The Hang Seng Index dropped 1.8%, or 472 points, to 25,444 on Thursday, erasing the previous session’s gains as technology and financial stocks fell amid profit-taking after a strong AI-driven rally. Market sentiment weakened across Asia as the recent surge in artificial intelligence-related names showed signs of losing momentum, while persistent uncertainty over efforts to reopen the Strait of Hormuz kept investors on edge.
The pullback was led by declines in technology and financial shares. AI-related stocks came under pressure as investors rotated out of large-cap tech names, and financials were dragged lower following reports that mainland Chinese authorities have begun implementing a 20% tax on investment gains from offshore insurance policies. The move sparked concerns about future demand from mainland clients for Hong Kong-issued insurance products.
Among the notable laggards were AIA (-7.7%), Tencent (-1.3%), Pop Mart International (-2.9%), SMIC (-3.2%), and Kingboard Laminates (-1.6%).
