The benchmark Hang Seng Index closed lower, reversing earlier stability as heavyweight technology firms retreated amid signs that enthusiasm for artificial intelligence-related growth may be moderating.
Losses were concentrated in the technology sector, where several leading internet and platform companies fell sharply.
Investors appeared increasingly cautious about earnings visibility and capital spending requirements tied to artificial intelligence development, prompting reassessments of recent share price gains.
Broader market sentiment was also influenced by mixed signals from global markets and uncertainty over the pace of policy support for the technology sector.
Market participants described the move as a continuation of profit-taking after a strong rally earlier in the year, noting that artificial intelligence-driven stocks had been among the biggest beneficiaries of speculative inflows.
Financial and property shares offered limited support, while trading volumes suggested a defensive tone rather than panic selling.
Analysts said the latest decline reflects a more selective approach by investors as expectations around artificial intelligence revenues and timelines are reassessed.
Despite the pullback, many noted that long-term interest in technology and innovation remains intact, with near-term market direction likely to hinge on earnings updates and clearer signals on global monetary policy.

















