Hong Kong stocks closed (10.05) | Hang Seng Index closed up 0.28% with strong computing power hardware stocks such as PCBs, optical communications, etc. Lenovo Group (00992) led the blue chip

The Zhitong Finance App learned that the number of non-farm payrolls added in the US in September was only 29,000, far below market expectations. Market bets on the Fed's interest rate hike in October cooled down further, and the Hang Seng Index turned red at the end of the session and hit the 24,000 mark. At the close, the Hang Seng Index rose 0.28% or 68.05 points to 24040.34 points, with a turnover of HK$98.102 billion; the Hang Seng State-owned Enterprises Index rose 0.26% to 8051.67 points; and the Hang Seng Technology Index rose 0.62% to 4183.68 points.

Huatai Securities believes that after an extreme one-sided pessimistic interpretation, the US non-agricultural sector was far below market expectations and the unemployment rate rose on Friday. Market interest rate hikes were expected to drop sharply in October. Subsequent markets may usher in a short-term recovery against the backdrop of 10/8 restoration of the southbound channel and high-frequency travel data filling the fundamental vacuum. However, it should be noted that the “higher and longer” interest rate center has not wavered, and the trending inflection point in macroeconomic policies and corporate profits has not yet been confirmed, so a mid-term turnaround may not have occurred.

Blue-chip stock performance

Lenovo Group (00992) led the blue chip increase. At the close, it rose 4.66% to HK$35.92, with a turnover of HK$1,707 billion. According to Lenovo's previously released results for the first fiscal quarter, adjusted profit attributable to equity holders for the quarter increased 176% year over year to US$1,075 million; the adjusted net profit margin reached 4%. The AI business is growing rapidly and orders are plentiful. Its AI server reserve order increased sharply from 140 billion yuan in the previous fiscal quarter to 360 billion yuan.

In terms of other blue-chip stocks, Huahong Hongli (01347) rose 4.27% to HK$110.00; BeiGene (06160) rose 3.02% to HK$218.60; MTR Corporation (00066) fell 3.41% to HK$30.60; and Henderson Land (00012) fell 1.85% to HK$25.5.

Popular sector aspects

On the market, the trend of TechNet stocks is divided today. Weak US stocks have increased risk appetite. Last Friday, Nvidia's stock price once again set a new historical record, and the Hong Kong stock hardware equipment and computing power industry chain strengthened. Strong demand for AI led to a sharp rise in PCB prices, and PCB concept stocks led the market; the optical communication concept and semiconductor industry chains all registered high gains, and some pharmaceutical stocks rebounded against the market. On the other side, international oil prices are high, and aviation stocks are sluggish.

PCB concept stocks had the highest gains. At the close, Jiantao Laminate (01888) rose 11.94% to HK$55.30; Jingwang Electronics (03228) rose 9.21% to HK$81.25; Jiantao Group (00148) rose 8.36% to HK$61.55; and Guanghe Technology (01989) rose 6.86% to HK$126.20.

Currently, the PCB industry chain is showing volume and price quotes. In the upstream sector, Jiantao Laminate has issued 7 rounds of price increase notices this year, and South Asia Plastics has raised the product price by 20% again since September. The price increase is also being fully transmitted downstream. Jiangxi Hongruixing Technology previously announced a 10% increase in the factory price of copper-clad panels; glass fiber leader China Jushi raised the prices of thick and thin electronic cloth by 15% and 20% respectively in September. Guojin Securities believes that at present, many AI PCB companies have strong orders, full production and sales, and are vigorously expanding production, and high performance growth is expected to continue. AI copper-clad plate is also in high demand. As overseas copper-clad plate manufacturers are slowly expanding production and continuing price increases, leading manufacturers of copper clad plates in mainland China are expected to benefit positively.

The optical communications and semiconductor industry chains performed well. At the close, Jingxin Communications (02342) rose 25.81% to HK$1.17; Cambridge Technology (06166) rose 7.80% to HK$121.60; Zhongji (03308) rose 3.64% to HK$1111.00; and Lanqi Technology (06809) rose 5.25% to HK$304.8.

The “collapse” of the US non-agricultural sector in September weakened expectations of interest rate hikes in October. US stocks such as Optical Communications and other technology stocks rose sharply last Friday. 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 3.2T intergenerational terms, but there is an “US content exemption” path. The overall pattern is beneficial to Lumentum and Coherent, rather than a complete ban on Chinese optical module manufacturers. CITIC Construction Investment's previous research report pointed out that demand for computational power on the inference side and infrastructure is expected to remain high, and it will continue to be optimistic about core AI computing power aspects such as chips, optical modules, switches, and PCBs.

Some pharmaceutical stocks picked up. At the close, Biosetu-B (02315) rose 6% to HK$71.5; Kingsley Biotech (01548) rose 4.39% to HK$45.64; and BeiGene (06160) rose 3.02% to HK$218.6.

Innovative drugs going overseas continue to be popular. Abbott announced that it will grant Novartis global rights to ABO2203, the CD19×CD3 dual-target TCE drug encoded by the company's mRNA, and also authorized Novartis to select “several” next-generation therapeutic assets developed by the RNA platform. The total potential maximum price for the down payment and milestone payment is approximately $7.775 billion. It reached a new high in the amount of foreign licensing cooperation in the domestic mRNA field.

Shanxi Securities said that AI model companies and many MNCs attach great importance to AI, which has fully demonstrated that AI pharmaceuticals are one of the important directions for future AI applications. In the short term, a large number of drug molecules designed through AI models are expected to be converted into new orders from upstream service companies; in the medium to long term, AI pharmaceuticals are expected to greatly improve drug development efficiency and R&D quality in the future.

The trend of airline stocks is sluggish. At the close, China Eastern Airlines shares (00670) fell 2.81% to HK$2.42; China Southern Airlines shares (01055) fell 2.06% to HK$2.855; and Air China (00753) fell 1.86% to HK$3.695.

Affected by the geographical conflict, international oil prices soared by more than 30% in the third quarter. Higher oil prices will directly impact the cost side of airlines. According to the annual financial reports of major airlines, aviation fuel costs usually account for 30% to 40% of operating costs. In the first half of this year, the revenue of all three major airlines achieved double-digit year-on-year growth, but due to a combination of factors such as high fluctuations in aviation fuel prices, the overall net loss continued to be in a state of loss, with a total net loss of 8.161 billion yuan. Wanlian Securities previously indicated that aviation kerosene prices are expected to rise further in October, boosting air transportation costs.

Popular exotic stocks

The stock price of Agile Group (03383) rebounded. At the close, it was up 14.63% to HK$0.141.

Agile Group announced significant progress in overseas debt restructuring. As of the announcement date, the company and the Coordinating Committee were close to finalizing the negotiations and text of the restructuring support agreement containing the list of commercial terms and the restructuring clause. Thereafter, the company and the Coordinating Committee plan to issue a restructuring support agreement within 6 weeks from the announcement date. The Coordinating Committee held a total of about 61.5% of the total outstanding principal amount of existing syndicated loans.

Zhi Spectrum (02513) performed brilliantly. At the close, it was up 6.15% to HK$665.

Goldman Sachs believes that Smart Spectrum is still one of the leading artificial intelligence model companies in China, and the valuation is already attractive. According to the report, considering that Zhipu has signed new commercial terms with Chinese and global hyperscale cloud service providers, which are expected to bring additional high-margin revenue, the company's year-end annualized recurring revenue estimate was raised to 3.2 billion US dollars from the previous 2.7 billion US dollars.

Tianyue Advanced (02631) is active throughout the day. At the close, it was up 4.45% to HK$71.65.

According to market news, Tianyue Advanced recently revealed in a conference call that its monthly order scale has reached 120,000 to 130,000 wafers, which is significantly higher than the current production capacity of about 100,000 wafers. The company expects revenue to continue to grow month-on-month in the third and fourth quarters; management is optimistic about product prices in 2027 and believes that there is a possibility that the price of silicon carbide substrates will increase.

Zhifeng Industrial Electronics (01710) resumed trading and fell sharply. At the close, it was down 19.90% to HK$1.65.

Zhifeng Industrial Electronics announced that Lixun Precision, as a potential buyer, signed a non-legally binding memorandum of understanding with the controlling shareholder of the company on the possibility of trading 75% of the Group's shares. The offer period will begin on October 2; if the potential transaction is implemented to completion, it will lead to changes in the Group's control and trigger a mandatory comprehensive offer under Rule 26.1 of the Takeover Code.

Jinjie Holdings (03918) declined significantly. At the close, it fell 13.75% to HK$2.665.

Jinjie Holdings announced that for the nine months ended September 30, 2026, total gaming revenue was US$418 million, a year-on-year decrease of 21.5%; net gaming revenue was US$389 million, a year-on-year decrease of 16.7%. According to Citi, its total gaming revenue for the third quarter fell 43% year on year to US$114.2 million, about 15% lower than the bank's expectations.

Maoyan Entertainment (01896) continued its decline. At the close, it was down 5.13% to HK$3.605.

Citi released a research report saying that the box office performance of the first four days of the 2026 National Day program was lower than during the pandemic. The total box office was 685 million yuan, down 38% year on year, 19 million ticket sales, down 36% year on year, and driven by an average ticket price of 36 yuan, down 4% year on year.