HK Stock Market Move | Tech stocks weakened, dragging down the Hang Seng Tech Index. Alibaba-W (09988) dropped more than 5% and Tencent (00700) fell more than 4%.

The technology stocks collectively weakened, dragging down the Heng Science Index by over 4%. As of the time of writing, XIAOMI-W (01810) fell by 7.78% to HK$48; BABA-W (09988) fell by 5.2% to HK$156.8; Tencent (00700) fell by 4.07% to HK$625. On the news front, tariff expectations once again hit market sentiment. In addition, the Bank of England recently stated that the valuation of AI-related stocks is already "too high", and the key infrastructure that supports their development (such as data centers) is facing "bottleneck" risks, which could trigger a "significant correction" in the market. However, there is a significant difference of opinion among market giants as to whether AI constitutes a bubble. UBS International released a research report stating that increasing investment may affect short-term profitability, but they will maintain a good position for Alibaba, seizing the structural AI opportunities and achieving synergy between Alibaba and its main market businesses to consolidate its long-term growth goals. Goldman Sachs, on the other hand, stated that they expect the market to focus on AI application and capital expenditure prospects in Tencent's third-quarter performance, as well as upgrades in basic and multimodal AI model capabilities.