HONG KONG, Jan 31, 2026, 23:09 HKT — Market closed
- Tencent shares closed Friday at HK$606, slipping 2.6% amid a widespread tech selloff in Hong Kong.
- Traders are eyeing new details about China’s terms for purchasing Nvidia’s H200 AI chips.
- China’s factory survey came in weaker, prompting renewed bets on policy support before Monday’s open.
Tencent shares (0700.HK) ended Friday 2.57% lower at HK$606.00, fluctuating between HK$605.50 and HK$619.50 during the session. (Investing)
Hong Kong is closed for the weekend, setting the stage for a choppy session ahead. China’s weak activity data, fresh chatter on AI chip availability, and a cautious mood worldwide are all in play.
China’s official manufacturing purchasing managers’ index (PMI) dropped to 49.3 in January from 50.1, signaling contraction since readings below 50 indicate a shrinking sector. “Beijing will have to do much more in coming months to deliver an annual GDP growth rate above 4.5% in 2026,” said Ting Lu of Nomura. (Reuters)
Computing power is another key factor. China has given conditional approval for AI startup DeepSeek to purchase Nvidia’s H200 chips, according to a Reuters report, though regulators are still ironing out the final terms. Reuters also noted earlier that ByteDance, Alibaba, and Tencent received the green light to buy a combined total of over 400,000 H200 chips. (Reuters)
Hong Kong stocks plunged on Friday. The Hang Seng Index dropped 2.08%, while the tech index slid roughly 2.1%. The move followed a drop in gold prices that hit miners, compounded by state media cautioning against speculative trading. The Shanghai Gold Exchange also raised margin requirements. (RTHK News)
Overseas, sentiment offered little support. U.S. stocks slipped on Friday as investors zeroed in on Donald Trump’s choice of Kevin Warsh to head the Federal Reserve, alongside lingering concerns about inflation and Washington politics. “Markets are kind of recalibrating with the new administration and some of the unknowns,” said Michael Hans at Citizens Wealth Management. (Reuters)
Tencent is also right in the thick of the fundraising surge within China’s chip supply chain. Axera Semiconductor, which counts Tencent and Qiming Venture Partners as backers, has priced 104.9 million shares at HK$28.20 each, with a debut set for Feb. 10. Meanwhile, Montage Technology plans to announce pricing on Feb. 6 and begin trading on Feb. 9, according to filings. (Reuters)
The AI chip narrative remains deeply political. Stricter U.S. export controls or harsher rules targeting Chinese end-users would undercut growth forecasts for major platforms’ AI workloads. That looming threat continues to weigh on market sentiment.
A near-term indicator to watch is demand for new paper. Eastroc Beverage is set to announce final pricing and allocation for its Hong Kong IPO on Feb. 2, with trading beginning Feb. 3. Tencent is listed as one of the cornerstone investors, those pre-committed buyers who help stabilize the offering. (Reuters)
After Monday’s open, traders will turn their attention to China’s upcoming private-sector activity data, set for Feb. 2, followed by the U.S. January jobs report on Feb. 6 at 8:30 a.m. ET. These releases are expected to influence the next moves in rates and risk sentiment. (Bls)
