Mainland Chinese investors dumped a record HK$27.7 billion ($3.5 billion) worth of Hong Kong stocks on Thursday, the highest single-session sale ever. This massive outflow, channeled through the mainland-Hong Kong trading link, immediately pressured the city's equity markets. The Hang Seng Tech Index, heavily weighted towards AI and tech firms, reversed gains to close 0.7% lower after initially rising 1.8%.

The broader Hang Seng Index also fell 0.4%. Heightened geopolitical uncertainty in the Middle East is seen as a key driver, amplifying volatility risks for Hong Kong shares perceived as more exposed to global fund flows. While mainland investors were a crucial support last year, their patience is wearing thin as the AI-driven rally loses steam and major tech companies struggle to translate spending into tangible earnings growth.