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Hong Kong tech stocks decline as US bond rout, Iran war stalemate dent sentiment

Tech stocks sink as US bonds sell off on supply jitters, while China’s debt market diverges on sluggish data, spurring easing hopes

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Hong Kong Exchanges and Clearing Limited in Central. Photo: Jonathan Wong
Zhang Shidongin Shanghai
Rising US Treasury yields and an impasse in the Middle East conflict drove technology stocks in Hong Kong and mainland China lower on Wednesday, as concerns reverberated across global financial markets that higher funding costs and a persistent oil shock would squelch equity valuations.

The Hang Seng Tech Index slumped 1.2 per cent at the close, with Baidu leading the declines after reporting weaker revenue. On the mainland, the Star Market 50 index – predominantly chipmakers trading in Shanghai – tumbled 6.9 per cent, while the ChiNext gauge dominated by artificial intelligence hardware firms on the Shenzhen exchange plunged 6.3 per cent.

Benchmarks were mixed, with the Hang Seng Index edging up 0.1 per cent to 25,495.07 and the CSI 300 Index of yuan-traded stocks sliding 2.9 per cent.

The bond market took centre stage as supply concerns sent longer-dated US Treasury yields surging across the curve after the Trump administration accelerated issuance to finance fiscal deficits and hyperscalers ramped up debt sales to fund AI infrastructure buildouts.

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