Hong Kong's three major stock indices all rose collectively. As of the midday close, the Hang Seng Index gained 0.52% to 23,512.29, the Hang Seng Tech Index rose 0.96%, and the State-Owned Enterprises Index added 0.34%.
On the board, tech stocks were mostly higher, with JD.com up over 4%, NetEase up more than 3%, and Lenovo down over 5%; gaming stocks led the gains, with Galaxy Entertainment rising more than 5%; auto stocks were active, with XPeng up over 4%; the optical communication sector weakened, with Zhongji Innolight falling more than 7%.
Gaming stocks led the gains, with Galaxy Entertainment up over 5%. The month-on-month signal in October gaming revenue was the core catalyst. Data from Macau's Gaming Inspection and Coordination Bureau showed that October gross gaming revenue reached MOP 21.68 billion, an increase of over MOP 3.6 billion month-on-month, or a rebound of about 20%, although it was still down 10% year-on-year, marking a fifth consecutive month of decline. For a sector that had been under sustained pressure, the month-on-month halt in the decline was interpreted as a sign of a short-term bottom.
Auto stocks were active, with XPeng up over 4%. XPeng delivered 50,237 units in October, up 22% month-on-month, setting a new single-month record, of which overseas deliveries reached 13,326 units, up 166% year-on-year; Leapmotor continued to lead the new energy vehicle delivery rankings; Xiaomi Auto delivered over 50,000 units in October, also a new high for the year. BYD reported Q3 revenue of 221.488 billion yuan, up 36% year-on-year, and net profit of 10 billion yuan, up 28% year-on-year, with profit realization further validating the industry's prosperity. In addition, the Hang Seng Hong Kong Stock Connect Auto Theme Index is already at a nearly one-year valuation low, and under the catalysts of delivery volume expansion and intelligent driving, the valuation repair elasticity is relatively large.
The optical communication sector weakened, with Zhongji Innolight falling more than 7%. Marvell announced an all-stock acquisition of optical device manufacturer Lumentum for approximately $115 billion, but shareholders of both companies expressed strong dissatisfaction with the deal. On Monday, Lumentum's stock price fell 18.6% in a single day, while Marvell's stock dropped 12.7%. According to the announcement, the transaction is expected to be completed in the first half of 2028. As it involves the global critical optical communication supply chain, the acquisition still requires regulatory approval from multiple countries.
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