Hong Kong stocks closed lower Friday as a global technology selloff intensified amid concerns that Democratic gains in the U.S. midterm elections could lead to tighter regulation of artificial intelligence and slow data-center investment.

The Hang Seng Index fell 315.12 points, or 1.3%, to close at 24,481.86, while the Hang Seng China Enterprises Index lost 94.98 points, or 1.1%, to finish at 8,274.10.

Technology shares came under pressure as investors reassessed the outlook for AI infrastructure spending and questioned whether massive investments would generate sufficient returns.

The Nasdaq slumped 5.5% overnight, wiping out about $3 trillion in market value from S&P 500 companies.

Adding to concerns over China's AI supply chain, around 600,000 Nvidia H200 chips were reportedly being held in Hong Kong pending Beijing's approval for shipment to mainland China.

In corporate news, Z.AI Co. (HKG:2513) closed 10% lower, Tencent (HKG:0700) fell 2%, Alibaba (HKG:9988) lost 4%, and SMIC (HKG:0981) declined 4% as the global technology selloff weighed on Hong Kong-listed tech stocks.