Hong Kong's Hang Seng Artificial Intelligence Index down 5.6% to lowest since Jan 2025

The Hang Seng Artificial Intelligence Index fell 5.6% in the latest trading session, marking its lowest level since January 2025, as renewed selling pressure engulfed tech-related names. The decline follows a broader market correction that has seen Hong Kong stocks hit a one-year low amid concerns over AI sector valuations and global market volatility.

The Hang Seng Index itself closed the week down 5.2%, its worst performance since April 2025, with the tech-heavy sub-index losing 7.6% over the same period. The China enterprises index also declined by 1.94%, while mainland markets saw sharp losses, with the Shenzhen Component Index falling 3.44% and the ChiNext Index dropping 4.07%.

The AI sector has been particularly hard hit, with the CSI Artificial Intelligence Index falling 4.6% and the CSI 5G Communication Index tumbling 5.8%. Leading optical module maker Zhongji Innolight fell 5.3%, reflecting broader investor caution in the space.

Despite the recent downturn, Hong Kong's IPO market has remained robust, with the first quarter of 2026 seeing HK$110 billion in fundraising, a five-year high driven largely by tech and AI-related listings. However, analysts have noted a growing performance gap between IPOs and the broader market, with newly listed stocks underperforming after initial surges.

Investor sentiment remains cautious, with market participants closely watching for policy support and earnings momentum to stabilize the sector.