Hong Kong Shares Reverse After Early Gains

The Hang Seng Index fell 0.4%, or 99 points, to 23,518 on Tuesday, reversing earlier gains as property stocks led declines and investors turned cautious ahead of key US and Chinese economic events. Sentiment weakened after the World Bank projected China's economic growth would slow to 4.4% in 2026 and 4.3% in 2027, citing the prolonged property downturn and subdued consumer demand. Investors also awaited the US Federal Reserve's latest policy meeting and China's June CPI and PPI data due this week for clues on the policy outlook. Property developers led losses after the sector index dropped more than 3%, while technology shares also traded lower. Meanwhile, Beijing and Hong Kong announced new measures to expand currency, bond, and gold trading, aiming to strengthen the city's role as a leading offshore yuan hub. Among notable losers were Kuaishou (-9.5%), Kingboard Laminates (-8.9%), Pop Mart (-4.8%), SMIC (-3.2%), and AIA (-2.2%).

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%).