Hong Kong stocks slip as tech bull run hits barriers amid losses in Alibaba, Baidu
Technical charts showed the DeepSeek-fuelled tech rally from a January low was overstretched
The Hang Seng Index fell 0.1 per cent to 22,944.24 on Wednesday. While the Hang Seng Tech Index rose 0.6 per cent, many of its biggest members including Alibaba Group Holding and Meituan suffered losses. On the mainland, the CSI 300 Index climbed 0.7 per cent and the Shanghai Composite Index added 0.8 per cent.
“Investors need to be vigilant of a pullback in the near turn, given the fact that the market is technically being overbought,” said Shen Fanchao, an analyst at Sheshang International in Hong Kong. “There are concerns for the market, particularly the weak recovery in China’s economy.”
05:00
Does the arrival of China’s low-cost DeepSeek mean the end of Nvidia’s chip dominance?
Tech stocks in Hong Kong have risen 34 per cent from a January low, rendering the DeepSeek-led rally overstretched, according to some technical indicators. The 14-day relative strength index of both the Hang Seng and the Tech Index rose above 70 this week, breaking a threshold that typically leads to a near-term pullback.