Hang Seng Reversal Weakens, What's Going On?
The Hong Kong stock market weakened again on Tuesday (June 30th) after strengthening in the previous session. The Hang Seng Index fell 0.9%, or around 206 points, to 22,819. This decline indicates investors are becoming cautious, even though the Chinese government is still providing liquidity support to maintain financial system stability.
Market sentiment was not significantly boosted after the Chinese central bank conducted an overnight reverse repo operation to maintain loose liquidity. While this move signaled Beijing's continued efforts to support the market, its impact on stocks was relatively limited. Investors are still awaiting stronger policies to boost economic growth.
Pressure also stemmed from concerns that Chinese stocks are lagging behind the global rally driven by artificial intelligence (AI). While global stock markets, particularly in the United States, have received significant support from the technology and chip sectors, Chinese stocks have not been able to follow suit. This reflects market doubts about the strength of China's economic recovery.
Several large-cap stocks weighed on the index. InSilico Medicine plunged 10.2%, Trip.com fell 2.5%, Pop Mart weakened 2.0%, Kuaishou Technology fell 1.8%, and Techtronic Industries fell 1.3%. Meanwhile, market participants were also closely monitoring Nexchip Semiconductor's planned IPO in Hong Kong, which could potentially raise up to US$890.3 million, while awaiting further stimulus signals from Beijing. (asd)
Source: Newsmaker.id
