Understanding the Market | HKEX is down over 4%, Hong Kong IPO regulations tighten, and global liquidity constraints suppress Hong Kong stocks

Zhitong
2026.03.23 06:49

The Hong Kong Stock Exchange is currently down over 4%, as of the time of writing, down 4.09% at HKD 379.8, with a trading volume of HKD 3.024 billion. In terms of news, according to Caixin, recently, the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption conducted a joint law enforcement action, searching the stock capital market departments of several brokerages, directly targeting core businesses such as IPO pricing and allocation. In addition, to comply with Hong Kong regulatory requirements, some investment banks have reduced project reserves, while others have withdrawn from IPO filing projects. A series of adjustments have also raised concerns in the market about whether the expectations for the Hong Kong IPO market in 2026 will be affected. Furthermore, Soochow Securities released a research report stating that if oil prices remain high, it will further delay the Federal Reserve's shift, increasing global liquidity pressure, which will continue to suppress emerging risk assets such as Hong Kong stocks. The firm pointed out that the market has lowered its expectations for Federal Reserve interest rate cuts. The ongoing conflict between the U.S. and Iran, rising oil prices, and the "stagflation" logic in U.S. trading have led the market to believe that the Federal Reserve will not cut interest rates for the entire year; there are still risks of further declines in the Hang Seng TECH Index; short-term volatility risks are high, and it is still recommended to focus on defensive strategies

According to Zhitong Finance APP, the Hong Kong Stock Exchange (00388) is currently down over 4%, with a drop of 4.09% as of the time of writing, priced at HKD 379.8, with a trading volume of HKD 3.024 billion.

In terms of news, according to Caixin, recently, the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption conducted a joint law enforcement action, searching the stock capital market departments of several brokerages, targeting core businesses such as IPO pricing and allocation. In addition, to comply with Hong Kong regulatory requirements, some investment banks have reduced project reserves, while others have withdrawn from IPO submission projects. A series of adjustments have raised market concerns about whether the expectations for the Hong Kong IPO market in 2026 will be affected.

Furthermore, Soochow Securities released a research report stating that if oil prices remain high, it will further delay the Federal Reserve's shift, increasing global liquidity pressure, which will continuously suppress emerging risk assets such as Hong Kong stocks. The firm pointed out that the market has lowered its expectations for Federal Reserve interest rate cuts. With the ongoing conflict between the U.S. and Iran, rising oil prices, and the "stagflation" logic in U.S. trading, the market believes that the Federal Reserve will not cut interest rates throughout the year; there are still risks of further declines in the Hang Seng TECH Index; short-term volatility risks are high, and it is still recommended to maintain a defensive stance

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