The Hang Seng Index plunged 2.7%, or 667 points, to 23,943 on Friday, its sharpest one-day decline since July 2026, as a renewed global selloff in risk assets weighed on Hong Kong shares after the National Day holiday. The retreat came as the 10-year US Treasury yield reached 5.34%, its highest level since 2002, with rising energy costs and strong AI-related investment adding to inflation and interest-rate concerns. Brent crude remained around US$102.6 a barrel amid worries about Middle East supply disruptions and China’s suspension of refined-fuel exports. Technology stocks faced additional pressure from higher yields and US restrictions on advanced AI hardware, while geopolitical tensions weakened sentiment. The absence of Southbound Stock Connect (mainland-to-Hong Kong stock trading channel) flows, as mainland markets remained closed, further amplified the selloff. Tencent fell 1.9%, AIA dropped 5.0%, HKEX declined 2.4%, Trip.com lost 3.0% and Xiaomi slid 4.4%.