HONG KONG'S HANG SENG INDEX LAGS AS GLUT OF CHINESE AI IPOS DILUTES MARKET

The Hang Seng index is underperforming, down nearly 3% year-to-date, as a wave of initial public offerings from Chinese AI firms absorbs market liquidity. Investors are reportedly selling existing holdings to participate in the new listings, many of which are for unprofitable companies. The influx of IPOs, coupled with weak global demand for Chinese stocks, is creating a drag on the broader Hong Kong market.