Hang Seng Tech Index slips beneath critical support, hinting at further declines as geopolitical strains and profit concerns mount. The gauge tracking China's largest tech firms has plummeted 25% from its October peak, breaching the neckline of a classic head-and-shoulders pattern – a technical signal widely interpreted as a warning of additional selling pressure. Once this neckline is breached, it implies sellers have gained the upper hand, significantly increasing the risk of further declines.

This breakdown follows a sharp acceleration in losses this month, driven by heightened worries over company profitability due to substantial spending and intense competition in the Chinese AI app market. 5,000 level briefly breached Monday. Upcoming quarterly results from JD.com and Bilibili will test investor sentiment.