Hong Kong stocks plunge over 3%, tech index drops 5%
Hong Kong stocks fell sharply on 22 October, with the Hang Seng Index closing at 22,934 points, a loss of 3.03 per cent. The tech index dropped 5.03 per cent to a two-year low, driven by concerns over AI investment and broad selling across sectors.
Hong Kong stocks fell sharply on 22 October, with the Hang Seng Index closing at 22,934 points, its lowest in nearly four months. The index dropped 717 points, or 3.03 per cent, the largest single-day decline in about seven months. Turnover on the main board reached about HK$256.1 billion.
All blue-chip stocks fell except for Midea Group, which held steady. The technology index was the main driver of the downturn, losing 5.03 per cent to close at 3,793 points, a two-year low and the biggest single-day drop in over a year and a half. The index breached the 3,900- and 3,800-point thresholds during trading.
Tencent completed the issuance of US$1.8 billion and 26 billion yuan in notes, and the market is concerned about whether the company will overinvest in artificial intelligence. Its shares fell nearly 3 per cent. Lenovo Group dropped over 10 per cent, Hua Hong Silicon fell over 9 per cent, and Contemporary Amperex Technology (CATL) fell over 7 per cent, extending its losing streak to seven sessions. Alibaba also fell over 6 per cent.
Financial, utility and property sub-indices fell between 1 per cent and over 2 per cent. HSBC, AIA and Hong Kong Exchanges and Clearing fell over 1 per cent. Several mainland Chinese property stocks fell over 2 per cent, while Sun Hung Kai Properties closed down over 3 per cent. Pharmaceutical stocks also came under broad pressure.