Market Updates

Tech Stocks Led China Sell-Off as Global AI Bubble Worries Swirled Markets

Li Chen
18 Dec, 2025
Hong Kong

    Concerns about the AI bubble drove market sentiment in Hong Kong and the mainland, as investors wondered if the global boom in the advanced technology could turn into overcapacity. 

    The Hang Seng Index decreased 0.4%, and the mainland-focused CSI 300 index fell 0.6% amid growing anxieties about the durability of elevated investment in data centers. 

    High-flying chipmakers, application developers, platform operators, and AI infrastructure companies faced another down day as investors questioned the investment case and the level of returns.

    Oracle dropped more than 5% in New York after its longtime partner pulled out of a $10 billion deal to build a data center in Michigan, U.S.A. 

    Blue Owl Capital's decision spilled over and dragged down Nvidia, Broadcom, and other AI-related stocks between 2% and 5%. 

    Oracle disputed the Financial Times report and confirmed that the database and cloud computing company is continuing with its plans to build a large facility in Michigan. 

     

    China Indexes and Stocks 

    The Hang Seng Index decreased 0.4% to 25,370.47, and the mainland-focused CSI 300 index declined 0.6% to 4,554.12. 

    Despite the lingering market worries about AI valuations, for the year so far the Hang Seng Index is up 29%, and the CSI 300 index is higher by 19%. 

    Xiaomi Corp. declined 3% to HK $39.96, Baidu Inc. fell 2% to HK $116.50, Alibaba Group decreased 1.4% to HK $143.90, and Tencent Holding decreased 1% to HK $602.50. 

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