HK Stock Market Move | Computing power hardware stocks lead the declines; Shenzhen Kinwong Electronic (03228) and YOFC (06869) both fall over 12%.

PCB, optical communications, and other computing power hardware stocks led the declines. As of press time, Shenzhen Kinwong Electronic (03228) fell 12.3% to HK$58.45; YOFC (06869) fell 12.35% to HK$110; Cig Shanghai (06166) fell 11.28% to HK$72.75; Victory Giant Technology (02476) fell 9.55% to HK$142; Zhongji Innolight (03308) fell 7.49% to HK$722.5. On the news front, the market has recently begun to worry about slowing growth at leading manufacturers and whether future returns can cover current large-scale investment. CICC noted that the market expects the year-on-year growth rate of capital expenditure by the US AI "Magnificent Seven" to drop from about 90% in 2026 to 36% in 2027, and uncertainty over investment returns has also intensified volatility in AI assets. It is worth noting that Nvidia announced yesterday at the GTC Berlin conference that it will join forces with six major supply chain partners to significantly expand production. Some views hold that the absence of mainland manufacturers among the main parties in Nvidia's official CPO capacity expansion may signal a "divergence" between the existing route and the next-generation route. At the same time, news that China Europe Fund significantly reduced its holdings in Zhongji Innolight and Eoptolink Technology Inc. in the third quarter has continued to ferment, and concerns over the "collapse of crowded trades" have further amplified selling pressure.