On October 16, the three major Hong Kong stock indices pulled back in the afternoon. As of the close, the Hang Seng Index rose 0.52% to 24,186.83, the Hang Seng Tech Index rose 1.16%, and the State-owned Enterprises Index rose 0.31%.
On the sector front, tech giants rallied broadly, with Lenovo Group Ltd (HKEX: 00992) surging over 8%, while Kuaishou Technology (HKEX: 01024) and Alibaba Group Holding Ltd (HKEX: 09988) both gained over 2%. Defense stocks led the gains, with AVIC Hong Kong Holding Ltd (HKEX: 00232) rising over 4%. Gold stocks strengthened, with Lingbao Gold Group Company Ltd (HKEX: 03330) climbing over 8%. Lithium battery stocks lagged, with CATL (HKEX: 03750) falling over 1%.
Defense stocks led the gains, with AVIC Hong Kong Holding Ltd (HKEX: 00232) rising over 4%. Defense conglomerates have been participating intensively in overseas international defense exhibitions. On September 30, the 6th Azerbaijan International Defense Exhibition officially opened at the Baku Convention Center. On October 7, the 8th Marrakech Airshow opened at the Royal Air Force Base in Marrakech, Morocco. At the 2nd Egypt Airshow held in September, the Chinese Air Force's KJ-500, J-16, YY-20A, and Z-20K formed a complete aerial combat system, making their first public appearance at a foreign airshow. In addition, the 16th China Airshow will be held in Zhuhai this December.
Gold stocks strengthened, with Lingbao Gold Group Company Ltd (HKEX: 03330) climbing over 8%. Yesterday's U.S. PPI data and consumer data remained relatively hot, pushing the market to revise up its bets on a Federal Reserve rate hike in October, but a pullback in tech stocks triggered safe-haven inflows into U.S. Treasuries. Meanwhile, Federal Reserve officials took a relatively cautious stance on immediate rate hikes, and U.S. Treasury yields and the dollar index retreated from highs. On Thursday, long-term bond yields even saw a single-day decline of double-digit basis points, easing the previous downward pressure on gold prices.
Lithium battery stocks lagged, with CATL (HKEX: 03750) falling over 1%. Citigroup published a research report stating that ZE Consulting has lowered its October 2026 battery production pipeline forecast, expecting the top five battery manufacturers' production pipeline to rise only 1% month-on-month, below the previously previewed survey expectation of a 7% month-on-month increase. Citigroup downgraded its production pipeline forecasts for CATL (HKEX: 03750), CALB Group Co Ltd (HKEX: 03931), and EVE.
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