On July 2, Lenovo Group fell 5.04% in regular trading, trading at 22.24 HKD/share with turnover of 4.89 billion HKD, bucking a broadly positive market as the Hang Seng Index opened 0.83% higher.

The decline reflects ongoing market digestion of the company's recently completed $2 billion zero-coupon convertible bond issuance (due 2033), with an initial conversion price of 36.70 HKD. Full conversion would dilute approximately 3.33% of outstanding shares, maintaining pressure on capital structure sentiment. Additionally, the company recently warned that DRAM and NAND prices have entered a structural upcycle that will persist beyond 2030, fueling concerns over rising PC and server hardware costs.

Having surged over 100% in the preceding six weeks — driven by AI server order momentum exceeding 1,500 billion RMB and multiple broker upgrades targeting 30-35 HKD — short-term profit-taking sentiment continues to weigh on the stock.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)