HK hit as Alibaba share sale revives AI buildout fears
Mainland and Hong Kong shares weakened on Monday as a surprise share placement by tech major Alibaba rekindled concerns about AI spending and weighed on the tech sector. In Hong Kong, the benchmark Hang Seng Index dropped 492 points, or 1.9 percent, to 25,517 on turnover of HK$291.15 billion. The tech index dropped 172 points, or 3.6 percent, to 4,594 while the China enterprises index fell 162…
Hong Kong and Mainland Chinese stocks fell on Monday after Alibaba's surprise share placement reignited worries about AI investment and impacted the technology sector. The Hang Seng Index in Hong Kong dropped 1.9%, reaching 25,517, while the tech index declined 3.6% to 4,594. Alibaba's stock plummeted up to 10.5% to a one-month low after announcing the HK$80 billion share sale at an 8.4% discount.
This large offering has surprised the market, as it comes with a significant discount and will likely cause dilution concerns. Similar declines were seen across Chinese markets, with the Shanghai Composite Index down 0.59% to 3,882 and the Shenzhen and ChiNext indices both falling more than 2%. Tech-related indices also dropped, with the Shenzhen Component Index falling 2.13% and the Shanghai STAR50 Index down 3.1%.
Major losses were observed in the CSI AI Index, which fell 4.4%, and the CSI Semiconductor Index, which lost 1.7%. Meanwhile, investors in other regions waited for details of potential US sanctions against Iran, causing markets to be cautious. In Tokyo, the Nikkei lost 0.7% to 65,528.09, with AI-related shares declining, while the Topix inched up by six points.
Seoul's Kospi fell almost 3.12% to 6,696, as investors were disappointed by Samsung Electronics' announcement of lower-than-expected returns.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
