<h2><strong>I. Three Major Indices and Overall Market Performance</strong></h2><p>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.</p><ul><li>Hang Seng Index (HSI.HK): Up 2.41%</li><li>Hang Seng China Enterprises Index (HSCEI.HK): Up 2.46%</li><li>Hang Seng Tech Index (HSTECH.HK): Up 3.20% (strongest performance)</li></ul><p>A total of 1,256 stocks in the market rose, 506 fell, and 956 remained flat.</p><hr/><h2><strong>II. Midday Dynamics of Popular Sectors</strong></h2><h3><strong>Technology Sector</strong></h3><p>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.</p><ul><li>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.</li><li>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.</li><li>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.</li></ul><h3><strong>Financial Sector</strong></h3><p>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.</p><ul><li>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.</li><li>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.</li><li>HSBC Holdings (example): Improvement in interest margins and recovery of international business prompted institutional accumulation, with solid fundamentals driving stock price upward.</li></ul><h3><strong>New Energy and Automotive Sector</strong></h3><p>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.</p><ul><li>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</li><li>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.</li><li>BYD (example): New energy vehicle exports exceeded expectations, battery profitability improved and industry position stabilized, with major funds continuing to increase their positions.</li></ul><hr/><h2><strong>3. Midday Market Focus</strong></h2><ul><li><strong>The expectation of a slowdown in Federal Reserve interest rate hikes and the narrowing of the China-U.S. interest rate spread</strong> have boosted market risk appetite, driving capital back to Hong Kong stocks, with the RMB exchange rate stabilizing slightly, favorable for overseas capital inflow.</li><li><strong>Significant net buying from southbound funds, focusing on leading technology and finance stocks</strong>, such as Alibaba and Tencent, enhancing overall trading activity, with the net buying scale of southbound funds remaining high on that day.</li><li><strong>China's October macroeconomic data released repair signals</strong>, 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.</li></ul><hr/><h2><strong>4. Top Ten Stocks by Midday Turnover</strong></h2><ol><li>Alibaba -W ( 9988.HK ), closing price HKD 162.10, up 4.99%, turnover HKD 10.037 billion.</li><li>Tencent Holdings ( 700.HK ), closing price HKD 631.00, up 3.78%, turnover HKD 5.577 billion.</li><li>Xiaomi Group -W ( 1810.HK ), closing price HKD 47.18, up 2.65%, turnover HKD 4.184 billion.</li><li>SMIC ( 981.HK ), closing price HKD 72.05, up 4.27%, turnover HKD 4.150 billion.</li><li>Hua Hong Semiconductor ( 1347.HK ), closing price HKD 79.30, up 4.62%, turnover HKD 2.313 billion.</li><li>Meituan -W ( 3690.HK ), closing price HKD 96.75, up 2.38%, turnover HKD 2.088 billion.</li><li>China Life ( 2628.HK ), closing price HKD 23.48, up 2.26%, turnover HKD 1.995 billion.</li><li>Pop Mart ( 9992.HK ), closing price HKD 276.20, up 0.29%, turnover HKD 1.697 billion</li><li>Kangfang Biotech (9926.HK), closing price HKD 118.10, down 3.67%, turnover HKD 1.54 billion.</li><li>Zijin Mining (2899.HK), closing price HKD 32.66, up 0.18%, turnover HKD 1.537 billion</li></ol>

09988

00700

00981

01810

01347

<p>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</p>

- The Hong Kong stock market saw significant gains, with the Hang Seng Index rising by 2.41% and the Hang Seng Technology Index leading at 3.20%.  
- Key sectors like technology and finance benefited from positive AI policies and increased southbound capital inflow, with major stocks such as Alibaba and Tencent experiencing notable price increases.  
- Market sentiment improved due to expectations of a slowdown in Federal Reserve interest rate hikes and positive macroeconomic data from China, enhancing overall trading activity.

LB Select

BABA-W

TENCENT

SMIC

XIAOMI-W

HUA HONG SEMI

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