Hong Kong stocks closed (11.11) | Hang Seng Index closed down 0.98%, and AI hardware stocks such as optical communications exploded. New Lotus (02206) surged 71%
The Zhitong Finance App learned that the US inflation data for October exceeded expectations, compounded by the hawks raised by several Federal Reserve officials, and the risk of interest rate hikes increased. Overnight, the three major US stock indices collectively closed down, and Hong Kong stocks opened low and moved low. At the close, the Hang Seng Index fell 0.98% or 241.12 points to 24315.92 points, with a full day turnover of HK$18.749 billion; the Hang Seng State-owned Enterprises Index fell 1.14% to 8171.45 points; and the Hang Seng Technology Index fell 1.41% to 4027.06 points.
Shen Wan Hongyuan believes that the main reason for the “value clearly outperforms growth” of Hong Kong stocks in 2026 is a double kill between profit and valuation in the technology sector. Looking ahead to 2027, the main trend of global trading may change, and Hong Kong stocks have room to return to the average: the pressure on the “pump end” (refinancing, reduction of holdings) on liquidity is expected to ease, the low base effect caused by the decline in profits of technology growth stocks will be concentrated in the first half of 2027, and Hong Kong stocks have not experienced a two-year decline in valuation in a row in the past ten years.
Blue-chip stock performance
SMIC (00981) led the blue chip increase. At the close, it rose 3.73% to HK$49, with a turnover of HK$3,896 billion. SMIC will disclose its results for the third quarter of 2026 on Thursday. According to the company's previous guidelines, Q3 revenue is expected to increase 2% to 4% month-on-month, corresponding to about 3,066 billion to 3.126 billion US dollars; gross margin is expected to be 26% to 28%, a further increase from 25.3% in Q2.
In terms of other blue-chip stocks, Ningde Times (03750) rose 2.49% to HK$387.4; Lenovo Group (00992) rose 2.41% to HK$19.57; Budweiser Asia Pacific (01876) fell 4.21% to HK$6.37; and Ideal Automobile-W (02015) fell 3.4% to HK$48.64.
Popular sector aspects
On the market, the Hang Seng Index weakened unilaterally after opening low, and funds were concentrated on computing power hardware. Microsoft lobbied the Trump administration to lift the Chinese optical module ban. Optical communications were strong throughout the day. Cambridge Technology rose 23.08%, Zhongji Xuchuang rose 13.72%, and Changfei fiber optic cable rose 13.49%; PCBs and memory chips joined forces to rise, and the copper-clad board leader Jiantao Laminated Board rose 8.14%. On the other side, aviation stocks collectively rebounded, and China Southern Airlines fell 5.06%; automobile stocks weakened across the board due to total data, and Science Network, China Bank, and Gold declined simultaneously.
Optical Communications stocks reversed the market. At the close, Cambridge Technology (06166) was up 23.08% to HK$68; Haiguang Xinzheng (01191) was up 14.77% to HK$83.15; Zhongji (03308) was up 13.72% to HK$675.5; and Changfei Optical Fiber Cable (06869) rose 13.49% to HK$101.8.
According to reports, on November 10, local time, three people familiar with the matter revealed that after the media first revealed in August of this year that the US government would restrict optical modules in relevant countries, Microsoft and several other companies met with officials from the White House Science and Technology Policy Office and the National Security Council to specifically report supply chain issues that may be caused by the implementation of the ban. Meanwhile, Cambridge Technology, a leading optical communications company, revealed in investor relations activity records that by the beginning of September 2026, the company had basically formed a monthly design capacity of about 1 million high-speed optical modules; it plans to expand the annual production capacity of high-speed optical modules by at least 10 million units by the end of 2027 on top of the existing production capacity. The company said that it currently has sufficient orders and has placed early orders for a number of key materials to lock in production capacity to prepare for mass delivery in 2027.
As a result, PCB stocks and memory chips soared. At the close, Jiantao Laminate (01888) rose 8.14% to HK$30.56; Guanghe Technology (01989) rose 7.34% to HK$65.05; and GigaYi Innovation (03986) rose 5.08% to HK$318.4.
In terms of PCBs, according to a survey of the PCB industry chain by the Shanghai Securities News, the leading manufacturers surveyed have full orders, capacity utilization rates are above 90%, and the sales price and shipment volume of some manufacturers' products are rising at the same time. At the same time, the supply of upstream electronic cloth is still tight, and some scarce models are undersupplied. In terms of memory chips, several storage industry sources recently revealed that some leading companies have verbally informed channel providers of their intention to increase the price of enterprise-grade granules. The price increase letter has not yet been officially issued, but the price on the channel side has already moved first.
It is worth noting that there is also a lot of good news coming from the global AI industry chain. According to reports, in the three months ending September, OpenAI's quarterly revenue reached $10 billion for the first time, mainly due to strong market demand for its latest artificial intelligence software; Anthropic's underwriting investment bank is considering pushing its IPO valuation to more than $1.5 trillion due to strong investor demand; CoreWeave's third-quarter revenue exceeded expectations and raised guidelines to ease market concerns about the AI slowdown.
The three major carriers collectively threw back up. At the close, China Southern Airlines (01055) fell 5.06% to HK$3; China Eastern Airlines (00670) fell 4.73% to HK$2.62; and Air China (00753) fell 4.41% to HK$3.9.
Zhongtai Securities pointed out that in the medium to long term, airlines are currently facing high fuel costs, and they still have to wait for performance to be realized. Stock price recovery may be repeated, and it is recommended to adjust to depreciation. Future airline stock prices may be interpreted from the following three stages: Expected recovery. The geological situation has drastically slowed down, high oil prices have declined, expectations of deterioration in fundamentals brought about by rising crude oil costs have been repaired; operations have been repaired. After the aviation fuel supply was fully restored, the oil price center declined substantially, and cost pressure was actually relieved and capacity utilization increased; performance was restored. The crude oil disturbance was completely cleared up, the airline profit center moved upward, and stock prices were once again dominated by improvements in industry supply and demand, and the release of corporate profit flexibility.
Auto stocks weakened across the board. At the close, Ideal Auto (02015) fell 3.4% to HK$48.64; Xiaopeng Group-W (09868) fell 3.11% to HK$39.26.
On November 10, the latest data released by the Passenger Link Branch showed that retail sales in the narrow sense of the domestic passenger car market reached 1.643 million units in October, down 27.1% year on year and up 1.5% month on month; the cumulative sales volume from January to October was 14.978 million units, down 22.3% year on year. The Passenger Transport Association also believes that the current downturn in the car market is a phased phenomenon where short-term policy disturbances are compounded by a high base; it is not a fundamental peak in automobile popularity. The characteristics of “high popularity in big cities and weak popularity in counties and villages” are particularly obvious. The blue ocean of first-time purchase demand in sinking counties is still broad.
Popular exotic stocks
The first release of New Lotus (02206) soared. At the close, it was up 71.64% to HK$69.
New Lotus was listed on the main board of the Hong Kong Stock Exchange today, priced at HK$40.2 per share. The public sale was oversubscribed by 2190.99 times, and the international placement was 1.25 times more subscribed. A major supplier of traditional Chinese medicine (TCM) tablet products in China. According to Frost & Sullivan's data, based on revenue from Chinese herbal medicine products in 2025, New Lotus ranked 2nd in China, accounting for 0.4% of the market share in a highly competitive market pattern.
Quncore Technology (00068) continues to be driven by physical AI. At the close, it was up 7.18% to HK$3.73.
Qun Nuclear Technology is regarded as a scarce physical AI target in China. The core is that it has built a complete flywheel of “GPU cluster - 3D data - space model - industry application”. On November 9, Qun Nuclear Technology and Hesai Technology officially released the joint 3D space camera “Aholo x Kosmo One”. Market sources said that the deep collaboration between the two leading players in the spatial intelligence industry chain is expected to improve the production efficiency of real spatial data and consolidate data infrastructure for large-scale implementation of physical AI.
Zhi Spectrum (02513) stock price is active. At the close, it was up 3.57% to HK$499.2.
Zhipu issued an announcement stating that after receiving Chairman Liu Debing's share repurchase proposal, it plans to repurchase H shares on the open market from time to time in accordance with the general authorization granted by the annual shareholders' meeting on June 22, 2026. The total planned amount will be capped at HK$4 billion, and the total number of repurchases will not exceed 1% of the total number of shares issued on the announcement date.
White Pigeon Online (02672) ended the market and crashed. At the close, it was down 72.08% to HK$40.9.
White Pigeon saw a high of HK$150 in the online market. It was still reported at HK$125.8 at 14:59. After that, the stock price fell by less than 20 minutes, and eventually fell by more than 70%. The company's stock price started on September 10 and closed at HK$32.98 on September 10. It has risen about 3.5 times to today's intraday high of HK$150. The upturn in the previous period stemmed from MaaS volume and expectations for full circulation of H shares.