The Zhitong Finance App learned that the three major Hong Kong stock indices opened low today, bottomed out and rebounded during the intraday period, and the Hang Seng Technology Index remained weak throughout the day. At the close, the Hang Seng Index rose 0.30% or 74.02 points to 24345.22 points, with a full-day turnover of HK$187.566 billion; the Hang Seng State-owned Enterprises Index rose 0.08% to 8174.72 points; and the Hang Seng Technology Index fell 0.79% to 4136.63 points.
CICC pointed out that after a lapse of two years, Hengke's 12-month dynamic PE is 14.2, which has basically returned to the starting point of 14 times before 924; valuation and risk premiums are already in the low range. On the 14th, the RSI once hit an oversold level of 27.7. Combined with recent signs of accelerated southbound capital inflows, Hang Seng Technology once again had short-term bottoming characteristics after a new round of rapid pullback.
Blue-chip stock performance
CNPC (00857) was active throughout the day. At the close, it rose 3.70% to HK$10.22, with a turnover of HK$1,332 billion. The situation in the Middle East remains tense, and Brent oil is hovering above $105. The Houthis say Saudi Arabia launched 119 attacks within 24 hours, and flights over Riyadh are almost extinct. Huaan Securities has horizontally compared the 2025 net earnings per share and current static PE of key oil and gas companies in the same industry. Currently, China Petroleum (A/H) valuations are still low, especially H shares, which have strong valuation appeal.
In terms of other blue-chip stocks, Shenzhou International (02313) rose 3.94% to HK$36.4; Galaxy Entertainment (00027) rose 3.54% to HK$32.74; Huahong Hongli (01347) fell 5.29% to HK$85.1; and Haidilao (06862) fell 3.02% to HK$9.3.
Popular sector aspects
On the market, Kewang stocks had mixed ups and downs. Xiaomi rose more than 2% and Ali fell 0.92%; overnight, Brent crude oil returned to a two-week high, and petroleum stocks reversed the market; Xiaoma maintained an increase in the Asian shipping and port sector, and shipping stocks rose; Hong Kong bank stocks, gaming stocks, and non-ferrous stocks showed active performance; and individual PCB and optical communication concept stocks rebounded intraday. On the other side, export tax rebate dividends declined, automobile and lithium battery concept stocks declined; AI hardware stocks such as storage, semiconductors, and optical communications continued to weaken; domestic housing stocks diverged.
Shipping stocks rose collectively. At the close, COSCO Marine (01138) rose 4.44% to HK$21.18; Dexiang Shipping (02510) rose 4.01% to HK$14.25; Orient Overseas International (00316) rose 3.32% to HK$165; Haifeng International (01308) rose 2.87% to HK$52; and COSCO Marine Holdings (01919) rose 2.48% to HK$17.75.
Komo released a container shipping and port research report stating that the latest data for the third quarter of 2026 continues to show that short-term demand is better than market concerns. The bank pointed out that in September, the Logistics Manager Index (LMI) accelerated again to 70.2, rising 3.6 points month-on-month. Transportation prices remained high, and transportation capacity contracted for the tenth month in a row; US imports also remained strong. The Port of Los Angeles recorded the busiest three months in history from June to August, and global port congestion had risen to about 13% of the fleet. The bank maintains an attitude of increasing its holdings in the Asian shipping and port sectors.
Gaming stocks are generally active. At the close, Galaxy Entertainment (00027) rose 3.54% to HK$32.74; Sands China (01928) rose 3.35% to HK$11.42; MGM China (02282) rose 2.33% to HK$9.68; and Wynn Macau (01128) rose 1.41% to HK$5.025.
Citi's previous research report reiterated the forecast for October gaming revenue of MOP 25 billion, with an average daily gaming revenue of MOP 806 million, an increase of 4% over the previous year. Citi believes that many major variety and entertainment programs in Macau will support gaming stock earnings after the National Day Golden Week holiday. UBS, on the other hand, said that since the third quarter, the recovery in demand in the Macau gaming industry fell short of expectations. The market is expected to focus on the drivers behind the recent slowdown in demand in the upcoming results, while evaluating management comments on late Golden Week performance to look for signs of recovery in demand.
Pharmaceutical stocks such as CRO declined. At the close, Kingsley Biotech (01548) fell 15.61% to HK$35.56; Kanglong Chemical (03759) fell 6.61% to HK$28.52; and Tiger Pharmaceuticals (03347) fell 6.08% to HK$42.3.
As interest rate sensitive assets, the Hong Kong Stock Innovation Drug market performance is affected by the Federal Reserve's trends. Cleveland Federal Reserve Chairman Hammark said that smaller and more frequent monetary policy adjustments will help keep inflation expectations stable. It is better than waiting now, and risks requiring larger policy adjustments in the future. From October 6 to October 12, the US stock AI pharmaceutical company Twist surged higher and then retracted by more than 25%, suppressing risk appetite for AI pharmaceuticals. Societe Generale Securities believes that in the short term, the AI4S long-term industry trend is still promising due to the phased pullback of US stock benchmarking companies.
The automotive and lithium battery industry chains are under pressure. At the close, Pilot Smart (00470) fell 10.70% to HK$23.86; Longpan Technology (02465) fell 5.62% to HK$7.9; Ganfeng Lithium (01772) fell 3.29% to HK$27.04; and Xiaopeng Group-W (09868) fell 1.66% to HK$37.84.
The Ministry of Finance and the State Administration of Taxation issued a notice on October 12 to adjust the export tax rebate policy for some products. Starting April 1, 2027, the value-added tax export rebate rate for new energy vehicles will be reduced from 13% to 9%. Citi believes that the timing and scale are in line with market expectations, but the announcement follows the statement of the plug-in hybrid agreement between China and Europe, and weak passenger car sales in September. Coupled with the bank's conservative outlook for the fourth quarter, it is expected to trigger negative short-term sentiment. Furthermore, the market estimates that this reduction in the tax rebate rate will directly increase the costs of NEV exporters, reduce profit margins, and may weaken procurement demand for upstream lithium batteries and lithium carbonate.
AI hardware stocks continue to weaken. At the close, Lanqi Technology (06809) fell 5.1% to HK$241.8; Huahong Hongli (01347) fell 5.29% to HK$85.1; and Zhongji Asahi (03308) fell 1.44% to HK$890.
The cautious signals recently released simultaneously by Broadcom CEO Chen Fuyang and Intel CEO Chen Liwu raised concerns. Among them, Broadcom CEO Chen Fuyang compared market sentiment to a casino and warned that financing artificial intelligence construction would become a key issue. Morningstar analyst Martin Szumski said that the boom in the optical communications and computing power hardware supply chain is directly anchored to capital expenditure commitments from hyperscale cloud service provider Hyperscalers. Public statements from industry leaders sent a clear signal — mainstream cloud vendors may be at an end to expand capital spending without a bottom line, and investment discipline is being tightened.
Popular exotic stocks
Yuyuan Group (00551) rose significantly. At the close, it was up 6.93% to HK$13.88.
Yuyuan Group announced that net consolidated operating income in September was US$669 million, up 5.6% year on year; cumulative net comprehensive operating income for the first nine months of 2026 was US$5.889 billion, down 2.1% year on year. Manufacturing business revenue increased 6.6% year on year in September and decreased 3.8% year on year in the first nine months.
Kingdee International (00268) performed well. At the close, it was up 5.18% to HK$8.525.
Kingdee International announced that as of September 30, 2026, the Group's annual recurring revenue for subscription services was about RMB 4.604 billion, up about 19.3% year on year; net increase of ARR in a single quarter in the third quarter increased by about 46.9% year on year. In the nine months ended September 30, 2026, the contract amount for the Group's AI native products reached RMB 1,002 billion.
SMORE International (06969) fell sharply. At the close, it was down 9.49% to HK$8.06.
The Ministry of Finance and the State Administration of Taxation announced on October 12 that VAT export rebates for products such as electronic cigarette equipment will be abolished from April 1, 2027. On the same day, SMORE International released unaudited financial data for the third quarter of 2026. Revenue for the period was about 3,946 billion yuan, up 17.7% from the previous month, down 6.0% year on year, and profit for the period was about 365 million yuan, up 18.0% month on month and 15.2% year on year.
Minhua Holdings (01999) issued a profit warning. At the close, it was down 13.45% to HK$2.38.
Minhua Holdings issued a profit warning. It is expected that for the six months up to the end of September this year, profit attributable to the company's equity owners will be drastically reduced by about 70% to 90% compared to about HK$1,145.6 million in the same period in 2025, mainly hampered by rising raw material costs and depreciation in the US business.
Haidilao (06862) hit a new intraday low. At the close, it was down 3.02% to HK$9.3.
Haidilao announced last night that Zhang Yong, the company's controlling shareholder, executive director, chairman of the board of directors and CEO, signed a loan agreement with the company. According to this, the company agreed to grant Zhang Yong a HKD loan with a maximum principal amount equivalent to RMB 100 million for a period of one month (that is, 30 days), and the interest rate is the one-month HKD interbank interest rate plus 60 basis points. Citi indicated that this move may raise investors' concerns about the controlling shareholders' capital requirements.