Hong Kong Stocks at the Beginning of July: A Momentum at a Crossroads



Boss, after quite sharp ups and downs, Hong Kong stocks now seem to be at a crossroads. On one side are facts and figures, on the other is hope from patterns that have repeated before. Let's observe calmly together.

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📊 Numbers that Record Facts

After losing many points, the Hang Seng index managed to record a rebound. At the close of July 1, 2026, the main index recorded a significant daily increase:

Index Daily Change
Hang Seng +2,41%
Hang Seng Tech +3,2%

This movement managed to bring the index back above the 23.100 level, after previously falling below the 18.000 level. However, looking at the longer range, on a monthly and yearly basis, the main index still recorded a weakening.

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🍃 Two Sides Pulling Each Other

On one side, the market is under the shadow of several significant factors:

1. New Rules for Offshore Investment: China's new policy that takes effect at the beginning of July, which regulates stock trading abroad, is one of the main pressure factors.
2. Wave of Lockup Share Releases (Restricted Shares): The year 2026 is predicted to be the highest record in history for the value of Hong Kong stocks that will list on the exchange after the lockup period, reaching around 1,55 - 1,7 trillion HKD.
3. Strong US Dollar & High Interest Rates: This combination is still a general pressure factor for global stock markets, including Hong Kong.

However, on the other side, there are several foundations that are starting to appear:

1. Hope for Recovery in July: Historical patterns show that after a fairly deep decline, it is often followed by a recovery in the following month. Some analysts see the possibility of a "seven rebound" in July.
2. Strength of the Technology Sector: The technology sector, especially related to artificial intelligence (AI), is still the main focus in the Hong Kong market.
3. Opportunity at Weak Points: Some analysts are starting to see this moment as an opportunity to accumulate positions in large technology stocks that have been quite depressed.

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🕯️ Some Things to Watch Out For

The Hong Kong market is currently in the process of finding a new balance. On one side, there is real structural pressure. However, on the other side, there is potential for those who take a long-term view. Prices can go up and down, but every step is part of a longer journey. #SKHynixTopsKOSPIByMarketCap
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