A Visual Guide | How badly did Hong Kong tech stocks fall in August?

In the just-concluded month of August, the Hong Kong stock market closed with a decline of nearly 8.5%, and the Hang Seng Tech Index also fell by more than 8%.

Looking at the various star technology stocks that investors are most concerned about, "decline" was the main theme of August.

Among them, NIO led the decline with a drop of nearly 28%, followed closely by JD.com, which fell nearly 20% during the month; Bilibili and XPeng both fell by more than 15%, while Meituan experienced a double-digit decline. Baidu, Tencent, and Alibaba performed similarly, while Kuaishou, NetEase, and Li Auto fell relatively less.

It is worth noting that August is the reporting period for interim results in the Hong Kong stock market, and the leading companies in the internet sector have all released their second-quarter earnings reports. Although some of the results were disappointing, others achieved outstanding results and led the industry, yet they all experienced a collective decline.

Therefore, the reason for the decline in the Hong Kong stock market in August is mainly due to macroeconomic factors and market sentiment.

On the one hand, although the market turned optimistic after the Politburo meeting at the end of July, the expectations were too high and patience was lacking, resulting in a rapid cooling of sentiment. On the other hand, the market was overly pessimistic about the prospects of the crisis-ridden Chinese real estate industry, directly dragging the Hong Kong stock market to a 9-month low.

However, as market sentiment bottomed out and policies were implemented intensively, the oversold Hong Kong stock market finally breathed a sigh of relief and experienced a slight rebound at the end of the month.

Analysts further predict that the Hong Kong stock market is expected to rebound in September, although the market may not see significant gains.