[ET Net News Agency, 13 February 2026] Overnight, major US tech stocks saw sharp
sell-offs, dragging all three major Wall Street indices from gains to losses. Most
Asia-Pacific equity markets followed suit today, with the A-shares facing their final
trading day before a nine-day Spring Festival holiday, both Mainland China exchanges
closed softer. The Hang Seng Index (HSI) was down 484 points, or 1.8%, at 26,547 at the
midday break, with main board turnover exceeding HKD 128.4 billion. The Hang Seng China
Enterprises Index dropped 159 points, or 1.7%, to 9,015. The Hang Seng Tech Index lost 89
points, or 1.6%, ending the morning at 5,319.

"Wong Wai Ho: Tencent dragged by VAT rumours but key support expected, HSI should hold the
50 SMA"

The US market is currently gripped by fears around AI disruption, with concerns that
artificial intelligence could upend industries and employment prospects. This narrative
triggered renewed sell-offs in US tech stocks overnight, with the Nasdaq tumbling 2%. Even
gold was not spared, with money flowing into US Treasuries for safety. The HSI tracked
these losses, especially among tech names, extending its decline to over 400 points in
early trade. Wong Wai Ho, the First Vice President of the Yan Yun Family Office (HK)
Limited, told ET Net News that the weakness in Hong Kong stocks largely stems from tech
underperformance. The sell-off in global tech weighed on Hong Kong's sector, compounded by
the pre-holiday profit-taking by southbound investors, further accelerating the decline.
Heavyweight tech stocks are clearly weak. Wong highlighted that apart from broader
market pressure, company fundamentals also play a role: for example, Tencent (00700)
recently broke below its 250-day moving average, partly due to speculation over a possible
hike in value-added tax (VAT) on its services. While the rumour appears to have eased, the
market remains watchful. Meanwhile, NetEase's (09999) disappointing results have soured
sentiment towards the gaming sector, putting further pressure on related stocks. Wong
believes Tencent will remain under pressure in the near term, but that its longer-term
appeal is rising as the price adjusts. As one of the most cash-generative and stable tech
names in the sector, Tencent should see renewed interest if it falls below HKD 520 toward
HKD 500.
With Tencent nearing the end of its adjustment, Wong thinks HSI should see firm support
as it approaches the 50-day moving average; as long as 26,400 holds, the broader market
remains fairly secure in the short run.

"Knowledge Atlas boasts strong technology, but wait for a pullback before investing"

Knowledge Atlas (02513), one of the "AI Six Tigers" with less than two months on the
Hong Kong market, has made headlines almost daily. Chinese media reported that the
company's GLM Coding Plan AI subscription package sold out immediately on launch, with
repeated rationing due to high demand and a more than 30% price hike still unable to
dampen enthusiasm. Knowledge Atlas has also filed for an A-share IPO, with heavyweight
brokers CICC and Guotai Junan jointly advising. This morning, the stock surged up to 20%
at one point, reaching HKD 492, up 142% in just five days, and 323% since listing.
While Knowledge Atlas's gains look exaggerated, Wong maintains a fundamentally positive
view of next-generation AI names following careful analysis. He notes that while recent
surges have likely priced in much of the near-term optimism, the high valuation is not
entirely without substance. Knowledge Atlas's technology, particularly in its GLM Coding
Plan, is at the industry's cutting edge, offering genuine advantages in coding over
Google's Gemini 3 Pro. Fundamentally, the outlook is still positive.
However, Wong strongly cautions against buying at current levels, describing the rally
as excessive. With the sector trading at hefty premiums, any change in perception could
quickly trigger a sharp correction. Investors holding shares should take profits before
the holiday, while those yet to buy in should wait for a pullback. If the price corrects
substantially, that would be a true opportunity for long-term investors, particularly if
the price dips under HKD 360. However, no one should expect another "double in five days,"
future moves are likely to reflect medium-to-long-term value instead.

"Haizhi Tech debuts, resembles 'mini SenseTime' - only neutral outlook"

Haizhi Tech (02706), another AI-themed new listing today, focuses its AI platform
"Atlas" on tackling the "hallucination" problem of large AI models, that is,
system-generated errors or nonsense. Wong describes Haizhi's AI as not particularly
cutting-edge; its model and business more closely resemble a "miniaturised SenseTime"
(00020). The outlook is therefore more muted compared to Knowledge Atlas: today's strong
debut likely benefitted from enthusiasm toward AI names in general. Wong suggests existing
holders take profits; his overall view is neutral.