SpaceX stock gained 3% after announcing its debut earnings report for Aug. 4, coinciding with a major share lock-up expiration allowing insiders to sell up to 20% of shares. The stock had recently shed nearly half its value, attracting short sellers, while the company also faces Starship launch delays and expands into AI and cloud computing.
Hong Kong stocks fell Thursday, erasing earlier gains due to Asian market volatility and a tech sector slump. Knowledge Atlas Technology surged, while MiniMax tumbled. Regional markets like South Korea and Japan showed mixed signs.
Hong Kong's Hang Seng Index and Hang Seng Tech Index saw significant gains, driven by institutional buying in tech giants like Alibaba and SMIC. Knowledge Atlas Technology (Zhipu AI) also surged, absorbing equity unlocks smoothly.
The Hang Seng Index climbed 2.4% to 24,057 by noon, driven by technology shares like Zhipu AI, which surged 18%. Gains occurred despite Middle East geopolitical tensions, as cornerstone investors reaffirmed holdings, absorbing equity unlocks.
Hong Kong's stock market faces potential sell-off pressure as lock-up periods expire for AI and semiconductor stocks like Zhipu AI and MiniMax, releasing billions in shares. Analysts warn of liquidity drain fears due to upcoming secondary share placements.
SpaceX IPO participants face differing lock-up periods. Individual investors may be restricted from selling for 15-30 days, risking future IPO eligibility, while institutional investors can sell immediately, leading to criticism that individuals are being used as "cannon fodder."
Hong Kong stocks face potential price pressure and uncertainty as lock-up periods for IPO shares expire, with historical data suggesting median declines post-expiry. Investors are advised to carefully parse metrics amid limited AI exposure.
SpaceX plans to reserve about 5% of shares for employees and individuals designated by executives in its IPO, exempting them from post-listing lock-up restrictions. This non-traditional approach aims for a $1.75 trillion valuation.
