KOREAN AIR EXTENDS SUSPENSION OF FLIGHTS TO DUBAI TO AUGUST 2

HONG KONG STOCKS CLOSE LOWER: HANG SENG -0.87%, TECH INDEX -0.36%

Tencent Holdings Ltd. and Alibaba Group Holding Ltd. are expected to face pressure on earnings growth due to rising AI investment costs and intensifying competition in China’s artificial intelligence sector following DeepSeek’s latest model launch. Tencent’s full-year growth is projected to slow to the low-teens range as AI spending doubles, while Alibaba is weighed by weak consumption and reliance on longer-term AI monetization rather than near-term earnings. Analysts also said cloud computing is unlikely to materially lift 2026 profits for either company due to strong competition and margin pressure.