Hong Kong Stocks Tumble on Tech and Insurance Selloff
2026-08-06 01:57
By
Nicole Aliyah
1 min. read
The Hang Seng Index tumbled 1.8%, or 472 points, to 25,444 on Thursday, reversing the previous session's gains as technology and financial stocks declined amid profit-taking following a strong AI-driven rally.
Sentiment weakened across Asian markets after the recent artificial intelligence-driven rally showed signs of cooling, while lingering uncertainty over efforts to reopen the Strait of Hormuz kept investors cautious.
The decline was led by losses in technology and financial stocks.
AI-related shares came under pressure as investors rotated out of large-cap technology stocks, while financial stocks also weighed following reports that mainland Chinese authorities had begun enforcing a 20% tax on investment gains from offshore insurance policies, raising concerns over future sales of Hong Kong-issued insurance products to mainland customers.
Notable laggards included AIA (-7.7%), Tencent (-1.3%), Pop Mart International (-2.9%), SMIC (-3.2%), and Kingboard Laminates (-1.6%).