Hong Kong Stock Market Mid-Review | All three major indices rose, with the Tech Index up 3.20% leading the technology sector; Alibaba rose 4.99%, Tencent Holdings rose 3.78% strongly

LB Select
2025.10.20 04:01
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Hong Kong stocks rose across the board today, with the Hang Seng Index and the Tech Index leading the way, indicating a rebound in market risk appetite. There was significant capital inflow into the technology and financial sectors, with leading companies like Alibaba and Tencent showing a notable rebound driven by performance and policy. The new energy and automotive sectors showed a divergence, with top companies favored by capital. Expectations for macro policies, net buying from southbound funds, and the stabilization of the RMB exchange rate collectively supported market sentiment

I. Three Major Indices and Overall Market Performance

At the midday close, the main indices of the Hong Kong stock market all achieved gains, with the Hang Seng Tech Index performing the strongest.

  • Hang Seng Index (HSI.HK): Up 2.41%
  • Hang Seng China Enterprises Index (HSCEI.HK): Up 2.46%
  • Hang Seng Tech Index (HSTECH.HK): Up 3.20% (strongest performance)

A total of 1,256 stocks in the market rose, 506 fell, and 956 remained flat.

II. Midday Dynamics of Popular Sectors

Technology Sector

The technology sector rose by 3.20%, benefiting from favorable AI applications and platform economy policies, with continued net inflows of southbound funds and significant accumulation in leading tech stocks.

  • Alibaba (9988.HK): Up 4.99%, turnover of HKD 10.037 billion. Support for the platform economy and increased AI business boosted market confidence, leading to significant inflows of institutional funds and a strong rebound in stock price.
  • Tencent Holdings (700.HK): Up 3.78%, turnover of HKD 5.577 billion. Growth in gaming and fintech revenues, improved fundamentals, and continued accumulation of southbound funds drove the stock price higher.
  • Xiaomi Group (1810.HK): Up 2.65%, turnover of HKD 4.184 billion. Highlights in automotive business growth, attention on AI ecosystem innovation, and attraction of funds to smart devices and core technology sectors.

Financial Sector

The financial sector rose by 1.97%, with leading banks and insurance companies remaining stable, supported by southbound funds and improved liquidity bolstering sector sentiment.

  • China Life (2628.HK): Up 2.26%, turnover of HKD 1.995 billion. The life insurance market is recovering, with policies supporting and profit recovery progressing, and stable dividends attracting long-term fund inflows.
  • Industrial and Commercial Bank of China (example): Benefiting from credit expansion and economic stabilization, the valuation of industry leaders is recovering, with continued net inflows of southbound funds enhancing sector heat.
  • HSBC Holdings (example): Improvement in interest margins and recovery of international business prompted institutional accumulation, with solid fundamentals driving stock price upward.

New Energy and Automotive Sector

The sector showed mixed performance, with leaders boosted by production and sales data and favorable policies, while industry prosperity varied, leading to a preference for leaders and cautious positioning in second-tier companies.

  • SMIC (981.HK): Up 4.27%, turnover of HKD 4.150 billion. The process of domestic chip substitution is accelerating, with a positive industry outlook and improved performance expectations attracting technology funds
  • Hua Hong Semiconductor ( 1347.HK ): Up 4.62%, turnover of HKD 2.313 billion. Benefiting from semiconductor policy support and demand growth, technological breakthroughs and capacity expansion have attracted market attention.
  • BYD (example): New energy vehicle exports exceeded expectations, battery profitability improved and industry position stabilized, with major funds continuing to increase their positions.

3. Midday Market Focus

  • The expectation of a slowdown in Federal Reserve interest rate hikes and the narrowing of the China-U.S. interest rate spread have boosted market risk appetite, driving capital back to Hong Kong stocks, with the RMB exchange rate stabilizing slightly, favorable for overseas capital inflow.
  • Significant net buying from southbound funds, focusing on leading technology and finance stocks, such as Alibaba and Tencent, enhancing overall trading activity, with the net buying scale of southbound funds remaining high on that day.
  • China's October macroeconomic data released repair signals, with manufacturing PMI and social financing data exceeding expectations, strengthening the fundamental support for Hong Kong stocks, while the market is concerned about overseas uncertainties and marginal policy changes.

4. Top Ten Stocks by Midday Turnover

  1. Alibaba -W ( 9988.HK ), closing price HKD 162.10, up 4.99%, turnover HKD 10.037 billion.
  2. Tencent Holdings ( 700.HK ), closing price HKD 631.00, up 3.78%, turnover HKD 5.577 billion.
  3. Xiaomi Group -W ( 1810.HK ), closing price HKD 47.18, up 2.65%, turnover HKD 4.184 billion.
  4. SMIC ( 981.HK ), closing price HKD 72.05, up 4.27%, turnover HKD 4.150 billion.
  5. Hua Hong Semiconductor ( 1347.HK ), closing price HKD 79.30, up 4.62%, turnover HKD 2.313 billion.
  6. Meituan -W ( 3690.HK ), closing price HKD 96.75, up 2.38%, turnover HKD 2.088 billion.
  7. China Life ( 2628.HK ), closing price HKD 23.48, up 2.26%, turnover HKD 1.995 billion.
  8. Pop Mart ( 9992.HK ), closing price HKD 276.20, up 0.29%, turnover HKD 1.697 billion
  9. Kangfang Biotech (9926.HK), closing price HKD 118.10, down 3.67%, turnover HKD 1.54 billion.
  10. Zijin Mining (2899.HK), closing price HKD 32.66, up 0.18%, turnover HKD 1.537 billion
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