HSI opens down 379 pts as tech and chip stocks lead broad selloff

The Hang Seng Index opened at 24,582, down 379 points or 1.5%, as technology and semiconductor stocks led a broad decline across Hong Kong markets.

The Hang Seng China Enterprises Index opened at 8,296, down 139 points or 1.66%, while the Hang Seng Tech Index slid 118 points, or 2.43%, to 4,769. Turnover at the open reached HK$19.27 billion.

All five major tech names opened lower. Baidu (百度集團, 9888.HK) slumped nearly 5%, while Meituan (美團, 3690.HK) fell 4.19% and Kuaishou Technology (快手, 1024.HK) dropped 3.16%. Alibaba Group (阿里巴巴, 9988.HK) declined 2.37% and Tencent Holdings (騰訊控股, 0700.HK) slipped 1.19%.

The semiconductor sector suffered the heaviest losses. Hua Hong Semiconductor (華虹半導體, 1347.HK) tumbled 6.19% and Semiconductor Manufacturing International Corp (中芯國際, 981.HK) fell 3.5%. Leveraged ETFs tracking the sector amplified the downside: the XL2CSOPHYNIX (7709.HK) opened down 10.51%, while the XL2CSOPSMSN (7747.HK) slid 13.96%.

Among other blue chips, Lenovo Group (聯想集團, 992.HK) opened 5.15% lower, China Molybdenum Co (洛陽鉬業, 3993.HK) dropped 5.42%, and Sunny Optical Technology (舜宇光學科技, 2382.HK) declined 4.94%. WuXi Biologics (藥明生物, 2269.HK) fell 3.79%.

The broad-based selloff comes as traders weighed weakness in global technology stocks and a larger-than-expected draw in U.S. crude inventories. API data showed crude stockpiles fell by 6.75 million barrels for the week ended May 29, exceeding the 3.6 million barrel decline forecast by economists. The decline in Hong Kong's tech and semiconductor sectors tracked pressure on U.S.-listed Chinese ADRs and the Philadelphia Semiconductor Index in the prior session, raising questions about whether the selloff will extend into the afternoon session.

This article is for informational purposes only and does not constitute investment advice.