HK Stock Market Move | AI hardware stocks fall again as Meta's $825 billion spending pledge ignites credit fears; market reassesses AI investment returns and financing pressure.

AI hardware stocks fell again this morning. As of press time, YOFC (06869) is down 4.25% at HK$106; Hua Hong Semiconductor (01347) is down 3.61% at HK$64.15; Zhongji Innolight (03308) is down 3.25% at HK$700.5; LENOVO GROUP (00992) is down 3.37% at HK$22.38. On the news front, the U.S. AI supply chain suffered a broad selloff overnight, with the Philadelphia Semiconductor Index plunging 6.72% in a single day, and memory and optical communications among the hardest hit. The trigger was Meta's future spending commitments soaring to an astonishing $825 billion, with its five-year CDS quote hitting a record high, prompting the market to reassess the return prospects and financing pressure of massive AI investment. It is worth noting that debt insurance prices for large tech companies such as Oracle, Microsoft, and Amazon are also under varying degrees of pressure. Among neocloud providers, in mid-October this year, Coreweave's 5-year CDS reached 1,194 basis points, implying a default probability of over 60%, while its unsecured high-yield bond yield rose to 16.2%, having fallen into junk-grade territory.