SpaceX report, share unlock may sway Hong Kong, mainland China stocks as AI trade recovers

SpaceX's first earnings report since its listing and the upcoming expiry of trading restrictions on part of its IPO shares will test the strength of the artificial intelligence trade, which has driven the S&P 500 near record highs and helped Hong Kong equities outperform. The results are due after the US market close on Tuesday, and the lock-up expiry two days later is expected to more than double the free-float shares, adding pressure to a stock trading below its offer price. With a market capitalization of US$1.5 trillion, SpaceX is large enough to sway sentiment in the AI sector and could have repercussions for Hong Kong and mainland China stocks.

Advertisement SpaceX report, share unlock may sway Hong Kong, mainland China stocks as AI trade recovers Elon Musk’s aerospace unit faces scrutiny as results and a share unlock loom, testing investor appetite for capital-intensive tech 2-MIN READ2-MIN Zhang Shidong /author/zhang-shidong in Shanghai SpaceX’s first earnings report since its listing, together with the coming supply of a large chunk of shares available for public trading, will test the strength of the artificial intelligence trade https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3361989/ai-fuels-boom-hong-kong-exports-soar-53-record-hk641-billion-june?module=inline&pgtype=article ’s recovery, which has driven the S&P 500 within striking distance of its record high and helped Hong Kong equities outperform.The first set of results from SpaceX as a publicly traded company will be under close scrutiny, with Elon Musk’s commercial aerospace unit viewed as a gauge of investors’ willingness to fund capital-intensive technology https://www.scmp.com/tech/policy/article/3361779/investment-chinese-characteristics-how-beijings-money-reshaping-tech-ventures?module=inline&pgtype=article . The numbers are due after the market close on Tuesday, US time.Another test will follow two days later, when the trading restrictions on part of SpaceX’s initial public offering IPO shares expire, setting the stage for one of the biggest stock unlocks in global capital markets. The first lock-up expiry https://www.scmp.com/business/china-business/article/3357165/how-ride-out-hong-kongs-us274-billion-lock-expiry-wave-hitting-stocks-year?module=inline&pgtype=article is expected to more than double the number of free-float shares, adding pressure to a stock already trading below its offer price.Capitalised at US$1.5 trillion, SpaceX ranks alongside the so-called US Magnificent Seven of tech stocks – Nvidia, Microsoft, Apple, Alphabet, Amazon.com, Meta Platforms and Tesla – and is big enough to sway sentiment in the AI sector. Any spillover would have repercussions for stocks in Hong Kong and mainland China, where investors look to the US for clues on trading strategies. Advertisement Select Voice Select Speed 1.00x