Hong Kong Stocks End Week in Red; Three Firms Make Market Debut
Hong Kong stocks plunged Friday as tensions in the Middle East showed no signs of letting up and investors booked profits ahead of the weekend.The Hang Seng Index fell by around 291.45 points, or roughly 1.2%, to end at 24,961.95, while the Hang Seng China Enterprises Index decreased by 65.28 points, or around 0.8%, to close at 8,436.63.Investment sentiment in Asia was tepid as semiconductor stocks slumped on Wall Street after Broadcom's AI chip sales guidance fell short of market expectations.Investors were cautiously optimistic after U.S. President Donald Trump said that ceasefire negotiations are in their "final" stages, though Iran's foreign minister had earlier described the talks as stalled, according to media reports.Meanwhile, regional investors continue to withdraw capital from Hong Kong in favor of technology bets elsewhere, The South China Morning post reported.According to the report, mainland investors became net sellers last month after selling HK$3.6 billion worth of Hong Kong stocks, the first monthly outflow in three years."Conversations with market participants reveal that regional investors have been selling their positions in Hong Kong to fund purchases of regional tech names in South Korea, Taiwan and Japan," Richard Tang, head equity research analyst for Asia at Julius Baer, was quoted as saying.In corporate news, three firms made their market debut with mixed performances.LongBio Pharma (HKG:1779) shares closed at HK$131.80 each, 37% above their initial public offering price of HK$96.06 in a strong Hong Kong debut.Dajin Heavy Industry (HKG:1081, SHE:002487) remained flat after closing at HK$66.40 per share, matching its IPO price, while Lung Fung Group (HKG:2290) closed at HK$2.81 per share, 45% below its IPO price of HK$5.18 in a tepid Hong Kong debut.
