Hong Kong stocks closed sharply lower on Nov 6, with the benchmark Hang Seng Index falling 315.12 points, or 1.27%, to 24,481.86, as a global technology sell-off and concerns over tighter US artificial intelligence (AI) regulations weighed on investor sentiment.
The decline followed a steep sell-off on Wall Street overnight, where technology shares tumbled amid fears that Democratic victories in the US midterm elections could trigger stricter AI regulations and greater scrutiny of major technology companies.
Concerns over soaring data centre spending, stretched AI valuations and uncertain investment returns further pressured technology stocks across Asian markets.
The Hang Seng Tech Index dropped 1.83% to 4,078.23, while the Hang Seng China Enterprises Index declined 1.13% to 8,274.10.
Technology heavyweights led the losses, with Alibaba falling 3.8% and Tencent shedding 2.5%. AI-related stocks were particularly hard hit, with Z.AI plunging 10.5% and MiniMax declining 8.5%.
However, sportswear maker Li Ning bucked the broader weakness, jumping 5.2% following its announcement of a special dividend.
Market turnover reached HK$247.43 billion as investors reduced exposure to technology stocks amid heightened global volatility.
Despite the retreat on Nov 6, the Hang Seng Index recorded a 5.1% weekly gain, its strongest performance since March 2025, while the Hang Seng Tech Index advanced 8.6% for the week.
Mainland Chinese markets also weakened, with the Shanghai Composite Index declining 1.1% and the CSI 300 falling 1.4%, reflecting broader concerns over the outlook for AI-related investments and global technology demand.