Three-Day Sell-Off In Technology Stocks Extended Losses in Hong Kong

Li Chen
06 Feb, 2026
Hong Kong

Stocks in mainland China and Hong Kong extended weekly losses, led by a pronounced sell-off in technology stocks.

The Hang Seng Index declined 1.1%, and the mainland-focused CSI 300 Index fell 0.1% as investors continued to lighten holdings of high-flying stocks.

The sharp declines in AI-related stocks in overnight trading in New York for the third session in a row rattled market sentiment in China and Asia as investors shifted their focus to a profit outlook over revenue growth. 

The sudden shift in investor narrative was sparked by growing concerns that returns from investment in AI data centers are more likely to lag market expectations.  

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.1% to 26,580.29, and the mainland-focused CSI 300 Index declined 0.1% to 4,668.01. 

Technology leaders dominated losers in Friday's trading. 

NetEase decreased 2.2% to HK $188.30, Tencent Holdings dropped 1.1% to HK $552.0, Alibaba Group declined 2.5% to HK $155.60, and JD.com fell 2.1% to HK $106.50. 

Three companies priced their initial public offerings and listed their stocks on the Hong Kong Stock Exchange. 

Muyuan Foods gained 2% to HK $40.92, and the company priced its initial public offering at HK $39 per share.

The company raised HK $10.7 billion in gross proceeds through the sale of 273.9 million shares.  

Distinct Healthcare Holdings soared 35% to HK $79.05, and the company priced its initial public offering at HK $59.90. 

The company raised HK $284.5 million in gross proceeds through the sale of 4.75 million shares.

Shenzhen Han's CNC Technology advanced 18% to HK$111.0, and the company priced its offering at HK$95.80 per share.

The company raised HK $4.8 billion in gross proceeds through the sale of 50.45 million shares.