HK Stock Market Move | AI hardware stocks opened sharply lower; Democrats sweep Congress, AI regulatory concerns escalate, and the U.S. stock market crash spreads to Asia-Pacific markets.

Hong Kong AI hardware stocks opened sharply lower across the board today. As of press time, YOFC (06869) fell 12.59% to HK$84; Victory Giant Technology (02476) fell 11.84% to HK$105; KB LAMINATES (01888) fell 11.3% to HK$28.98; Zhongji Innolight (03308) fell 11.06% to HK$555; LENOVO GROUP (00992) fell 9.3% to HK$17.6; Hua Hong Grace Semiconductor (01347) fell 8.6% to HK$61.5. On the news front, the Democrats' sweep of Congress has intensified market concerns that the AI industry will face restrictions. U.S. stocks crashed on Thursday, with AI-related sectors hit by "liquidation-style" selling, and the Philadelphia Semiconductor Index fell 12% in a single day, its largest drop since 2020. Panic spread to Asia-Pacific markets this morning, with South Korea's KOSPI plunging more than 8%, triggering a circuit breaker; Japan's Nikkei 225 extended its decline to 7%, down 20% from its June high and entering a technical bear market. Less than 24 hours after the election results came out, U.S. Representative Yassamin Ansari (Arizona) wrote on a social media platform: "Democrats need to put a pause on advanced AI development at the top of the agenda on day one, regulate runaway industries, and ban artificial superintelligence." Gina Hinojosa, governor-elect of Texas, also said, "We must halt current data center projects before measures to protect Texans are introduced." Jefferies analysts noted that data centers have become a livelihood burden issue of bipartisan concern, and expect multiple state legislatures to continue pushing restrictive measures in 2027.