Huatai Securities: Hang Seng Fell Below 23,000 Last Week; July Tech Share Lockup Expiries May Weigh

Huatai Securities said Hong Kong stocks weakened in a one-way decline last week, with the Hang Seng Index falling below 23,000, according to 36Kr. The brokerage said the market remains constrained by a lack of a compelling investment theme and liquidity “siphoning,” shifting from range-bound trading to a downtrend. Huatai cited a stronger US dollar index rising above 101 as a broad headwind for emerging markets, saying the impact of yuan appreciation was diluted and the A-H premium index rose to 122%. It also said positioning adjustments led non-AI stocks to move from flat performance to persistent declines, while rising volatility in South Korean equities affected Asia-Pacific asset performance. Looking ahead, Huatai said room for a reversal has not yet opened and that a cluster of newly listed tech stocks facing lockup expiries in early July could add negative pressure. It suggested watching names with high short interest and improving earnings expectations, such as media and innovative drug stocks.