Hong Kong's three major indices all advanced, with the Hang Seng Index rising 0.57%, lifted by easing Middle East tensions that pushed overnight oil prices sharply lower and by the official voting day of the US midterm elections.
At the close, the Hang Seng Index gained 132.65 points, or 0.57%, to 23,525.97, with turnover of HK$236.404 billion; the Hang Seng China Enterprises Index rose 0.47% to 7,943.10; and the Hang Seng Tech Index added 0.74% to 3,867.73. Soochow Securities believes Hong Kong equities' relative gains may moderate compared with July. First, even if there is short-term short covering, the current liquidity environment is not as favorable as in July; second, market funds are waiting for a rebound signal in tech hardware, and since Hong Kong is not part of the high-low rotation, it relies more on a resonance effect, but its tech hardware weighting is low, so rebound room is relatively limited.
Blue-chip performance
Haidilao (06862) led blue chips higher, closing up 6.43% at HK$9.935 with turnover of HK$312 million. Haidilao announced that on November 2, controlling shareholder, executive director, chairman and chief executive Zhang Yong repaid the full principal of the loan plus all accrued interest ahead of schedule under the loan agreement. On October 12, Haidilao had announced a loan of up to RMB100 million to Zhang Yong for one month.
Among other blue chips, Trip.com Group-S (09961) rose 6.34% to HK$332; JD.com-SW (09618) gained 5.61% to HK$107.3; Li Ning (02331) added 4.33% to HK$14.47; CNOOC (00883) fell 1.96% to HK$24.04.
Hot sectors
Large internet stocks were broadly stronger, with JD.com up more than 5% and Tencent up more than 1%. Consumer names advanced, with China Mengniu Dairy and China Resources Beer both up more than 4%; airlines and pork-related concept stocks also rose. On the other side, AI hardware gave back gains from highs, with Zhongji Innolight down more than 10% and YOFC down 6.25%; innovative drugs, the handset supply chain and robotics concepts weakened in tandem.
Consumer stocks mostly climbed. At the close, Trip.com Group-S (09961) rose 6.34% to HK$332; China Mengniu Dairy (02319) gained 4.68% to HK$21.48; China Resources Beer (00291) added 4.17% to HK$20.74. CITIC Securities believes that after further adjustment since 2026, pessimistic expectations for the consumer sector have been fairly fully reflected in prices and positioning. Looking to 2027, the brokerage keeps a neutral view on household employment, income expectations and the macro aggregate environment, but the negative drag from property on consumer confidence is expected to ease at the margin, while easing industry competition and higher shareholder returns from leaders are providing more certain structural support. A medium-term outperformance in consumption still needs fundamental verification, but current conditions offer more of a left-side allocation value of "weak demand, high odds." It recommends prioritizing breeding, livestock and dairy products and other cyclical reversal directions in the short term.
Domestic insurers generally rose. At the close, China Pacific Insurance (02601) rose 4.56% to HK$27.54; PICC P&C (02328) gained 3.27% to HK$17.07; China Life Insurance (02628) added 2.98% to HK$25.54; Ping An Insurance (02318) rose 2.68% to HK$51.65. On November 2, the People's Bank of China, together with the National Financial Regulatory Administration and the China Securities Regulatory Commission, held two symposiums on swap facilities and relending for stock buybacks and increases in holdings on the same day. The meetings made clear that the relending policy for stock buybacks and increases in holdings will shift from a temporary arrangement to a long-term institutional arrangement, with the relending rate cut from 1.25% to 1%. The central bank announced today that it conducted swap facility operations for securities, fund and insurance companies. The operation amounted to RMB100 billion and used a rate bidding method, with 31 securities and fund companies participating in the bidding and a winning rate of 10bp. Guotai Haitong Securities noted that current share prices reflect extremely pessimistic investment-side expectations, and with interest rates stabilizing and rebounding, listed insurers' valuation repair room can be expected.
Optical communications and other AI hardware stocks slumped. At the close, Zhongji Innolight (03308) fell 10.92% to HK$620; Cambridge Technology (06166) dropped 8.91% to HK$59.3; Haiguang Xinzheng (01191) declined 7.18% to HK$64.6; YOFC (06869) lost 6.25% to HK$100.5. The Philadelphia Semiconductor Index fell another 3.37% overnight after plunging 7.2% last Friday. Oracle's US$20 billion equity-and-debt financing and Marvell's hundred-billion-dollar acquisition, which triggered a double blow, further confirmed that the market's anxiety over the AI supply chain's "cash-burn rate" is spreading from sentiment to pricing. Some argued that Marvell Technology's choice to bet on an all-stock mega-merger at a time when the market is clearly turning more cautious on the AI capex boom was an unbelievably bad-timed move. At the same time, the market also worries that after the merger Marvell will have stronger bargaining power, potentially hurting the interests of domestic optical module makers.
The handset supply chain broadly weakened. At the close, Lens Technology (06613) fell 3.24% to HK$12.55; Q Technology (01478) dropped 4.92% to HK$4.255. Apple reported fourth-quarter fiscal 2026 results for the period ended September 26, 2026. Revenue was US$114.5 billion, up 12% year on year, beating prior market expectations; net profit was US$30.7 billion, up 12% year on year. However, Apple's Greater China revenue this quarter was US$17.539 billion, up 21% year on year but below the market consensus of US$18.75 billion. Notably, Apple's chief financial officer clearly said on the earnings call that memory costs were the main source of pressure on gross margin this quarter, and the impact of high memory costs will be even heavier next quarter.
Gold stocks diverged. At the close, Shandong Gold (01787) rose 1.09% to HK$15.73; Zijin Mining (02899) added 0.22% to HK$27.3; China Gold International (02099) fell 2.43% to HK$164.9. As US-Iran tensions swung back and forth, spot gold approached the US$3,900 mark again in the afternoon. On Monday, oil prices tumbled 7% on rising expectations for negotiations, while the dollar and US Treasury yields fell, and gold prices rebounded noticeably at one point. Notably, CCTV News cited Iranian sources on the 3rd saying that Iranian military spokesman Akraminia said that day that any further US act of aggression would immediately meet a "more decisive and broader response than ever." If a new war breaks out, its scope will not be limited to the Middle East.
Notable movers
Keytop Parking (02272) surged on heavy volume. At the close, it rose 30.85% to HK$57. The company's Snail Parking app officially launched in August this year, and since then the Snail Parking platform business has delivered outstanding results, with peak single-day transaction value exceeding RMB10 million, marking another step forward for the company in smart parking digital operations and end-user services.
TCL Electronics (01070) performed well. At the close, it rose 6.88% to HK$16.01. TCL Electronics announced that the major and connected transaction to issue consideration shares under a special mandate to acquire the target company owning the TCL air-conditioning business has completed, all conditions precedent have been satisfied, and completion took place on November 2 under the terms of the sale and purchase agreement. After completion, the target company has become a wholly owned subsidiary of TCL Electronics, and the target group's financial results will be consolidated into the group's financial statements.
Lopal Tech (02465) rose in both A and H shares. At the close, it gained 6.81% to HK$6.905. Lopal Tech's revenue for the first three quarters was RMB12.275 billion, up 110.72% year on year; net profit attributable to shareholders of the listed company was RMB506 million, compared with a loss of RMB110 million a year earlier; basic earnings per share were RMB0.70.
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