HSI pares gains to 24,265 as A-shares slide, IPOs plunge 33%

The Hang Seng Index pared gains to 24,265, up 235 points or nearly 1%, after A-shares turned lower in the afternoon session.

The benchmark opened 183 points higher and reached a session high of 24,499 before giving back gains as mainland China's three major indices reversed course. The Shanghai Composite Index dropped 0.7% to 4,007, the Shenzhen Component Index declined about 1.9% to 15,106, and the ChiNext Index fell about 3.9% to 3,861.

Multiple recent IPOs slumped sharply. QIYUNSHAN FOOD (02797.HK), listed yesterday at an IPO price of HKD8, last traded at HKD14.16, down 32.57% with turnover of HKD19.2 million. DKE (01770.HK), also listed yesterday at HKD78.64, fell 29.87% to HKD56.1. RECONOVA (07656.HK), a mainland visual intelligence AI company that listed the previous day at an offer price of HKD21.66, declined 18.61% to HKD18.72 with turnover of HKD96.8 million. CREALIGHTS (01191.HK), listed June 29 at HKD114, slid 20.93% to HKD148.1 with turnover of HKD99.7 million.

The selloff in newly listed stocks shows fragile demand in Hong Kong's equity market, where four recent IPOs have traded below their offer prices within days of listing. The HSI's inability to hold morning gains, dragged by A-share weakness, suggests near-term resistance near the 24,500 level as traders watch for further policy signals from Beijing.

This article is for informational purposes only and does not constitute investment advice.