Zhi Tong Cai Jing·2025-11-18 06:44Core Viewpoint - The technology sector is under pressure, with significant declines in major tech stocks, reflecting investor concerns over high valuations and the impact of the Federal Reserve's hawkish signals on interest rate expectations [1] Group 1: Stock Performance - Kingsoft Corporation (03888) fell by 2.53%, trading at HKD 30.8 - Tencent Holdings (00700) decreased by 2.2%, trading at HKD 622.5 - Alibaba Group (09988) saw a slight decline of 0.13%, trading at HKD 154.7 after an early gain of over 2% [1] Group 2: Market Sentiment - The U.S. stock market experienced a significant sell-off, particularly among large tech stocks, as investors reassess the fundamentals of the AI hype [1] - Concerns over high valuations in tech stocks have dominated market sentiment in recent weeks [1] Group 3: Interest Rate Expectations - The Federal Reserve's ongoing hawkish signals have increased uncertainty regarding a potential rate cut in December, with the market's expectation for a 25 basis point cut dropping from 70% to 40% [1] Group 4: Analyst Insights - Dongwu Securities suggests that Hong Kong's tech sector is still in a short-term adjustment phase, with insufficient upward momentum for AI tech stocks due to a lack of new catalysts [1] - The market is awaiting signals from Nvidia's upcoming earnings report, while the long-term attractiveness of Hong Kong tech stocks is highlighted [1]