Hong Kong stocks closed (10.02) | The Hang Seng Index fell 2.6% and fell below the 24,000 mark. Financial, gaming, pharmaceutical stocks, etc. were under pressure throughout the day
The Zhitong Finance App learned that Hong Kong stocks had an unfavorable opening in October. Global bonds were sold off compounded by the absence of southbound capital. The three major indices collectively declined, and the Hang Seng Index fell below the 24,000 mark. Currently, the market is focusing on the US non-agricultural data for September, which will be released tonight. As of press release, the Hang Seng Index fell 2.60% or 640.98 points to 23972.29 points, with a turnover of HK$145.804 billion; the Hang Seng State-owned Enterprises Index fell 2.31% to 8030.54 points; and the Hang Seng Technology Index fell 2.26% to 4157.94 points.
Everbright Securities believes that in terms of allocation, it is moderately skewed in the direction of growth. Marginal uncertainty about short-term interest rate hikes has been eliminated, and long-term US debt is fluctuating at a high level. Combined with the improvement in Sino-US relations, it is expected to boost market sentiment, and the pressure on valuations of growth stocks has eased somewhat. The October configuration approach was based on “defending dumbbells” to “attacking growth and buffering low dividend resources”, and market pricing shifted from “fear of interest rate hikes” to “picking performance.”
Blue-chip stock performance
Weichai Power (02338) bucked the trend and led blue chips. As of press release, it rose 1.39% to HK$29.12, with a turnover of HK$316 million. According to Citigroup Research, according to tracking data on Chinese automakers, Weichai Power's stock price increased to a record 35% discount compared to the bank's AIDC/SOFC/AI weighted index, in line with the broadest level in June, and further expanded from 28% a week ago, reflecting its relatively attractive short-term risk-return.
In terms of other blue-chip stocks, Geely Auto (00175) rose 1.31% to HK$14.74; New Oriental-S (09901) rose 0.42% to HK$43.10; AIA (01299) fell 5.98% to HK$69.20; and HSBC Holdings (00005) fell 5.38% to HK$149.5.
Popular sector aspects
On the market, the closure of Hong Kong Stock Connect caused Beishui to be absent from trading, and only 7 stocks in the Hang Seng Index constituent stocks rose; Tencent and Ali both fell by more than 2%; Macau's September gaming revenue fell short of expectations, and gaming stocks fell; the tightening situation in the Middle East put pressure on aviation stocks; the September sales report card was released, auto stocks had mixed trends. Ideal, Xiaopeng's stock price reached a record low; finance, innovative drugs, domestic housing stocks, gold stocks, etc. were under pressure; Optical Communications concept stocks were active.
Hong Kong financial stocks are under pressure. At the close, Standard Chartered Group (02888) fell 5.97% to HK$229.80; HSBC Holdings (00005) fell 5.38% to HK$149.50; and AIA (01299) fell 5.98% to HK$69.2.
European and US bond yields soared. The yield on US 10-year treasury bonds hit the highest level since 2002, and the yield on US 30-year treasury bonds also rose to the highest level in 24 years. Furthermore, the yield on British 30-year treasury bonds rose to 6% for the first time since 1998, and the yield on French 10-year treasury bonds rose to 4.96%, continuing to hit a new high since 2002. Market analysts believe that currently, Europe's financial situation is already under pressure, and the high interest rate environment further deepens market concerns; Hong Kong's free capital flow makes it easy for sales pressure to occur more quickly when taking refuge.
Gaming stocks fell across the board. At the close, Melco International Development (00200) fell 4.79% to HK$2.685; Galaxy Entertainment (00027) fell 4.17% to HK$30.30; and Sands China (01928) fell 3.97% to HK$11.38.
The Macau Gaming Inspection and Coordination Bureau announced that gross gaming revenue in September was MOP 18.06 billion, down 1.2% year on year, lower than market expectations. It increased 2.2% for 4 consecutive months, and fell 17.5% from month to month. In the first nine months of this year, Macau's gross gaming revenue was MOP 187.12 billion, up 3.2% year on year. Citi expects total gaming revenue of 25 billion yuan in October 2026. It believes that various large-scale events (such as the NBA China game, Zhang Liangying, Enhypen, and Ren Xianqi's concerts) will hopefully support Macau's gaming revenue momentum after Golden Week.
Aviation stocks were the first to decline. At the close, China Eastern Airlines shares (00670) fell 5.32% to HK$2.490; Air China (00753) fell 4.68% to HK$3.765; and China Southern Airlines shares (01055) fell 3.48% to HK$2.915.
Diplomatic negotiations between the US and Iran have reached an impasse, and the geopolitical conflict is showing signs of escalating; Trump publicly stated that he may step up military attacks on Iran after the November midterm elections, and reiterated his tough stance of pressure. Furthermore, it has been revealed that the US will send a third aircraft carrier to the Middle East, increasing the number of troops by nearly 10,000. It is worth noting that due to the geographical conflict, international oil prices soared by more than 30% in the third quarter, and high oil prices will directly impact the cost side of airlines.
The trend of auto stocks is divided. At the close, Ideal Automobile-W (02015) fell 5.37% to HK$42.62; Xiaopeng Group-W (09868) fell 3.96% to HK$36.36; and Great Wall Motor (02333) fell 1.66% to HK$7.105.
On October 1, a number of car companies handed over their September “report cards”, and Zero Run reached 100,000 monthly sales for 3 consecutive months; Ideal Auto was at the bottom of the ranking. In September, 31,817 new cars were delivered, down 6.29% year on year and 15.56% month on month. Nomura pointed out that Chinese automakers released wholesale data for September 2026, and overall market conditions are still weak. Domestic demand and order conditions during the traditional peak season fall short of expectations, and there has been no increase in seasonal sales. According to preliminary data from the Passenger Federation, the bank expects domestic market sales to drop more than 25% year on year in September, or the fastest year-on-year decline so far in 2026.
Individual optical communication stocks are active. At the close, Changfei Optical Fiber Cable (06869) rose 4.28% to HK$175.30; Cambridge Technology (06166) rose 1.81% to HK$112.80; and Zhongji Innox (03308) rose 0.94% to HK$1072.00.
Overnight, US optical communication concept stocks surged. Morgan Stanley released a research report on the telecommunications and network equipment industry on October 1. The core judgment is that the US FCC's restrictions on Chinese optical modules are most likely to be implemented in the 3.2T generation, but there is an “US content exemption” path. Currently, mainstream 800G and 1.6T modules are not affected. The overall pattern is beneficial to Lumentum and Coherent, rather than a complete ban on Chinese optical module manufacturers. Zhongtai Securities, on the other hand, believes that the optical communication industry is expected to continue to benefit from the triple drive of AI computing power expansion, speed upgrades, and network architecture evolution.
Popular exotic stocks
Boleyton (01333) rose sharply. At the close, it was up 24.07% to HK$20.
Recently, Boreton and Inhoy signed a letter of intent to cooperate. The two sides plan to develop long-term cooperation in fields such as electric mining card sales agents, optical storage project construction, and mining equipment investment and operation. The two sides plan to share the profits of the mining project after the equipment investment is completed and the mining project achieves sales revenue. As a result, Boreton's cooperation model in African mines is being further extended from equipment, electricity and service revenue to long-term project operating results.
Shenyan Intelligence (02723) surged more than 60% in 3 trading days. At the close, it was up 19.57% to HK$696.50.
In the first half of this year, Shenyan Intelligence achieved revenue of 398 million yuan, up 43.6% year on year; after adjustment, net profit was 17.4.62 million yuan, up 30.6% year on year; the company established a “smart product+smart marketing service” two-wheel business structure. In the first half of the year, smart product revenue was 28 million yuan, up 52.9% year on year, and smart marketing service revenue was 370 million yuan, up 42.9% year on year.
Zhonghuan New Energy (01735) reached a record high. At the close, it was up 12.74% to HK$13.36.
Recently, Zhonghuan New Energy announced that it plans to change its name to “Zhonghuan Intelligent Computing Technology Holding Group Co., Ltd.” It is worth mentioning that the company's current name change is not a simple name change, but rather an announcement that strategically focuses on the AI intelligent computing circuit. According to reports, in the first half of this year, Zhonghuan New Energy's AI computing power business revenue exceeded the 1 billion yuan mark, accounting for nearly 20%.
Cyrus (09927) bucked the trend and moved higher. At the close, it was up 6.44% to HK$37.34.
On September 30, Hongmeng Zhixing's strategic cooperation signing ceremony for business upgrading was held in Shenzhen. Huawei and Cyrus reached a new five-year cooperation agreement. Facing the new five years, the two sides will continue to anchor the core position of the Quanjie high-end smart car brand, jointly set up an exclusive Quanjie business team, further upgrade the Quanjie business, better serve Qinjie users with exclusive franchises, and continue to promote the advancement of the new Quanjie luxury brand.