Hong Kong stocks closed | All three major indices rose, with the Tech Index up 1.33%, led by the technology and insurance sectors; Alibaba rose 2.10% and China Life rose 6.04%

The three major indices of the Hong Kong stock market rose today, with the Hang Seng Index standing above 26,000 points, indicating a warming market sentiment. The technology sector performed the strongest, with Alibaba and Tencent both recording gains, and leading stocks seeing increased support from major funds. The insurance sector experienced significant valuation recovery driven by China Life and Ping An, with clear signs of industry demand recovery. There was a noticeable net inflow of southbound funds, with macro data and Federal Reserve policies becoming the short-term dominant factors

Current Situation of the Three Major Indices

Hang Seng Index (HSI): Up 0.76%

Hang Seng China Enterprises Index (HSCEI): Up 0.86%

Hang Seng Tech Index (HSTECH): Up 1.33%

The overall market saw 1,081 stocks rise, 832 stocks fall, and 808 stocks remain unchanged, with the Hang Seng Index breaking through the 26,000-point mark.

Technology Sector

The sector rose 1.33% overall, driven by growth in advertising and traffic, with net inflows from southbound funds and strong performance from leading companies.

Alibaba ( 9988.HK ): Up 2.10%, with a transaction volume of HKD 17.919 billion.

Growth in e-commerce traffic and improvements in cloud business have led to a continuous rise in revenue expectations, with a rebound in the U.S. stock market sector boosting market sentiment. Southbound funds increased their positions by about HKD 1.5 billion today, driving concentrated inflows of main funds.

Tencent Holdings ( 700.HK ): Up 0.56%, with a transaction volume of HKD 8.351 billion.

Advertising and social business support steady overall revenue growth, with digital content maintaining high prosperity and overseas expansion strengthening long-term growth potential. The sector continues to see fund inflows, highlighting the competitive advantages of leading companies.

Meituan ( 3690.HK ): Down 0.10%, with a transaction volume of HKD 3.634 billion.

In-store business and food delivery maintain high growth, but are under short-term pressure due to macro fluctuations. The market is focused on the profitability of new businesses, with some funds positioning at lower levels.

Financial Sector

The banking sector saw moderate overall gains, with the insurance sector leading the way and leading stocks being favored.

China Life Insurance ( 2628.HK ): Up 6.04%, with a transaction volume of HKD 4.109 billion.

The recovery in life insurance sales and improved investment returns have driven marginal performance improvements, with increased market risk appetite attracting funds. Valuation recovery has led to high-volume trading at elevated levels.

Ping An Insurance ( 2318.HK ): Up 3.13%, with a transaction volume of HKD 3.248 billion.

The recovery in life insurance and improvements in asset management have enhanced profit expectations, accelerating the valuation repair process. Concentrated net inflows of main funds support the continuous strengthening of stock prices.

Fund Focus and Other Key Industries

Net inflows from southbound funds are primarily focused on leading technology and insurance stocks. The overall trading in Hong Kong stocks is active, with consumer and some semiconductor stocks showing differentiated performance.

Market Focus

Core Macro and Industry Focus News: The latest minutes from the Federal Reserve indicate that high interest rates may be maintained longer than expected, putting short-term pressure on the RMB exchange rate and affecting Hong Kong stock valuations due to the strengthening US dollar; China's CPI in September showed a mild rebound, indicating an improvement in domestic demand, which is favorable for the consumption and insurance sectors in Hong Kong stocks.

II. Capital Flow:

Today, net inflow of southbound funds was approximately HKD 1.5 billion, with preferences in the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect concentrated on leading technology and financial stocks. Alibaba received a net purchase of HKD 1.5 billion in a single day, while large-cap stocks like China Life and Ping An also recorded net inflows. The turnover of Hong Kong stocks exceeded HKD 80 billion, with major funds actively participating in the core weights of the main board.

III. Industry Hotspots and Allocation Direction:

Leading technology and insurance stocks have become the focus of major fund allocations, driving an overall increase in market risk appetite. Continuous vigilance is needed regarding the high volatility of US Treasury yields and the uncertainties from external factors.

Top Ten Stocks by Turnover

Alibaba -W (9988.HK), latest price HKD 165.30, change +2.10%, turnover HKD 17.919 billion

POP MART (9992.HK), latest price HKD 250.40, change -8.08%, turnover HKD 9.618 billion

SMIC (0981.HK), latest price HKD 74.25, change +3.41%, turnover HKD 9.052 billion

Tencent Holdings (0700.HK), latest price HKD 631.00, change +0.56%, turnover HKD 8.351 billion

Xiaomi Group -W (1810.HK), latest price HKD 46.46, change -1.44%, turnover HKD 7.423 billion

Huahong Semiconductor (1347.HK), latest price HKD 77.55, change -0.45%, turnover HKD 4.304 billion

China Life (2628.HK), latest price HKD 24.94, change +6.04%, turnover HKD 4.109 billion

Meituan -W (3690.HK), latest price HKD 96.55, change -0.10%, turnover HKD 3.634 billion

Ping An (2318.HK), latest price HKD 56.00, change +3.13%, turnover HKD 3.248 billion

China Mobile (0941.HK), latest price HKD 85.15, change -1.45%, turnover HKD 2.630 billion