On October 27, Hong Kong's three major indices opened higher but declined through the session. At the close, the Hang Seng Index fell 0.73% to 23,041.32, the Hang Seng Tech Index dropped 1.48%, and the China Enterprises Index slipped 0.45%. On the board, tech internet stocks were mostly lower, with XIAOMI-W (01810) down more than 4%, NTES (09999) down over 3%, and LENOVO GROUP (00992) up more than 2%; the application software sector led gains, with Z.AI (02513) up over 8%; new energy vehicle stocks weakened, with Leapmotor down more than 4%; mainland property stocks came under pressure, with Shimao Group down over 8%.
The application software sector led the gains, with Z.AI (02513) rising more than 8%. AI unicorn Anthropic has officially filed its S-1 to pursue a Nasdaq listing under the ticker "ANT". According to reports, Anthropic plans to hold its IPO in the week of November 16. Anthropic is targeting a valuation of up to $2 trillion, and if successful, it would become the largest IPO in history. CITIC Securities released a research note stating that although the market's attitude toward large models has become more cautious, it remains firmly bullish on the long-term commercial value and valuation growth potential of Chinese and U.S. models. CITIC Construction Investment previously noted that following the intensive upgrades of core overseas models in September-October, domestic models will also usher in a relatively dense round of iterative upgrades in Q4. Expectations are for GLM5.5, M3Pro, K3.1, and others in the pipeline.
New energy vehicle stocks weakened, with Leapmotor down more than 4%. JPMorgan published a research report stating that the worst-case scenario for China's auto industry in 2027 may become the baseline scenario, and it expects the upcoming Q3 2026 earnings to trigger downward revisions for Q4 2026 and 2027 profits. This is not only because most Q3 results are likely to miss expectations, but also because the market has begun to incorporate multiple key headwinds into earnings assumptions, including stagnant domestic demand, cost inflation such as memory chips, the export VAT rebate being cut from 13% to 9%, and a potential export volume gap of about 200,000 to 250,000 units following the EU's volume restrictions on plug-in hybrid vehicle imports.
Mainland property stocks came under pressure, with Shimao Group down more than 8%. According to BOC International, in the 43rd week (October 17-October 23), new home transaction area across 47 cities was 2.468 million square meters, down 14.9% week-on-week and down 34.8% year-on-year, with the year-on-year decline widening by 10.7 percentage points from the 42nd week. The bank believes that overall, the traditional peak season of "Golden September and Silver October" combined with intensive policy releases slightly improved expectations, driving some recovery in September's 70-city home prices. However, the bank believes that current short-term data changes are not yet sufficient to form a definitive trend, and close tracking of subsequent market volume and price performance is still needed.
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