Storage-related stocks are broadly retreating in Hong Kong trading. As of writing, the Southern 2x Long Samsung Electronics tracker (07747) fell 4.26% to HK$82.62, while GIGADEVICE (03986) dropped 3.37% to HK$498.6, and MONTAGE TECH (06809) declined 2.15% to HK$300.

Market sentiment was dampened by hawkish signals and a U.S. Treasury selloff overnight, which dragged down technology and storage shares on Wall Street. Notably, prominent bear Mike Burry disclosed that he has increased his short position in Micron Technology, describing the move as "quite sizable." He cautioned that a reversal in the cycle could trigger a "violent selloff."

Adding to the bearish outlook, Acer CEO Jason Chen recently warned that rising memory chip production in mainland China could eventually ease supply constraints and exert downward pressure on prices. He noted that the related impact is expected to become more evident around the end of 2027, lending further support to Burry's bearish stance on storage stocks.