HK Stock Market Move | AI hardware stocks plunge against the market trend as investors worry Democrats may constrain AI infrastructure; institutions say near-term trading may price in a Capex downgrade.

AI hardware stocks plunged against the market trend. As of press time, YOFC (06869) fell 9.24% to HK$99.65; KB LAMINATES (01888) fell 8.95% to HK$33.98; Zhongji Innolight (03308) fell 7.20% to HK$619; Cig Shanghai (06166) fell 6.21% to HK$59.7. On the news front, JPMorgan's latest report noted that Democrats gained control of the House and Senate and won gubernatorial elections in key data center states such as Texas, Georgia, New Mexico, and Nevada. Meanwhile, of 45 local ballot measures restricting data centers, 42 have passed or are leaning toward passing. JPMorgan believes the probability of moratoriums ultimately becoming permanent bans is limited, but the pace of industry expansion has already been materially affected. Huatai pointed out that the pre-election consensus had not priced in regulatory variables, and near-term trading may price in the risk of a Capex downgrade for 2027/2028. The material impact will first show up as delays in power delivery to campuses and postponements in equipment procurement, acceptance, and payment collection. Considering demand independence and delivery certainty, the sector ranking is maintained: consumer electronics > design > foundry > memory > equipment.