Hong Kong Stocks Close Lower: Hang Seng Index Drops 3.03%, Tech Index Plunges 5.03%, Internet Giants Fall Broadly, Lithium Battery Stocks Slide, CATL Down Over 7%

On October 22, the three major Hong Kong stock indices opened lower and drifted downward, with the Hang Seng Tech Index breaking below the 3,900 and 3,800 point marks during intraday trading, hitting a new low since September 2024.

At the close, the Hang Seng Index fell 3.03% to 22,934.68, the Hang Seng Tech Index dropped 5.03%, and the China Enterprises Index declined 3.2%.

Across the board, internet-related stocks fell broadly, with Lenovo dropping over 10%, while NetEase and Alibaba each declined more than 6%.

PCB concept stocks led the declines, with Jingwang Electronics plunging over 11%.

Lithium battery stocks weakened, as CATL (03750) dropped over 7%.

Gold stocks fell broadly, with Zijin Gold International declining more than 7%.

PCB Concept Stocks Lead Losses, Jingwang Electronics Down Over 11%

On the news front, the market has recently begun to worry about slowing growth among leading manufacturers and whether future returns can cover current large-scale investments.

CICC noted that the market expects the year-on-year growth rate of capital expenditure by the U.S. AI "Magnificent Seven" to drop from about 90% in 2026 to 36% in 2027, while uncertainty over investment returns is also exacerbating volatility in AI assets.

Lithium Battery Stocks Weaken, CATL Down Over 7%

BofA Securities issued a research report stating it has lowered its target price for CATL (300750) from HK$775 to HK$630, while reiterating a "Buy" rating.

The firm pointed out that the company's net profit in the third quarter of 2026 grew 15% year-on-year but fell 6% quarter-on-quarter to RMB 21.2 billion, missing both the firm's and market expectations.

Gold Stocks Fall Broadly, Zijin Gold International Down Over 7%

CITIC Futures believes that gold is maintaining a rangebound movement in the short term.

A slight pullback in the U.S. dollar and U.S. Treasury yields has marginally eased the downward pressure on gold, but energy inflation risks and market bets on further rate hikes by the U.S., Europe, and Japan have not clearly faded, leaving limited room for a gold price rebound.

In the long run, U.S. fiscal credit risks, central bank gold purchases, and gold allocation demand continue to provide support for gold.