HK Stock Market Move | Hengke Index fell by over 3% in the afternoon, with technology stocks generally declining. The US dollar and bond yields remained high.

The Heng Seng Index fell more than 3% in the afternoon, with component stocks generally declining. As of the time of writing, HUA HONG SEMI (01347) fell 8.5% to HK$116.2, ALI HEALTH (00241) fell 6.83% to HK$4.23, and BABA-W (09988) fell 4.21% to HK$132.1. On the news front, the Asian stock market suddenly plummeted, with the US dollar index breaking through 99 on Friday, reaching its highest point since April 13. US bond yields also remained high, with the 10-year Treasury yield rising above 4.5% and the 30-year yield holding steady above 5%. New York Fed President John Williams said on May 14 that, given the uncertainty brought by the conflict in the Middle East, he currently believes that the Fed does not need to consider any adjustments to its interest rate policy. In addition, the US-Iran conflict is far from over, with reports suggesting that geopolitics may be a major trigger for adjustments. Huaxia Fund pointed out that although external liquidity constraints still exist, the continuous inflow of funds from the south is providing important support for Hong Kong-listed technology stocks. The change in leadership at the Fed will have a profound impact on Hong Kong-listed technology stocks, with the new chairman, Powell, advocating for rate cuts, balance sheet reduction, and Fed reform, which may create a new catalyst for Hong Kong-listed technology stocks. The focus will be on Powell taking over as Fed chairman and the catalysts, with a real turning point waiting for the rate cut window to open, at which point Hong Kong-listed technology stocks are expected to see valuation repairs and fund inflows.