Mainland Investors Buy Hong Kong Tech Sell-Off as US AI Spending Fears Hit Wall Street

In early 2026, US technology shares fell on weak earnings and concern over massive AI capital expenditure, while Hong Kong-listed Chinese tech slid largely on sentiment spillover. Mainland Chinese investors used the downturn to increase positions in names like Tencent and Alibaba, attracted by lower valuations such as a 16x P/E for the KraneShares CSI China Internet ETF. At the same time, Chinese AI firms including MiniMax and Zhipu AI completed major IPOs in Hong Kong, drawing strong demand and underscoring the city’s push to become a leading AI listing venue.