Hong Kong stocks drop by most in 2 weeks amid AI bubble fears, track Wall Street

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Hong Kong stocks fell on Wednesday, tracking Wall Street’s retreat from record highs amid growing concerns that the artificial intelligence boom may have overheated and risks turning into a bubble.

The Hang Seng Index declined 1.4 per cent to 26,588.88 as of 9.55am local time, the biggest drop in two weeks. The Hang Seng Tech Index lost 2 per cent. Stock exchanges on the mainland are closed for a week-long public holiday and will reopen on Thursday.

Search-engine leader Baidu slumped 5 per cent to HK$132.30, while food-delivery service provider Meituan declined 2.5 per cent to HK$103. E-commerce giant Alibaba Group Holding dropped 3.1 per cent to HK$175, while peer JD.com slipped 2.7 per cent to HK$133.60. Electric-vehicle maker Li Auto fell 2.1 per cent to HK$94.25 and blind-box toymaker Pop Mart International lost 1.8 per cent to HK$251.80.

Limiting losses, carmaker BYD advanced 0.6 per cent to HK$108.60, while digital health services provider JD Health International added 2 per cent to HK$66.05 and property developer CK Asset Holdings rose 0.2 per cent to HK$37.50.

Overnight, the S&P 500 Index lost 0.4 per cent and the Nasdaq Composite Index declined 0.7 per cent as investors feared that the AI euphoria had driven valuations to excessive levels, fuelling bubble concerns.

CF PharmTech surged 198 per cent to HK$43.96 on its debut in Hong Kong.