped 5.81% to 8,411 after falling as much as 9% intraday, capping its worst weekly decline in more than three months. Japan's Nikkei 225 plunged 4.15% to 79,360, erasing most of the prior session's gains, as SoftBank Group Corp. tumbled more than 12% on the OpenAI IPO delay report.
This article is for informational purposes only and does not constitute investment advice.
