Previously, A-shares were relatively independent while Hong Kong stocks took their cues from US markets. Now the relationship has flipped 鈥?A-shares are the most vulnerable, and after an overnight US selloff, the A-share market became almost too painful to watch today. Such a market environment is rarely seen in many years. Hong Kong stocks, by contrast, held firm today thanks to their different structural composition, climbing steadily throughout the session and closing up 1.46%. There is not much to say about this. In weak conditions, month-end is inherently a high-risk time point, tech stocks remain an unsolvable pain point for the market, and A-share stabilization is almost a hopeless cause.
US tech giants are blowing up one after another. Yesterday it was Google, and now it is Intel and Amazon's turn. Intel's results were actually decent, but its forward guidance missed expectations 鈥?it projected fourth-quarter revenue of $15 billion to $16 billion, below the market's $17.05 billion estimate, and adjusted earnings per share of $0.25, far below the expected $0.43. Intel plunged 25% after hours. Amazon's results largely met expectations, but its core online business showed signs of slowing growth, with free cash flow at negative $42.4 billion. Amazon fell more than 4% overnight and dropped another 7% after hours. Market patience and confidence in tech has now reached freezing point.
Turning to the domestic front, Eoptolink (300502.SZ) reported third-quarter revenue of 10.9 billion yuan, up 80% year-on-year, and net profit of 3.6 billion yuan, up 53% year-on-year. The same problem lies in the quarter-on-quarter comparison 鈥?against 4.7 billion yuan in the second quarter, third-quarter results showed a severe sequential decline, far below the market's expected 5.0 billion to 5.5 billion yuan, and the stock plunged more than 14% today. Then there is PCB maker Victory Giant Technology (02476), which reported third-quarter revenue of 6.8 billion yuan, up 34% year-on-year, but net profit of 530 million yuan, down 52% year-on-year. Excluding foreign exchange gains and losses, adjusted profit was 1.28 billion yuan, up 16% year-on-year. Even this result was considered a letdown, and the stock fell more than 9%. There are also rumors circulating about a "ban on selling," but that is essentially meaningless. Under such relentless declines, redemption pressure is inevitably enormous 鈥?even if you do not sell, you cannot hold on. If this vicious cycle takes hold, it simply cannot be stopped, because the more prices fall, the more redemptions occur, and the more selling pressure builds 鈥?that is the truly terrifying part.
So why were Hong Kong stocks so resilient today? The main reason is the different index composition. Because the index has a low weighting in technology, even if tech stocks fall, the impact on the index is limited. Another scenario also emerges 鈥?when A-shares keep falling endlessly, capital actually rotates into Hong Kong stocks as a risk hedge. Several major heavyweight stocks performed well today. Xiaomi (01810), Meituan (03690) rose more than 3%, while NetEase (09999) and Tencent (00700) both gained over 1%. Combined with bank stocks continuing to hit new highs, the Hang Seng Index was basically stabilized.
The oil and gas sector was also quite strong 鈥?earnings are what truly matter. Shanghai Petrochemical (00338) reported net profit of 1.085 billion yuan for the first three quarters, up 351.38% year-on-year, with third-quarter adjusted net profit of 861 million yuan, up 1,796.11% year-on-year. That growth rate is incredibly aggressive, and the stock surged more than 10%. Sinopec (00386) beat expectations with its third-quarter results, with September refined oil exports jumping 130% year-on-year, and the stock rose more than 6%. PetroChina (00857) climbed another 5%.
The shipping sector also rose with the tide. COSCO Shipping Holdings (01919) saw a significant recovery in third-quarter results, with net profit attributable to shareholders surging 128.45% quarter-on-quarter, and the stock gained more than 7%. In the port segment, COSCO Shipping Ports (01199) reported profit attributable to shareholders of $316 million for the first three quarters, with total throughput up 8.1% year-on-year. The key highlight was the overseas segment, where third-quarter total throughput jumped 19.4% year-on-year and equity throughput rose 15.6% year-on-year. The stock also gained more than 7% today. Qingdao Port (06198) rose more than 6%.
With no way out for the technology trade, some repositioning capital had no choice but to rotate into consumer stocks. The Ministry of Commerce held a national teleconference on October 28 to advance the consumer goods trade-in program, emphasizing accelerated subsidy payouts and innovative creation of offline consumption scenarios. Within the consumer sector, staple consumer goods are preferred, and within staples, dairy is the top pick. China Mengniu Dairy (02319) benefits from raw milk supply reduction 鈥?domestic dairy farming continues to lose money, farmers are culling cows, and capacity is contracting. Meanwhile, New Zealand whole milk powder prices are rising, supporting the bottom for domestic milk prices. The market is trading on the expectation of a reversal in the milk price upcycle, and rising milk prices directly boost dairy companies' gross margins. The stock surged more than 9%.
Other companies with strong earnings followed suit. Midea Group (00300) reported first-three-quarter net profit attributable to shareholders of 41.393 billion yuan, up 9.27% year-on-year, marking 14 consecutive years of growth, with third-quarter net profit up more than 25%. The stock rose more than 3%. In the same sector, Haier Smart Home (06690) gained more than 5%. Mao Geping (01318) announced that for the three months ended September 30, 2026, revenue grew 22% to 24% year-on-year, and net profit grew 22% to 24% year-on-year. For the first three quarters, revenue grew 24% to 26% and net profit grew 20% to 22% year-on-year, with overall gross margin and net margin levels remaining stable. The stock surged nearly 14%.
Combined with Double 11, beneficiaries across the board are moving. Mixue (02097) formed a strategic partnership with Yue Xian Huo, expecting fresh milk coverage across all stores nationwide by 2028. The board has resolved to recommend a special dividend of 2.65 yuan per share to shareholders on or around November 6, 2026, with an estimated total of approximately 1.006 billion yuan. The stock rose more than 8%, driving Dongpeng Beverage (09980), Nongfu Spring (09633), Master Kong (00322) and others up more than 5%.
Among tech stocks, Baige Online (02672) has been the market's brightest star recently. Under its self-developed Qingluan MoE vertical large model, the company has built an ontology knowledge graph that maps entities, scenarios, behaviors and risks into a unified decision layer. The core advantage is that this system was distilled record by record from 9 billion real risk control service records. Baige Data focuses on flexible employment, instant-scenario insurance policies plus claims closed-loop, with very deep barriers, and its results have already proven out. In the first three quarters of 2026, Baige Online's MaaS revenue grew 730.4% year-on-year and accelerated each quarter, with sequential growth rising from 18.6% to 29.3%. September alone exceeded the combined revenue of July and August. Looking ahead, China's scenario-based risk services market was approximately 102.1 billion yuan in 2025 and is expected to reach 167.4 billion yuan by 2030. Even if MaaS revenue reaches 2.15 billion yuan by 2028, penetration would only be 1.6%, leaving enormous room for imagination. Note that there is a subsequent catalyst involving 169.66 million domestic shares converting to H-shares, representing 52.91% of total share capital. Once approved by the CSRC, pressure will be significant, but before the lock-up expires, the incentive to drive prices higher will be strong. The stock surged more than 11% again today.
On October 29, Quantpai (02685) announced that its subsidiary Silicon-Based (Beijing) Intelligent Technology Development Co., Ltd. signed a tripartite strategic cooperation framework agreement with Lens Technology and Beijing Super New Era Embodied Intelligence Technology Co., Ltd. The three parties established a strategic partnership to collaborate deeply on next-generation AI hardware products including AI glasses, embodied intelligent robots, tactile dexterous hands and data-collection gloves, across four directions: product co-creation, joint research and development, channel co-building and ecosystem coordination. The stock surged more than 16%.
After market close, the central bank stated it will continue implementing a moderately accommodative monetary policy, comprehensively using various monetary policy tools to maintain ample liquidity. The CSRC stated it will spare no effort to stabilize the market and expectations, and continuously enhance the resilience and confidence of the capital market. These are largely slogans 鈥?what matters is seeing substantive measures.
Sector Focus
On October 29, the wuxia action game "Phantom Blade Zero," developed by S-GAME, officially launched, topping Steam's global bestseller list on its first day. By 11 PM that night, peak concurrent online players reached approximately 720,000. According to estimates from third-party market analysis firm Alinea Analytics, as of October 28, cumulative pre-orders on Steam and PS5 reached approximately 850,000 units, with pre-order revenue of about $43 million, equivalent to roughly 287 million yuan. Currently, the AI film and television sector is in a consolidation phase, mainly due to flaws in earnings and a lack of breakout product catalysts. But in the long term, AI long-form dramas, AI films and AI interactive film-games all deserve optimism. World models will be released progressively, AI video tools will continue to iterate, and with Hongguo data already the fourth-largest app and Chinese AI short dramas sweeping overseas markets, the rise of AI film and television should be a trend. Related stocks: Tencent (00700), NetEase (09999), XD Inc. (02400), China Literature (00772).
Stock Spotlight
Orient Overseas International (00316): Strong third-quarter operating data, with the Christmas peak season providing a catalyst. 2026 Q3 operating data was solid 鈥?liner revenue was $3.285 billion, up 45.1% year-on-year; revenue per TEU was $1,547, up 33.1% year-on-year and 30% quarter-on-quarter; cargo volume was 2.12 million TEU, up 9% year-on-year; capacity grew only 3.6% year-on-year, with load factor rising 4.2 percentage points year-on-year. Revenue per TEU of $1,547 was up 33.1% year-on-year and 30% quarter-on-quarter. Commentary: The biggest highlight was Pacific (US route) revenue of $1.44 billion, up 71.8% year-on-year, accounting for 44% of route revenue this quarter and serving as the core growth engine. Asia-Europe route revenue rose 45%, Australia-Asia regional routes rose 23.7%, and the Atlantic route grew a steady 11.9%. On the earnings front, the official third-quarter report still needs to be seen. Its profitability is highly tied to US West and US East routes, with trans-Pacific revenue up 71.8% year-on-year and already accounting for 44% of liner revenue 鈥?it is the core profit engine. With the US Christmas season approaching, American retailers continue restocking, e-commerce shipments are robust, and US West Coast ports remain congested, effectively tying up available capacity and keeping freight rates elevated. Meanwhile, navigation restrictions in the Strait of Hormuz, Red Sea and Black Sea regions have forced shipping route adjustments, reducing vessel turnaround efficiency. Tighter supply-side conditions also give the company's freight rates elasticity. Follow-up catalysts: methanol dual-fuel 24,000 TEU ultra-large container ships will be progressively delivered. First, this meets long-term European and American ESG and low-carbon compliance requirements, providing cost advantages under future carbon taxes and green compliance. Second, larger vessels dilute unit fuel consumption, optimizing the per-TEU cost curve over the long term. Order deliveries are concentrated in 2026鈥?029, with a dispersed pace that will not shock supply all at once. The annual dividend payout ratio is locked at 50% of net profit attributable to shareholders, with interim and final dividends paid twice, prioritizing cash flow returns to shareholders. The debt ratio has long been low, with almost no debt repayment pressure 鈥?this fits current market capital preferences.
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