Hong Kong's three major stock indices closed collectively lower. The Hang Seng Index fell 0.59% to 22,958.65, the Hang Seng Tech Index dropped 2.84%, and the China Enterprises Index declined 0.46%.
On the board, technology giants broadly declined, with Lenovo dropping over 6%, while Kuaishou and Bilibili each fell more than 3%.
The optical communication sector tumbled, with Zhongji Innolight Co.,Ltd. (300308) plunging 10%. Changjiang Securities noted that operations and orders in the domestic optical module segment have shown no adverse changes. Recently, leading companies have announced that production and operations are normal, supply chains are stable, capacity utilization is sufficient, and customer order demand remains strong. Order visibility from major customers has extended to 2027, with some extending to 2028. 1.6T products are in a phase of continuous volume ramp-up, and production line ramp-up pace for CPO/NPO-related products has shown no significant change. Disclosed third-quarter reports also show that upstream optical component segments maintained rapid year-on-year growth in quarterly revenue and profit, with gross margins remaining at high levels.
Storage concept stocks led the declines, with the Southbound Double Long Samsung Electronics product dropping over 10%. On October 29, Samsung Electronics released its detailed third-quarter 2026 financial report, with quarterly revenue reaching 195.25 trillion Korean won, a year-on-year increase of 127%, hitting a record high and marking the fourth consecutive quarter of record revenue and profit. However, net profit underperformed market expectations. Net profit was 75.21 trillion Korean won, below the market estimate of 89.06 trillion Korean won.
Chinese brokerage stocks weakened, with Shenwan Hongyuan falling over 5%. Recently, third-quarter 2026 reports from multiple listed brokerages were released, showing an overall divergence of "cumulative growth in the first three quarters, pressure in the third quarter alone." Some listed brokerages experienced significant performance fluctuations due to proprietary trading business, triggering market concerns. Notably, in the third quarter, public funds reduced their allocation to brokerages amid fluctuations in market conditions and trading volume, and Chinese brokerage stocks were simultaneously underweighted.
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