Major Asian equity indices are projected to open lower amid growing investor unease over technology sector fundamentals, with the Hang Seng Index and Shanghai Composite showing early losses. The sell-off follows heightened concerns about global demand for consumer electronics and regulatory scrutiny in China’s tech space.
- Hang Seng Index and Shanghai Composite projected to open lower amid tech sector sell-off
- ChiNext Index (399333.SZ) down 1.4% in pre-market trading
- Midea Group’s Hong Kong IPO saw 9.3% first-day gain, raising $2.1 billion
- Hang Seng Tech Index down 12% year-to-date
- SSEC has declined 6.8% YTD
- Investors awaiting December manufacturing data from China and Japan
Asian equities are poised for losses in early trading as technology-related stocks across the region come under pressure. The Hang Seng Index (HSI) and China’s Shanghai Composite (SSEC) are both expected to decline, with the ChiNext Index (399333.SZ) marking a 1.4% drop in pre-market trading. The downturn follows a series of mixed signals from the sector, including weak sales figures from top consumer electronics manufacturers and delays in major product launches. Investors are reassessing the sustainability of recent gains in Chinese tech equities, particularly after a wave of profit warnings from semiconductor and smartphone component suppliers. The sell-off has disproportionately affected high-beta tech names, dragging down broader market sentiment. Market participants are now focused on upcoming December manufacturing data from China and Japan, which could further clarify the health of demand in the region’s industrial supply chains. Despite a strong debut for Midea Group Co. in Hong Kong, which saw its shares rise 9.3% on first-day trading following a $2.1 billion IPO—the largest in Hong Kong in three years—this positive development has been overshadowed by broader sectoral risks. Analysts note that while Midea’s performance reflects renewed appetite for quality Chinese listings, it does not offset weakness in other tech segments. Market watchers are particularly concerned about the potential for a feedback loop between deteriorating tech earnings and reduced investor confidence in growth-oriented equities. The Hang Seng Tech Index has now lost 12% year-to-date, while the SSEC has shed 6.8% over the same period, indicating a deepening correction in the region’s tech-heavy markets.