HK Stock Market Move | Technology stocks continue to probe lower, with Alibaba Group (09988) falling more than 4% and Tencent Holdings (00700) dropping nearly 2%.

The Hang Seng Technology Index fell today, with a drop of nearly 3% in the afternoon. In terms of constituent stocks, as of the time of writing, BABA-W (09988) fell by 4.37% to HK$142.1; Semiconductor Manufacturing International Corporation (00981) fell by 3.63% to HK$62.35; Tencent (00700) fell by 1.74% to HK$592.5. On the news front, recent liquidity factors and a pullback in the US AI sector have put pressure on the Hong Kong stock market sentiment. Soochow Research Report believes that in terms of funds, Southbound funds are mostly defensive, waiting in general until the end of this year to start offensive moves next year. The strong consensus on the opening red envelope of the first quarter's policies, in addition to technology, generally favors nonferrous metals. In the medium to long term, the valuation of Hong Kong's AI technology leaders is in a reasonable range, and once there are new policies or industrial catalysts, funds will start up and the Hang Seng Technology Index will rebound significantly. It is worth noting that the Bank of Japan will hold a financial policy decision meeting on December 18-19 to raise the current policy interest rate of 0.5%. The most likely scenario is a 0.25% rate hike to 0.75%, reaching the highest level in 30 years since 1995. Galaxy Securities stated that the "BoJ rate hike powder keg" is one of the important considerations for the Hong Kong stock market. However, the bank believes that the technology sector is still the main focus of medium to long-term investments, with valuations falling back after the previous adjustment and poised for a rebound under the boost of multiple favorable factors.