HK Stock Market Move | Technology sector stocks fell, dragging down the Hang Seng Tech Index even further. Alibaba-W (09988) dropped by more than 4%, while Tencent (00700) fell by more than 2%.

Tech stocks collectively fell today, dragging down the Hang Seng Technology Index by over 2.5% in the afternoon. As of the time of writing, BABA-W (09988) fell by 4.07% to 117.7 Hong Kong dollars; KINGOFT (03888) fell by 3.36% to 22.4 Hong Kong dollars; Tencent (00700) fell by 1.89% to 487.2 Hong Kong dollars. On the news front, following the latest warning from US President Trump that the US will "extremely forcefully" strike Iran in the next two to three weeks, risk assets including the stock market, cryptocurrencies, and high-yield bonds have collectively turned downward. Some analysts point out that this speech is in some respects more like mobilization at the beginning of a war rather than a summary one month after the war started. Industrial previously pointed out that the rhythm of short-term geopolitical conflicts is difficult to grasp, and Hong Kong stocks will move in a "follow" fashion under peripheral disturbances. Furthermore, HSBC released a research report stating that the AI monetization capabilities of Alibaba and Tencent are systematically underestimated. The bank believes that the market still has confidence in the long-term return on capital expenditure of the two companies and the sustainability of their free cash flow and balance sheet, but the real concern is the increase in operating expenses due to consumer-side AI investments. If they can capture a share of the advertising market, there is a potential 11% upside in revenue for both by 2027.