HK Stocks Face HK$255 Billion Lockup Expiry Wave in July

Hong Kong stocks may come under renewed pressure in July as a large lockup expiry wave makes previously restricted IPO and secondary-offering shares eligible for trading. Bloomberg calculations suggest at least HK$255 billion ($32.5 billion) of shares will become tradable next month, while Goldman Sachs projects HK$274 billion of IPO-related lockup expiries over the next year, a record for any 12-month period. The article frames this as a supply overhang for a market already lagging regional AI-linked peers, with the Hang Seng Index down 3% this year versus strong gains in Korea and Taiwan. Goldman notes historical post-expiry weakness, with median declines of 4% over three months and 7% over six months. While the increased free float could improve liquidity and price discovery for some Hong Kong listings, the near-term market impact is likely bearish due to potential selling pressure.