The Hong Kong stock market opened higher but drifted lower today, with tech hardware under pressure while pharmaceuticals and precious metals bucked the trend. By the close, the Hang Seng Index fell 0.13% to 24,448.95 points, with total turnover of HK$173.707 billion; the Hang Seng Tech Index dropped 0.92% to 4,040.73 points. Among Hong Kong ETF products ranked by size, Tracker Fund of Hong Kong (02800) closed down 0.08% at HK$24.58; CSOP Hang Seng Tech Index ETF (03033) fell 0.80% to HK$3.962; and Hang Seng China Enterprises Index ETF (02828) slipped 0.02% to HK$84.88.
Sector Performance
Overseas breakthroughs in embodied intelligence algorithms have accelerated the intelligent iteration of robotics, driving broad gains in robotics ETFs. By the close, Robotics ETF Fullgoal (159272.SZ) rose 2.15% to 0.81 yuan; Robotics ETF E Fund (159530.SZ) gained 2.14% to 1.34 yuan; and Robotics ETF ChinaAMC (562500.SH) advanced 1.39% to 0.87 yuan. Apple (AAPL.US)'s research team on November 4 unveiled HALO, an autonomous humanoid robot control system, which completed 360 individual task tests on third-party humanoid robot bodies with an average success rate of 91%. Training data came from 1,000 procedurally generated virtual home scenarios and approximately 300 hours of synthetic samples, with zero-shot transfer to unfamiliar real-world environments. Guojin Securities noted that the core variable in this round of physical AI has shifted from hardware performance to the emergence of generalization capabilities; CITIC Securities believes the robotics sector currently meets the conditions in valuation, liquidity, and industrial catalysts to initiate a thematic rally.
As geopolitical risk premiums for overseas expansion eased, innovative drug ETFs rose against the market trend. By the close, S&P Biotechnology ETF Harvest (159502.SZ) gained 2.35% to 1.57 yuan; Hong Kong Innovative Drug ETF Invesco Great Wall (513780.SH) rose 1.88% to 1.63 yuan; and Hong Kong Innovative Drug ETF GF (513120.SH) advanced 1.69% to 1.26 yuan. On November 6, US biotechnology stocks moved higher against the broader market, with the Nasdaq Biotechnology Index and the S&P Biotechnology Select Industry Index rising 2.20% and 2.57% respectively, providing a direct mapping for A-share and Hong Kong innovative drug stocks. CICC stated that the Democratic Party is relatively proactive toward pharmaceutical industry development, and after the midterm elections, the enforcement intensity of US innovative drug price control policies may ease at the margin, improving industry R&D and commercialization expectations, which could benefit China's innovative drug overseas expansion and the CXO supply chain. On the domestic front, according to National Development and Reform Commission data, China's innovative drug out-licensing deals totaled approximately $130 billion in the first three quarters, already approaching last year's full-year level. Industrial Securities noted that China's innovative drug overseas expansion maintains high prosperity, with Chinese pharmaceutical companies' BD transaction value accounting for 58% of the global total in the first half of 2026; Huafu Securities believes the innovative drug sector may see continued catalysts from overseas BD deals and data readouts.
Continued central bank gold purchases and easing macroeconomic pressures drove gains in the gold sector. By the close, E Fund Gold Miners ETF (02824) rose 2.95% to HK$9.78; Gold Stock ETF Yongying (517520.SH) gained 1.62% to 1.76 yuan; and Gold ETF E Fund (159934.SZ) advanced 1.51% to 8.75 yuan. State Administration of Foreign Exchange data showed China's gold reserves stood at 78.30 million ounces at the end of October, up 830,000 ounces month-on-month, marking the 24th consecutive month of increases, with the incremental purchase volume hitting a new high since gold buying resumed in November 2024. World Gold Council data showed that in the third quarter, central banks and official institutions globally added a net 321 tonnes to gold reserves, up 42% year-on-year. During the same period, Brent crude oil fell 16.42% in a week, the largest weekly decline since 2020, easing energy inflation and rate hike concerns simultaneously, with spot gold returning above $4,100. China Merchants Securities noted that sovereign demand for gold allocation remains solid, and gold prices have sustained upward momentum; Huaxi Securities believes the core of this gold bull market remains the revaluation of dollar credit, US fiscal sustainability constraints, and global central bank reserve diversification.
Institutional Views
CICC Strategy believes the impact of the US midterm elections on A-shares in the short term mainly manifests as valuation adjustments from US policy expectation and market sentiment disturbances. Short-term rising regulatory expectations may disrupt US AI capital expenditure expectations, putting temporary pressure on demand expectations for the overseas AI hardware supply chain. However, given that the timing and magnitude of relevant policy implementation remain unclear, and the long-term development of the AI industry still depends on new industrial breakthroughs and investment returns, if the market initially overprices the impact of US policy, subsequent clarity in actual policy implementation, stabilization of capital expenditure expectations, or new technology and demand catalysts could still drive valuation recovery for overseas supply chain-related targets. CICC also stated that regarding the fiscal and monetary environment, after the Democratic Party controls both chambers, the Trump administration's room to further expand fiscal stimulus may be constrained; if geopolitical tensions ease and inflation pressures abate while the AI industry's contribution to overall economic growth weakens, US monetary tightening expectations may ease at the margin, potentially supporting a recovery in gold prices and the precious metals sector.
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