HK Stock Market Move | Technology stocks are under pressure and falling. Hua Hong Semiconductor (01347) dropped more than 6%. The market is worried about the resurfacing of the AI bubble.

Technology stocks were under pressure in the morning session, with the Hang Seng TECH Index falling nearly 2%. As for individual stocks, as of press time, HUA HONG SEMI (01347) fell 6.05% to HK$67.55, BABA-W (09988) fell 2.86% to HK$149.7, and Tencent (00700) fell 1.46% to HK$607. On the news front, last Friday, negative news from two technology giants, Broadcom and Oracle, once again sparked concerns about an AI bubble. Following Broadcom's performance conference call, the stock fell by 11%, while Oracle, with rumors of delayed data centers, fell by 4.5% and dropped nearly 15% in the two days after its financial report. China Securities Co., Ltd. believes that in the short term, the adjustment of US technology stocks may drag down Hong Kong stocks. In the medium to long term, Hong Kong stocks have ample liquidity this year, with continuous inflow of Southbound funds, currently still in a rate-cutting cycle by the Federal Reserve, the capital and valuation of Hong Kong stocks have support, indicating that strong industrial logic sectors are worth continuous attention.