Hang Seng Index falls amid Chinese tech earnings volatility

Hong Kong equities experienced a downturn as the Hang Seng Index opened lower, dropping 154 points to 25,498. The decline was driven by losses in Wall Street and a wave of earnings reports from Chinese internet companies.

Tencent Music Entertainment saw its shares plunge more than 11 per cent despite reporting a 4.4 per cent rise in second-quarter adjusted net profit and an 11 per cent growth in music-related service revenue. This volatility impacted the broader Hang Seng Tech Index, which slipped 0.8 per cent.

Other major technology firms also faced selling pressure. JD.com shares fell nearly 3 per cent ahead of its scheduled second-quarter financial results. Additional declines were noted in Meituan, Alibaba, Tencent, and Lenovo. Analysts suggest the selloff reflects international investors trimming exposure to Chinese equities amid a lack of concrete fiscal stimulus from Beijing.