Hong Kong's three major indices closed the morning session mixed on November 4.
At the midday break, the Hang Seng Index edged up 0.01% to 23,529.12, the Hang Seng Tech Index dropped 1.02%, and the China Enterprises Index posted a slight decline.
On the board, internet stocks broadly fell, with Lenovo Group Ltd (HKEX: 0992) down more than 2%, while Alibaba Group Holding Ltd (HKEX: 9988), Kuaishou Technology (HKEX: 1024), JD.com Inc (HKEX: 9618), and Xiaomi Corporation (HKEX: 1810) each declined over 1%. The biopharmaceutical sector bucked the trend, with WuXi AppTec Co Ltd (HKEX: 2359) surging more than 5%. Mainland property stocks fell broadly, as CIFI Holdings Group Co Ltd (HKEX: 0884) plunged over 11%. The optical communication sector weakened, with Zhongji Innolight Co Ltd (SZSE: 300308) dropping more than 3%.
The biopharmaceutical sector defied the broader market decline, with WuXi AppTec Co Ltd (HKEX: 2359) climbing over 5%. Leading companies reported accelerated third-quarter results across the board: Jiangsu Hengrui Pharmaceuticals Co Ltd (SHA: 600276) posted Q3 single-quarter net profit of 2.458 billion yuan, up 88.92% year-on-year, with innovative drug sales revenue reaching 13.871 billion yuan, accounting for 64.59% of total pharmaceutical sales revenue, while outbound licensing recognized revenue of 2.781 billion yuan, up 31.12% year-on-year. WuXi AppTec Co Ltd (HKEX: 2359) reported a 60.6% year-on-year increase in net profit for the first three quarters, with backlog orders of 76.74 billion yuan, up 36.4% year-on-year, and raised its full-year revenue guidance to 61 billion to 61.9 billion yuan. Asymchem Laboratories Tianjin Co Ltd (SZSE: 002821) saw Q3 net profit rise 81.49% year-on-year, reversing its negative growth trend in the first half, with new orders for peptides, oligonucleotides, and ADCs increasing 50.20% year-on-year. Additionally, a new drug from Hengrui received acceptance from the European Medicines Agency, and WuXi AppTec deepened its collaboration with Roche, accelerating the pace of innovation industry chain development.
Mainland property stocks fell broadly, with CIFI Holdings Group Co Ltd (HKEX: 0884) dropping over 11%. Daiwa Securities published a research report indicating that China's property sales contraction widened in October, with the top 100 developers' contracted sales by gross floor area and by value falling 22% and 17% year-on-year respectively, further deteriorating from the 8% and 14% year-on-year declines in September, though roughly flat month-on-month (unchanged/up 1%). Cumulative contracted sales for the first ten months of the year reached 2.4 trillion yuan, down 14.9% year-on-year; the average selling price in October remained at 21,195 yuan per square meter.
The optical communication sector weakened, with Zhongji Innolight Co Ltd (SZSE: 300308) falling more than 3%. Zhongji Innolight released a record of investor relations activities, responding to rumors that some overseas customers had lowered demand or canceled orders: the vast majority of customers had not reduced demand or orders, a small number of customers underwent product structural adjustments, and some customers even increased their 1.6T demand compared to before. Overall industry demand for 2027 remains within the original forecast range, with demand from leading customers remaining strong. According to Jiemian News, Nomura stated that it had not issued a research report lowering Zhongji Innolight's A-share target price to 330 yuan.
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