Hong Kong Stocks Higher as PMI Improves

The Hang Seng Index rose 0.8%, or 187 points, to 23,529 on Monday, supported by stronger-than-expected private-sector activity after the S&P Global Hong Kong SAR PMI climbed to 52.0 in June from 50.4 in May, marking the fastest expansion since February. Investors also looked ahead to China’s June CPI and PPI data due later this week for fresh clues on the mainland’s economic recovery. Gains were tempered, however, by caution over a record wave of IPO lock-up expirations this week, which could increase share supply and trigger profit-taking in recently listed companies. Chinese AI developer Knowledge Atlas Technology will see 25.6 million shares, or nearly 6% of its outstanding stock, become eligible for trading on Wednesday, while MiniMax and Shanghai Iluvatar CoreX Semiconductor are also set to unlock sizeable portions of their shares. Among notable movers were SMIC (1.6%), Innovent Biologics (3.6%), and Kingboard Holdings (2.2%) while Knowledge Atlas Technology declined 7.2%.

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