Hong Kong's three major stock indices all moved lower during the morning session.

As of the midday break, the Hang Seng Index had dropped 1.69% to 18,255.99, while the Hang Seng Tech Index fell 2.35%. The Hang Seng China Enterprises Index also declined by 2.1%.

Key Movers and Sectors

Technology and internet stocks were broadly lower.

Meituan-W (HKEX: 03690)

Meituan shares fell more than 6%.

Kuaishou-W (HKEX: 01024)

Kuaishou shares dropped over 5%.

Bilibili-W (HKEX: 09626)

Bilibili shares declined more than 4%.

JD-SW (HKEX: 09618)

JD.com shares were down over 3%.

TENCENT (HKEX: 00700)

Tencent shares fell more than 3%.

XIAOMI-W (HKEX: 01810)

Xiaomi shares also decreased by more than 3%.

In contrast, the optical communications sector defied the broader market downturn to post gains.

YOFC (HKEX: 06869)

Yangtze Optical Fibre and Cable Joint Stock Limited Company saw its share price surge more than 16%.

The rally in optical communication stocks follows a significant technological breakthrough.

A new low-loss, multi-core fiber optic cable line, jointly developed by several companies, has been launched, offering over five times the capacity of traditional cables and providing a new solution for AI computing interconnectivity.

Additionally, positive sentiment from overseas markets provided a boost.

Shares of U.S.-listed optical communications chip giant Marvell Technology (NASDAQ: MRVL) soared over 32% overnight.

Its CEO highlighted data center connectivity as the next major bottleneck for AI growth, while NVIDIA's (NASDAQ: NVDA) CEO publicly praised the company's potential.

Elsewhere in the market, new consumer concept stocks experienced a pullback, with shares related to Mixue Group falling over 5%.

Analysts suggest the consumer sector remains at a bottoming phase, with potential policy support and fundamental recovery expected to drive a revaluation.

Innovative drug concept shares weakened, with Wuxi XDC (HKEX: 02268) declining more than 5%.

Some brokerages remain optimistic about a potential rebound for the innovative drug sector and view related CRO/CDMO and upstream companies as having solid fundamentals and attractive valuations.

They also suggest looking at pharmaceutical companies transitioning into technology-related supply chains amid the ongoing tech market theme.