Solid Gold Berjangka - The Hang Seng Index closed 263 points, or 1.1%, lower at 24,533 in Friday’s (Nov 6) trading session. The decline followed a strong rally the previous day, as a sell-off in global technology stocks once again dampened investor sentiment in Hong Kong.
The primary pressure stemmed from the technology sector, where a sharp drop in Wall Street tech stocks fueled concerns regarding valuations and the outlook for the artificial intelligence (AI) industry. The Hang Seng TECH Index fell 1.7% to 4,081, reflecting an increase in risk-reduction moves within growth stocks.
Several large-cap stocks weighed on the index: Tencent fell by approximately 2.1%, Alibaba weakened by 3.8%, and Xiaomi declined by about 0.4%. Semiconductor stocks and companies with exposure to the AI supply chain also faced downward pressure.
Negative sentiment intensified following the Democratic Party's victory in the U.S. midterm elections, which raised concerns about potential stricter regulations on the AI industry and data center investments. This added to the pressure that had already impacted the Nasdaq and Asian technology stocks.
Despite Friday’s decline, the Hang Seng remained supported by market stabilization measures from Beijing and the recovery in sentiment seen in the previous session. Investors will now closely monitor developments in AI regulation, China’s stimulus policies, and the direction of Wall Street to gauge the future movement of the Hong Kong market. (srh)