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Analysis: Are Hong Kong Tech Stocks Testing a Bottom?

Published: Mar. 18, 2026 12:49 p.m. GMT+8

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Hong Kong’s benchmark tech stocks have retreated sharply from recent highs, leaving global investors with a pressing question: is the sell-off nearing a bottom?

The Hang Seng Tech Index had dropped about 24% from its October peak as of March 17, underperforming major global indexes.

The slump reflects a convergence of pressures. Escalating Middle East tensions have pushed up oil prices, stoking inflation concerns that could delay Federal Reserve rate cuts, bolster the U.S. dollar and drain liquidity from Hong Kong’s offshore markets.

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The Hang Seng Tech Index fell about 24% from its October high by March 17, underperforming major global markets.
Declines are driven by Middle East tensions, inflation concerns, delayed Fed rate cuts, a shift in AI sector focus, and aggressive spending by key tech firms.
No clear market bottom is in sight, with volatility persisting amid geopolitical and economic uncertainties.

AI generated, for reference only

Who’s Who

Alibaba: Alibaba is mentioned as one of the heavyweights in Hong Kong's tech sector. Along with Meituan and JD.com, Alibaba is maintaining elevated spending to compete in AI and is engaged in domestic market-share battles that could squeeze near-term earnings. This corporate dynamic is contributing to the strain on the Hong Kong tech market.

Meituan: Meituan is a heavyweight company within Hong Kong's tech sector. It is currently maintaining elevated spending to compete in AI and is engaged in domestic market-share battles that could impact its near-term earnings.

JD.com: JD.com, a major player in Hong Kong's tech sector, is facing increased strain. The company is maintaining elevated spending to compete in AI, while also engaging in domestic market-share battles. These factors risk squeezing its near-term earnings.

AI generated, for reference only