Current Situation of the Three Major Indices
Hang Seng Index (HSI): down 0.10%
Hang Seng China Enterprises Index (HSCEI): down 0.32%
Hang Seng Tech Index (HSTECH): up 0.25%
The overall market saw 528 stocks rise, 823 stocks fall, and 1,367 stocks remain flat.
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Sector Performance
Technology Sector
Funds continue to flow into leading technology stocks, supported significantly by the recovery in AI and semiconductor industries.
SMIC ( 0981.HK ): up 2.72%, trading volume HKD 3.145 billion. Q3 performance exceeded expectations, with several international institutions raising target prices. Benefiting from domestic substitution in the AI industry chain and increased national policy support, market risk appetite has rebounded. Southbound funds are strongly increasing positions, leading to valuation recovery in the sector.
Hua Hong Semiconductor ( 1347.HK ): up 2.54%, trading volume HKD 1.627 billion. New customer orders are growing, with expansion in automotive and industrial semiconductor businesses. Capital investment exceeded expectations, benefiting from policy dividends, solidifying its position as an industry leader. Funds are concentrated in the sector, showing strong short-term performance.
Tencent Holdings ( 0700.HK ): down 0.38%, trading volume HKD 2.858 billion. Continues to repurchase shares, with steady growth in gaming and cloud businesses. Short-term adjustments due to overall market impact, but funds remain highly focused. The fundamentals support the sector's resilience.
Consumer Sector
The sector is under pressure mainly due to October's consumer spending data falling short of expectations, leading to outflows of southbound funds.
Meituan ( 3690.HK ): down 0.59%, trading volume HKD 0.956 billion. The company's digital service expansion is below expectations, with increased competition in food delivery and hotel businesses. Capital is focused on undervaluation and buybacks. Short-term fund flows are volatile, with fluctuating trends.
Pop Mart ( 9992.HK ): up 0.60%, trading volume HKD 0.795 billion. Improved sales expectations for new products and smooth overseas expansion. Continuous expansion of brand stores benefits from the rebound in average transaction value. Signals of increased fund allocation are emerging.
Xiaomi Group ( 1810.HK ): down 2.18%, trading volume HKD 2.220 billion. Improvement in smartphone shipments but still significant profit pressure, with uncertainty in the automotive business. Recently reduced holdings by funds, but some funds are optimistic about the long-term strategy. Fluctuations in industry and company fundamentals.
Internet Content and Information Industry
Thanks to traffic dividends and content innovation, the overall volatility in the industry has narrowed, with net inflows of southbound funds.
Kuaishou ( 1024.HK ): up 1.84%, trading volume HKD 0.738 billion. Continuous improvement in traffic and monetization capabilities, with user growth in the high single digits. Accelerating AI and innovative product layouts, with positive Q3 profit expectations. Mainstream funds continue to increase their holdings
Bilibili ( 9626.HK ): Up 6.01%, turnover of HKD 732 million. High-heat content and interaction drove daily active users to a new high, with accelerated commercialization progress. Some foreign capital is returning, and profitability is expected to reach an inflection point. The platform's content ecosystem advantages are solidified.
Alibaba ( 9988.HK ): Down 0.69%, turnover of HKD 3.902 billion. The e-commerce main business is stable, and cloud business is growing rapidly. The market is watching the progress of the spin-off and new businesses, putting pressure on valuation. The stock price has slightly adjusted, with main funds flowing into technology core.
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Market Focus
Macroeconomic and Industry News: The RMB exchange rate has stabilized in the past month, with China's CPI rising 0.5% year-on-year in September, and PMI breaking the boom-bust line, indicating enhanced economic recovery momentum. The Federal Reserve maintained interest rates at the June meeting, signaling a potential rate cut this year, boosting liquidity and risk appetite in the Hong Kong stock market.
Capital Flow: Today, net inflow of southbound funds was HKD 1.46 billion, with net purchases of HKD 1.01 billion through the Shanghai-Hong Kong Stock Connect and HKD 450 million through the Shenzhen-Hong Kong Stock Connect, focusing on increasing positions in semiconductor and technology leading stocks. SMIC and Hua Hong Semiconductor received significant increases in main fund holdings, with sector valuations significantly recovering, and the allocation value in the Hong Kong stock market rebounding.
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Top Ten Stocks by Turnover
Alibaba ( 9988.HK ), trading price HKD 172.40, down 0.69%, turnover HKD 3.902 billion
SMIC ( 981.HK ), trading price HKD 85.05, up 2.72%, turnover HKD 3.145 billion
Tencent Holdings ( 700.HK ), trading price HKD 653.50, down 0.38%, turnover HKD 2.858 billion
Xiaomi Group ( 1810.HK ), trading price HKD 44.80, down 2.18%, turnover HKD 2.220 billion
Hua Hong Semiconductor ( 1347.HK ), trading price HKD 88.70, up 2.54%, turnover HKD 1.627 billion
Meituan ( 3690.HK ), trading price HKD 101.40, down 0.59%, turnover HKD 956 million
Pop Mart ( 9992.HK ), trading price HKD 234.80, up 0.60%, turnover HKD 795 million
Kuaishou ( 1024.HK ), trading price HKD 77.50, up 1.84%, turnover HKD 738 million
Bilibili ( 9626.HK ), transaction price HKD 243.60, increase of 6.01%, transaction amount HKD 732 million
XPeng ( 9868.HK ), transaction price HKD 88.75, increase of 4.78%, transaction amount HKD 699 million

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The three major Hong Kong stock indices showed divergence during the session, with the Hang Seng Tech Index rising against the trend, boosting the semiconductor sector. SMIC and Hua Hong Semi's performance exceeded expectations, leading to significant capital inflows and propelling the sector to lead the gains. The consumer sector remains under pressure due to downstream data impacts, while internet content stocks saw a notable rebound. Net inflows from southbound funds continued, with macro data stabilizing and the Federal Reserve's policy guidance enhancing sector risk appetite

- The Hang Seng Index (HSI) fell by 0.10%, while the Hang Seng Tech Index rose by 0.25%, reflecting mixed market performance.  
- Semiconductor stocks like SMIC and Hua Hong Semiconductor saw gains due to strong demand and favorable policies, attracting significant capital inflow.  
- Overall, the market experienced a net inflow of 1.46 billion HKD from southbound funds, with a focus on technology and semiconductor sectors, indicating a recovery in market sentiment.

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Hong Kong stock market intraday | The Tech Index rose nearly 0.3%, performing strongly against the market trend, with the semiconductor sector leading the gains; SMIC rose 2.7%, HUA HONG SEMI increased by 2.5%