HK stocks slip as new fears weave around AI boom

Mainland stocks fell on Thursday to their lowest close in 14 months, tracking broad weakness across global markets, as technology shares led declines after stronger-than-expected US inflation data fuelled concerns that interest rates could rise further. In Hong Kong, the benchmark Hang Seng Index fell 251 points, or one percent, to 24,062 on turnover of HK$224.16 billion. The tech index dropped 113 points, or 2.7 percent, to 4,060 as shares of Alibaba slumped 3.7 percent while the China Enterprises Index was 79 points, or one percent, lower at 8,103. On the mainland, the benchmark Shanghai Composite Index ended down 59 points, or 1.59 percent, at 3,707 and was paced in its fall by a 1.6 percent decline for the blue-chip CSI300 index. The Shenzhen Component Index was 293 points, or 2.43 percent, lower at 11,816 while the ChiNext Index lost 83 points, or 2.92 percent, to finish at 2,783. "The recent pullback seems to be driven more by a concentrated unwinding of elevated tech crowding, while mutual funds also face pressure related to break-even redemptions," said Lei Meng, China equity strategist at UBS Securities. "Geopolitics, US Treasury yields and oil-price volatility have contributed to tighter dollar liquidity due to their impact on inflation expectations, weighing on...