Hong Kong stocks closed lower on Wednesday, with investors taking their cue from Wall Street’s overnight decline amid rising doubts over lofty artificial intelligence valuations and the timing of US rate cuts.
The Hang Seng Index (HSI) fell 0.4%, while the Hang Seng Tech Index (HSTECH) fell 0.7%.
In terms of star stocks, Xiaomi fell 5%; Li Auto fell 3%; Pop Mart, Kuaishou, and Nio fell 2%; Zijin Gold Intl rose 6%; Alibaba rose 1%.
The sell-off in major technology firms comes as investors are questioning whether the heavy spending on AI will translate into meaningful returns. Investors are weighing the Federal Reserve’s policy outlook, with swaps pricing showing less than a 50 per cent chance of a rate cut in December. Investors are also keeping an eye on the long-delayed US September jobs report on Thursday.
“Asian stock markets aren’t rattled, but ‘adjusting’ instead,” said Stephen Innes, managing partner at SPI Asset Management. “Positioning is light, conviction is soft, and traders are happy to operate in neutral while they wait for the two catalysts that will genuinely dictate the next chapter of price action.”