The Hang Seng Index dropped 1.47%, or 358 points, to 23,955, while the Hang Seng Tech Index fell 2.94%, according to a market report. Morning turnover in Hong Kong stocks reached HK$113.8 billion.

Hengrui Medicine (01276) rose more than 3% after its self-developed AD treatment drug SHR-3201 injection was approved to begin clinical trials. Guoen Technology (02768) rebounded more than 12% following a positive profit alert, with projected net profit attributable to shareholders for the first three quarters rising up to 78.84% year-on-year.

Concerns over inflation and AI valuation bubbles hit AI hardware stocks, with Changfei Fiber Optic Cable (06869) plunging more than 13% and Montage Technology (06809) dropping over 11%. ASMPT (00522) fell more than 8% after reports that SK Hynix delayed some HBM4 back-end equipment orders.

The mobile phone supply chain declined across the board. Domestic mobile phone shipments in the third quarter hit a 13-year year-on-year low, while global mobile phone shipments also fell sharply. Foxconn Interconnect Technology (06088) dropped 7%, and FIH Mobile (02038) fell 5%.

Non-ferrous metal stocks collectively declined. U.S. September inflation exceeding expectations boosted rate hike bets, putting pressure on most non-ferrous commodities. MMG (01208) fell 6%, and China Molybdenum (03993) dropped 5%.

Lithium battery concept stocks extended their losses as a tax rebate cut weakened expectations for complete vehicle export demand, potentially transmitting further to upstream lithium battery producers. CATL (03750) fell 6%, and CALB (03931) dropped 4%.

Zoomlion (01157) fell more than 4% after announcing plans to sell approximately 29.99% of Roadwide Technology shares for 899.7 million yuan. Johnson Electric Holdings (00179) dropped more than 6%, with its share price having halved during the year, as exchange rate and cost pressures weighed on interim profits.