The Hang Seng Tech Index fell 3% on Wednesday, extending its decline as selling pressure intensified across Hong Kong-listed technology stocks. The drop was led by Alibaba Group Holding Ltd., which slid after reports that SoftBank Group Corp. was reducing its stake in the Chinese e-commerce giant.
The Hang Seng Tech Index dropped 3% on Wednesday, dragged by a selloff in Alibaba shares after SoftBank Group Corp. moved to reduce its stake in the Chinese e-commerce company.
"The SoftBank overhang has been a persistent source of uncertainty for Alibaba, and this latest stake reduction is weighing on the broader tech complex," said Gary Ng, senior economist at Natixis.
Alibaba Group (9988.HK) fell as much as 3% in early trading, extending its year-to-date decline. The broader Hang Seng Index also declined, while the CSI 300 in Shanghai edged up 0.15%. Other Asian markets fared better, with Japan's Nikkei 225 adding 0.34% and South Korea's Kospi rising 0.2%.
The decline shows the fragility of Hong Kong's tech sector, which has struggled to sustain a recovery as persistent geopolitical tensions and a sluggish economic rebound in China weigh on the outlook. Investors are now watching for the next batch of corporate earnings to gauge whether fundamentals can support current valuations.
The selloff in Hong Kong came as the dollar index held near a two-month low at 101.47, while two-year Treasury yields stood at 3.97%. Brent crude futures traded at $87.22 a barrel.
This article is for informational purposes only and does not constitute investment advice.
