【$Hang Seng Index(00HSI.HK)Hang Seng Index closed down 1.03%, $Hang Seng TECH Index(STECH.HK)Hang Seng Tech Index fell 2.15%】Tech stocks led the declines, with $WANGUO GOLD GP(03939.HK)GDS Holdings down about 13%, $MANYCORE TECH(00068.HK)Qunhe Technology down about 10%, and $BILIBILI-W(09626.HK)Bilibili down about 7%. Property stocks also fell, with $SHIMAO GROUP(00813.HK)Shimao Group down about 8% and $COUNTRY GARDEN(02007.HK)Country Garden down 8%.

A-shares and Hong Kong stocks suddenly fell in the afternoon. Analysts noted there were no major negative catalysts from a news perspective. Analysts believe the decline was due to two main reasons. First, external instability, with US stock futures weakening significantly during Asian hours today and signals of tightening from the Federal Reserve. Danske Bank senior analyst Antti Ilvonen said the bank has adjusted its expectations for the Fed, now anticipating the next policy adjustments in December 2026 and March 2027, with 25-basis-point rate hikes each time. Second, recent excessive gains in certain sectors have shown signs of froth, and profit-taking may have occurred on positive news.

Today's decline in Hong Kong stocks was also somewhat surprising. Logically, given strong performances in overseas markets last night and robust showings in Asia-Pacific markets today, Hong Kong stocks should have performed well. However, the Hang Seng Tech Index surged and then retreated in the morning, continuing to plunge, with many popular internet stocks suffering heavy losses. The "seesaw effect" between Japanese/Korean stocks and Hong Kong stocks seems to be re-emerging. When this effect begins to show, it is often a sign that global liquidity is starting to tighten.