[ET Net News Agency, 30 June 2026] Hong Kong stocks managed a strong rebound on Monday (29 Jun), only to return to square one this morning. Mainland China's official manufacturing PMI for June rose to 50.3%, beating expectations. However, Mainland China bank stocks plummeted collectively and domestic demand stocks also recorded heavy losses, dragging down the performance of Hong Kong stocks. The HSI reported 22,752 at midday, down 273 points or 1.2%, falling through 23,000 again, with main board turnover approaching HKD 139.9 billion. The Hang Seng China Enterprises Index reported 7,507, down 98 points or 1.3%. The Hang Seng Tech Index reported 4,454, up 61 points or 1.4%.
"Cheung Chi Wai: Downward support retreats to last June's low"
Following yesterday's HSI close with a substantial rise of 354 points to return to the 23,000-point level, the broader market failed to sustain its upward momentum today. After opening 18 points lower, it immediately broke through the support level and hovered around the 22,700-point mark.
Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News Agency that the disappointing performance of Hong Kong stocks was mainly because today coincides with the "mid-year review day", coupled with a succession of negative factors hitting the market earlier, including e-commerce platforms being called in for regulatory talks, and blue-chip leader Alibaba (09988) being accused by Anthropic of illegally accessing its AI models. The market is currently still digesting this basket of negative news; at the same time, a large batch of new IPO shares has been open for subscription recently, causing market funds to disperse, which naturally leaves the HSI performance short of expectations. Cheung expects that the HSI has a slim chance of regaining 23,000 today, and the top priority is to "survive" the mid-year review before the market outlook can expect to stabilise. Currently, the downward support level for the broader market has retreated to around 22,668 points recorded during the same period last June.
"Weak Yen, central bank intervention hard to reverse the situation"
The Japanese Yen's decline against the US Dollar has not stopped, even losing the 162 milestone to hit another new low since 1986. The market expects the Japanese government to call on the central bank to take appropriate monetary policies to intervene. However, Cheung pointed out that the main reason for the Yen's decline is the strengthening of the US Dollar Index. Under these circumstances, even if the central bank intervenes, it will be difficult to turn the tide, and at most can only slow down the decline. He added that the Yen's movement has limited direct impact on US and Hong Kong stocks; conversely, the pressure on Hong Kong stocks caused by the continuous rise of the US Dollar cannot be ignored.
"Fundraising king Luxshare Precision excels in every aspect"
In addition, the Hong Kong stock market is seeing a new wave of IPO craze with multiple new shares raising funds simultaneously. Among them, Luxshare Precision, acclaimed as one of the "three giants of the Apple supply chain" in the A-share market, has attracted the most attention. The company plans to raise USD 3 billion (approximately HKD 23.5 billion). The fundraising amount is higher than that of printed circuit board (PCB) manufacturer VGT (02476), and it is expected to become the fundraising king in Hong Kong stocks for the first half of the year. Cheung highly praised Luxshare Precision as "worth buying", as it is backed by as many as 26 powerful cornerstone investors, including Temasek, True Light, HHLR, and Government of Singapore Investment Corporation (GIC), among others.
Furthermore, the company ranks second globally and first in Mainland China in the consumer electronics components and modules (PIMS) market, with a global market share reaching 11.2%. Assessing various factors comprehensively, Cheung pointed out that Luxshare Precision can undoubtedly be described as a "five-star new stock". He also believes that there is a high probability that the stock will trade above its IPO price after listing, though the actual trend will still depend on the final subscription response.
"Cheung Chi Wai: Downward support retreats to last June's low"
Following yesterday's HSI close with a substantial rise of 354 points to return to the 23,000-point level, the broader market failed to sustain its upward momentum today. After opening 18 points lower, it immediately broke through the support level and hovered around the 22,700-point mark.
Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, told ET Net News Agency that the disappointing performance of Hong Kong stocks was mainly because today coincides with the "mid-year review day", coupled with a succession of negative factors hitting the market earlier, including e-commerce platforms being called in for regulatory talks, and blue-chip leader Alibaba (09988) being accused by Anthropic of illegally accessing its AI models. The market is currently still digesting this basket of negative news; at the same time, a large batch of new IPO shares has been open for subscription recently, causing market funds to disperse, which naturally leaves the HSI performance short of expectations. Cheung expects that the HSI has a slim chance of regaining 23,000 today, and the top priority is to "survive" the mid-year review before the market outlook can expect to stabilise. Currently, the downward support level for the broader market has retreated to around 22,668 points recorded during the same period last June.
"Weak Yen, central bank intervention hard to reverse the situation"
The Japanese Yen's decline against the US Dollar has not stopped, even losing the 162 milestone to hit another new low since 1986. The market expects the Japanese government to call on the central bank to take appropriate monetary policies to intervene. However, Cheung pointed out that the main reason for the Yen's decline is the strengthening of the US Dollar Index. Under these circumstances, even if the central bank intervenes, it will be difficult to turn the tide, and at most can only slow down the decline. He added that the Yen's movement has limited direct impact on US and Hong Kong stocks; conversely, the pressure on Hong Kong stocks caused by the continuous rise of the US Dollar cannot be ignored.
"Fundraising king Luxshare Precision excels in every aspect"
In addition, the Hong Kong stock market is seeing a new wave of IPO craze with multiple new shares raising funds simultaneously. Among them, Luxshare Precision, acclaimed as one of the "three giants of the Apple supply chain" in the A-share market, has attracted the most attention. The company plans to raise USD 3 billion (approximately HKD 23.5 billion). The fundraising amount is higher than that of printed circuit board (PCB) manufacturer VGT (02476), and it is expected to become the fundraising king in Hong Kong stocks for the first half of the year. Cheung highly praised Luxshare Precision as "worth buying", as it is backed by as many as 26 powerful cornerstone investors, including Temasek, True Light, HHLR, and Government of Singapore Investment Corporation (GIC), among others.
Furthermore, the company ranks second globally and first in Mainland China in the consumer electronics components and modules (PIMS) market, with a global market share reaching 11.2%. Assessing various factors comprehensively, Cheung pointed out that Luxshare Precision can undoubtedly be described as a "five-star new stock". He also believes that there is a high probability that the stock will trade above its IPO price after listing, though the actual trend will still depend on the final subscription response.
