Hang Seng China index enters bear market amid global tech rout

Hong Kong Chinese Stocks Enter Bear Market Amid Global Tech Selloff

The Hang Seng China Enterprises Index fell into bear market territory on Tuesday, breaching the 20% decline threshold from its October 2, 2025 peak, as a brutal global technology selloff swept through Asian markets and compounded persistent concerns over weak Chinese consumer spending.

Tech Rout Spreads From Wall Street to Asia

The index dropped more than 2% on Tuesday to trade around 7,751 points, extending losses that had already brought it to the brink of bear market status. On Sunday, the gauge had fallen as much as 2.3% before paring losses, leaving it within a fraction of the 20% decline that Wall Street formally classifies as bear territory.hsi

The selloff was part of a broader rout that hit Asia-Pacific technology shares hard. South Korea’s Kospi plunged nearly 10%, triggering circuit breakers and halting trading for 20 minutes as foreign investors dumped semiconductor heavyweights Samsung Electronics and SK Hynix, which each fell more than 12%. The crash followed weakness in U.S. megacap technology stocks overnight, with Nasdaq 100 futures falling as much as 2.1% on Tuesday.bloomberg

Chinese Internet and AI Stocks Under Pressure

In Hong Kong, internet and consumer-facing stocks bore the brunt of selling. Alibaba, Xiaomi, and Tencent were among the leading decliners, with investors rotating away from e-commerce firms already weakened by a Beijing regulatory crackdown on misleading discount campaigns earlier this month. Recently listed AI firms MiniMax and Zhipu AI, which had rallied more than 300% since their January IPOs and were added to the Hang Seng Tech Index on June 5, also saw sharp reversals.aiweekly

The HSCEI now ranks among the worst-performing indexes globally this year, according to Bloomberg, as sluggish earnings growth and declining liquidity continue to weigh on offshore Chinese equities. To reclaim its October peak, the index would need to rally roughly 25% from current levels.kucoin

Broader Market Anxiety

The combination of rising global bond yields, profit-taking in technology stocks, and uncertainty over the durability of recent diplomatic progress between the U.S. and Iran left investors searching for catalysts after the AI-driven rally had pushed several equity benchmarks to record highs in recent weeks. MSCI’s All Country World Index fell 0.5% on the day, while a broader Asian equity gauge dropped more than 2% after recently reaching a record high.financialjuice