Source: Securities Times

Hang Seng Tech Stubbornly Breaks Out of a Bearish Pattern!
On February 26, Hong Kong tech stocks all declined, with the Hang Seng Tech Index dropping 2.87%. Well-known tech stocks such as Baidu, Kuaishou, Alibaba, Ctrip, and Tencent all experienced sharp declines. Since reaching its highest point of the year on January 13, the market capitalization of the Hang Seng Tech Index components has evaporated by HKD 2.3 trillion (approximately RMB 2 trillion). The trend of the Hang Seng Tech Index has shown a clear bearish pattern.
What exactly happened? Industry insiders in Hong Kong revealed that the hottest hedge trading strategy on Wall Street in early 2026—HALO trading (Heavy Assets, Low Obsolescence)—not only impacted the US stock market but also affected the Hong Kong stock market. Long-term institutional holdings may also have started to loosen. Securities Times reporters also noted that January 13 was the day the US leveraged loan indicator peaked.
"HKD 2 Trillion" Major Collapse
On February 26, among the components of the Hang Seng Tech Index, 2 stocks rose, and 28 stocks fell. Bilibili declined 4.6%, Baidu Group fell 4.3%, Kuaishou dropped 4.14%, Alibaba decreased 3.6%, Ctrip declined 3.24%, and Tencent Holdings fell 2%. Previously, on February 2, the Hang Seng Tech Index broke below support. As of now, a significant bearish pattern has emerged.
On January 13 this year, the Hang Seng Tech Index reached its highest point of the year, with the total market capitalization of its components closing at HKD 17.15 trillion. As of today’s close, the total market capitalization has fallen to HKD 14.85 trillion, in just over a month.