Hong Kong stocks: Hang Seng Index breaks below 23,000 points on heavy volume, AI trading logic shifts
Hong Kong stocks accelerated their decline on October 22, with the Hang Seng Tech Index plunging 5%, while both the Hang Seng Index and the China Enterprises Index fell more than 3% to fresh stage lows. The Hang Seng Index broke below 23,000 points, with full-day turnover expanding to HK$256.051 billion. Large-cap tech and internet stocks led the drop, with Alibaba falling more than 6%. AI hardware-related concepts such as storage, optical communications, and PCBs posted the steepest declines, and risk sentiment spilled over into sectors including gold, nonferrous metals, pharmaceuticals, real estate, and financials. Anthropic's draft prospectus shows a net loss of US$80.7 billion for the first half of its fiscal year, far larger than the US$13 billion in the same period a year earlier, triggering volatility in market expectations.
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Cailianshe, October 22 — Hong Kong stocks accelerated their decline today, with the Hang Seng Tech Index plunging 5%, while both the Hang Seng Index and the China Enterprises Index fell more than 3%, each hitting new lows for the period.
[Hang Seng Index breaks below 23,000 points on heavy volume as short-term risk sentiment spreads]
On the board, large-cap tech stocks led the selloff today, with Alibaba down more than 6%, Meituan and Kuaishou down 4.5%, Xiaomi down 3.7%, and Baidu and Tencent both declining.
In other sectors, selling in AI hardware intensified, with storage, optical communications, PCB and other concepts consistently among the biggest decliners. In addition, gold, nonferrous metals, pharmaceuticals, shipping, real estate, financials and other sectors all fell.
Overall, short-term selling sentiment in Hong Kong stocks is severe, and as the pullback in AI technology assets deepens, risk sentiment has begun to spill over. Today the Hang Seng Index directly broke below the 23,000-point mark, with full-day turnover of HK$256.051 billion on heavy volume, a new high in nearly a month, as bulls and bears battled fiercely once again.
In terms of short selling, total short-selling turnover was HK$33.22 billion, equivalent to 12.97% of Hang Seng Index turnover, slightly below the short-term average.
At the market level, all major sectors fell today, and the impact from overseas markets became increasingly evident. The Nikkei 225 closed down 2.65%, and South Korea's KOSPI fell more than 3%.
As of press time, U.S. memory chip stocks were down in premarket trading, with SK Hynix down more than 4% and Micron Technology down more than 3%, indicating that risk sentiment is still transmitting.
Recently, the draft prospectus released by AI giant Anthropic showed a net loss of US$80.7 billion for the first half of its fiscal year, far larger than the net loss of US$13 billion in the same period last year, which also triggered fluctuations in market expectations.
In the short term, Hong Kong stocks remain in a downward trend of risk-sentiment release, and more attention needs to be paid to the further spread of panic sentiment and the risk of catch-up declines in non-tech sectors.
[A-shares weaken sharply to fresh period lows; the window for going long Hong Kong stocks still needs to wait]
In addition, A-shares also weakened sharply today, with the ChiNext Index down more than 40% from its historical high in June this year. Turnover in the Shanghai and Shenzhen markets was 1.53 trillion yuan, up 99.4 billion yuan from the previous trading day, and nearly 5,000 stocks across the market declined.
Looking ahead, Huatai Securities believes that U.S. Treasury yields and fundamental growth remain the main constraints on Hong Kong stocks' risk appetite and room for valuation recovery. Overseas tech hardware weakened on concerns over AI financing, Hong Kong hard-tech and AI model stocks followed the decline, and southbound flows continued to outflow, so the window for trend-based long positions still needs to be awaited.
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