The Hang Seng Index slipped 0.4%, or 108 points, to 25,750 on Friday, as investors took profits following the benchmark’s recent rally. Sentiment weakened further after China’s official PMIs unexpectedly fell back into contraction territory in July, fueling concerns about the strength and sustainability of the economic recovery.
Selling pressure intensified when Zhongji Innolight fell on its Hong Kong trading debut, despite raising roughly HK$53.4 billion in one of the city’s largest IPOs this year. The lackluster performance underscored growing caution toward AI and semiconductor-related names amid a broader global selloff in technology stocks.
Property shares were also under pressure after analysts warned that Hong Kong’s housing rally could cool following a robust first half of the year. Even so, the city’s IPO pipeline remained a relative bright spot, with attention also turning to Shein after the fast-fashion group moved ahead with plans for a Hong Kong listing.
Major decliners included Xiaomi (-7.9%), Tencent (-0.9%), Meituan (-3.2%), AIA (-1.0%), and Anta Sports (-1.6%).
