The Hang Seng Index dropped 1.06%, down 263 points, to 24,533 points; the Hang Seng Tech Index fell 1.75%.

Hong Kong stocks recorded morning turnover of HKD 150 billion. AI hardware shares declined sharply. Democrats sweeping Congress has escalated AI regulatory concerns, and the US stock market crash has spread to Asia-Pacific markets. Yangtze Optical Fibre and Cable Joint Stock Ltd (06869) fell 9.89%; Victory Giant Technology (02476) dropped 10%; Kingboard Holdings Ltd (01888) declined 6%.

Hua Hong Semiconductor Ltd (01347) opened lower but rebounded to gain 2.9%, with its A-shares briefly surging over 13%, as net profit jumped 136% in the third quarter following the merger with Huali Microelectronics. China Shenhua Energy Co Ltd (01088) rose 1.7%, as China Pacific Insurance spent HKD 300 million to increase its H-share holdings, and Morgan Stanley expressed optimism about the company's resilient earnings.

Maike Medicine-B (02335) surged over 20% again, having obtained ethics approval from the lead site for the Phase III clinical trial of MT200605. Copper stocks broadly declined. A slowdown in AI infrastructure may drag on copper demand, and potential US copper tariff policies have also distorted copper prices. China Molybdenum Co Ltd (03993) fell 6%; Jiangxi Copper Co Ltd (00358) dropped 4.8%.

The smartphone supply chain declined again. Nomura holds a cautious view on the Apple supply chain, expecting iPhone production to decline year-on-year next year. Foxconn Interconnect Technology (06088) fell 14%; Lens Technology (06613) dropped 4.9%. Cosco Shipping Energy Transportation Co Ltd (01138) fell 4%, as the crude oil tanker freight rate index has significantly retreated over the past two weeks, though spot freight rates remain at relatively high levels. ASMPT Ltd (00522) dropped over 7% again, as the company abandoned the sale of its SMT business, with semiconductor equipment stocks among the first to come under pressure amid the industry slowdown. SJM Holdings Ltd (00880) fell over 10%, swinging from profit to a loss of HKD 397 million in the third quarter, with adjusted EBITDA declining 20% year-on-year.