Memory chip stocks are leading the declines in Hong Kong trading. As of the latest update, the CSOP 2x Long SK Hynix Fund (07709) fell 15.72% to HK$32.82, while the CSOP 2x Long Samsung Electronics Fund (07747) dropped 12.1% to HK$61.48. MONTAGE TECH (06809) declined 3.62% to HK$260.2, and GIGADEVICE (03986) slipped 2.47% to HK$474.

The downturn follows the release of fiscal fourth-quarter 2026 earnings from two major US memory chip makers, SanDisk Corp. and Western Digital. Although both companies reported revenue and profit that exceeded market expectations, their forward-looking guidance for the next quarter fell short of the high growth forecasts for the AI memory segment. In after-hours trading, SanDisk Corp. shares plunged over 8%, while Western Digital dropped approximately 11%.

The bearish sentiment surrounding US memory stocks quickly spread through the supply chain to Asia-Pacific markets, dragging down regional indices. Earlier today, South Korea's KOSPI index slumped more than 5% intraday, triggering a SIDECAR mechanism that temporarily halted programmatic sell orders for about five minutes. SK hynix was down more than 9% at one point, while Samsung Electronics fell over 6%.