Hong Kong stocks closed (10.22) | The Hang Seng Index closed down 3.03% and fell to 23,000. Blue chips almost destroyed the entire army, leading the decline in technology and pharmaceutical stocks
The Zhitong Finance App learned that the three major indices of Hong Kong stocks declined unilaterally throughout the day. The Hang Seng Index fell more than 3% to fall below the 20,000 mark, while the Hang Seng Technology Index plummeted by more than 5%, hitting a new low of “924.” At the close, the Hang Seng Index fell 3.03% or 717.19 points to 22934.68 points, with a full day turnover of HK$256.51 billion; the Hang Seng State-owned Enterprises Index fell 3.20% to 7689.19 points; and the Hang Seng Technology Index fell 5.03% to 3793.93 points.
Guoyuan International believes that in the short term, Hong Kong stocks will still be based on “index fluctuations, internal market differentiation, and rotation.” As the marginal momentum of southbound capital weakens, the continued rise in Hong Kong stocks will depend more on improving corporate profits and improving domestic fundamentals. CMB International pointed out that it maintains a dumbbell structure in terms of allocation. The steady side is backed by high-dividend assets such as banks, telecommunications, and utilities, and the flexible side focuses on AI hardware companies, but the pace of allocation needs to be slowed down.
Blue-chip stock performance
After the Ningde Era (03750) results, it fell two times in a row. At the close, it decreased by 7.24% to HK$338.4, with a turnover of HK$3.275 billion. Dahua Jixian pointed out that the net profit for the third quarter of the Ningde Era fell short of expectations because the company absorbed the export value-added tax increase and 2% consumption tax, but it has not yet been passed on to customers. The bank expects part of the tax costs to be passed on by increasing battery sales prices, and profit margins are expected to pick up in the fourth quarter, but further decline in tax incentives in 2027 will still drag down profit margins.
Blue chip stocks were almost completely destroyed; only Midea Group (00300) closed up 0.54% against the market; on the decline, Huahong Hongli (01347) fell 9.46% to HK$66.55; and Cinda Biotech (01801) fell 8.42% to HK$81.6.
Popular sector aspects
On the market, Technology Network stocks were collectively under pressure. Alibaba fell 6.12% and Tencent Holdings fell 2.89%; AI hardware collapsed simultaneously, PCB and optical communication stocks became the hardest hit area, and Changfei optical cable fell 11.79%; lithium battery stocks continued to decline, falling 7.24% in the Ningde era; the situation in the Middle East suddenly heated up and oil prices were high, and gold stocks fell 7.96% with gold prices falling. Midea Group was the only one to increase blue chips throughout the day.
Computing power hardware stocks such as optical communications and PCBs led the decline. At the close, Changfei Optical Fiber Cable (06869) fell 11.79% to HK$110.7; Cambridge Technology (06166) fell 11.28% to HK$72.75; Huiju Technology (01729) fell 7.67% to HK$12.15; and Zhongji Xuchuang (03308) fell 7.30% to HK$724.
The market is beginning to worry about the growth of leading players slowing down and whether future returns can cover current large-scale investments. The market predicts that the year-on-year capital expenditure growth rate of the seven AI giants in the US will drop from about 90% in 2026 to 36% in 2027, and uncertainty about return on investment will also exacerbate AI asset fluctuations. It is worth noting that Nvidia announced yesterday at the GTC Berlin conference that it will drastically expand production with six major supply chain partners. There are opinions that Nvidia's official CPO expansion has no mainland manufacturers, which may indicate a “differentiation” between the existing route and the next generation route. At the same time, news that the public fund holdings of Zhongji Xuchuang and Xinyisheng were drastically reduced in the third quarter went viral, and concerns about the “collapse of the group” further amplified selling pressure.
Star Technology Network stocks are collectively under pressure. At the close, Alibaba-W (09988) fell 6.12% to HK$97.35; Tencent (00700) fell 2.89% to HK$382.4.
The 90-day transition period for offshore trust personal tax returns ends today. Notice No. 21 of 2026, issued by the Ministry of Finance and the State Administration of Taxation on July 24, levies a 20% tax rate on residents' personal offshore trust income and must be declared regardless of whether the income is actually distributed; the State Administration of Taxation issued another reminder on October 19 to urge relevant taxpayers to complete tax returns and payments during the transition period. Furthermore, the recent continued net outflow of capital to the south has intensified the pressure. From October 14 to 21, the total net outflow of southbound capital over six trading days was HK$14.94 billion. On October 21 alone, there was a net outflow of HK$4.43 billion in a single day.
Gold stocks collectively declined. At the close, Zijin Gold International (02259) fell 7.96% to HK$122.6; Shandong Gold (01787) fell 6.57% to HK$17.21; and Chifeng Gold (06693) fell 6.12% to HK$30.7.
On October 22, spot gold fell below the 4,100 US dollar mark and fell more than 1% during the day. The current situation in the Middle East has suddenly escalated. Brent crude oil has reached a high level of 110 US dollars. According to reports, the US military has drawn up plans for a new round of attacks against Iraq, while Israel is showing an escalating attitude of war. CITIC Futures believes that in the short term, gold continues to fluctuate, and the US dollar and US bond yields have declined slightly to ease the pressure on gold adjustments, but the risk of energy inflation and market bets on further interest rate hikes between the US, Europe, and Japan have not clearly subsided, and the room for gold prices to rebound is still limited. Long-term US fiscal credit risk, central bank purchases, and gold allocation requirements still support gold.
The trend of betting stocks is weak. At the close, Galaxy Entertainment (00027) fell 4.55% to HK$31.5; Sands China (01928) fell 4.49% to HK$10.86; Melco International Development (00200) fell 3.95% to HK$2.43; and Aobo Holdings (00880) fell 2.89% to HK$1.175.
Sands China announced that the company's total net revenue for the third quarter of 2026 was US$1.93 billion, up 1.4% year on year; net revenue was US$191 million, down 29.8% year on year; and adjusted property EBITDA was US$529 million, down 12% from the same period last year. Citi estimates that Macau's gaming revenue for the first 19 days of October is about MOP 14.1 billion, and the average daily gaming revenue from October 12 to 19 is about MOP 613 million, which is 16% lower than the average daily average of about MOP 729 million on Sunday October 5. The bank maintained its October gaming revenue forecast of MOP 23 billion, which meant a 5% year-on-year decline.
Popular exotic stocks
Zhaowei Electromechanical (02692) surged against the market. At the close, it was up 21.29% to HK$34.18.
Tesla said in its latest earnings report that Optimus has begun production on a high-volume production line at the Fremont plant. The robots that went offline from this production line were the first batch of mass-production-quality robots manufactured. While we will continue to iterate on hardware and manufacturing processes, we have proven that Optimus's current manufacturing process is suitable for commercial products.
Tieba (01753) continues to rise. At the close, it was up 5.71% to HK$1.11.
Duiba entered the AI skit circuit at the beginning of this year, and its ability to produce popular models is outstanding. The company recently revealed that the AI short drama business recorded net profit for three consecutive months in July, August, and September. The number of new broadcasts on the entire network exceeded 45.8 billion in the third quarter, more than nine times the cumulative total of 5 billion in the first half of the year. The company's current positioning has switched to an AI-Native content platform, transforming production from individual talent to system replication.
Bruco's (00325) stock price fell sharply. At the close, it was down 21.38% to HK$54.6.
Bruker announced that the controlling shareholder group member SmartBloks Limited sold 3.849 million shares at HK$6528 per share through a bulk transaction on October 22, accounting for about 1.56% of the issued shares and cashed out about HK$251 million. The shareholding was reduced from about 3.57% to about 2.01%. SmartBloks is wholly owned by Zhu Weisong.
Jingwei Tiandi (02477) continued its decline. At the close, it fell 17.19% to HK$0.106.
Jingwei Tiandi announced that the main shareholder Hengfeng sold 716 million shares on the open market on October 21, accounting for about 14.93% of the issued share capital. The total cost was about HK$107 million, and the average selling price was about HK$0.1,494 per share. After the sale, Hengfeng's shareholding fell from 24.94% to about 10.01%, and is still the main shareholder of the company.
China Construction International (03311) declined after the results. At the close, it was down 4.69% to HK$8.12.
China Construction International announced that for the nine months ended September 30, the Group's turnover and the joint venture turnover were approximately RMB 59.114 billion and RMB 1,674 billion, respectively, down 23.92% and 37.75% year on year; the total operating profit and profit attributable to the joint venture during the period was approximately RMB 9.863 billion, down 17.26% year on year.