Hong Kong Tech Stocks Lag as Hang Seng Index Falls 0.88% Amid Sector Volatility Hong Kong’s stock market faced a downturn on Friday, with major indices declining sharply. The Hang Seng Index closed at 25,277.32 points, dropping 226.18 points or 0.88%. The Hang Seng Tech Index fell 2.48% to 4,875.78 points, while the China Enterprises Index dropped 1.4%. Total trading volume surged to 342.52 billion Hong Kong dollars, reflecting heightened market activity. Technology stocks were the primary drag on the market. Xiaomi Group plummeted 8.59%, Alibaba Group fell over 6%, and shares of Tencent, Meituan, and JD.com declined between 1% and 3%. Analysts attributed the decline to rising global liquidity concerns and geopolitical tensions, which have intensified foreign institutional caution. Reduced holdings and short-selling activity have further disrupted market balance. The downturn was exacerbated by news of Super Micro Computer facing U.S. Department of Justice allegations of evading export controls. The company’s stock dropped over 20%, deepening investor anxiety about the tech sector. Amid the broader decline, lithium battery stocks outperformed. Contemporary Amperex Technology (CATL) surged 8.39%, hitting a new high, while Joyson and Ganfeng Lithium rose more than 5%. Shenda Futures analysts noted strong demand from downstream manufacturers, with March production forecasts reaching historic highs. They highlighted healthy inventory structures as a key driver of the sector’s resilience. Despite the overall weakness, some individual stocks showed strength. AIA Group rose over 3% following reports of a 15% increase in new business value and plans for a 17 billion dollar share buyback. Looking ahead, institutional views on tech leaders remain divided.#tencent #hang_seng_index #meituan #xiaomi_group #alibaba_group
