Hong Kong stocks closed (11.03) | The Hang Seng Index closed up 0.57%, and AI hardware stocks such as optical communications fell sharply, and Ke Net stocks and consumer stocks performed well

The Zhitong Finance App learned that the expected easing of the situation in the Middle East led to a sharp drop in oil prices overnight, and the US midterm elections ushered in an official voting day. The three major indices of Hong Kong stocks rose collectively. At the close, the Hang Seng Index rose 0.57% or 132.65 points to 23525.97 points, with a turnover of HK$236.04 billion; the Hang Seng State-owned Enterprises Index rose 0.47% to 7943.10 points; and the Hang Seng Technology Index rose 0.74% to 3867.73 points.

Dongwu Securities believes that the relative earnings of Hong Kong stocks may be moderate compared to July. First, even if there is short-term capital shortfall to make up, the current liquidity environment is not as good as in July; second, market capital is awaiting a signal of a rebound in technology and hardware. Hong Kong stocks are not at a high or low pace. It depends more on the resonance effect, but the technology and hardware content is low, so there is relatively limited room for a rebound.

Blue-chip stock performance

Haidilao (06862) led the blue chip increase. At the close, it rose 6.43% to HK$9.935, with a turnover of HK$312 million. Haidilao issued an announcement. The board of directors announced that on November 2, Mr. Zhang Yong, the controlling shareholder, executive director, chairman of the board of directors and CEO of the company, had already repaid the full loan principal amount to the company in advance, along with all accrued interest, in accordance with the terms of the loan agreement. On October 12, Haidilao issued an announcement stating that it would provide Zhang Yong with a maximum loan of 100 million yuan for a period of one month.

In terms of other blue-chip stocks, Ctrip Group-S (09961) rose 6.34% to HK$332; JD Group-SW (09618) rose 5.61% to HK$107.3; Li Ning (02331) rose 4.33% to HK$14.47; and CNOOC (00883) fell 1.96% to HK$24.04.

Popular sector aspects

On the market, large science and network stocks are improving, with JD rising more than 5% and Tencent rising by more than 1%. Consumer stocks rose, with Mengniu Dairy and China Resources Brewery all rising by more than 4%; aviation stocks and pork concept stocks rose. On the other side, AI hardware rebounded at a high level. Zhongji Xuchuang fell more than 10%, Changfei fiber optic cable fell 6.25%; innovative drugs, mobile phone industry chains, and robot concepts weakened simultaneously.

Consumer stocks are mostly higher. At the close, Ctrip Group-S (09961) rose 6.34% to HK$332; Mengniu Dairy (02319) rose 4.68% to HK$21.48; and China Resources Brewery (00291) rose 4.17% to HK$20.74.

CITIC Securities believes that after further adjustments since 2026, the consumer sector's pessimistic expectations have been more fully reflected in prices and allocations. Looking ahead to 2027, the bank maintains a neutral judgment on residents' employment, income expectations, and the overall macroeconomic environment, but the negative impact of real estate on consumer confidence is expected to weaken marginally, and easing industry competition and increasing returns to leading shareholders are providing more definitive structural support. Success in consumption in the medium term still requires fundamental verification. Currently, it is more valuable to prepare for “weak demand and high odds” on the left side. It is recommended to prioritize the short-term reversal direction of the breeding, animal husbandry, dairy products, etc. cycle.

Domestic insurance stocks generally rose. At the close, China Taibao (02601) rose 4.56% to HK$27.54; China Financial Insurance (02328) rose 3.27% to HK$17.07; China Life (02628) rose 2.98% to HK$25.54; and Ping An (02318) rose 2.68% to HK$51.65.

On November 2, the People's Bank of China, together with the General Administration of Financial Supervision and the Securities Regulatory Commission, held two symposiums on the same day: facilitation of swaps and stock repurchases, increasing holdings and refinancing. The meeting made it clear that the refinancing policy for stock repurchases and increasing holdings was changed from a phased arrangement to a long-term institutional arrangement, and the reloan interest rate was reduced from 1.25% to 1%. The central bank announced today that it launched a convenient exchange operation for securities, funds, and insurance companies on the same day. The operating amount was 100 billion yuan. Using the rate bidding method, 31 securities and fund companies participated in the bidding, and the winning bid rate was 10 bps. Cathay Pacific Haitong Securities pointed out that current stock prices reflect extremely pessimistic investment-side expectations, and there is room for valuation repair for listed insurers under a steady recovery in interest rates.

AI hardware stocks such as optical communications fell sharply. At the close, Zhongji Xuchuang (03308) fell 10.92% to HK$620; Cambridge Technology (06166) fell 8.91% to HK$59.3; Haiguang Xinzheng (01191) fell 7.18% to HK$64.6; and Changfei Optical Fiber Cable (06869) fell 6.25% to HK$100.5.

Following a sharp drop of 7.2% last Friday, the Philadelphia Semiconductor Index fell 3.37% overnight. The double kill caused by Oracle's $20 billion equity bond financing and Mewell's 100 billion merger and acquisition further confirms that the market's anxiety about the “speed at which money is being burned” in the AI industry chain is being transmitted from an emotional level to the pricing level. According to some opinions, Maywell Technology chose to bet on a major merger and acquisition of all stocks at a time when the market was clearly cautious about AI capital expenditure. The timing difference is indescribable. At the same time, the market is also concerned that after the merger, Maywell will have stronger bargaining power, which may damage the interests of domestic optical module manufacturers.

The mobile phone industry chain is generally weakening. At the close, Lansi Technology (06613) fell 3.24% to HK$12.55; Qiu Titanium Technology (01478) fell 4.92% to HK$4.255.

Apple announced financial results for the fourth quarter of the 2026 fiscal year ending September 26, 2026. Apple's revenue for the quarter was US$114.5 billion, up 12% year on year, exceeding previous market expectations; net profit was US$30.7 billion, up 12% year on year. However, Apple's revenue in Greater China this quarter was 17.539 billion US dollars, an increase of 21% year over year, lower than the market's general forecast of 18.75 billion US dollars. Notably, Apple's chief financial officer made it clear during the earnings call that memory costs are the main source of pressure on gross margins this season, and the impact of high memory costs will be even heavier next quarter.

The trend of gold stocks is divergent. At the close, Shandong Gold (01787) rose 1.09% to HK$15.73; Zijin Mining (02899) rose 0.22% to HK$27.3; and China Gold International (02099) fell 2.43% to HK$164.9.

The situation between the US and Iran was repeated, and spot gold approached the 3,900 US dollar mark in the afternoon. Oil prices plummeted 7% on Monday due to heightened expectations of negotiations. Yields on US dollars and US bonds declined, and gold prices rebounded markedly for a while. Notably, according to CCTV news quoting news from Iran on the 3rd, Iranian military spokesman Akraminiya said on the same day that any further US aggression would immediately receive a “more decisive and broader response than before.” If a new war breaks out, the scope will not be limited to the Middle East.

Popular exotic stocks

The volume of Ketuo shares (02272) soared. At the close, it was up 30.85% to HK$57.

The snail parking app owned by Ketuo Co., Ltd. was officially launched in August of this year. Since its launch, the snail parking platform business has achieved impressive results. The peak transaction volume in a single day has exceeded 10 million yuan, marking a new step for the company in the field of digital operation of smart parking and end user services.

TCL Electronics (01070) performed well. At the close, it was up 6.88% to HK$16.01.

TCL Electronics announced that the main and related transaction relating to the issuance of consideration shares under special authorization to acquire the target company owning TCL's air conditioning business has been completed. All prerequisites have been met, and the settlement was implemented on November 2 in accordance with the terms of the sale agreement. After delivery, the target company has become a wholly-owned subsidiary of TCL Electronics, and the target group's financial results will be consolidated into the group's financial statements.

Longpan Technology (02465) AH shares rose sharply. At the close, it was up 6.81% to HK$6.905.

Longpan Technology's revenue for the first three quarters was 12.275 billion yuan, up 110.72% year on year; net profit attributable to shareholders of listed companies was 506 million yuan, a loss of 110 million yuan for the same period last year; basic earnings per share were 0.70 yuan.