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The Hang Seng Index advanced less than 0.1 per cent to 25,940.52 at 10.15am local time. The Hang Seng Tech Index added 0.2 per cent. On the mainland, the CSI 300 Index gained 0.4 per cent and the Shanghai Composite Index added 0.2 per cent.
Leading the gainers, search-engine giant Baidu jumped 3.1 per cent to HK$114.80 after it reported a 50 per cent increase in AI-related revenue for the third quarter, even as overall revenue fell 7 per cent. Online travel-booking agency Trip.com Group added 1.8 per cent to HK$574 and online-games provider NetEase advanced 1.6 per cent to HK$218.40.
Limiting the gains, smartphone and carmaker Xiaomi dropped 3.8 per cent to HK$39.22 and blind-box toymaker Pop Mart International slid 2.6 per cent to HK$206. Electric-vehicle maker Li Auto fell 2 per cent to HK$71.75 and peer BYD tumbled 1.1 per cent to HK$95.80.
Overnight in the US, the Dow Jones fell 1.1 per cent, while the S&P 500 lost 0.8 per cent and the Nasdaq dropped 1.2 per cent. A basket of the Magnificent Seven companies declined 1.8 per cent. Nvidia, the focal point of the AI rally, shed 2.8 per cent ahead of the chipmaker’s earnings report later on Wednesday.
The sell-off in major technology firms comes as investors are questioning whether the heavy spending on AI will translate into meaningful returns. Investors are also weighing the Federal Reserve’s policy outlook, with swaps pricing showing less than a 50 per cent chance of a rate cut in December. Investors are also keeping an eye on the long-delayed US September jobs report on Thursday.
