TechCapsules

AI-summarised brief · reviewed before publication

China's tech sector reported its weakest quarterly profit growth in three years, with earnings for the Hang Seng Tech Index falling 30% in the three months through December 2025. This decline is the worst since 2022, due to regulations and weak consumer spending. Major companies like Tencent and Alibaba are investing heavily in AI, but investors question if these investments will pay off, leading to a 14% decline in the index this year.