To The Moon

Hong Kong's three major indices all declined in morning trading. At the midday close, the Hang Seng Index was down 1.25% at 24,533.29, the Hang Seng Tech Index dropped 1.61%, and the H-Share Index fell 1.32%. Across the board, technology and internet stocks were broadly lower. Kuaishou Technology dropped over 4%, while Baidu, Meituan, and Bilibili all declined more than 3%. Tencent Holdings and NetEase were down over 2%. The commercial aerospace sector was among the top gainers, with Junda Technology rising more than 7%. Mainland property stocks were generally weaker, with Sunac China Holdings falling over 4%. Oil shares faced pressure, with CNOOC down more than 2%.

Commercial Aerospace Sector Leads Gains

The commercial aerospace sector was a notable outperformer. A significant breakthrough in the global commercial aerospace field has captured market attention. Rocket, satellite, and AI company SpaceX successfully listed on the Nasdaq with a fundraising size of $75 billion. Following its debut, the stock had risen over 40% by the close of trading last night, pushing Elon Musk's net worth past $1.3 trillion.

Mainland Property Stocks Broadly Lower

Mainland property stocks experienced widespread declines. The National Bureau of Statistics released data on the sales price changes for commercial residential buildings in 70 large and medium-sized cities for May 2026. The figures show that housing prices overall continued their downward trend, although first-tier cities have begun to stabilize and recover first. Second- and third-tier cities still face significant adjustment pressure, presenting a complex market landscape characterized by overall pressure and structural divergence. On a month-on-month basis, among the 70 cities, new commercial residential property prices rose in 16 cities, an increase of 2 from the previous month; prices were unchanged in 3 cities; and fell in 51 cities. For existing homes, prices rose in only 10 cities, a decrease of 2 from the prior month. Year-on-year, the decline in commercial residential sales prices across all city tiers narrowed, though pressure in third-tier cities remains pronounced.

Oil Shares Under Pressure

Oil stocks came under selling pressure. Karen Ward, Chief Market Strategist for EMEA at J.P. Morgan Asset Management, commented that as a U.S.-Iran agreement improves the crude oil supply outlook, the continued decline in oil prices could reignite the market rotation previously interrupted by tensions with Iran, providing a "significant tailwind" for the stock market. Ward anticipates that oil prices could fall further towards $70 per barrel in the coming weeks, citing that the implementation of the agreement is expected to increase global crude supply.