Hong Kong Stocks Rise for Fourth Straight Session

The Hang Seng Index edged up to 0.5%, or 124 points, to 23,742 on Tuesday, marking the fourth consecutive session of gains, as a rally in major US technology stocks lifted sentiment and renewed optimism that the AI-driven bull market still has room to run after Wall Street's technology sector posted strong overnight gains. However, gains were limited by concerns over upcoming IPO lock-up expirations in Hong Kong after Lotus Asset Management CIO Hao Hong warned that the release of locked-up shares could trigger strong selling pressure in recently listed companies. On the data front, investors also awaited China's June CPI and PPI data due later this week for fresh clues on the country's economic recovery. Technology shares led the advance, with Tencent Holdings (+3.4%), Xiaomi Corporation (+3.4%), Meituan (+3.8%), Lenovo (+2.9%), and Knowledge Atlas (+1.9%) among the top gainers.

The Hang Seng Index rose 1.1%, or 266 points, to close at 23,616 on Monday, supported by stronger-than-expected private-sector activity after the S&P Global Hong Kong SAR PMI climbed to 52.0 in June from 50.4 in May, marking the fastest expansion since February. Sentiment was further lifted as investor enthusiasm for artificial intelligence broadened beyond technology, boosting sectors such as biotechnology. Gains were capped, however, by caution over a record wave of IPO lock-up expirations this week, which could increase share supply and trigger profit-taking in recently listed companies. Chinese AI developer Knowledge Atlas Technology will see 25.6 million shares become eligible for trading on Wednesday, while MiniMax and Shanghai Iluvatar CoreX Semiconductor are also set to unlock sizeable portions of their shares. Among notable movers were Sino Biopharmaceutical (6.5%), Sichuan Kelun-Biotech (4.9%), Innovent Biologics (3.1%), Kuaishou (8.0%), and Tencent (4.8%).

The Hang Seng Index climbed 1.3%, or 295 points, to close at 23,350 on Friday, extending gains for a second straight session as technology, financial, and consumer stocks led broad-based gains. The market outperformed several Asian peers despite renewed weakness in technology and artificial intelligence-related shares, as investors elsewhere continued to rotate out of the sector on concerns that the AI-driven rally had become overextended. In Hong Kong, investors continued to favor internet companies amid attractive valuations, while improved global risk sentiment following the latest US jobs data eased concerns over further Fed rate hikes. Investors are looking ahead to June economic indicators, set for release in the coming weeks, for additional clues about the health of China's economic recovery. Notable gainers included UBTECH Robotics (17.6%), Akeso (8.0%), Xiaomi (1.6%), Knowledge Atlas (2.2%), and Horizon Robotics (9.1%).