Hang Seng Tech Crashes to a Two-Year Low: Alibaba Below HK$100, Tencent in Free Fall

The Hang Seng Tech Index plunged more than 4% in Hong Kong's morning session on Thursday, October 22, falling to 3,829.18 points — its lowest level since September 2024. Alibaba dropped 5.3% to HK$98.2, losing the HK$100 level, and Tencent fell 3.2% to HK$381.2, its lowest price since early 2025. The selloff caps a decline of more than 30% for the index so far this year.

What Happened in Hong Kong on October 22?

Hong Kong tech and internet stocks sold off sharply and broadly. The Hang Seng Tech Index dropped more than 4% intraday to 3,829.18, while the broader Hang Seng Index fell more than 600 points in the morning session and broke below 23,000, a low not seen since July. Independent Hong Kong coverage described the same morning in similar terms: the Hang Seng opened 138 points lower, losses deepened to roughly 500 to 600 points, and Alibaba slid more than 5% to an intraday low near HK$98.80.

The damage was not limited to the two heavyweights. CATL fell another 5% after plunging 11% on October 21, YOFC dropped 8%, Zhongji Innolight fell 7%, and Lenovo lost more than 5% — a market-wide de-risking move, not a single-company story.

Why Is the Hang Seng Tech Index Blowing Up Right Now?

This story is spreading because three pressure points hit at once. First, the index had already broken below the psychologically important 4,000 level on Wednesday, closing down 1.26% at 3,994.77 — at the time its lowest since October 2024 — after touching a two-year low in the previous session. Thursday's drop through 3,830 turned a bad week into a milestone selloff.

Second, the same pain showed up in U.S.-listed Chinese stocks while U.S. indexes rose. On Wednesday, Alibaba's U.S. shares fell about 3.6%, JD.com fell about 3.8%, and PDD fell about 3.5%, while the KraneShares China Internet ETF lost about 2.5%. Overnight, the Nasdaq Golden Dragon China Index closed down 2.35%. That divergence — U.S. tech climbing on AI earnings while Chinese tech kept falling — is exactly what made the move stand out to global investors.

Third, the round numbers matter. Alibaba below HK$100 and Tencent below HK$400 are the kind of levels that dominate headlines, group chats, and trading screens, and they tend to invite more selling as stops and margin calls trigger.

Key Facts: The Numbers Behind the Selloff

Hang Seng Tech Index: down more than 4% intraday to 3,829.18 — lowest since September 2024, and down over 30% year to date.
Alibaba (9988.HK): down 5.3% to HK$98.2, a three-month low and below the HK$100 threshold.
Tencent (0700.HK): down 3.2% to HK$381.2, its lowest since early 2025, after losing HK$400 the previous day.
Southbound Funds: net selling of more than HK$4.4 billion on October 21 — a sixth straight session of outflows — with Tencent alone seeing HK$1.706 billion of net selling and Alibaba HK$878 million.
Wider market: the Hang Seng Index broke below 23,000; CATL fell about 5% on Thursday morning after an 11% fall on Wednesday.

Analysts point to a double squeeze: rising U.S. Treasury yields pressuring growth valuations worldwide, plus a Hong Kong liquidity drain from placements and a dense IPO pipeline. CICC data shows Southbound inflows of only HK$440 billion in the first nine months, far below 2025's HK$1.4 trillion. The index is also weighted toward traditional internet platforms, with limited AI-hardware exposure, so it missed the global AI tailwind while absorbing the rate headwind.

What Happens Next for Hong Kong Tech Stocks?

Attention now turns to two policy events. The Federal Reserve meets on October 27–28; Hong Kong commentators said a hold could allow short covering, while another hike could trigger further valuation compression. Investors are also watching whether the People's Bank of China adds liquidity — analysts see modest easing as possible, but no stimulus on the scale of September 2024. The levels to watch are the ones just broken: 4,000 on the index, HK$100 for Alibaba, and HK$400 for Tencent.

Sources

FAQ

How low did the Hang Seng Tech Index fall on October 22?

It fell more than 4% intraday to 3,829.18 points, its lowest level since September 2024, extending a decline of more than 30% for the year.

Why did Alibaba fall below HK$100?

Alibaba dropped 5.3% to HK$98.2 amid a broad Hong Kong tech selloff driven by rising U.S. yields, tightening local liquidity, and a sixth straight day of Southbound Fund outflows.

What happened to Tencent's stock?

Tencent fell 3.2% to HK$381.2, its lowest since early 2025, after breaking below HK$400 the previous day; it was also the top Southbound sell, with HK$1.706 billion of net selling on October 21.

What could stop the Hong Kong tech selloff?

Analysts cited in the coverage point to the Federal Reserve's October 27–28 meeting and any added liquidity from the People's Bank of China as the nearest catalysts that could change sentiment.