Hang Seng Loses Momentum
The Hang Seng Index fell 0.4%, or approximately 108 points, to the 25,750 level during Friday's trading (July 31). The decline occurred as investors opted to lock in profits following gains in the Hong Kong market over recent sessions.
Market sentiment was further dampened after official Chinese PMI data slipped back into contraction territory in July. These results raised concerns that China's economic recovery lacks the strength to sustain stock market growth.
Pressure also stemmed from shares of Zhongji Innolight, which fell on their Hong Kong trading debut despite the company successfully raising around HK$53.4 billion. This situation indicates that investors remain cautious regarding AI and semiconductor stocks amidst the pressure facing the global technology sector.
Property stocks also weakened after analysts warned that Hong Kong's housing market rally could slow down following strong growth in the first half of the year. Shares of Xiaomi, Tencent, Meituan, AIA, and Anta Sports were among the primary drags on the index.
Despite the market correction, initial public offering (IPO) activity in Hong Kong remains a bright spot. Investors are now awaiting developments regarding Shein's listing plans, though the Hang Seng's near-term direction will continue to be influenced by Chinese economic data and the performance of technology stocks.
Source: Newsmaker.id
