The Hang Seng Index fell 2.1%, or 533 points, to 25,473 on Monday, with technology stocks leading the decline amid profit-taking and renewed worries about stretched valuations and heavy artificial intelligence (AI) spending. Alibaba Group was in the spotlight after announcing a US$10.2 billion (HK$80 billion) Hong Kong share placement at a 3.6% discount to its previous close to finance its AI expansion. The move sparked concerns about potential share dilution and the scale of the company’s capital investment in AI infrastructure.
Separately, Shein formally launched the bookbuilding process for its Hong Kong IPO on Monday. The fast-fashion retailer is offering 280 million shares at HK$47.60 to HK$49.50 apiece, aiming to raise around HK$13.9 billion (US$1.77 billion). Trading is scheduled to begin on September 1. Major decliners included Tencent (-2.6%), Xiaomi (-3.6%), Z.AI Co. (-5.7%), MiniMax (-6.1%), and Meituan (-1.8%).
