--- title: "Understanding the Market | Tech stocks decline, dragging the Hang Seng Tech Index down further, Alibaba-W falls over 4%, Tencent drops over 2%" type: "News" locale: "en" url: "https://longbridge.com/en/news/281474846.md" description: "Tech stocks collectively fell today, dragging the Hang Seng Technology Index down more than 2.5% in the afternoon. Alibaba-W dropped 4.07%, KINGSOFT fell 3.36%, and Tencent declined 1.89%. U.S. President Trump warned of taking a tough stance against Iran, leading to a general decline in risk assets. Analysts pointed out that short-term geopolitical conflicts are affecting the volatility of Hong Kong stocks. HSBC believes that the AI monetization capabilities of Alibaba and Tencent are underestimated, and if they can capture market share in advertising, revenue is expected to rise by 11% by 2027" datetime: "2026-04-02T06:20:26.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281474846.md) - [en](https://longbridge.com/en/news/281474846.md) - [zh-HK](https://longbridge.com/zh-HK/news/281474846.md) --- # Understanding the Market | Tech stocks decline, dragging the Hang Seng Tech Index down further, Alibaba-W falls over 4%, Tencent drops over 2% According to Zhitong Finance APP, technology stocks collectively fell today, dragging the Hang Seng Technology Index down more than 2.5% in the afternoon. As of the time of writing, Alibaba-W (09988) fell 4.07% to HKD 117.7; Kingsoft (03888) fell 3.36% to HKD 22.4; Tencent (00700) fell 1.89% to HKD 487.2. On the news front, following U.S. President Trump's latest warning that the U.S. will "strike extremely hard" against Iran in the next two to three weeks, risk assets including the stock market, cryptocurrencies, and high-yield bonds have collectively turned downward. Analysts pointed out that this speech resembles more of a mobilization at the beginning of a war rather than a summary one month after the war began. Industrial Securities previously noted that the rhythm of short-term geopolitical conflicts is difficult to grasp, and under external disturbances, Hong Kong stocks will fluctuate in a "following" manner. In addition, HSBC released a research report stating that the AI monetization capabilities of Alibaba and Tencent are systematically underestimated. The bank believes that the market still has confidence in the long-term return on capital expenditures of the two companies, as well as their free cash flow and the sustainability of their balance sheets. The real concern is that AI investments on the consumer side could lead to higher operating expense ratios. If they can capture market share from the advertising market, both companies could see up to an 11% upside in revenue by 2027 ### Related Stocks - [159740.CN](https://longbridge.com/en/quote/159740.CN.md) - [513130.CN](https://longbridge.com/en/quote/513130.CN.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [520920.CN](https://longbridge.com/en/quote/520920.CN.md) - [BABX.US](https://longbridge.com/en/quote/BABX.US.md) - [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md) - [03032.HK](https://longbridge.com/en/quote/03032.HK.md) - [159742.CN](https://longbridge.com/en/quote/159742.CN.md) - [03896.HK](https://longbridge.com/en/quote/03896.HK.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [513180.CN](https://longbridge.com/en/quote/513180.CN.md) - [03088.HK](https://longbridge.com/en/quote/03088.HK.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [03888.HK](https://longbridge.com/en/quote/03888.HK.md) - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [03033.HK](https://longbridge.com/en/quote/03033.HK.md) - [STECH.HK](https://longbridge.com/en/quote/STECH.HK.md) - [03690.HK](https://longbridge.com/en/quote/03690.HK.md) ## Related News & Research - [Lingxing Seeks Hong Kong IPO, But Heavy Reliance On Aggregators Could Worry Investors](https://longbridge.com/en/news/284407061.md) - [Alipay launches AI payment processing tool for businesses as agent-based commerce Expands](https://longbridge.com/en/news/284355433.md) - [Ant International unveils protocol to support AI-driven mobile payments](https://longbridge.com/en/news/284355442.md) - [Alibaba’s Qwen AI is coming to cars, allowing drivers order food and book hotels by voice](https://longbridge.com/en/news/283931508.md) - [22:18 ETfal Launches HappyHorse-1.0, the #1-Ranked AI Video Model, as Official API Partner](https://longbridge.com/en/news/284296795.md)