The Hang Seng Index declined 0.9 per cent to 26,711.89 as of 11am local time. The Hang Seng Tech Index lost 0.9 per cent. Stock exchanges on the mainland are closed for a week-long public holiday and will reopen on Thursday.
Search-engine leader Baidu slumped 4.1 per cent to HK$133.50, while food-delivery service provider Meituan declined 2.1 per cent to HK$103.40. E-commerce giant Alibaba Group Holding dropped 2.4 per cent to HK$176.20, while peer JD.com slipped 2 per cent to HK$134.40. Electric-vehicle maker Li Auto fell 1.1 per cent to HK$95.25 and blind-box toymaker Pop Mart International lost 1.7 per cent to HK$252.
Limiting losses, carmaker BYD advanced 1.8 per cent to HK$110, while digital health services provider JD Health International added 2.8 per cent to HK$66.55 and property developer CK Asset Holdings rose 1.2 per cent to HK$37.88.
Overnight, the S&P 500 Index lost 0.4 per cent and the Nasdaq Composite Index declined 0.7 per cent as investors feared that the AI euphoria had driven valuations to excessive levels, fuelling bubble concerns.
“[AI] bubble risk is rising as sentiment overheats,” said Charu Chanana, chief investment strategist at Saxo Bank, in a note on Tuesday. “Bulls see a lasting productivity boom, with early profits and capex visibility supporting lofty valuations, while bears warn that returns may lag the hype and infrastructure growth could outstrip monetisation.”
