Hong Kong has emerged as the worst-performing major equity market this year, struggling to capture the momentum of the global artificial intelligence trade.
While technology valuations have surged elsewhere, the local bourse has failed to replicate those gains, leaving investors questioning the region's relevance in the current tech cycle.
The underperformance reflects a broader structural shift in the market's composition.
Data indicates that Hong Kong, alongside China and India, is among the few major global equity markets where the largest companies now account for a smaller share of total market capitalization than they did a year ago.
This contraction in concentration suggests that the market's traditional anchors are losing their dominance, diluting the impact of any single strong performer.
Despite the lagging index performance, activity in the primary market remains robust.