The Hang Seng TECH Index fell by 10% in February, down 23% from its high in October last year

The Hang Seng TECH Index fell 10% in February, marking the largest monthly decline since January 2024, affected by weak corporate earnings and insufficient buying from mainland investors. The index is currently in a bear market, down 23% from its high in October last year.

Due to high valuations and increasing market competition, confidence in China's tech giants has cooled. Meanwhile, investors have further shifted funds towards chip manufacturers and newly listed AI companies.

Yesterday (26th), mainland investors sold stocks worth HKD 7.4 billion in Hong Kong, adding to the HKD 4 billion in sales from the previous day, which will mark the largest capital outflow since the record set at the end of August. Baidu (09888.HK) is one of the biggest decliners in the Hang Seng TECH Index this month, down 19%