Hong Kong’s Hang Seng Index weakened again during Friday’s trading session (November 6, 2026), falling 0.7%—or approximately 181 points—to reach the 24,612 level. This decline followed a 3.7% surge in the previous session, which had marked the index’s largest daily gain in 21 months. The market downturn was triggered by a sell-off in U.S. technology stocks that rippled across Asian exchanges, compounded by profit-taking from investors following Thursday’s sharp rally.
Pressure on the Hong Kong stock market intensified after the Nasdaq index on Wall Street plummeted 5.5%, while the Philadelphia Semiconductor Index slumped 12.2%. This collapse wiped trillions of dollars off the market capitalization of U.S. stocks and fueled concerns regarding the outlook for the artificial intelligence (AI) industry. Investors have begun to question the sustainability of the massive spending by tech companies on data center construction and semiconductor infrastructure. Furthermore, the growing prospect of regulatory scrutiny over the AI industry in the U.S. has further dampened sentiment, prompting investors to trim their holdings in technology stocks across Asia.
Anxieties surrounding China’s technology supply chain have also mounted following reports that approximately 600,000 Nvidia H200 chips are currently held up in Hong Kong, awaiting approval from the Beijing government for shipment to mainland China. This situation has created uncertainty regarding the distribution of critical components essential for AI development. Should the approval process face prolonged delays, companies reliant on advanced semiconductor supplies could encounter significant operational hurdles. This has led investors to adopt a more cautious stance toward the growth prospects of China’s technology sector.
Selling pressure was evident across a range of technology stocks and companies linked to AI development. Shares of Z.AI Co. ...plummeted 11.8%, MiniMax slid 9.9%, while Tencent weakened by 1.8%. Semiconductor manufacturer SMIC fell 4.5%, and Kingboard Laminates saw a decline of 10.1%. This downturn indicates that investor concerns are not limited to AI development companies but have extended to supporting sectors, such as semiconductors and electronic components. Meanwhile, profit-taking following a prior rally has further intensified pressure on the Hang Seng Index.
Solidnews notes that the weakness in the Hang Seng reflects the growing sensitivity of Asian stock markets to developments in the AI industry and the performance of U.S. technology stocks. A sharp decline in U.S. semiconductor indices, coupled with uncertainty regarding the distribution of Nvidia chips to China, has weighed on investor confidence. Nevertheless, this correction—occurring after a 3.7% gain in the previous session—can also be viewed as a short-term market adjustment. Should the sell-off in global technology stocks persist, the Hang Seng could face further declines. Conversely, an easing of concerns regarding AI regulation and an improvement in Wall Street sentiment could pave the way for a recovery in the index during subsequent trading sessions.