Hong Kong's three major indices all closed higher, with tech names strengthening in the afternoon while the pharma and robotics supply chains stayed active in tandem.
By the close, the Hang Seng Index had gained 0.23% to 23,094.83 points on total turnover of HK$181.428 billion, and the Hang Seng Tech Index had risen 1.40% to 3,853.72 points.
Among the largest Hong Kong-listed ETFs by size, the Tracker Fund of Hong Kong (02800) added 0.34% to HK$23.78, the CSOP Hang Seng TECH Index ETF (03033) climbed 1.61% to HK$3.782, and the CSOP SK hynix Daily Leveraged (2x) Product (07709) surged 21.86% to HK$25.42.
Sector performance: SK hynix's blowout quarter and a long-cycle shortage outlook send Korea ETFs sharply higher
At the close, the CSOP SK hynix Daily Leveraged (2x) Product (07709) was up 21.86% at HK$25.42, the CSOP Samsung Electronics Daily Leveraged (2x) Product (07747) was up 20.35% at HK$59.50, and the CSOP KOSPI ETF (03121) was up 6.62% at HK$5.88.
SK hynix reported third-quarter results well ahead of expectations, with single-quarter revenue up 328% year on year and surpassing KRW 100 trillion for the first time, operating profit up 632% year on year, and the operating margin rising to 80%. The company also guided that demand will continue to exceed supply through 2030, saying long-term supply agreements have already locked in more than half of capacity for 2027 and 2028, while new high-bandwidth memory products will take the lead in the fourth quarter. Goldman Sachs noted that market concerns about the memory sector, driven by risk-averse positioning, have spilled over into the broader market, that Korean equities look clearly oversold, and that current pricing reflects excessively pessimistic fundamental expectations.
The physical AI theme keeps building as policy and industry catalysts land in quick succession
At the close, the Penghua Robotics ETF (159278.SZ) was up 5.56% at RMB0.949, the E Fund Robotics ETF (159530.SZ) was up 5.48% at RMB1.329, and the China AMC Robotics ETF (562500.SH) was up 4.58% at RMB0.890.
On October 27, the Shanghai Municipal Commission of Economy and Informatization issued the Shanghai Action Plan for Accelerating the Development of a New Generation of Intelligent Manufacturing, calling for the development and promotion of physical AI equipment and support for breakthroughs in humanoid robots and other innovations. Six humanoid robot national standards approved by the State Administration for Market Regulation will take effect on April 1, 2027, filling a gap in domestic standards. Data from the Ministry of Commerce showed that sales of embodied intelligence robots on key platforms grew 22.6% in the first three quarters, while the Ministry of Industry and Information Technology disclosed that first-half output exceeded 40,000 units and could top 100,000 units for the full year. Guotai Haitong argued that global sentiment toward the humanoid robotics industry continues to improve, and that mass production by overseas leaders marks a key breakthrough in the sector's commercialization.
Clinical data and third-quarter earnings both deliver, lifting innovative drug ETFs broadly
At the close, the GF Fund Hong Kong Stock Innovative Drug ETF (513120.SH) was up 2.86% at RMB1.188, the Wanjia Hong Kong Stock Connect Innovative Drug ETF (520700.SH) was up 2.77% at RMB1.485, and the E Fund Biotechnology and Pharmaceuticals ETF (03186) was up 1.23% at HK$13.20.
The 2026 European Society for Medical Oncology annual meeting was held in Madrid from October 23 to 27, where 29 Chinese innovative drug studies were selected as late-breaking abstracts, accounting for about one-third of the conference's total LBAs, with five entering the highest-tier presidential symposium as clinical data entered a concentrated readout window. On the earnings side, third-quarter reports from the innovative drug sector delivered in tandem: leading drugmaker Hengrui Pharmaceuticals (01276) posted an 88.92% year-on-year rise in net profit attributable to shareholders, with innovative drug revenue rising to 64.59% of pharmaceutical sales revenue, while CXO leader WUXI APPTEC (02359) grew quarterly revenue by 38.01% and net profit by 136.67%, and raised its full-year revenue guidance to RMB 61 billion to 61.9 billion. Guosheng Securities said Chinese innovative drugs are entering a critical period of global validation, with a number of Phase III data sets set to test their global competitiveness.
Institutional views
CITIC Securities chief overseas strategist Xu Guanghong noted that Hong Kong's composite discount rate has risen from 3.1% at the end of February to 3.9% in early October, and that the higher rate center is weighing on valuations of long-duration growth assets, with AI hardware names particularly sensitive to this. Huatai Securities observed that southbound funds recorded net selling of about HK$17 billion last week, the largest weekly net outflow since the end of July, while foreign capital flowed into Hong Kong stocks for a second consecutive week. On allocation, Wanlian Securities recommended in a recent strategy report focusing on defensive, high-dividend assets, cyclical industries with improving sentiment, and leaders in the AI supply chain for medium- to long-term positioning.
ETF developments
The China Merchants Fund ChiNext Battery ETF (158078.SZ) debuted, closing up 0.81% at RMB0.995 with turnover of RMB125 million. The fund tracks the ChiNext Battery Index, whose constituents cover ChiNext-listed companies engaged in battery products, battery production equipment, battery materials, and component manufacturing.
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