Hua Er Jie Jian Wen·2026-02-03 05:36Core Viewpoint - The Hong Kong stock market experienced a significant drop due to rumors regarding potential tax adjustments for high-tech enterprises, particularly affecting internet technology stocks, which were deemed exaggerated and lacking credible basis by multiple brokerages [1][3][4]. Group 1: Market Reaction - The Hang Seng Tech Index initially followed a positive trend but plummeted by 3.37% around 10:50 AM, closing down 1.31% at midday [1]. - Major internet companies like Kuaishou, Bilibili, Baidu, Tencent, and Alibaba saw declines exceeding 6%, with Kuaishou dropping over 7% and Alibaba nearly 5% [1]. Group 2: Tax Rumor Analysis - The market panic stemmed from rumors suggesting an increase in tax rates for the financial sector and internet value-added services, which were compared to the high tax rates on liquor [3][4]. - Analysts noted that similar rumors have circulated since 2019 without materializing, indicating a pattern of unfounded speculation [4]. Group 3: Legal and Economic Logic - The claim that game tax rates would align with the 32% liquor tax was dismissed as a fundamental misunderstanding, as the two tax types are governed by different legal frameworks [5][6]. - Current laws classify financial services, gaming, and advertising under a 6% VAT rate, with no recent announcements indicating a shift to higher rates [6]. - The economic rationale behind increasing taxes on internet companies contradicts the government's current focus on promoting consumption and economic growth [7]. Group 4: Valuation and Outlook - Despite short-term market disturbances, the fundamental valuation of the Hong Kong stock market remains attractive, with the Hang Seng Index showing a PE ratio of 12.47 and a PB ratio of 1.27, indicating favorable investment conditions [8]. - The technology sector is expected to be a key investment focus in the medium to long term, driven by price increases in the supply chain, domestic substitution, and accelerated AI applications [8].