Hong Kong stocks mirror Wall Street drop as AI bubble fears grow on excessive valuations

The Hang Seng Index dropped 1.1 per cent to 26,447.86 at the noon trading break, putting the benchmark on track for its biggest weekly loss in 10 weeks. The Hang Seng Tech Index shed 2.6 per cent. On the mainland, the CSI 300 Index declined 1.3 per cent and the Shanghai Composite Index fell 0.5 per cent.

The Hang Seng Index has lost 2.6 per cent so far this week, the most since easing 3.5 per cent for the five-day period ended August 1.

Technology companies led the drop. E-commerce giant Alibaba Group Holding retreated 4 per cent to HK$166.40, while peer JD.com declined 1.8 per cent to HK$133.20. WeChat operator Tencent Holdings lost 2.8 per cent to HK$656.50, while smartphone and carmaker Xiaomi slid 2.6 per cent to HK$51.95. Search-engine giant Baidu lost 5.4 per cent to HK$126.30, while electric-vehicle maker Li Auto tumbled 1.5 per cent to HK$93.15. Chipmaker SMIC slumped 5.7 per cent to HK$78.75 and peer Hua Hong Semiconductor dropped 4.1 per cent to HK$81.75.