The Zhitong Finance App learned that the US non-agricultural data for October exceeded expectations, adding another variable to the interest rate hike path. Hong Kong stocks fluctuated and declined after opening higher this morning, and the three major indices collectively turned green in the afternoon. At the close, the Hang Seng Index fell 0.13% or 32.91 points to 24448.95 points, with a full-day turnover of HK$173.07 billion; the Hang Seng State-owned Enterprises Index fell 0.17% to 8260.15 points; and the Hang Seng Technology Index fell 0.92% to 4040.73 points.
Huatai Securities believes that Hong Kong stocks led the global rise last week, but there are enough short-term factors driving this round of rebound. The Hang Seng Index has risen about 5% since the date the full position signal was issued, close to the average rebound after the historical panic. Current options pricing shows that the market state has changed from panic to chase. Looking back, the profit forecast for Hong Kong stocks has declined by 2.4% in the past 4 weeks. The probability that the Federal Reserve will raise interest rates in December is still around 75%. Combined with the peak of the lifting of the ban in December, it is not recommended to continue chasing high-beta companies. Hong Kong stocks may enter an α-driven market phase.
Blue-chip stock performance
Yao Ming Biotech (02269) followed the rise of pharmaceuticals. At the close, it rose 2.73% to HK$48.92, with a turnover of HK$1,219 billion. Citigroup's recent research report indicated that Pharmacovigenics was included in the 90-day upward catalyst watch list. The bank believes that the company may adjust its guidelines in the fourth quarter, and that the biosimilar drug development agreement reached with Fresenius may also prompt the company to raise its long-term goal of contract manufacturing organization (CMO) revenue.
In terms of other blue-chip stocks, Budweiser Asia Pacific (01876) rose 3.14% to HK$6.575; Huahong Hongli (01347) rose 2.35% to HK$71.85; Orient Overseas International (00316) fell 3.75% to HK$146.5; and BYD Electronics (00285) fell 3.18% to HK$20.72.
Popular sector aspects
On the market, the style is shifting from AI hardware to cycles and innovative drugs. Indonesia's RKAB quota delays compounded the onset of the cold wave. Coal stocks rose, and Shougang resource investors rose 12.94%; the Apple research team revealed the progress of the robot “brain”, the physical AI concept strengthened, and Galax Technology once rose by more than 60% in the intraday market; the three-quarter profit growth rate accelerated, and innovative drugs and the CXO sector joined forces to rise; the central bank's gold reserves “increased 24 times in a row”, and most gold stocks rose. On the other side, Technology Network stocks weakened; AI hardware stocks split, and the Jiantao Multilayer Board fell 9.21%.
Coal stocks had the highest gains. At the close, Shougang Resources (00639) rose 12.94% to HK$2.88; Yankuang Energy (01171) rose 6.34% to HK$11.4; China Coal Energy (01898) rose 4.84% to HK$10.18; and China Shenhua (01088) rose 2.39% to HK$43.68.
On the supply side, Indonesia is expected to maintain a strict RKAB mining quota control strategy for key minerals such as coal and nickel. Producers are awaiting 2027 quota approval, which is expected to be released as early as December. On the price side, 5,500 kcal thermal coal from Qinhuangdao Port rebounded to 1,013 yuan/ton on November 6, and stopped falling and rebounding after November 3. Changjiang Securities said that if supply easing policies are not implemented in excess of expectations during the year, coal prices are expected to remain high in November-December, considering that the resumption of supply in production areas is still slow and power plant inventories are low during the peak winter coal consumption season.
Physical AI concept stocks strengthened. At the close, Galax Technology (02729) was up 15.05% to HK$10.93; Premium Choice (09880) rose 8.99% to HK$70.3; QNK Technology (00068) rose 7.96% to HK$2.78; and Laifu Harmonics (03952) rose 6.51% to HK$29.12.
The Apple research team recently revealed the research results of HALO, an autonomous control system for humanoid robots. Through visual language models (VLM) and motion generation technology, the system can not only understand human instructions, but also adjust movements according to unfamiliar environments to independently complete tasks such as pushing boxes, sitting on chairs, and crossing obstacles. CITIC Securities believes that the robot-themed market is now in place; GPT-6 and Gemini 4's advances in robot planning, spatial perception, and real-to-sim modeling are broadening the space for large general-purpose models to participate in robot development and training. Tesla is expected to release the Optimus V3 in the fourth quarter, bringing the development of the humanoid robot industry to a new stage.
Innovative drug stocks continue to be strong. At the close, Zaiding Pharmaceuticals (09688) rose 14.16% to HK$20.96; Kangfang Biotech (09926) rose 4.05% to HK$88.7; and Pharmaceuticals (02359) rose 2.27% to HK$198.
According to Huafu Securities, 27 A-share Biopharma and Biotech companies achieved revenue of 73.2 billion yuan in the first three quarters, up 45% year on year, net profit of 16.6 billion yuan, up 1326.5% year on year; revenue for the third quarter was 28.6 billion yuan, up 46.4% year on year, and net profit to mother was 8.91 billion yuan, up 870.9% year on year. The sector has been profitable for 5 consecutive quarters since 2025Q3, and the 26Q3 single quarter profit reached a record high. It is expected that 2026-2027 will usher in a period of intensive profit for innovative pharmaceutical companies.
Gold stocks mostly rose. At the close, Lingbao Gold (03330) rose 2.45% to HK$17.14; Zijin Gold International (02259) rose 2.34% to HK$139.7; and Zhaojin Mining (01818) rose 1.38% to HK$17.65.
According to data from the Central Bank of China, gold reserves were 78.3 million ounces at the end of October, an increase of 830,000 ounces over the previous month. For the 24th month in a row, the monthly increase in holdings hit a new high since gold purchases were restarted in November 2024. China Post Securities believes that the probability of a non-agricultural supermarket in October and an increase in the probability of interest rate hikes in December will rise. The market expects the Democratic Party to retake both houses, the short-term AI narrative weakens, and US fiscal spending is limited, but the decline in short-term interest rates is beneficial to gold's performance.
AI hardware stocks had mixed ups and downs. At the close, Dongshan Precision (02384) rose 6.86% to HK$81; Jiantao Laminate (01888) fell 9.21% to HK$27.6; and Changfei Optical Fiber Cable (06869) fell 1.34% to HK$84.9.
U.S. stocks rebounded in retaliation last Friday, and the Philadelphia Semiconductor Index surged 4.2%. Earlier, after the US midterm elections, the Democratic Party won several state-level elections, raising market concerns that the data center construction policy environment may become tighter. Dongwu Securities believes that recent adjustments in optical modules, PCBs, and upstream component standards are at the level of market transactions and expectations. Pessimistic expectations have been fully reflected and should not be included in the industry's supply-side narrative. Notably, on November 8, local time, Nvidia CEO Huang Renxun issued an apology letter to all employees, admitting his infidelity to his wife and publicly apologizing; the company's board of directors announced the launch of an independent investigation on the same day.
Popular exotic stocks
Yuanxin Energy Storage (09621) saw a sharp rise in the first listing. At the close, it was up 59.00% to HK$15.55.
Yuanxin Energy Storage is a global integrated energy storage system (ESS) solution provider, focusing on R&D, manufacturing and sales of energy storage systems, covering large-scale and industrial and commercial energy storage scenarios. This time, the Hong Kong public offering was subscribed 1388.75 times, and the international sale was subscribed 1.30 times.
Fuzhikang Group (02038) strengthened after the results. At the close, it was up 5.35% to HK$13.78.
The company's profit for the third quarter was $54.809 million, up 52.6% year on year, and profit of 66.985 million US dollars in the first three quarters, up 59.2% year on year. The full year 2026 is expected to see a slight increase in turnover and a significant improvement in net profit.
Everbright Environment (00257) stock price rose. At the close, it was up 3.61% to HK$5.165.
Everbright Environment announced that the board of directors approved the issuance of no more than 800 million RMB shares, accounting for about 11.52% of the expanded share capital. It plans to raise 8 billion yuan to be listed on the main board of the Shenzhen Stock Exchange. The proposal is subject to shareholders' approval. According to Bank of America Securities, as a state-owned enterprise, it must be issued at a rate higher than 1 times the market account rate. Mainland investors require a dividend rate of more than 4%, which means that the dividend per share needs to rise to about HK$0.37, an increase of 38% over the previous year.
Junda Co., Ltd. (02865) opened high and went low. At the close, it was up 2.41% to HK$13.59.
Space computing power welcomes catalysis. Musk made it clear at Barron's investment conference that it is expected that the first batch of StarMind space AI computers co-designed with Nvidia will be launched in the third quarter of 2027, which is expected to be deployed on a significant scale in 2028, and further large-scale expansion in 2029.
Hongteng Precision (06088) continued to decline. At the close, it was down 12.54% to HK$2.545.
Daimotsu Hongteng Precision's operating profit for the third quarter once again fell short of expectations. Profits continued to fall short of expectations since it was covered in November last year, and the rating was downgraded from “increase” to “in sync with the market”. Due to structural profit margin headwinds and delays in monetization of AI projects, AI demand has not yet been transformed into sustainable profit growth.