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Hong Kong Stocks Rebound on Tech Strength
8 Jul
Summary
- Hang Seng Index gained 2.4% with tech stocks leading the surge.
- Knowledge Atlas Technology stock jumped 18% after its lock-up expiry.
- New tech IPOs show maturing investor appetite, demanding clear profitability.
Hong Kong equities experienced a notable recovery on Wednesday, with the Hang Seng Index rising 2.4% to 24,057 by midday. Technology stocks were the primary drivers of this upward trend, with the Hang Seng Tech Index outperforming the broader market with a 4.3% surge. This rally occurred despite ongoing geopolitical tensions in the Middle East.
Central to the market's ascent was Knowledge Atlas Technology, which saw its shares jump 18% following its initial major lock-up expiry. Fears of a sell-off were mitigated as cornerstone investors confirmed their holdings, smoothly absorbing the unlocked equity. This positive sentiment also benefited artificial intelligence company MiniMax, which gained 2.8% ahead of its own significant lock-up expiry later in the week.
Conversely, the debut of new technology listings indicated a more discerning investor base. Momenta Global, an autonomous driving firm, achieved a modest 3.4% gain on its Hong Kong IPO, raising HK$5.89 billion. Analysts suggest this reflects an increased investor scrutiny on valuations and a demand for clearer long-term profit pathways in AI-related ventures.
