HK Stock Market Move | AI concept stocks trend lower, BABA-W (09988) fell more than 3%, the market is worried about the high valuation of AI.

Concept stocks related to AI fell. As of the time of writing, BABA-W (09988) fell by 3.58% to HK$159.1; SY HOLDINGS (06069) fell by 3.51% to HK$10.71; KINGSOFT (03888) fell by 2.57% to HK$31.84; Tencent (00700) fell by 2.33% to HK$629. In terms of news, there are concerns in the market recently about the high valuation of AI-related companies. According to reports, Sarah Friar, Chief Financial Officer of OpenAI, mentioned in an event that the company is seeking to build an ecosystem consisting of banks, private equity funds, and the federal government to provide financing support for its huge chip investments. Some analysts believe that these remarks have quickly brought the topic of the "AI bubble" to the market's attention, and even interpreted it as "the US government cleaning up the mess for AI giants," triggering concerns about the rationality of valuation in the AI industry. Huatai pointed out that the AI revolution will undoubtedly greatly boost productivity and change production relations, which has been the core theme of the market in the past three years. However, discussions about the AI bubble have been increasing recently, along with the high valuations of overseas tech stocks and the US government shutdown, raising the risk of increased short-term volatility. Guosen stated that as US tech giants continue to release their third-quarter reports, the impact of AI on internet giants' advertising business, cloud computing scenarios, and enterprise efficiency remains significant. Companies continue to maintain actively investment, but the market is starting to pay more attention to the ROI performance behind the huge CAPEX. The capital expenditure pressure of domestic big companies is much lower than overseas, and the impact of AI on their related business is also significant. It is expected that the profitability of Tencent, Tencent Music, and Kuaishou will show significant improvement in operational efficiency.