HK Stock Market Move | Technology stocks came under pressure and fell, with the Hang Seng Tech Index dropping more than 3% at one point and dropping below the 5000-point mark.

Technology stocks are under pressure, dragging down the Hang Seng Tech Index by more than 3% and breaking below the 5000-point mark, down 20% from the high point in October last year. As of the time of writing, Kingsoft (03888) fell 4.69% to HK$24.78, Alibaba-W (09988) fell 4.34% to HK$136.8, and Tencent (00700) fell 1.74% to HK$509. On the news front, Sinolink believes that the "new and old switch" in AI narratives, tightening US dollar liquidity, combined with the impact of the Chinese New Year, further intensifies concerns about the profitability of internet giants, leading to the recent continuous decline in the Hang Seng Tech Index. However, the bank still sees good trends in the AI industry and efficiency logic, and internet giants are truly the main companies with resources, data, scenarios, and cash flow to implement AI-related businesses. They are closely monitoring the performance of internet giants and the progress of AI-related businesses. On March 1, Financial Secretary Paul Chan Mo-po of the Hong Kong Special Administrative Region government stated that while Hong Kong has limited direct trade and investment with Iran, the conflict in the Middle East is causing great uncertainty globally. He estimated that due to the impact of the Middle East conflict, there may be larger fluctuations in financial markets and capital flow may shift more rapidly, leading to uncertainty. Local funds may seek a "safe haven" in Hong Kong, so the Hong Kong government needs to be prepared and cautious in handling financial risks, and already has sufficient contingency plans in place.