HK Stock Market Move | Hong Kong Stock Exchange (00388) falls more than 4%, Hong Kong IPO regulation strengthens, global liquidity tension suppresses Hong Kong stocks.

The Hong Kong Stock Exchange (00388) is down more than 4%, with a 4.09% drop to 379.8 Hong Kong dollars as of press time, with a trading volume of 30.24 billion Hong Kong dollars. On the news front, according to reports from Caixin, the Securities and Futures Commission of Hong Kong and the Independent Commission Against Corruption recently conducted joint law enforcement actions, conducting searches on some securities firms' capital market departments, focusing on core businesses such as IPO pricing and placements. In addition, to comply with Hong Kong regulatory requirements, some investment banks have reduced project reserves, while others have withdrawn from IPO listing projects. These series of adjustments have also drawn market attention to whether the Hong Kong IPO market in 2026 will be affected. Furthermore, Soochow released a research report stating that if oil prices remain elevated, it will further delay the Federal Reserve's pivot, increase global liquidity pressures, and continue to suppress emerging risk assets such as Hong Kong stocks. The bank pointed out that the market has downgraded expectations for a Federal Reserve rate cut. The ongoing US-Iran conflict, the surge in oil prices, and the "stagflation" logic in US trading have led the market to believe that the Federal Reserve will not cut rates for the whole year, with continued downside risks for Hengqin; short-term volatility risks are high, so defensive positions are still recommended.