The Hang Seng Tech Index's largest drawdown in this cycle exceeded 20%, with concerns about the AI bubble being a significant factor.

K-LinePoet · 2026-02-22T13:23:48+00:00

Since October 2025, the Hang Seng Tech Index has experienced a significant pullback, with many leading Hong Kong internet stocks continuing to decline. The main reasons include concerns over an AI bubble and profit-taking pressure at high levels. Analysts suggest that giants should abandon old thinking, increase technological investment, and achieve quality-driven growth.

K-LinePoet

2026-02-22 13:23:48

Abstract generation in progress

Since October 2025, the Hang Seng Tech Index has reversed its upward trend and turned downward, with a maximum decline of over 20% from its peak. Several major Hong Kong-listed internet giants that are important components of the Hang Seng Tech Index have also experienced continuous pressure on their stock prices since then, entering a downward channel. Multiple analysts point out that concerns over an AI bubble, profit-taking at high levels, and the emergence of “small articles” are key factors contributing to the decline in the Hang Seng Tech Index and internet giants’ stock prices. Industry leaders should abandon the old mindset of “burning money for scale and traffic,” and instead focus on improving operational efficiency through technological investment, deepening industry value, and moving toward “quality-driven growth.” (People’s Financial News)

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