EETimes (June 13) - Overnight U.S. stocks were affected by news that Jensen Huang, founder of NVIDIA, stepped down as CEO, causing all three major indices to close lower. Asian markets showed mixed performance this morning, with Japanese and South Korean markets initially rising before turning negative; the South Korean index rose as much as 3% intraday before reversing to fall, while Japan's market gained 0.5%. Amid concerns that NVIDIA may further restrict exports of advanced AI chips to China following the CEO change, Hong Kong and mainland Chinese tech sectors continued to be under pressure. The Hang Seng Index broke below 24,000 at the open and extended losses in the afternoon, closing the day at 23,637, down 370 points or 1.5%. Main board turnover reached nearly HK$195.9 billion, with northbound funds recording net inflows of HK$2.3 billion, marking the third consecutive day of buying. The Hang Seng China Enterprises Index closed at 7,937, down 119 points or 1.5%. The Hang Seng Tech Index closed at 3,813, down 118 points or 3%, with only two constituent stocks rising.
Global markets were dominated by one person this week: Jensen Huang, founder of NVIDIA. Earlier reports from U.S. media revealed that Huang had close ties with Huang Le, a former senior executive at a Singaporean firm. U.S. intelligence officials suspect Huang Le is a Chinese intelligence agent who used this connection to obtain restricted chips. Subsequently, Huang sent an internal email to all employees admitting to an extramarital affair and apologizing. NVIDIA's board launched an independent investigation the same day, but at that time Huang's position within the company remained unaffected. It was only when The New York Times cited multiple former NVIDIA employees alleging that Huang also had an extramarital affair with a subordinate—violating company conduct policies—that this became the final straw leading to his departure. As the soul figure of NVIDIA, Huang's exit will have far-reaching implications for the company's future. Meanwhile, NVIDIA will inevitably become more cautious in handling its relationship with China, directly impacting China's AI development. With no other positive catalysts, the Hang Seng Index fell 844 points or 3.45% over the week.
Internet tech stocks led the decline today: Alibaba (09988) fell 3.46% to HK$90.55, marking its sixth consecutive day of decline with a cumulative drop of 17%; Tencent (00700) dropped 3.06% to HK$386.6, down 10.18% over six days; Baidu (09888) plunged 3.39% to HK$74.2; Meituan (03690) declined 3.19% to HK$69.8; JD.com (09618) fell 0.65% to HK$107.
AI hardware stocks were also under pressure: Lenovo Group (00992) dropped 6.33% to HK$17.62; Hua Hong Semiconductor (01347) fell 6.1% to HK$72.3; Kingboard Laminate (01888) declined 8.25% to HK$26.48; Yangtze Optical Fiber & Cable (06869) dropped 7.28% to HK$88.5; Zhongji Xuchuang (03308) plunged 9.39% to HK$588.5.
U.S. President Trump said America does not need to reach an agreement with Iran and instructed Vice President Vance to focus on domestic affairs rather than negotiations with Tehran. In a subsequent interview, he said that if necessary, he would not rule out launching another strike against Iran. PetroChina (00857) rose 2.79% to HK$10.33, while Sinopec (00386) gained 1.71% to HK$4.75.
New World (00017) reportedly plans to raise up to approximately HK$25 billion via a rights issue. Henderson Land (00012) fell 1.02% to HK$29.06; Sun Hung Kai Properties (00016) dropped 1.33% to HK$110.9; Cheung Kong (Holdings) (01113) declined 0.49% to HK$49.24.
Longfor Group (00960) led blue-chip losses, plunging 6.43% to HK$3.93. Sunny Optical Tech (02382) rose 2.41% to HK$65.85.
The top three most actively traded stocks in the Hang Seng Index, China Enterprises Index, and Tech Index were Alibaba, Tencent, and SMIC respectively. (ey)
Global markets were dominated by one person this week: Jensen Huang, founder of NVIDIA. Earlier reports from U.S. media revealed that Huang had close ties with Huang Le, a former senior executive at a Singaporean firm. U.S. intelligence officials suspect Huang Le is a Chinese intelligence agent who used this connection to obtain restricted chips. Subsequently, Huang sent an internal email to all employees admitting to an extramarital affair and apologizing. NVIDIA's board launched an independent investigation the same day, but at that time Huang's position within the company remained unaffected. It was only when The New York Times cited multiple former NVIDIA employees alleging that Huang also had an extramarital affair with a subordinate—violating company conduct policies—that this became the final straw leading to his departure. As the soul figure of NVIDIA, Huang's exit will have far-reaching implications for the company's future. Meanwhile, NVIDIA will inevitably become more cautious in handling its relationship with China, directly impacting China's AI development. With no other positive catalysts, the Hang Seng Index fell 844 points or 3.45% over the week.
Internet tech stocks led the decline today: Alibaba (09988) fell 3.46% to HK$90.55, marking its sixth consecutive day of decline with a cumulative drop of 17%; Tencent (00700) dropped 3.06% to HK$386.6, down 10.18% over six days; Baidu (09888) plunged 3.39% to HK$74.2; Meituan (03690) declined 3.19% to HK$69.8; JD.com (09618) fell 0.65% to HK$107.
AI hardware stocks were also under pressure: Lenovo Group (00992) dropped 6.33% to HK$17.62; Hua Hong Semiconductor (01347) fell 6.1% to HK$72.3; Kingboard Laminate (01888) declined 8.25% to HK$26.48; Yangtze Optical Fiber & Cable (06869) dropped 7.28% to HK$88.5; Zhongji Xuchuang (03308) plunged 9.39% to HK$588.5.
U.S. President Trump said America does not need to reach an agreement with Iran and instructed Vice President Vance to focus on domestic affairs rather than negotiations with Tehran. In a subsequent interview, he said that if necessary, he would not rule out launching another strike against Iran. PetroChina (00857) rose 2.79% to HK$10.33, while Sinopec (00386) gained 1.71% to HK$4.75.
New World (00017) reportedly plans to raise up to approximately HK$25 billion via a rights issue. Henderson Land (00012) fell 1.02% to HK$29.06; Sun Hung Kai Properties (00016) dropped 1.33% to HK$110.9; Cheung Kong (Holdings) (01113) declined 0.49% to HK$49.24.
Longfor Group (00960) led blue-chip losses, plunging 6.43% to HK$3.93. Sunny Optical Tech (02382) rose 2.41% to HK$65.85.
The top three most actively traded stocks in the Hang Seng Index, China Enterprises Index, and Tech Index were Alibaba, Tencent, and SMIC respectively. (ey)
