Hong Kong's three major indices advanced in tandem during the afternoon session and all closed in positive territory, according to market data.
With the US midterm election results now settled, risk appetite recovered noticeably. Pharmaceutical and semiconductor sectors led gains, while gold prices returned to the key 4,000-dollar threshold.
At the close, the Hang Seng Index rose 1.67% to 23,919.5 points, with total daily turnover of HK$236.896 billion. The Hang Seng Tech Index gained 1.77% to 3,936.02 points.
Among Hong Kong ETF products ranked by size, Tracker Fund of Hong Kong (02800) rose 1.44% to HK$24, CSOP Hang Seng Tech Index ETF (03033) gained 1.47% to HK$3.854, and CSOP SK Hynix Daily Leveraged 2x Product (07709) fell 0.82% to HK$21.8.
Sector Performance: Gold 鈥?Election Outcome Reprices Fiscal Expectations, Gold Returns to $4,000
At the close, Yongying Gold Stock ETF (517520.SH) hit the daily limit, rising 10.02% to 1.713 yuan. ChinaAMC Gold Stock ETF (159562.SZ) also hit the daily limit, gaining 10.01% to 1.869 yuan. E Fund Gold Mining ETF (02824) climbed 9.02% to HK$9.305.
With the US midterm election results confirmed and Democrats retaking both chambers of Congress, the market immediately lowered expectations for further tax cuts and fiscal expansion. Reduced federal borrowing pressure pushed US Treasury yields lower while the dollar weakened in tandem. London spot gold surged more than 2% in the afternoon, reclaiming the $4,000 per ounce level.
The World Gold Council's Gold Demand Trends report released on November 3 showed that global central banks and other official institutions added a net 321 tonnes to gold reserves in the third quarter, a year-on-year increase of 42%. China's central bank recorded net purchases for an eighth consecutive quarter, while physical gold ETF holdings rose to a record high of 4,256 tonnes.
CITIC Securities noted that since September, better-than-expected ETF and central bank buying has provided a sufficient hedge against liquidity selling on the futures side, and gold prices are expected to rise from their end-June bottom.
Semiconductors 鈥?Overseas Leader's Results Ease Concerns, Supply Chain Stages Afternoon Rally
At the close, ChinaAMC STAR Semiconductor ETF (588170.SH) hit the daily limit, surging 20.03% to 0.695 yuan. Huatai-PineBridge STAR Semiconductor Equipment ETF (588710.SH) jumped 18.70% to 0.711 yuan. E Fund Asia Semiconductor ETF (03486) gained 6.03% to HK$14.59.
After the US market close on November 3, US chip giant AMD reported third-quarter results with revenue of $13.38 billion, up 45% year-on-year, and data center revenue of $8.55 billion, up 97% year-on-year. Its fourth-quarter revenue guidance of approximately $17 billion implies 66% year-on-year growth, all exceeding market expectations and significantly easing prior concerns about excessive AI infrastructure spending.
On the industry side, advanced packaging prices are set to rise by 10% to 20%, memory supply and demand remain tight, and domestic computing power chips are accelerating commercialization. The A-share semiconductor supply chain rallied collectively in the afternoon session.
China Galaxy Securities noted that the recent rapid correction in the chip sector was mainly driven by declining risk appetite and concentrated capital outflows, while fundamentals have not deteriorated to a comparable degree. Equipment companies have ample order backlogs, suggesting the market reaction was excessive.
Innovative Drugs 鈥?Third-Quarter Profits Accelerate Sequentially, Leader's Guidance Upgrade Provides Earnings Anchor
At the close, Invesco Hong Kong Innovative Drug ETF (513780.SH) rose 9.58% to 1.578 yuan. Wanjia Hong Kong Stock Connect Innovative Drug ETF (520700.SH) gained 9.58% to 1.522 yuan. ChinaAMC Hang Seng Biotech (03069) climbed 7.91% to HK$14.87.
Following the conclusion of third-quarter earnings, the profit inflection point for the innovative drug supply chain has been validated by data. Everbright Securities statistics show that in the first three quarters of 2026, the Shenwan pharmaceutical and biotech sector's total operating revenue grew 2.13% year-on-year, net profit attributable to parent companies rose 12.78% year-on-year, and non-recurring net profit attributable to parent companies increased 21.45% year-on-year. Profit growth significantly outpaced revenue growth and showed a sequential acceleration trend.
Industrial Securities data showed that in the third quarter, A-share innovative drug sector net profit attributable to parent companies grew 51.70% year-on-year, while the CRO index's revenue and net profit attributable to parent companies grew 33.58% and 85.87% respectively, with orders and performance continuing to surge.
Upward revisions to leading companies' results further provide an earnings anchor. CXO leader WuXi AppTec (02359) reported revenue growth of 38.6% year-on-year in the first three quarters, with order backlog exceeding 76 billion yuan, and raised its full-year revenue guidance from 58.5 billion to 60.5 billion yuan up to 61 billion to 61.9 billion yuan.
Institutional Views
Everbright Securities chief strategist Zhang Yusheng commented that Hong Kong stock valuations have fallen noticeably from earlier levels, with market risks largely released. From the denominator side, overseas long-term rates will still weigh on growth asset valuations to some extent, but as related factors are gradually priced in, their marginal impact is expected to diminish. From the numerator side, whether AI capital expenditure can be sustained and how supply chain earnings materialize will become important factors determining the performance of the tech growth sector going forward.
BOCOM International said Hong Kong stocks are awaiting positive catalysts in the near term and recommended a barbell strategy balancing growth and defense at both ends. Due to inflation stickiness, monetary policy shifts, and the AI technology narrative, liquidity and valuation expansion space may be constrained, but a barbell portfolio retains flexibility across different scenarios.
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