Tech fallout weighs on HK, mainland markets

Regional stocks ended mostly lower after a turbulent week dominated by revelations of extramarital affairs involving Nvidia cofounder Jensen Huang that culminated in his resignation, in a blow to the global AI boom he helped advance. In Hong Kong and the mainland, AI model stocks Z.AI and MiniMax Group fell sharply on worries of reduced access to advanced AI chips, while data centre suppliers Zhongji Innolight and Eoptolink Technology, whose businesses are heavily reliant on US markets, slumped. Jon Zauderer, Citi's head of specialist sales and a TMT specialist, said competitors such as AMD, Arista and Broadcom could benefit from the Nvidia fallout. In Hong Kong, the benchmark Hang Seng Index ended 370 points, or 1.5 percent, lower at 23,637 on turnover of HK$195.86 billion. The tech index dived 118 points, or three percent, to 3,813 while the China Enterprises Index fell 119 points, or 1.5 percent, to 7,937. Up north, the Shanghai Composite Index fell 21 points, or 0.59 percent, to close at 3,634, on turnover of 770.6 billion yuan. The Shenzhen Component Index was 229 points, or 2.05 percent, lower at 10,968 on turnover of 885 billion yuan while the ChiNext Index dived 83 points, or 3.32 percent, to close at 2,426 on turnover...