Hong Kong Stock Market Falls 5.6% YTD, Significantly Lags Seoul Index Up 83.45%, Says CITIC

According to CITIC Securities research, the Hang Seng Index fell 5.60% and the Hang Seng Tech Index dropped 15.30% year-to-date as of June 10, trailing other Asian markets significantly while South Korea's composite index surged 83.45%.

CITIC attributes the underperformance to three pressures: (1) dividend expectations for heavyweight tech and automotive firms saw sharp downward revisions despite hard-tech gains, (2) external outflows persist due to a stronger U.S. dollar and elevated Treasury yields constraining offshore markets, and (3) Q3 liquidity faces headwinds from IPO supply and equity lock-up expiries totaling over 850 billion Hong Kong dollars.