Hong Kong stocks close | Hang Seng Index rises 1.61%, breaking 27,000; SMIC and Hua Hong set new highs; tech stocks and gold stocks shine

According to Zhitong Finance APP, Hong Kong stocks welcomed a strong start in October, with the three major indices fluctuating upward throughout the day. The Hang Seng Index once again broke through the 27,000 mark, while the Hang Seng TECH Index surged over 3%, both reaching nearly four-year highs. By the close, the Hang Seng Index rose 1.61% or 431.56 points, closing at 27,287.12 points, with a total trading volume of HKD 222.468 billion; the Hang Seng China Enterprises Index rose 1.77%, closing at 9,724.38 points; the Hang Seng TECH Index rose 3.36%, closing at 6,682.86 points.

China Merchants International believes that the "slow bull" market for Hong Kong stocks is expected to continue. In September, Hong Kong stocks maintained a fluctuating upward trend, boosted by the dual benefits of the resumption of Sino-U.S. negotiations and expectations of overseas interest rate cuts, along with a rotation rise in the technology sector, which provided significant support to the market. In addition, the resumption of overseas interest rate cuts has alleviated liquidity pressure in Hong Kong, leading to a continued acceleration of southbound capital inflows. The bank suggests paying attention to the pace of interest rate cuts by the Federal Reserve, the progress of Sino-U.S. relations, and the implementation of growth stabilization policies in mainland China.

Blue Chip Performance

SMIC (00981) hit a new high, closing up 12.7% at HKD 89.65, with a trading volume of HKD 5.841 billion, contributing 71.26 points to the Hang Seng Index. Goldman Sachs' research report pointed out that although consumer electronics and smartphones contribute 66% of revenue, the bank is optimistic about SMIC's long-term order expansion, benefiting from the market share growth of downstream customers and the upgrade of semiconductor content in electronic devices, especially with the accelerated deployment of artificial intelligence functions. The bank maintains a "Buy" rating on SMIC, raising the valuation basis from a projected 2028 price-to-earnings ratio of 45.2 times to 51.1 times, with the target price for H-shares raised from the previous HKD 83.5 to HKD 95.

In other blue chip stocks, Xinyi Solar (00968) rose 9.88% to HKD 3.78, contributing 2.39 points to the Hang Seng Index; Kuaishou-W (01024) rose 8.57% to HKD 91.85, contributing 34.29 points to the Hang Seng Index; China Resources Mixc Lifestyle (01209) fell 2.9% to HKD 40.14, dragging down the Hang Seng Index by 1.32 points; Chow Tai Fook (01929) fell 2.44% to HKD 15.18, dragging down the Hang Seng Index by 1.18 points.

Popular Sectors

On the market, large technology stocks rose, with Kuaishou surging over 8%, Baidu rising over 4%, and Alibaba rising over 3%. Chip stocks exploded, with SMIC and Hua Hong hitting new highs; risk aversion combined with rising expectations for interest rate cuts led to a strong performance across gold stocks; Apple shifted to AI smart glasses, improving the outlook for consumer electronics, with Lens Technology rising over 9% to a new high; new car-making forces disclosed September delivery data, leading to a broad rise in automotive stocks; lithium stocks performed strongly, with Tianqi Lithium and Ganfeng Lithium both rising over 10%; pharmaceuticals, robotics, and non-ferrous stocks also performed well. On the other hand, the sales of the top 100 real estate companies fell 12.2% year-on-year in the first nine months, leading to a decline in domestic property stocks; film, aviation, and catering stocks showed weak performance.

1. Chip stocks led the gains. By the close, SMIC (00981) rose 12.7% to HKD 89.65; Hongguang Semiconductor (06908) rose 7.94% to HKD 0.68; Hua Hong Semiconductor (01347) rose 7.12% to HKD 85.7; Shanghai Fudan (01385) rose 4.7% to HKD 47.66Recently, DeepSeek and Zhipu announced the launch of a new generation of large models, and announced compatibility with domestic chips. On September 29, the DeepSeek-V3.2-Exp large model was released, with several chip manufacturers including Huawei Ascend, Cambricon, and Haiguang Information announcing completion of compatibility. Notably, on Thursday, the stock prices of South Korean memory chip giants Samsung Electronics and SK Hynix surged. The day before, these two companies reached a partnership with leading artificial intelligence (AI) company and ChatGPT developer OpenAI to provide chips and other solutions for the "Stargate" project.

In addition, the memory chip market is experiencing a price surge. According to reports, Micron has notified channels that storage product prices will soon increase by 20%-30%, and has currently suspended NAND flash and DRAM pricing for a week. Market insiders predict that Micron's NAND flash prices may rise by as much as 30%. Huaxin Securities pointed out that following the price increase of DDR4, storage prices continue to rise, entering a new cycle for memory chips. Furthermore, the era of domestic AI chips has arrived, with the domestic AI industry chain achieving full integration from upstream advanced processes to advanced packaging, and downstream model acceleration and iteration upgrades by Byte, Alibaba, and Tencent, firmly optimistic about the accelerated breakthroughs in domestic AI computing power facilities.

2. Gold stocks are all strong. As of the close, China Silver Group (00815) rose 30.19%, closing at HKD 0.69; Tongguan Gold (00340) rose 15.13%, closing at HKD 3.12; Zijin Mining International (02259) rose 14.01%, closing at HKD 137.5; Lingbao Gold (03330) rose 10.68%, closing at HKD 20.42.

On October 1, international gold prices once again set a historical record, with London gold prices approaching USD 3,900 per ounce during trading, and COMEX gold prices breaking USD 3,900 per ounce. The U.S. ADP employment report showed that in September 2025, the number of new jobs in the U.S. private sector decreased by 32,000, far below the market expectation of an increase of 50,000. According to CME's "FedWatch," after the data was released, the probability of the Federal Reserve cutting interest rates by 25 basis points in October rose to 99%. Additionally, due to the U.S. Senate's rejection of two bipartisan funding bills on September 30, the U.S. federal government has shut down for the first time in nearly seven years. Everbright Securities believes that if the U.S. government shuts down, economic data will be paused, making it more difficult for the Federal Reserve to make decisions, and the path for interest rate cuts may be more likely to be "steady," continuing the guidance from September, with gold performing better than U.S. stocks and bonds.

3. Pharmaceutical stocks show strong performance. As of the close, Clover Biopharmaceuticals-B (02197) rose 21.15%, closing at HKD 2.75; Gilead Sciences-B (01672) rose 14.44%, closing at HKD 11.41; CanSino Biologics-B (09966) rose 11.82%, closing at HKD 15.32; WuXi AppTec (02268) rose 7.15%, closing at HKD 83.9.

On September 26, U.S. President Trump announced that starting October 1, 2025, a 100% tariff will be imposed on any brand or patented pharmaceutical products, unless the company is establishing its pharmaceutical factory in the U.S. Zhongyou Securities believes that the actual impact of the tariffs is small, and the decline presents a good opportunity to increase positions in innovative drugsIndustrial Securities pointed out that from the perspective of catalysts in the innovative drug sector, October will welcome ESMO, and in December, there will be industry conferences such as ASH and the San Antonio Breast Cancer Symposium. On the other hand, this year's external licensing transactions have continued to make progress, with several significant deals being finalized. It can be expected that there are still many high-quality domestic innovative drug varieties with potential opportunities for going overseas, and potential licensing transactions are worth looking forward to. Meanwhile, Q4 will enter the domestic policy implementation period, including adjustments to the medical insurance catalog.

4. Automotive stocks rose broadly today. As of the close, Nio-SW (09866) rose 6.62% to HKD 61.2; Leapmotor (09863) rose 3.99% to HKD 69; XPeng-W (09868) rose 2.04% to HKD 95.05.

On October 1, new car manufacturers successively disclosed their delivery data for September. Specifically, Leapmotor's delivery volume in September reached 66,657 units, a year-on-year increase of 97.4% and a month-on-month increase of 16.81%, setting a new monthly delivery record for new car manufacturers and leading the new force delivery list for seven consecutive months; XPeng delivered 41,581 new cars in September, a year-on-year increase of 94.74% and a month-on-month increase of 10.27%, with monthly deliveries exceeding 40,000 units for the first time; Nio delivered 34,749 new cars in September, a year-on-year increase of 64.06%; Li Auto completed deliveries of 33,951 units in September, a year-on-year decrease of 36.8%, marking a year-on-year decline for four consecutive months.

Popular Active Stocks

1. Xipuni (02583) continues to rise. As of the close, it rose 71.13% to HKD 181.4.

Public information shows that Xipuni is a designer, manufacturer, and brand owner of gold case watches and gold bezel watches in China, with revenue mainly coming from the sales of its flagship self-owned brand "HIPINE (西普尼)," focusing on solid gold watch products; another part of the revenue comes from ODM business, providing OEM services for third-party jewelry brands and wholesalers.

2. Kuaishou-W (01024) rises again. As of the close, it rose 8.57% to HKD 91.85.

On October 2, the globally renowned AI benchmarking organization Artificial Analysis released the latest global video generation large model rankings. Kuaishou's Kegong 2.5 Turbo model (1080P) topped the charts in image-to-video and text-to-video tracks with Arena ELO benchmark scores of 1329 and 1252, surpassing models like Veo3, Ray3, and PixVerse V5.

3. Shenzhou International (02313) strengthened throughout the day. As of the close, it rose 7.87% to HKD 66.5.

Shenzhou International's core client Nike announced its Q1 financial report for the 2026 fiscal year. The report showed that Nike's revenue for the quarter reached USD 11.7 billion, exceeding market expectations of USD 11.02 billion, with a year-on-year increase of 1% based on the report, and a gross margin of 42.2%, higher than the market expectation of 41.7%Earnings per share were $0.49, exceeding market expectations of $0.27.

4. Contemporary Amperex Technology Co., Limited (03750) continues to hit new highs. As of the close, up 5.95%, at HKD 605.5.

Pacific Securities stated that Contemporary Amperex Technology Co., Limited maintains a leading global market share, with steady growth in battery production. At the same time, the company's profitability is steadily improving, and the upgrade of its innovative product matrix is building a new growth engine. In addition, Contemporary Amperex Technology Co., Limited is accelerating its global layout, with capacity construction steadily advancing. Considering the company's leading position in the fields of power batteries and energy storage batteries, as well as the widening financing channels after its listing in Hong Kong, the acceleration of capacity expansion and technological iteration, the firm has raised its profit forecast.

5. Xinjing China (02699) stock price plummets. As of the close, down 84.2%, at HKD 0.55.

According to data from the Hong Kong Stock Exchange, on September 29, Xinjing China shareholders transferred shares from Hongzhi Securities to HSBC Hong Kong, with a transfer market value of HKD 23.1006 million, accounting for 6.13%. It is noteworthy that Xinjing China has repeatedly recorded large transfers in September. On September 18, Xinjing China shareholders transferred shares from Hongzhi Securities to Futu Securities International Hong Kong, with a transfer market value of HKD 17.1855 million, accounting for 5.79%. Additionally, on September 26, Xinjing China shareholders deposited shares into Hongzhi Securities, with a deposit market value of HKD 72.7304 million, accounting for 19.5%