Hong Kong Stocks Lose Momentum

The Hang Seng Index fell 0.7%, or 165 points, to 24,038 on Thursday, reversing early gains as weakness and volatility in regional technology shares weighed on market sentiment. Knowledge Atlas Technology, also known as Zhipu AI, surged more than 10% as volatility surrounding its recent IPO share lock-up expiration eased, while rival MiniMax slumped nearly 20.1% during its first major lock-up expiry. Meanwhile, Smart-Core Holdings jumped more than 23%, bucking the broader market decline. The weakness in Hong Kong came despite rebounds elsewhere in Asia, with renewed US-Iran tensions pushing oil prices higher and adding pressure to regional risk sentiment. Notable laggards were Tencent (-2.0%), Xiaomi (2.1%), Meituan (-2.9%), Kuaishou (4.1%), and Pop Mart International (-3.3%). In contrast, Semiconductor Manufacturing International Corporation surged 12.1%.

The Hang Seng Index edged up 0.4%, or 101 points, to 24,302 on Thursday, extending the previous session's strong rally as investors continued to favor technology and semiconductor shares. Market sentiment was supported by a busy IPO pipeline, with Apple supplier Luxshare Precision Industry set to debut at HK$63.25, near its IPO price, while AI firm Zhipu AI launched a Hong Kong share sale seeking to raise up to HK$4 billion, reinforcing optimism toward AI-related stocks. Gains came despite renewed US-Iran hostilities that pushed oil prices above $74 a barrel and lifted Treasury yields. Meanwhile, data showed China's annual inflation rate eased to 1.0% in June from 1.2% in May, while producer prices increased 4.1%, accelerating from 3.9%. Technology and retail trade stocks led the advance. Notable gainers included Knowledge Atlas (14.5%), Semiconductor Manufacturing International Corporation (4.2%), Xiaomi (1.7%), MiniMax (2.0%), Lenovo (3.9%), and Shanghai Iluvatar CoreX (4.6%).

The Hang Seng Index surged 3.0%, or 703 points, to close at 24,199 on Wednesday, marking its strongest gain in weeks as technology shares spearheaded broad-based advances despite renewed geopolitical tensions in the Middle East. Investor sentiment remained resilient after the US launched fresh strikes on Iran in retaliation for attacks on commercial vessels in the Strait of Hormuz, even as the escalation pushed oil prices higher. Buying was driven by continued optimism over artificial intelligence and semiconductor-related stocks, while Hong Kong's robust IPO market further supported risk appetite. Momenta Global was set to debut slightly above its offer price after raising HK$5.89 billion in its initial public offering, highlighting sustained demand for technology listings. Investors also positioned ahead of China's June consumer and producer inflation data due on Thursday. Among the top gainers were Tencent (+2.4%), SMIC (+2.9%), Lenovo (+4.4%), Kuaishou (+1.2%), and Xiaomi (+2.9%).