On February 25, 2023, significant turbulence swept across the Asian markets, casting a shadow over investor sentimentThe three major indexes in the A-shares market opened lower: the Shenzhen Component Index and the ChiNext Index falling over 1%, while the Shanghai Composite Index slipped by 0.83%. The decline in AI computing power shares was particularly stark, with server-related stocks leading the descent, as many AI application concepts drifted into weaker territory.

In Hong Kong, trading opened with the Hang Seng Index plunging over 2%, and the Hang Seng Tech Index dropped nearly 4%. Notably, Alibaba saw its stock plummet close to 8% at the start of the day, before recovering slightly to just under 5% by the time of reportingMeitu, a prominent player in the tech and beauty space, went through a rollercoaster, initially plummeting more than 12% before settling at a decline of nearly 6%.

The wider Asia-Pacific market echoed similar concerns, with Japan's Nikkei 225 Index decreasing by almost 1% and Korea's Composite Index dipping 0.16%. The backdrop to this unsettling market activity included a recent announcement from the Bank of Korea, which lowered its benchmark interest rate from 3% to 2.75% and also revised down its economic growth forecast for 2025, now predicting a modest 1.5% growth.

The drops in stock prices of companies like Alibaba and Meitu have raised eyebrows among investors and analysts alikeIn the early hours of trading, the AI concept stocks in Hong Kong followed a dismal trendMeitu, in particular, had previously announced to the Hong Kong Stock Exchange that a major shareholder, Cai Wensheng, sold 128 million shares between February 17 and February 21, 2025, amounting to about 2.81% of the total shares issued by the companyIn a reassuring statement, the founder and CEO of Meitu, Wu Zeyuan, expressed unwavering confidence in the future prospects of the companyHe hinted at plans to increase his stake after the company's annual performance announcement and the expiration of a lock-up period on March 18, 2025. Notably, Wu has never sold any of his shares and has made several purchases since May 10, 2018, reinforcing investor faith in his leadership.

Meanwhile, Alibaba's stock has witnessed a catastrophic decline of more than 4%, marking the most significant single-day drop in two years for its American shares

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On February 24, CEO Wu Yongming unveiled a bold commitment where Alibaba intends to invest over ¥380 billion (approximately $54 billion) over the next three years towards building cloud and AI hardware infrastructureHe emphasized that the expected explosion of AI has far exceeded projections, and Alibaba will readily accelerate its initiatives to enhance cloud computing and AI capabilities to bolster the entire industry ecosystem.

Not just Alibaba and Meitu, various other companies suffered as well, including Kingsoft Cloud, GDS Holdings, ZTE, and Hua Hong Semiconductor, all experiencing severe drops in stock prices.

The short-video segment in the Hong Kong market also faced downward pressure with Bilibili dropping almost 6%. Other companies such as LeShare Group, Weimob Group, and Kuaishou saw declines exceeding 2% to 5% respectivelyAnalysts from Guotai Junan highlighted that the focus for Hong Kong stocks in March should be on mitigating macroeconomic fluctuations while continuing to emphasize growth direction reassessment and opportunities arising from internal rotation and diffusion within supply chains.

In a surprising twist, the humanoid robot segment showed resilience, recovering from initial lows with stocks of companies like TOSY and Tongli Technology recovering over 10% and 9% respectively, while Hanyu Group increased by over 7%. The shifts in sentiment came as the Shenzhen Municipal Bureau of Industry and Information Technology confirmed it would soon release specialized policies favoring the growth of AI-related sectors.

The Huawei smartphone concept also experienced upward movementStocks like Furi Electronics and Huaying Technology hit their maximum daily gains, while others like Dafeng Technology and Visionox joined the upward trendIn an intriguing development, Yu Chengdong, Huawei's Executive Director, and Head of the Device Business Group, announced a new product forecast—an innovative smartphone native to HarmonyOS

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