To The Moon

Hong Kong stocks surged strongly today, with semiconductor and gold stocks leading the gains.

The three major Hong Kong stock indices opened higher and extended gains, all rising over 2%, fully recovering their monthly losses. By the close, the Hang Seng Tech Index jumped 2.74%, while the Hang Seng Index and the Hang Seng China Enterprises Index climbed 2.12% and 2.1%, respectively.

Total market turnover reached HKD 234.7 billion, reflecting improved investor sentiment. Tech stocks led the rally, supported by strong performances in insurance, mainland banks, and Chinese brokerage stocks. Gold-related stocks also rose as international gold prices rebounded.

According to a report by China Merchants Securities International, southbound capital inflows totaled HKD 1.17 trillion by Q3 2025, accounting for 23.6% of total turnover. The Hong Kong market is gradually forming a structure dominated by long-term institutional investors and active short-term capital, with southbound funds expected to bring approximately HKD 11 trillion in incremental capital over the next five years.

**Tech Stocks Rally** Semiconductor stocks outperformed, with Huahong Semiconductor surging over 9% and SMIC rising 7.32%. Alibaba, JD.com, and Tencent gained 4.10%, 3.34%, and 2.38%, respectively.

Alibaba’s flash-sale platform, Taobao Deals, has been active recently. On November 3, the Ele.me app was rebranded as Taobao Deals in a version update, currently in beta testing. Data from Tmall’s "Double 11" shopping festival showed that as of November 5, orders from new users via Taobao Deals exceeded 100 million.

Meanwhile, SK Hynix announced on November 5 that it finalized pricing and supply negotiations with Nvidia for HBM4 chips in 2026, with prices expected to be over 50% higher than current HBM3E chips. Analysts noted that AI servers significantly boost demand for memory chips, and with domestic substitution and AI-driven growth, the semiconductor sector may enter a new "super cycle."

**Financial Sector Gains** Among Chinese brokerages, Huatai Securities rose over 5%, while GF Securities advanced 4.63%. Cinda International, Bank of China, and Orient Securities gained 3.85%, 3.55%, and 3.51%, respectively.

GF Securities was added to the MSCI China Index today. A CITIC Securities report highlighted that brokerage earnings recovery has expanded from brokerage and proprietary trading to investment banking and asset management, signaling a broad industry rebound.

In the insurance sector, New China Life and China Life rose nearly 5%. China Life reported a 92% YoY surge in Q3 2025 net profit to RMB 126 billion, lifting nine-month earnings by 61%.

**Gold Prices Rebound** Gold-related stocks rallied, with Zijin Mining, Tongguan Gold, and Lingbao Gold rising 8.67%, 7.14%, and 6.19%, respectively. Jewelers Chow Tai Fook, Chow Sang Sang, and Emperor Watch & Jewellery climbed 2.83%, 2.18%, and 1.82%.

During Asian trading, COMEX gold futures rebounded above $4,000/oz. Zijin Mining was among nine Hong Kong stocks added to the MSCI China Index, effective after the close on November 24. Index funds typically position ahead of inclusions, providing passive support for gold stocks.

**IPO Surge** Wanshun Bio-Medicine debuted on the Hong Kong exchange, soaring 145.73% to HKD 82 at the close. The biopharma firm focuses on developing small-molecule drugs for neuropsychiatric and reproductive health treatments.

Proceeds from the IPO will fund R&D for core products, expansion of its Qingdao facility, sales and marketing, and general corporate purposes.