The Zhitong Finance App learned that Hong Kong stocks opened high on Monday. After the Hang Seng Index once surged to 23259.13 points, the rise narrowed. Petroleum, domestic housing, and physical AI concepts took turns active, but AI hardware stocks were adjusted again. At the close, the Hang Seng Index rose 0.51% or 118.44 points to 23211.81 points, with a full day turnover of HK$175.758 billion; the Hang Seng State-owned Enterprises Index rose 0.59% to 7802.09 points; and the Hang Seng Technology Index fell 0.36% to 3857.53 points.
Galaxy Securities believes that during the Fed's interest rate meeting window, although there are no conditions for a systematic reversal, structural opportunities after the fall are concentrated on the two lines of dividends and innovative drugs. The value of participation in the technology sector depends on the extent to which market sentiment recovers after the implementation of the Federal Reserve's decision. Recommended focus: low-wave dividends; innovative drugs and CXO sector; technology sector.
Blue-chip stock performance
CNPC shares (00857) led the blue chip increase. At the close, it rose 5.78% to HK$10.16, with a turnover of HK$1,009 billion. Benefiting from rising oil prices, CNPC's net profit for the first half of the year increased 22% year over year. Net profit for the second quarter increased 15% month-on-month. Huaan Securities previously stated that the company attaches importance to shareholder returns and continues to increase dividend rates and dividend rates.
In terms of other blue-chip stocks, China Petroleum & Chemical (00386) rose 4.04% to HK$4.64; Sinopharm Holdings (01099) rose 3.85% to HK$15.93; Zijin Mining (02899) fell 5.84% to HK$27.74; and Huahong Hongli (01347) fell 4.74% to HK$64.25.
Popular sector aspects
On the market, petroleum stocks acted as the leading force, with CNPC up 5.78% and CNOOC Oilfield services up 7.77%; domestic housing stocks rose as a whole, with Greentown China rising 6.84%; the physical AI concept heated up in the afternoon, and Huanchuang Technology surged 15%; the ESMO annual conference achieved impressive results in domestically produced innovative drugs, and some pharmaceutical stocks were active. On the other side, AI hardware stocks continued to weaken. Jingwang Electronics fell 11.84%, Changfei Optical Cable fell 8.82%; gold stocks fell with the price of gold; sporting goods, film and television stocks were under pressure.
Oil and oil services stocks were higher. At the close, CNOOC Oilfield Services (02883) rose 7.77% to HK$7.98; CNPC shares (00857) rose 5.78% to HK$10.16; and CNOOC (00883) rose 3.55% to HK$23.94.
The impasse in the Middle East region is difficult to resolve in the short term. The armed conflict between Saudi Arabia and the Houthis has intensified, and geopolitical risks have kept oil prices fluctuating high. According to reports, two US officials revealed that if US President Trump orders, the US military forces in the Middle East are ready to launch a new round of military action against Iran “within 96 hours of receiving the order.” Huatai Securities previously stated that due to repeated geographical conflicts and other factors, the average price of international crude oil in Q3 is still high, and the profits of oil and gas extraction companies are expected to increase year-on-year.
Some physical AI concepts are trending strongly. At the close, Huanchuang Technology (06802) rose 15.33% to HK$96.3; Yuejiang (02432) rose 8.92% to HK$18.56; and Hesai-W (02525) rose 8.56% to HK$13.57.
Over the past weekend, the popularity of physical AI skyrocketed. On October 22, Yushu Technology held the 2026 World Physical AI Conference and proposed that an intelligent ChatGPT could be achieved as soon as next year. Previously, Huang Renxun's speech at the Nvidia Berlin GTC conference focused on shifting from hardware sales to AI factory systems. Physical AI was the core topic. At the same time, GM's big model began participating in robot control, leading AI laboratories ended up in the physical model industry, and domestic machine manufacturers and Optimus mass production continued to accelerate.
AI hardware stocks continued to decline. At the close, Jingwang Electronics (03228) fell 11.84% to HK$56.6; Changfei Optical Fiber Cable (06869) fell 8.82% to HK$102.3; Cambridge Technology (06166) fell 7.28% to HK$68.8; and Guanghe Technology (01989) fell 7.17% to HK$69.9.
Recent market concerns about AI companies' return on investment and financing sustainability have led to significant adjustments in AI hardware stocks. The current earnings season has entered a performance verification period, and the degree of matching between valuation and performance is facing reevaluation. It is worth noting that Musk's latest prediction is that in the past few weeks, the debt market has almost completely cut off funding channels, and any company with no independent large revenue outside of AI data centers will hardly be able to get financing.
Non-ferrous stocks such as gold are generally under pressure. At the close, Lingbao Gold (03330) fell 4.90% to HK$15.93; Chifeng Gold (06693) fell 4.67% to HK$29.8; Luoyang Molybdenum (03993) fell 4.53% to HK$12.42; and China Gold International (02099) fell 3.06% to HK$177.6.
On October 26, spot gold in the Asian market fell below 3,980 US dollars/ounce. It fell 4.12% throughout the week last week, to a minimum of 3,975 US dollars, a new low since the beginning of June. Shenyin Wanguo Futures believes that the recent trend in precious metals has been weak, and the core restraint comes from the Federal Reserve's expectations of austerity. The situation between the US and Iran is repeated, oil prices are rising again, and the risk of rising inflation is further heating up, which in turn raises expectations of interest rate hikes, putting pressure on gold.
Popular exotic stocks
Lizhu Pharmaceuticals (01513) paid a huge dividend. At the close, it was up 9.47% to HK$22.66.
The company plans to pay a cash dividend of 12.39 yuan for every 10 shares and release a shareholder return plan for the next three years, making it clear that in principle, the total amount of annual cash dividends is not less than 90% of the current year's distributable profit, and in principle, the total amount of cash dividends paid each year is not less than RMB 2 billion (tax included).
H&H International Holdings (01112)'s revenue increased 24.5% in the first three quarters. At the close, it was up 8.67% to HK$22.3.
H&H International Holdings announced that total revenue for the first nine months increased 24.5% year-on-year to $13.448 billion, mainly driven by strong growth in the adult and infant nutrition care products segments.
Meitu (01357) recorded a record high for paid subscribers. At the close, it was up 6.98% to HK$3.91.
Meitu's net paid subscribers increased by about 1.39 million in the third quarter, a record high in the past four quarters. As of September, the number of paid subscribers reached 1.33 million; the number of paid subscribers to productivity apps increased 18.3% year over year to 2.39 million. ARR for AI productivity applications reached 655 million yuan, an increase of 40.1% year over year.
COSCO Marine (01138) benefits from high crude oil freight rates. At the close, it was up 6.63% to HK$17.7.
According to the Goldman Sachs report, the global average crude oil freight rate has risen from about 3 US dollars/barrel a year ago to more than 20 US dollars/barrel, and the Middle East route has broken through 35 US dollars/barrel. Although freight rates have declined slightly in the past few days, the global average is still seven times that of a year ago. “As long as the Middle East conflict maintains the status quo, freight rates are unlikely to drop drastically.”
Zaiding Pharmaceutical (09688) DLL3 ADC data is amazing. At the close, it was up 5.57% to HK$18.77.
Zaiding Pharmaceutical announced the first data from a global phase 1b clinical study of its DLL3 ADC drug zocilurtatug pelitecan (zoci, formerly ZL-1310) combined with atilizumab (with or without carboplatin) for first-line treatment of extensive small cell lung cancer (ES-SCLC). It showed high remission rate, encouraging persistence, and well-tolerated safety characteristics in first-line ES-SCLC.
Lansi Technology (06613) lost net profit to its mother in the third quarter. At the close, it was down 7.38% to HK$15.18.
According to the three-quarter report of Lansi Technology, revenue for the third quarter was 19.035 billion yuan, down 8.05% year on year, and net profit to mother was 843 million yuan, down 50.42% year on year. Mainly hampered by weak demand for consumer electronics, adjustments in launch times for key folding phone models, and exchange factors.