HK Stock Market Move | Tech stocks are generally under pressure, TENCENT (00700) dropped by more than 2%, BABA-W (09988) fell again.

Technology stocks are under pressure. As of the time of writing, KINGSOFT (03888) fell by 2.53% to 30.8 Hong Kong dollars; TENCENT (00700) fell by 2.2% to 622.5 Hong Kong dollars; BABA-W (09988) fell by 0.13% to 154.7 Hong Kong dollars, rising more than 2% in early trading. On the news front, the overnight U.S. stock market experienced a fierce sell-off again, with many large technology stocks falling. Some analysts say that investors are now taking a closer look at the fundamentals of the artificial intelligence boom. Concerns about the high valuation of technology stocks have been dominating the market in recent weeks. In addition, the Federal Reserve continues to send hawkish signals, increasing uncertainty about a potential rate cut in December. It is reported that the market's expectation of a 25 basis point rate cut by the Federal Reserve in December has decreased from 70% to 40%. Soochow believes that short-term adjustment is still ongoing in the Hong Kong technology sector. Since early October, the narrative of the AI bubble in the U.S. stock market has resurfaced, combined with a lack of new catalysts in the industry recently, the upward momentum of Hong Kong AI technology stocks is insufficient. Nvidia's financial report is approaching, and the market is still waiting for signals. The bank believes that the current position of Hong Kong technology stocks is attractive from a medium to long-term perspective.