The Zhitong Finance App learned that Hong Kong stocks opened high and went low today. The three major indices closed down across the board, and weighted technology stocks weakened at the same time as the innovative drug and domestic housing sectors. At the close, the Hang Seng Index fell 0.73% or 170.49 points to 23041.32 points, with a turnover of HK$178.348 billion; the Hang Seng State-owned Enterprises Index fell 0.45% to 7766.91 points; and the Hang Seng Technology Index fell 1.48% to 3800.43 points.
Dongwu Securities believes that overseas risks continue to disrupt the market, and the trend is still tight, affecting the pace of the rebound in Hong Kong stocks. 1) The conflict between the US and Iran is repeated, and there is a risk that it will heat up; 2) In the US election, the market is gradually betting that the Democratic Party will win both houses. This may have a negative impact on future US AI policy and the US economy.
Blue-chip stock performance
HSBC Holdings (00005) dived after the results. At the close, it decreased by 5.56% to HK$134.3, with a turnover of HK$4.972 billion. The results released by HSBC Holdings in the afternoon fell short of expectations, causing the stock price to dive rapidly. Its third-quarter net profit before tax was US$9.6 billion, up 32% year on year, slightly lower than the market estimate of US$9.7 billion; revenue increased by US$800 million from the third quarter of 2025 to US$18.6 billion, lower than the market estimate of US$18.93 billion. Net interest income was $9.3 billion, up $500 million from the third quarter of 2025, or 6%.
In terms of other blue-chip stocks, Li Ning (02331) rose 5.92% to HK$13.6; Lenovo Group (00992) rose 2.94% to HK$22.38; CSPC Group (01093) fell 3.89% to HK$7.91; and Hanson Pharmaceuticals (03692) fell 3.22% to HK$31.84.
Popular sector aspects
On the market, weighted technology stocks weakened overall, with Tencent Holdings down 0.31% and Alibaba down 0.97%. Capital is shifting to the direction of undervalued and high dividends: domestic bank stocks strengthened against the market, Minsheng Bank rose 2.75%, Industrial and Commercial Bank rose 2.15%; coal and insurance stocks picked up at the same time. On the other side, innovative pharmaceutical stocks collectively slumped, with Connoya falling 14.38%; AI hardware stocks opening high and going low; domestic housing stocks, automobile stocks, and photovoltaic stocks were sluggish.
High-yield stocks such as coal and domestic banks rose. At the close, Minsheng Bank (01988) rose 2.75% to HK$3.175; China Shenhua (01088) rose 2.36% to HK$41.7; ICBC (01398) rose 2.15% to HK$7.6; and Postbank (01658) rose 1.29% to HK$5.515.
Ping An Bank's third-quarter revenue and net profit continued the “double increase” trend in the first half of the year, becoming the first listed bank to release a three-quarter report. The CITIC Securities Research Report predicts that the revenue and net profit of listed banks in the first three quarters are expected to increase by 7.2% and 3.2% year-on-year, respectively. Changjiang Securities pointed out that bank stocks are still in the process of undervaluation repair and dividend value revaluation this year. Market style and risk appetite will not change the direction of recovery, but will only affect the pace of short-term restoration. J.P. Morgan said that due to recent fluctuations in Hong Kong stocks and mainland stock markets, investors are paying more attention to defensive stock selection, believing that if market conditions continue to fluctuate, traditional Hong Kong public stocks may outperform.
AI hardware stocks opened high and went low. At the close, SMIC (00981) fell 1.26% to HK$45.34; Cambridge Technology (06166) rose 0.15% to HK$68.9; and Zhongji (03308) rose 0.49% to HK$725.
AI hardware opened higher this morning, driven by an overnight surge in US stocks and chips in Japan and South Korea, and then declined with the market. Claude developer Anthropic officially unveiled its IPO prospectus. Strong revenue growth data significantly allayed market concerns about the “AI bubble” and revived the AI boom. Meanwhile, Meta is promoting large-scale equity financing, SpaceX has received GPU financing promises, and the market expects AI capital expenditure to continue to receive financial support. It should be noted that the US stock market will welcome the disclosure of financial reports from many giants this week, and the market will focus on the return on infrastructure investment.
Innovative drug stocks had the highest declines. At the close, Conoa-B (02162) fell 14.38% to HK$69.35; Lepu Biotech (02157) fell 5.31% to HK$3.3; and Sansheng Pharmaceutical (01530) fell 5.03% to HK$13.21.
Societe Generale Securities pointed out that “innovation+internationalization” will still be the core main line of pharmaceuticals in 2026, and the valuation cost ratio of innovative drugs and industrial chains will be further highlighted. The innovative drug industry chain has entered the three-quarter reporting period and is expected to continue its rapid growth trend. HSBC Research is optimistic that next year there will be leading biotech stocks with three global research data releases, steady regular business growth, and plenty of cash. It also believes that China's CDMO has high visibility in growth and a stable supply chain position, while medical devices and pharmacies are defensive choices.
Domestic housing stocks are generally under pressure. At the close, Midea Real Estate (03990) fell 6.79% to HK$2.06; Sunac China (01918) fell 6.06% to HK$0.465; and R&F Real Estate (02777) fell 5.91% to HK$0.191.
According to Bank of China International, in the 43rd week (October 17 to October 23), the transaction area of new homes in 47 cities was 2.468 million square meters, down 14.9% month-on-month, down 34.8% year-on-year, and 10.7 percentage points higher than in the 42nd week. The bank believes that overall, expectations improved slightly after the intensive introduction of the “golden nine silver ten” traditional peak season policy, which led to a restoration of housing prices in 70 cities in September. However, the bank believes that current short-term data changes are not enough to form a definitive trend, and it is still necessary to closely track subsequent market volume and price performance.
Popular exotic stocks
Smart Spectrum (02513) is trending strongly. At the close, it was up 8.90% to HK$550.5.
The AI unicorn Anthropic officially submitted an S-1 document to sprint to NASDAQ, code “ANT.” According to reports, Anthropic plans to launch an IPO during the week of November 16. Anthropic's target valuation is as high as $2 trillion. If successfully implemented, it will be the largest IPO in history.
China Heart to Heart Fertilizer (01866) rose after the results. At the close, it was up 6.11% to HK$9.55.
China Heart Link Fertilizer announced its results for the first three quarters, with operating revenue of 23.047 billion yuan, up 28% year on year, and net profit to mother of 1,138 billion yuan, up 42% year on year. Revenue for the third quarter of the single quarter was 7.307 billion yuan, up 38% year on year, and net profit to mother was 217 million yuan, up 8% year on year; during the period, urea production increased by 780,000 tons year on year, and sales of high-efficiency urea increased 17%.
Li Ning (02331) reversed the market and rose higher. At the close, it was up 5.92% to HK$13.6.
Li Ning disclosed the latest operating conditions for the third quarter of this year and announced that a board meeting will be held on November 5 to consider declaring a special dividend to shareholders. Guoxin Securities believes that this will provide a potential catalyst for medium- to long-term brand development and shareholder returns.
ZTE (00763) improved after the results. At the close, it was up 4.40% to HK$19.94.
ZTE announced that in the first three quarters, it achieved operating revenue of 116.838 billion yuan, an increase of 16.23% year on year; net profit of 4,060 billion yuan, down 23.71% year on year. Revenue for the third quarter was 38.813 billion yuan, up 33.99% year on year; net profit was 1,307 billion yuan, up 394.46% year on year, down 9% month on month.
Yuyuan Group (00551) issued a profit warning. At the close, it was down 9.93% to HK$12.88.
Yuyuan Group expects the profit attributable to company owners to be reduced by about 50% to 55% year-on-year in the first three quarters of 2026, mainly due to fluctuating demand, tariffs, macro-uncertainty, rising labor costs driven by increased number of employees and salary increases, as well as unequal capacity utilization factors.