Hong Kong stocks closed (10.15) | The Hang Seng Index closed up 1.84%, ending seven consecutive declines, a strong new consumer concept, Sanhua Intelligent Control (02050) surged in the afternoon

The Zhitong Finance App learned that expectations for the Federal Reserve to cut interest rates and end the downsizing have increased. After seven consecutive declines, Hong Kong stocks experienced a strong rebound today. The Hang Seng Index and China Index rose more than 2% in the intraday period, while the Hang Seng Index rose nearly 3% at the end of the session. At the close, the Hang Seng Index rose 1.84% or 469.25 points to 25910.60 points, with a full-day turnover of HK$315.813 billion; the Hang Seng State-owned Enterprises Index rose 1.89% to 9250.91 points; and the Hang Seng Technology Index rose 2.57% to 6075.27 points.

China Merchants Securities International pointed out that in the short term, the market will show a trend of holding back first and then rising, while in the medium to long term, it is expected to start a slow bull market. After the fourth quarter was set to fluctuate, with the accumulation of multiple marginal benefits, the upward space will open up further. The bank also pointed out that in the fourth quarter, Hong Kong stocks will nurture opportunities in the midst of turbulence. In the medium to long term, as fundamentals improve, profit expectations are raised, and valuations are repaired, the slow bullish market for Hong Kong stocks is worth looking forward to.

Blue-chip stock performance

Alibaba-W (09988) performed well. At the close, it rose 3.86% to HK$161.6, with a turnover of HK$17.819 billion, contributing 90.84 points to the Hang Seng Index. Recently, Taobao announced the “Double 11” event schedule. Taobao's “Double 11” will launch at 8 p.m. on October 15 and continue until November 11. Furthermore, Goldman Sachs recently raised Alibaba's capital expenditure forecast for the next 3 years, drastically raising it to 460 billion yuan, the highest market forecast.

In terms of other blue-chip stocks, China Life Insurance (02628) rose 6.02% to HK$23.24, contributing 15.47 points to the Hang Seng Index; JD Health (06618) rose 5.82% to HK$65.5, contributing 6.36 points to the Hang Seng Index; Oriental Overseas International (00316) fell 0.96% to HK$123.2, dragging down 0.25 points; and Xinao Energy (02688) fell 0.66% to HK$67.5, dragging down the Hang Seng Index by 0.56 points.

Popular sector aspects

On the market, large technology stocks picked up collectively, with Ali up nearly 4%, Baidu up 2.74%, and Tencent up nearly 1%. The boost in domestic demand is compounded by double 11 catalysts, with large consumer sectors leading the way; cement stocks had the highest gains, with China building materials rising by more than 7% after a happy profit; semiconductor autonomous and controllable logic strengthened and chip stocks rose in the afternoon; spot gold broke through a record high of 4,200 US dollars, and gold stocks generally rose; pharmaceutical stocks, steel stocks, insurance stocks, and robotics concepts improved. On the other side, the trend of shipping stocks was sluggish, and Dexiang Shipping fell more than 2%.

1. New consumption concepts are active throughout the day. At the close, Mao Geping (01318) rose 9.71% to HK$107.3; Laopu Gold (06181) rose 9.16% to HK$756.5; Shangmei shares (02145) rose 7.75% to HK$101.5; Michelle Group (02097) rose 6.58% to HK$444; and Bubble Mart (09992) rose 3.8% to HK$273.

Recently, a symposium of experts and entrepreneurs on the economic situation was held. At the conference, it was emphasized that efforts should be made to improve efficiency and implement countercyclical adjustments, make full use of policy resources, and use reform methods to break through blockages. It is necessary to continue to make efforts to expand domestic demand, strengthen the domestic cycle, and continuously form new growth points to expand domestic demand. Furthermore, at present, the prelude to the “Double 11" promotion in 2025 has quietly begun. Cathay Pacific Haitong Securities pointed out earlier that China's external environment is currently facing greater disturbances, and the importance and necessity of boosting domestic consumption is becoming more and more prominent, and the driving effect of consumption on the economy is expected to strengthen with policy support.

2. Airline stocks had the highest gains. At the close, Eastern Airlines (00670) rose 9.27% to HK$3.42; China Southern Airlines (01055) rose 7.98% to HK$4.33; and Air China (00753) rose 7.38% to HK$5.82.

Cathay Pacific Haitong Securities pointed out that in 2025, the National Day Mid-Autumn Festival holiday had an obvious impact. Demand for travel was strong. The average daily movement of people across regions increased 6% year-on-year. Among them, railways +3%, highways +7%, and civil aviation grew by more than 3%, all of which reached new highs in the same period in history. Although it is obvious that travel spikes during the long holidays, the high passenger occupancy rate and the airline's active revenue management jointly guarantee a year-on-year increase in domestic fuel-containing ticket prices for the long holidays, which is better than market expectations, confirming once again that private demand is strong and continues to grow. The bank expects the profit of the 2025Q3 industry to buck the trend, or once again higher than 2019Q3, showing an initial upward trend and potential for profit.

3. Gold stocks have regained their upward trend. At the close, Everest Gold (01815) rose 24.21% to HK$2.36; Tongguan Gold (00340) rose 12.24% to HK$3.21; Lingbao Gold (03330) rose 4.75% to HK$20.5; and Zijin Mining (02899) rose 4.69% to HK$33.5.

On October 15, spot gold broke through the 4,200 US dollars/ounce mark for the first time in history. It rose more than 1% during the day, reaching another record high. The market expects the Federal Reserve to cut interest rates twice during the year. Coupled with Trump's latest trade remarks igniting risk aversion, they will jointly boost safe-haven purchases of gold. Huatai Securities believes that in the context of profound changes in the current global geopolitical logic and financial system, although the price of gold may experience short-term fluctuations, the “inflection point” is far away, and long-term performance can still be expected. CITIC Futures said that precious metals are still in a long-term bull market and have strategic allocation value.

4. Chip stocks generally rose. Jingmen Semiconductor (02878) rose 5.88% to HK$0.54; Huahong Semiconductor (01347) rose 5.34% to HK$80.85; SMIC (00981) rose 3.61% to HK$76; and Shanghai Fudan (01385) rose 3.43% to HK$40.96.

From October 15 to 17, the 2025 Bay Area Semiconductor Industry Ecological Expo was held in Shenzhen. Qiyunfang, a subsidiary of Xinkailai, released two domestic electronic engineering EDA (schematic and PCB) design software with completely independent intellectual property rights to the industry for the first time. The product performance is 30% higher than the industry benchmark, and the product hardware development cycle can be shortened by 40%. However, on the first day of the Wanxin exhibition, Xinkailai did not display equipment related to lithography machines. The company's booth staff said, “We have not been notified of new product releases, and no new products will be released at this exhibition.”

Popular exotic stocks

1. Xuanzhu Bio-B (02575) was listed for the first time. At the close, it rose 126.72% to HK$26.3.

Xuanzhu Biotech was priced at HK$11.60 per share. A total of 673.33,500 shares were issued, with a net proceeds of approximately HK$701 million. According to public information, Xuanzhu Biotech was founded in 2008 and is an innovation-driven Chinese biopharmaceutical company. According to the prospectus, as of the last practical date, Xuanzhu Biotech has more than ten drug assets under development, covering the three major fields of digestive diseases, tumors and non-alcoholic steatohepatitis (NASH).

2. Sanhua Intelligent Control (02050) rallied in the afternoon and closed, up 12.92% to HK$39.5.

According to 21 Finance, there are rumors in the market today that Tesla has ordered an Optimus linear actuator worth 685 million US dollars from Chinese supplier Sanhua Intelligent Control. In response, the reporter called the Sanhua Intelligent Holdings Securities Department as an investor. Staff said that the company has noticed the rumor and is urgently verifying it within the company. If the news is untrue, the rumor will be refuted through official channels. Currently, the cooperation with Tesla is progressing smoothly, but details cannot be disclosed due to a confidentiality agreement.

3. GAC Group (02238) was strong throughout the day and closed up 9.84% to HK$3.46.

On October 14, JD announced via Weibo that it will jointly launch an automobile product with GAC Group and Ningde Times. According to reports, the government will launch test drive events for the closed beta version and the Volkswagen version one after another at the end of October, and the new car will be officially released on November 9. Damo believes that this new car is a battery replacement version of Aian's current model. It will use technology from the Ningde era and will be sold using JD's e-commerce platform. Although the impact of product launch may not be as great as expected by some investors, it is still a good marketing initiative.

4. China Building Materials (03323) had a positive return, rising 7.72% to HK$6.14 at the close.

China Building Materials is pleased to announce that the Group's profit due to unaudited equity holders for the nine months ending September 30, 2025 is approximately RMB 2,950 million, while the loss attributable to equity holders for the same period last year is approximately RMB 684 million.

5. Shangtang-W (00020) performed well. At the close, it rose 5.44% to HK$2.52.

Recently, Shangtang Technology Cambrian signed a strategic cooperation agreement for a new stage of development, focusing on promoting joint optimization of software and hardware, and jointly building an open and win-win industrial ecosystem. The two sides will use their technological and industrial resource advantages in their respective fields to carry out in-depth multi-level and long-term cooperation around the direction of localized artificial intelligence infrastructure construction, vertical business development, and technological overseas, and jointly build a more forward-looking and inclusive AI development ecosystem.