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Shuli Ren

Hong Kong's Stock Rally Killer Is Back

Chinese companies are cashing in. That augured the end of the last rally.
Inside A Securities Brokerage
Photographer: Justin Chin/Bloomberg

Pay attention, anyone who's concerned that Hong Kong stocks are looking toppy: China Inc. is cashing in, and that presages a real test.

This month has been the busiest for share placements since June 2015, when the market had just started to retreat after reaching an eight-year peak above 28,000. The Hang Seng Index is flirting with that level again after surging 27 percent this year.