Hong Kong stocks fall 2.1% on tech sell-off
The Hang Seng Index slips 2.1% to 25,473 as technology stocks lead the decline amid profit-taking, renewed valuation concerns and heavy AI spending.
The Hang Seng Index slipped 2.1%, or 533 points, to 25,473 on Monday, as technology stocks led the sell-off amid profit-taking and renewed concerns over the sector’s elevated valuations and heavy artificial-intelligence spending.
Alibaba Group was a key focus after announcing a US$10.2 billion (HK$80 billion) Hong Kong share placement at a 3.6% discount to its previous close to fund its AI expansion, raising concerns over potential share dilution and the company’s substantial capital spending on AI infrastructure.
Meanwhile, Shein officially launched the bookbuilding process for its Hong Kong IPO on Monday.
The fast-fashion company is offering 280 million shares at HK$47.60 to HK$49.50 each, potentially raising around HK$13.9 billion (US$1.77 billion).
Trading is expected to begin on September 1.
Notable laggards included Tencent (-2.6%), Xiaomi (-3.6%), Z.AI Co. (-5.7%), MiniMax (-6.1%), and Meituan (-1.8%).