Hang Seng Drops Sharply as Investors Shun Risk |

The Hang Seng Index fell sharply during Thursday's trading, dropping approximately 1.2%—or 300 points—to the 24,970 level, hitting a six-week low. Investor sentiment deteriorated due to escalating tensions in the Middle East and a surge in energy prices.

Brent crude remained above US$100 per barrel after Iran declared its readiness for a more intense conflict. This statement heightened concerns regarding potential disruptions to energy flows through the Strait of Hormuz and intensified global inflationary pressures.

Additional pressure stemmed from the US bond market. The 10-year Treasury yield climbed to around 4.86%—its highest level since November 2023—while Wall Street recorded losses for the third consecutive session. These conditions weighed on risk appetite across Asian markets.

Technology stocks were a major drag on the index. Tencent fell about 1.5%, Z.AI dropped 4.3%, MiniMax declined 2.4%, Xiaomi lost 1.8%, and Meituan fell 2%.

Investors also remained cautious ahead of the release of US inflation data, which could influence the Federal Reserve's policy direction. Inflation figures exceeding expectations could keep yields elevated and prolong pressure on risk assets like stocks.

Nevertheless, Hong Kong's technology sector remains a focus for the medium term, driven by a robust IPO pipeline. Moonshot has reportedly filed for a confidential listing in Hong Kong, while DeepSeek is also preparing for a potential domestic IPO.