An EY report: A wave of partial new stock unlocking tide will come to Hong Kong stocks in the second half of the year, and maintains a "neutral" view on the related impact.

The Hong Kong stock market is about to usher in a new wave of unlockings, as the lock-up period for key cornerstone investors of several major semi-new stocks is about to expire. Ernst & Young estimates that the scale of semi-new stock lock-up unlockings from July to December is approximately HK$938.7 billion, mainly concentrated in July, September, and December. This may bring some selling pressure to the Hong Kong stock market, but Ernst & Young currently maintains a "neutral" view on the impact. Ernst & Young's spokesperson for capital markets services in Hong Kong, Ryan Lai, stated that the unlocking wave will indeed bring certain selling pressure, but for fund managers, if there are no better alternatives and a lack of motivation to actively reduce holdings of high-quality companies, the ultimate performance will depend on the overall economic situation at that time and whether there have been any changes in the fund's capacity to absorb. He added that although the unlocking amount is substantial, many shareholders focus on long-term investment and returns, and may not necessarily sell their shares after the unlocking. Relying solely on share unlockings may not necessarily have a huge impact on the IPO market or the overall stock market. Ryan Lai also pointed out that this wave of unlockings mainly involves controlling shareholders, local governments, state-owned platforms, and long-term strategic investors who value the long-term value of companies, industry synergies, and policy dividends. Therefore, the actual selling pressure and market impact faced will be much lower than the above-mentioned figures.