Hong Kong stocks extend decline amid Wall Street AI valuation concerns, Fed rate outlook

The Hang Seng Index declined 1.2 per cent to 26,074.75 as of 11am local time, adding to the 0.7 per cent loss on Monday. The Hang Seng Tech Index dropped 1.2 per cent. On the mainland, the CSI 300 Index retreated 0.2 per cent and the Shanghai Composite Index shed 0.6 per cent.

Tech heavyweights led the retreat. Online games provider NetEase slid 1.6 per cent to HK$215 and short-video-sharing platform Kuaishou Technology fell 2.5 per cent to HK$65.10. Electric-vehicle maker Li Auto slipped 3.1 per cent to HK$73.05 and peer BYD lost 3.2 per cent to HK$97.50. Smartphone and carmaker Xiaomi tumbled 3 per cent to HK$40.72 and food-delivery service provider Meituan dropped 1.1 per cent to HK$99.20.

Aluminium producer China Hongqiao Group slumped 5 per cent to HK$30.68 after it announced a share placement offer of up to 400 million shares at HK$29.20 each.

Trimming losses, online travel-booking agency Trip.com jumped 2.3 per cent to HK$568.50 and chipmaker SMIC advanced 2.3 per cent to HK$74.60. E-commerce giant Alibaba Group Holding added 1.4 per cent to HK$157.