According to Zhitong Finance APP, U.S. midterm elections saw Democrats retake both the Senate and House, sending the dollar, U.S. Treasury yields, and oil prices falling in tandem. Overnight, the Nasdaq Golden Dragon China Index rose 3.49%, and Hong Kong stocks advanced broadly on heavy volume. The Hang Seng Index surged over 800 points in a single day to break through the 24,000 mark, while the Hang Seng Tech Index jumped more than 5%.
As of close, the Hang Seng Index rose 3.67%, or 877.48 points, to 24,796.98 points, with total daily turnover of HK$356.667 billion. The Hang Seng China Enterprises Index gained 3.87% to 8,369.08 points, and the Hang Seng Tech Index climbed 5.55% to 4,154.29 points.
CITIC Securities believes that Hong Kong stock valuations have approached the lows seen during last year's "reciprocal tariff" outbreak, but corporate earnings expectations are showing signs of bottoming out and rebounding. If the U.S. implements fiscal consolidation and the Federal Reserve begins cutting rates from the second half of 2027, it would also help push down the overall discount rate for Hong Kong stocks. Overall, we judge that Hong Kong stocks are expected to embark on a volatile upward trend in 2027, with the first half awaiting the realization of earnings expectations and the second half potentially seeing valuation improvement as liquidity conditions ease.
Blue-Chip Performance
Sino Biopharmaceutical (01177) led blue-chip gains. As of close, it rose 9.22% to HK$5.625, with turnover of HK$1.178 billion. Sino Biopharmaceutical announced a major outbound licensing deal with multinational pharmaceutical company Boehringer Ingelheim for next-generation oncology therapies, covering six innovative drug preclinical projects. The company will receive US$358 million in upfront payments, with a potential total of up to US$7 billion, setting a new record for the company's BD transaction value.
Among other blue chips, Li Auto-W (02015) rose 8.94% to HK$47.5; Xiaomi Group-W (01810) gained 8.83% to HK$31.3; Weichai Power (02338) fell 5.20% to HK$23.68; and PetroChina (00857) dropped 4.16% to HK$10.36.
Hot Sectors
On the trading floor, the U.S. midterm election "blue wave" swept through Congress, with capital flowing from AI hardware into AI applications and internet platforms. Heavyweight tech stocks collectively surged. Apple's AI officially launched in China, with Alibaba up over 8%. The full version of Hunyuan Hy4 was released, with Tencent up over 7%. Robotics, aviation, and solar sectors also rotated upward.
On the other side, AI hardware stocks including storage, optical communications, and PCB concepts led declines. Geopolitical premiums rapidly dissipated, with Brent crude plunging as much as 10% on Wednesday, pressuring the "three oil giants" across the board.
Innovative drug concept stocks showed high-level divergence. As of close, BeiGene (06160) rose 7.34% to HK$248.6; Biocytogen-B (02315) gained 2.09% to HK$42.98; RemeGen (09995) rose 1.49% to HK$71.3; and GenScript Biotech (01548) fell 0.94% to HK$33.68. The innovative drug sector saw a密集 of positive catalysts. Sino Biopharmaceutical announced after market close on November 4 a major outbound licensing deal with multinational pharmaceutical company Boehringer Ingelheim for next-generation oncology therapies, covering six innovative drug preclinical projects. The company will receive US$358 million in upfront payments, with a potential total of up to US$7 billion, setting a new record for the company's BD transaction value. Notably, according to the latest data disclosed by the National Development and Reform Commission, the total value of China's innovative drug outbound technology licensing (License-out) transactions in the first three quarters of this year reached approximately US$130 billion, approaching the historic high of US$135.6 billion for the full year of 2025.
Robotics concept stocks extended gains. As of close, SEER Tech (06106) rose 12.28% to HK$67.2; Leaderdrive (03952) gained 6.45% to HK$30.02; and Horizon Robotics-W (09660) rose 5.92% to HK$3.755. The humanoid robot industry has seen frequent catalysts recently. On November 4, Wang Xingxing, founder, chairman, and CEO of Unitree Robotics, stated at the Internet Entrepreneur Forum of the 2026 World Internet Conference Wuzhen Summit that 2027 will very likely become a critical turning point for the robotics industry or robot model development, and robot capabilities are expected to see significant improvement next year. JD.com stated it will launch the "JD Physical AI Acceleration Plan" and procure 3 million robots over the next five years. Additionally, AgiBot recently released its next-generation embodied foundation model GO-3 Preview, introducing the concept of effective intelligent work hours for the first time.
Solar and other new energy stocks edged higher. As of close, GCL Tech (03800) rose 3.94% to HK$0.66; Goldwind Science & Technology (02208) gained 3.58% to HK$7.955; Flat Glass Group (06865) rose 3.44% to HK$5.865; and Xinyi Solar (00968) gained 3.41% to HK$2.125. With the U.S. midterm elections essentially settled, Democrats are expected to control both chambers of Congress. The market widely believes that a Democratic victory provides a positive driver for the new energy industry. The Democrats' locked-in advantage in congressional and local elections will greatly consolidate and extend the green energy subsidies and policy support under the Inflation Reduction Act (IRA). Guojin Securities believes that under the IRA framework, tax incentives for solar, energy storage, wind power, and SOFC industries are expected to remain intact, medium- to long-term capital expenditure expectations for green power operators will be solidified, and U.S. new energy installation expectations are likely to be revised upward.
Aviation stocks rose collectively. As of close, China Eastern Airlines (00670) rose 6.57% to HK$2.675; China Southern Airlines (01055) gained 4.81% to HK$3.05; and Air China (00753) rose 4.79% to HK$3.935. With the U.S. midterm elections settled and Democrats taking both the Senate and House, the market expects that future military action against Iran will be constrained by Congress. On Wednesday, Brent crude oil plunged more than 10% at one point, falling below US$95. For the aviation industry, oil prices are the most direct variable on the income statement. In the first three quarters of this year, the three major airlines collectively lost 8.435 billion yuan, all citing the sharp rise in jet fuel costs as the main reason for performance changes. Wanlian Securities previously noted that if oil prices subsequently decline, the core factor weighing on aviation stocks would ease, and the sector has significant recovery elasticity.
AI hardware stocks led declines. As of close, YOFC (06869) fell 12.48% to HK$96.1; ASMPT (00522) dropped 10.30% to HK$101; Zhongji Innolight (03308) fell 6.45% to HK$624; and Cambridge Technology (06166) declined 6.36% to HK$59.6. Due to market concerns that a major Democratic midterm election victory could strengthen regulation of AI data center construction, the Philadelphia Semiconductor Index fell 3.13% overnight, hitting a six-month low. Huatai Securities noted that pre-election consensus expectations had not factored in regulatory variables, and the short-term market may trade the risk of downward revisions to 2027/2028 Capex. The substantive impact will first manifest as delayed power delivery to campuses and postponed equipment procurement, acceptance, and payment collection. Considering demand independence and delivery certainty, the sector ranking is maintained: consumer electronics > design > foundry > storage > equipment.
Notable Stock Movements
Duiba (01753) surged in the afternoon. As of close, it rose 20.87% to HK$1.245. Chinese micro-drama overseas expansion continues to heat up, reaching a highlight moment of global development. It is reported that Duiba has built a complete business loop of "content generation—distribution and monetization—iterative optimization." Its AI short drama business recorded net profit for three consecutive months in July, August, and September, with new worldwide views exceeding 45.8 billion in the third quarter, more than nine times the cumulative 5 billion in the first half.
Kingdee International (00268) showed strong momentum. As of close, it rose 15.38% to HK$9.53. Kingdee International's AI-native product contract signing amount reached 1.002 billion yuan in the first three quarters; subscription ARR at the end of September was approximately 4.604 billion yuan, up about 19.3% year-on-year; net new ARR in the third quarter grew about 46.9% year-on-year. Net dollar retention (NDR) rates for Kingdee AI Xinghan, Kingdee AI Xingkong, and Kingdee AI Xingchen were 101%, 97%, and 95%, respectively.
Mobvista (01860) strengthened throughout the day. As of close, it rose 12.18% to HK$10.68. AppLovin's third-quarter revenue was US$2.185 billion, up 55% year-on-year; net profit was US$1.439 billion, up 72% year-on-year. The company also provided fourth-quarter revenue guidance of US$2.365 billion to US$2.395 billion, exceeding market expectations. Mobvista's main product is the programmatic interactive advertising platform Mintegral, which the market views as a Hong Kong-listed comparable to AppLovin's business model.
Weimob Group (02013) spiked intraday. As of close, it rose 6.62% to HK$0.725. Recently, Weimob Group announced it has integrated with Alipay's AI open platform. Based on this integration, Weimob can help merchants build intelligent agents and link them to Alipay mini-programs, while also supporting the encapsulation of existing business services into agents, with Alipay providing the conversational entry point and supporting capabilities such as stores, products, and ordering.
Comments