The Zhitong Finance App learned that the Federal Reserve suspended interest rate hikes as scheduled. Hong Kong stocks opened higher today. Early trading once surged to 23,184 points, then fluctuated and declined, and the Hang Seng Index fell below the 20,000 mark. At the close, the Hang Seng Index fell 0.59% or 136.18 points to 22958.65 points, with a turnover of HK$189.453 billion; the Hang Seng State-owned Enterprises Index fell 0.46% to 7755.66 points; and the Hang Seng Technology Index fell 2.84% to 3744.14 points.
According to CITIC Securities's overseas strategy, the comprehensive discount rate for Hong Kong stocks has risen from 3.1% at the end of February 2026 to 3.9% in early October. When the discount rate center rises, “high-term” growth assets bear the brunt and be suppressed. AI hardware is a typical high-term asset and is most sensitive to changes in interest rates; while dividend assets with predictable dividends are closer in value to “short-term cash flow,” which is relatively beneficial.
Blue-chip stock performance
CNPC's (00857) performance rose after that. At the close, it was up 2.91% to HK$10.24, with a turnover of HK$1,145 million. CNPC achieved operating income of 793,573 billion yuan in the third quarter, up 10.4% year on year; net profit to mother was 51.84 billion yuan, up 21.6% year on year. Bank of America Securities raised its 2026 profit forecast and target price, reaffirmed the “buy” rating, and raised the target price of H shares from HK$11.5 to HK$12.
In terms of other blue-chip stocks, Hanson Pharmaceuticals (03692) rose 2.92% to HK$33.08; China Life (02628) rose 2.45% to HK$24.22; Huahong Hongli (01347) fell 7.71% to HK$64.6; and SMIC (00981) fell 5.94% to HK$44.96.
Popular sector aspects
On the market, heavy technology stocks were generally under pressure, with Alibaba falling 2.83% and Tencent Holdings falling 2.58%; AI hardware rebounded, and capital turned to high dividends and financial blue chips. CNPC shares rose 2.91% and China Construction Bank rose 2.12%; with the implementation of the Shanghai satellite internet solution, Junda shares soared 18.45%. On the other side, New Oriental's results fell sharply by 14.03%, and Chinese brokerage firms weakened at the same time as the robotics concept.
Many domestic bank stocks have reached new highs. At the close, ICBC (01398) rose 2.30% to HK$7.78; CCB (00939) rose 2.12% to HK$10.13; Bank of China (03988) rose 1.57% to HK$6.135; and Agricultural Bank (01288) rose 1.56% to HK$6.85.
The disclosure of the three quarterly reports of listed banks has begun. Ping An Bank achieved operating income of 103.1 billion yuan in the first three quarters, up 2.4% year on year; achieved net profit of 39.186 billion yuan, up 2.2% year on year; Bank of Qingdao achieved operating income of 12.665 billion yuan in the first three quarters, up 15.00% year on year; net profit to mother of 4.617 billion yuan, up 15.67% year on year, maintaining double digit growth for 15 consecutive reporting periods. It is worth mentioning that the mid-term dividends of listed banks continue to be implemented. Currently, 21 A-share listed banks have disclosed their 2026 mid-term dividend plans. The total proposed dividend payment plan exceeds 260 billion yuan, and the six major banks have increased their dividend ratio from 30% to 31%.
Insurance stocks rose collectively. At the close, Ping An of China (02318) rose 2.56% to HK$49.62; China Financial Insurance (02328) rose 1.92% to HK$15.91; and China People's Insurance Group (01339) rose 0.9% to HK$5.06.
Listed insurers gradually came to fruition in the third quarter. On October 28, China Taibao issued an announcement stating that in the third quarter of 2026, the company achieved net profit of about 5.628 billion yuan, a year-on-year decrease of about 68.4%. Changes in performance are mainly affected by capital market fluctuations. GF Securities previously stated that considering the overall adjustment of the equity market in the third quarter, insurers' investment income may be dragged down to a certain extent, and profit side performance may be pressured, but the release of performance pressure is expected to provide a better allocation point for the sector — the market's cautious expectations for the three quarterly reports have already been priced in pre-holiday adjustments, and the undervaluation of the sector after the shortfall hits will further highlight the margin of safety.
AI hardware stocks such as Optical Communications led the decline. At the close, Jingwang Electronics (03228) fell 13.02% to HK$51.1; Guanghe Technology (01989) fell 12.93% to HK$64.3; Cambridge Technology (06166) fell 12.75% to HK$65.7; and Zhongji Innox (03308) fell 10.00% to HK$706.5.
Google's parent company Alphabet's revenue and profit for the third quarter fell short of expectations, and even though capital expenditure was “controlled,” free cash flow remained negative at US$9.1 billion, recording negative values for the second consecutive quarter. The market's doubts about whether huge AI capital investments can be converted into real returns are heating up. Meanwhile, the first three-quarter report of “Yi Zhongtian” was released. Tianfu Communications's third-quarter revenue was 1,923 billion yuan, up 31.50% year on year; net profit was 889 million yuan, up 55.30% year on year. According to agency reviews, Tianfu Communications's Q3 performance was slightly lower than expected, and the market generally expected Q3 net profit of more than 900 million yuan.
Chinese brokerage stocks generally weakened. At the close, Shen Wan Hongyuan (06806) fell 5.66% to HK$2.085; CITIC Construction Investment Securities (06066) fell 4.92% to HK$10.05.
Recently, the 2026 three-quarter reports of a number of listed brokerage firms were released, showing an overall divergent trend of “cumulative growth in the first three quarters and pressure in the third quarter”. Some listed brokerage firms are affected by their own business, and their performance fluctuates greatly, causing market concerns. It is worth noting that the public offering in the third quarter was accompanied by fluctuations in market conditions and turnover, and the holdings of Chinese brokerage firms were reduced at the same time.
Robotics concept stocks pulled back. At the close, Yuejiang (02432) fell 8.09% to HK$18.28; Zhaowei Electromechanical (02692) fell 5.66% to HK$33.02; and Johnson Electric Holdings (00179) fell 3.59% to HK$13.69.
Yushu Technology, the leading humanoid robot leader in science and technology innovation, released its three-quarter report on the evening of October 28. Revenue for the third quarter was 665 million yuan, up 69.93% year on year, net profit to mother was 113 million yuan, down 17.37% year on year; R&D investment was 127 million yuan, up 249.58% year on year. The increase in revenue in a single quarter did not increase profit, causing the market to re-evaluate the pace of commercialization of robots themselves.
Popular exotic stocks
New Oriental-S (09901) suffered a severe setback after the results. At the close, it was down 14.03% to HK$36.76.
Morton Daikon believes that New Oriental's profit margin for the first fiscal quarter was slightly lower than expected and profit was 3% lower than expected, but revenue increased 23% year over year. Management reiterated the 2027 fiscal year guidance and predicted that growth would accelerate in the second fiscal quarter. The pressure on profit margins is also manageable, and management still expects profit margins to expand throughout the year, despite the seasonal combination of social security contributions, severance costs, and Oriental Selection.
Jiangxi Copper Co., Ltd. (00358) plummeted after the results. At the close, it was down 10.88% to HK$26.04.
Jiangxi Copper Co., Ltd. announced that revenue for the third quarter was 135.265 billion yuan, down 2.75% year on year; net profit was 3,055 billion yuan, up 65.22% year on year, down 47% month on month. Revenue for the first three quarters was 442,420 billion yuan, up 11.71% year on year; net profit was 11.687 billion yuan, up 94.02% year on year.
Shandong Gold (01787) was under pressure throughout the day. At the close, it was down 5.83% to HK$16.16.
Shandong Gold's revenue for the third quarter was 36.913 billion yuan, up 36.63% year on year; net profit loss of 363 million yuan changed from profit to loss from net profit of 2,097 billion yuan in the second quarter. Net profit for the first three quarters was 3.181 billion yuan, down 19.60% year on year. The change in performance was mainly due to a decline in the company's own gold production and a decline in sales volume.
Junda shares (02865) rose sharply. At the close, it was up 18.45% to HK$12.52.
Shanghai's six departments disclosed action plans for the development of the satellite Internet industry (2027-2030), and proposed that by 2030, the number of satellites in orbit in the Shanghai satellite Internet industry will exceed 3,000, and the scale of the core industry will exceed 80 billion yuan. Jietai Aerospace and Xuntian Qianhe, a subsidiary of Junda Co., Ltd., are developing separate plans for space photovoltaics and satellites.
Taobo (06110) had a strong performance. At the close, it was up 11.68% to HK$1.1.
Citi pointed out that for giving Taobo a “buy” rating, the target price was HK$1.7. As of the end of August, Taobo's net profit for the first half of fiscal year 2027 was roughly in line with the forecast. Operating cash flow increased 36% year over year to RMB 1,844 billion, equivalent to 2.8 times net profit, indicating that profit quality continues to be good.