Hong Kong Stocks Slips on AI Sell-Off

The Hang Seng Index fell 0.7%, or 181 points, to 24,612 on Friday, retreating slightly after surging 3.7% in the previous session for its biggest one-day gain in 21 months. Sentiment weakened as a sharp selloff in US technology shares spilled over into Asian markets, amid growing concerns over tighter regulatory scrutiny of the AI industry and the sustainability of massive spending on data centers and semiconductor infrastructure. The Nasdaq plunged 5.5%, while the Philadelphia Semiconductor Index tumbled 12.2%, wiping out trillions of dollars in US equity market value. Profit-taking following Thursday's sharp rally further weighed on sentiment. Adding to concerns over China's AI supply chain, around 600,000 Nvidia H200 chips were reportedly being held in Hong Kong awaiting Beijing's approval for shipment to mainland China. Among notable laggards were Z.AI Co. (-11.8%), Tencent (-1.8%), MiniMax (-9.9%), SMIC (-4.5%), and Kingboard Laminates (-10.1%).