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On Wednesday (October 14), Hong Kong stocks displayed a pattern of "diverging indexes with active individual stocks." The Hang Seng Index opened lower and moved higher, coming under pressure in late trading, closing at 24,314.17 points, down 31.05 points or 0.13%, with an intraday amplitude of 1.68%; the Hang Seng Tech Index was noticeably stronger than the broader market, closing at 4,174.47 points, up 37.84 points or 0.91%, with an amplitude of 3.53%, briefly returning above the 4,200-point mark during the session. The China Enterprises Index edged up 0.10% to close at 8,183.17 points.
Large-cap tech stocks became the main force driving gains today. Meituan-W (HK: 03690) closed at HK$77.10, surging 6.64% with an amplitude of 9.20%; Xiaomi Group closed at HK$26.38, rising 5.35% with turnover exceeding HK$7.2 billion; Alibaba closed at HK$110.50, gaining 3.08%, with single-stock turnover of HK$11.2 billion ranking among the highest in the market; JD.com, NetEase, and Kuaishou all recorded gains of around 1%. Tencent Holdings bucked the trend and weakened, closing at HK$423.40, down 0.42%, with turnover of HK$8.4 billion.
The oil and gas sector strengthened in tandem, with China National Offshore Oil Corporation rising 1.81% and PetroChina gaining 1.17%; among dairy stocks, Modern Dairy rose more than 3%.
The weak side was concentrated in previously hot sectors. Biopharmaceuticals led the declines, with Kintor Pharma-B (HK: 01672) falling more than 12%, LEPU BIOPHARMA dropping over 6%, and PEGBIO declining more than 5%. Optical communications pulled back across the board, with HGSEMI falling over 8%, YOFC and Cambridge Technology each dropping more than 6%, and Zhongji Innolight falling over 4%. Semiconductor stocks came under pressure as well, with SMIC closing down 2.25% and Hua Hong Semiconductor closing down 2.41%; Bilibili fell nearly 5%. Real estate continued its weak trend, with China Vanke dropping 2.41% and China Overseas Land & Investment falling 0.91%. The financial sector closed broadly lower, with HSBC Holdings down 1.79%, Ping An Insurance down 1.46%, and AIA Group down 0.41%.
Today, southbound capital via the Stock Connect recorded a slight net sell of HK$135 million.
Outlook: A research note from Huatai Securities indicated that the pre-holiday judgment regarding a short-term rebound is beginning to materialize, and three marginal changes are worth watching: first, interest rate pressure is easing at the margin, but conditions for a trend reversal have not yet emerged, and "higher for longer" remains the baseline scenario; second, southbound capital returned as expected, with the channel resuming on October 8 and recording net buying of approximately HK$6.5 billion on the first day, buying more as prices fell, while the short-selling ratio retreated from above 20%, and although active foreign capital flowed out for a fifth consecutive week, the scale narrowed significantly, easing extreme selling pressure; third, panic pricing on the derivatives side was cleared out in a single day. Oil prices and U.S. Treasury yields remain the main constraints on Hong Kong stocks' risk appetite and valuation recovery space. Therefore, the brokerage continues to recommend using dividend stocks as the foundation of the portfolio, while controlling exposure to industries where the dividend yield advantage relative to A-shares is narrowing and where raising payout ratios is difficult (such as banking and coal), and mainly allocating to operational assets such as railways, highways, and ports.
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.
Cover image source: National Business Daily Media Library
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