Hong Kong Stocks Begin Month Higher

The Hang Seng Index rose 1.1%, or 282 points, to 25,791 on Wednesday, following gains on Wall Street overnight as technology stocks rebounded, while easing crude oil prices and lower US Treasury yields offered some support to Asian equities, although uncertainty surrounding US-Iran developments kept investors cautious. The rise was led by healthcare stocks, with Innovent Biologics climbing 10.5%, while broader sentiment was also supported by gains in tech shares. Meanwhile, Alibaba was also in focus after Chairman Joe Tsai bought an additional 720,000 shares worth about HK$82 million, following recent purchases by other senior executives. The buying helped ease concerns over the company’s HK$80 billion share placement to fund its AI expansion, which is expected to close on Wednesday. Notable movers included Tencent (1.0%), Wuxi Biologics (2.1%), Xiaomi (2.0%), Meituan (2.3%), and Akeso (7.4%).

The Hang Seng Index was little changed, to close 25,511 on Tuesday, tracking overnight weakness on Wall Street as technology shares came under pressure. The decline was limited as strength in Hong Kong’s IPO market helped cushion broader risk-off sentiment. Investors remained cautious following Monday’s sharp sell-off in Alibaba after the e-commerce giant announced an HK$80 billion share placement to fund its artificial intelligence infrastructure expansion. The move raised concerns over potential dilution and the company’s rising AI-related capital spending. Meanwhile, investors continued to watch Shein’s Hong Kong IPO, which could raise up to US$1.8 billion at a valuation of about US$27 billion. Market attention also remained on upcoming US economic data and Federal Reserve policy signals for clues on the interest-rate outlook. Notable laggards included Meituan (-6.7%), MiniMax (-4.0%), and Xiaomi (-2%). While Kingboard Laminates and Wuxi Biologics rose 13.8% and 14.8% respectively.

The Hang Seng Index slipped 1.9%, or 492 points, to close at 25,517 on Monday, as technology stocks led the sell-off amid profit-taking and renewed concerns over the sector’s elevated valuations and heavy artificial-intelligence spending. Alibaba Group was a key focus after announcing a US$10.2 billion (HK$80 billion) Hong Kong share placement at a 3.6% discount to its previous close to fund its AI expansion, raising concerns over potential share dilution and the company’s substantial capital spending on AI infrastructure. Meanwhile, Shein officially launched the bookbuilding process for its Hong Kong IPO on Monday. The fast-fashion company is offering 280 million shares at HK$47.60 to HK$49.50 each, potentially raising around HK$13.9 billion (US$1.77 billion). Trading is expected to begin on September 1. Among notable laggards included Tencent (-3.7%), SMIC (-7.9%), Xiaomi (-4.1%), Z.AI Co. (-10.8%), and Meituan (-2.7%).