Hong Kong stocks were lower on Wednesday and have a clear support target in place.
The HK 50 index has been rejected a second time at the 24,430 level and may now look to test lower support. The key level is at 22,600 which held in March, before creating the gap down to April lows. The level worked again in late-May to secure the recent push higher.
Hong Kong’s stock exchange has found a new lease of life despite Chinese economic weakness, with the domestic environment for Initial Public Offerings (IPOs) booming.
The finance minister said yesterday that the push to attract overseas investment will hopefully continue. There was further positive news as Shein announced it was abandoning a London listing for Hong Kong.
All-time highs in stock markets in the US and Europe are another reason for investors to look elsewhere.
The latest data showed that HK$107 billion (US$13.6 billion) has been raised through Hong Kong IPOs in the first six months of the year, which is the highest globally. The amount raised so far in 2025 is also 22% higher than the whole of 2024.
That is also boosting the government’s finances and furthering the outlook as an investment destination. Stock market stamp duty jumped by 42.5% to HK$52.17 billion for the financial year ending in March. That was 90% of the total and helped to fill the gap of a weaker property sector.
