Hong Kong’s benchmark Hang Seng index closed modestly higher on Tuesday, rising 0.22%, even as its technology-heavy sibling, the Hang Seng Tech Index, fell 1.07%. The market displayed a striking intra-day divergence: speculative ‘large-model’ AI concept names spiked while heavyweight internet platforms retreated, producing a mixed picture beneath a stable headline.
Stocks tied to the new wave of generative AI led gains. MINIMAX-WP jumped nearly 11% and Zhipu (智谱) climbed more than 8%, reflecting continued investor appetite for companies linked to large language models and AI services. At the same time, a cluster of gold miners rebounded sharply—Wanguo Gold Group rose over 13%, Zijin Gold International and Chifeng Gold gained around 7%, and Lingbao Gold climbed roughly 5%—as investors rotated into perceived safe havens and commodity plays.
By contrast, major internet names buckled. Tencent Holdings, the city’s single largest listed technology company, plunged as much as 6% intraday before settling down nearly 3% at the close. Kuaishou fell more than 4% and Baidu slipped in excess of 3%, dragging the tech gauge lower and underlining continuing sensitivity to policy and sentiment shocks in the sector.
The selling in mega-cap tech was partly driven by market chatter about potential policy changes affecting internet revenues, a reminder that Chinese and Hong Kong technology stocks remain vulnerable to regulatory and tax speculation. Yet the southbound channel—mainland Chinese investors buying Hong Kong stocks—showed resilience: southern flows recorded net purchases of over HK$900 million on the day, with Tencent among the names net-bought, signaling that longer-term buyers may be weighing the dips as opportunities.
This session’s pattern highlights two broader forces shaping Hong Kong markets. First, the AI narrative continues to reallocate capital toward companies that can credibly claim exposure to generative models, boosting smaller, speculative names. Second, big-platform volatility persists because rumours and policy uncertainty can trigger outsized moves in highly concentrated names, even while overall indices remain range-bound.
For global investors, the episode underscores the bifurcation between headline stability and underlying fragility. The Hang Seng’s slight rise masks sector rotation, where gains in narrow thematic pockets and defensive commodities coexist with ongoing pressure on incumbents whose valuations are tied to China’s regulatory and macro outlook. Market participants should expect more headline-grabbing intraday swings as narratives around AI, taxation and industrial policy evolve.