The Economic Information Agency reported on the 8th that AI-related stocks plunged across the board. Blue-chip chip stocks Hua Hong (01347) fell 8.5%, closing at HK$96.3; SMIC (00981) dropped 6%, closing at HK$57.25; GigaDevice (03986) declined 7.1%, closing at HK$400.6; and Montage Technology (06809) fell 5.3%, closing at HK$275.6.
Other AI hardware stocks also led the decline: Lenovo Group (00992) dropped 7.6%, closing at HK$32.5; Kingboard PCB (01888) fell 6.3%, closing at HK$50.2; Yangtze Optical Fibre and Cable (06869) declined 6.8%, closing at HK$167.5.
Ray Dalio, founder of Bridgewater Associates—the world's largest hedge fund and known as the 'King of the Crocodile'—warned that AI is currently in a typical bubble phase, and as interest rates rise and investors seek to cash in on paper gains, this bubble is nearing bursting.
Dalio pointed out that AI investments are increasingly relying on massive debt financing, and as interest rates continue to rise, this is typically when bubbles start to burst. Currently, tech giants are investing hundreds of billions of dollars in AI, increasingly relying on debt funding. Global bond yields have risen to multi-decade highs, increasing the financing costs of the massive investments required for AI infrastructure.
In addition, BriVision Technology (06082), one of the four GPU 'little dragons', saw its shares fall 10.2% to HK$30.92 after conducting a second share placement within three months. Peer Tensornets (09903) plunged 10% during trading and still fell 4.8%, closing at HK$94.45. Zhipu (02513), another large model stock that, like BriVision, conducted a second share placement after the lock-up period expired, dropped 7.9% to HK$641; another large model stock, MiniMax (00100), which has not yet started its second share placement, fell 12.6% to HK$210.
Currently, the Hang Seng Index stands at 23,815, down 314 points or 1.3%, with main board turnover nearing HK$163.9 billion. The Hang Seng China Enterprises Index is at 8,023, down 59 points or 0.7%. The Hang Seng Tech Index is at 4,082, down 111 points or 2.7%. (vs)
Other AI hardware stocks also led the decline: Lenovo Group (00992) dropped 7.6%, closing at HK$32.5; Kingboard PCB (01888) fell 6.3%, closing at HK$50.2; Yangtze Optical Fibre and Cable (06869) declined 6.8%, closing at HK$167.5.
Ray Dalio, founder of Bridgewater Associates—the world's largest hedge fund and known as the 'King of the Crocodile'—warned that AI is currently in a typical bubble phase, and as interest rates rise and investors seek to cash in on paper gains, this bubble is nearing bursting.
Dalio pointed out that AI investments are increasingly relying on massive debt financing, and as interest rates continue to rise, this is typically when bubbles start to burst. Currently, tech giants are investing hundreds of billions of dollars in AI, increasingly relying on debt funding. Global bond yields have risen to multi-decade highs, increasing the financing costs of the massive investments required for AI infrastructure.
In addition, BriVision Technology (06082), one of the four GPU 'little dragons', saw its shares fall 10.2% to HK$30.92 after conducting a second share placement within three months. Peer Tensornets (09903) plunged 10% during trading and still fell 4.8%, closing at HK$94.45. Zhipu (02513), another large model stock that, like BriVision, conducted a second share placement after the lock-up period expired, dropped 7.9% to HK$641; another large model stock, MiniMax (00100), which has not yet started its second share placement, fell 12.6% to HK$210.
Currently, the Hang Seng Index stands at 23,815, down 314 points or 1.3%, with main board turnover nearing HK$163.9 billion. The Hang Seng China Enterprises Index is at 8,023, down 59 points or 0.7%. The Hang Seng Tech Index is at 4,082, down 111 points or 2.7%. (vs)
