Hong Kong stocks closed (11.06) | The Hang Seng Index closed down 1.27% and AI hardware was hit hard again Li Ning (02331) paid 6 billion yuan in special interest to lead the blue chip rise

The Zhitong Finance App learned that the “blue wave” impacted the future of AI infrastructure. Overnight, US stocks experienced an epic collapse, and panic spread to the Asia-Pacific market. The market focused on the October Non-Farm Report to be released tonight. At the close, the Hang Seng Index fell 1.27% or 315.12 points to 24481.86 points, with a full-day turnover of HK$247.428 billion; the Hang Seng State-owned Enterprises Index fell 1.13% to 8274.10 points; and the Hang Seng Technology Index fell 1.83% to 4078.23 points. Throughout the week, the Hang Seng Index rose 5.10%, the National Index rose 5.24%, and the Hengke Index rose 8.61%.

CICC Liu Gang believes that Hengke's original problem was not external but internal, but the “advantage” was low enough and AI exposure was small, but the rebound from external environment improvements and capital reallocation alone came from further escalation of fundamental pressure and geographical risk. In the process of rebound in the past two days, sharp net sales to the south and a rise in Hong Kong stock shorting volume all showed increased market differences.

Blue-chip stock performance

Li Ning (02331) led the blue chip increase. At the close, it rose 5.16% to HK$15.48, with a turnover of HK$1,706 billion. Li Ning announced that the board of directors decided to pay a special dividend of RMB 2.32 (equivalent to HK$2.71) per share. Based on the company's issued share capital of approximately 2,585 billion shares, the total amount of common stock dividends is estimated to be approximately RMB 6 billion. Based on the closing price of HK$14.72 on November 5, this special dividend corresponds to a dividend rate of approximately 18.4%.

In terms of other blue-chip stocks, Huahong Hongli (01347) rose 4.31% to HK$70.2; Budweiser Asia Pacific (01876) rose 2.57% to HK$6.375; Luoyang Molybdenum (03993) fell 5.86% to HK$12.05; and Weichai Power (02338) fell 7.26% to HK$21.96.

Popular sector aspects

On the market, the entire AI industry chain of US stocks fell overnight, and the sell-off quickly spread to Asia and the Pacific. The AI hardware industry chain became the hardest hit area today. The storage chip, PCB concept, and optical communication sector led the market decline. Huahong Hongli merged into Hualiwei, and the stock price rose 4.31% against the market; all of the tech network stocks that surged yesterday weakened. Copper stocks as a whole were dragged down by expectations of a slowdown in AI infrastructure; gold stocks as a whole followed the rebound in gold prices; the flow of safe-haven funds to utilities stocks with stable cash flow and high cash flow Interest assets; Li Ninghao paid a special interest rate of 6 billion yuan. Analysts say it is expected to boost consumer stock sentiment recovery.

AI hardware stocks had the highest declines. At the close, Changfei Optical Fiber Cable (06869) fell 10.46% to HK$86.05; Shenghong Technology (02476) fell 8.98% to HK$108.4; and Jiantao Laminate (01888) fell 6.98% to HK$30.4.

The Democratic Party took back control of the Senate and House of Representatives in the midterm elections. Texas governor-elect Hinojosa promised to suspend approval of new data centers until regulations were introduced. US stocks crashed on Thursday. AI-related sectors experienced a “liquidation” sell-off, and the cost half index fell 12% in a single day, the biggest decline since 2020. Panic quickly spread to the Asia-Pacific market this morning. South Korea's KOSPI index plummeted by more than 8% this morning, triggering a fusing mechanism; the Nikkei 225 index entered a technical bear market. At the time of the sharp decline, a number of domestic technology companies issued announcements in the afternoon in response to the current normal production and operation; they are planning to buy back or are in the process of repurchasing.

Non-ferrous stocks such as gold fell collectively. At the close, China Gold International (02099) fell 6.60% to HK$171.1; Zijin Gold International (02259) fell 2.57% to HK$136.5; and Lingbao Gold (03330) fell 2.45% to HK$16.73.

The Democratic Party's sweeping through Congress raised concerns about AI regulation. US stocks plummeted on Thursday, technology stocks were sold off, and liquidity issues were once again in the spotlight. Meanwhile, on the Federal Reserve's side, Richmond Federal Reserve Chairman Barkin predicts that the Federal Reserve will need to raise interest rates further, but the extent and pace of the rate hike is currently uncertain. Cleveland Federal Reserve Chairman Hammark said that interest rates need to be limited to push inflation back to the central bank's target, and more frequent adjustments can reduce the risk that policies fall behind the situation. It is worth noting that major changes in the US political landscape have also impacted the two key factors driving the previous rise in copper prices, namely the rapid construction of AI infrastructure and the possibility that the US may introduce import copper tariffs. As a result, copper prices fell to their lowest level since July.

Utilities and high-dividend stocks bucked the trend. At the close, Changjiang Infrastructure Group (01038) rose 1.43% to HK$71.0; Electric Energy Industries (00006) rose 1.40% to HK$65.4; China Resources Power (00836) rose 1.19% to HK$20.4; and CLP Holdings (00002) rose 1.19% to HK$80.95.

Global technology stock valuations plummeted sharply, risk appetite shrank rapidly, capital turned to utilities with stable cash flow and fixed dividend assets to take refuge, and Hong Kong's local utility stocks, Electric Power Holdings, Changjiang Infrastructure Group, and Hong Kong's China Gas collectively flourished. According to a previous report by HSBC Research, the Hong Kong utility sector showed obvious resilience and defensiveness in a recent market adjustment. The cumulative increase since the second half of this year reached 5%, compared with the Hang Seng Index falling by about 9% during the same period. It emphasized that the market is increasingly inclined to differentiate according to company fundamentals, and that fundamental factors in individual shares are driving stock price performance.

Popular exotic stocks

Yili International (00585) promotes the transformation of AI film and television strategies. At the close, it was up 14.69% to HK$6.44.

Yili International announced that it plans to acquire 67% of the shares of Beijing Tairan Ruoqing Culture Development Co., Ltd., a leading domestic film and television effects production company, with an overall valuation of about RMB 223 million. The corresponding transaction consideration will be approximately HK$171 million, to be paid in cash plus shares. This is not an ordinary outreach merger and acquisition, but a key layout for the company's comprehensive strategic transformation into the AI film and television field.

Boleyton (01333) received a plan to increase its holdings by the Chairman of the Board of Directors. At the close, it was up 10.16% to HK$18.22.

Boleyton announced that Chen Fangming, chairman of the board of directors, executive director and major shareholder, plans to increase the company's shares in the open market with his own capital. The total cost of the proposed increase will not exceed HK$50 million. Chen Fangming said that the plan to increase his holdings reflects his firm confidence in the company's future development prospects and long-term growth potential.

Huahong Hongli (01347)'s net profit for the third quarter increased 136% year over year. At the close, it was up 4.31% to HK$70.2.

Huahong Hongli's third-quarter revenue was 6.706 billion yuan, up 13.95% year on year, and net profit to mother was 835 million yuan, up 136.14% year on year. The change in performance was mainly due to an increase in the average sales unit price of wafers and a sharp increase in gross profit due to an increase in sales volume. The company completed the acquisition and listing of 97.5% of Hualiwei's shares in the third quarter. The company expects fourth-quarter sales revenue of $1.08 billion to $1.09 billion and a gross profit margin of 25% to 26%.

Aobo Holdings (00880) changed profit to loss in the third quarter. At the close, it was down 11.89% to HK$1.075.

Aobo Holdings' net gaming revenue for the third quarter was HK$4.758 billion, compared to HK$6.537 billion in the third quarter of 2025; adjusted EBITDA was HK$705 million, compared to HK$881 million in the third quarter of 2025, a year-on-year decrease of nearly 20%; losses attributable to company owners in the third quarter were HK$397 million and profit of HK$9 million in the third quarter of 2025.

Wynn Macau (01128) property EBITDA fell 17% in the third quarter. At the close, it was down 4.95% to HK$4.42.

Wynn Macau announced the controlling shareholder Wynn Resorts, Limited's results for the third quarter of 2026. Macau's operating revenue was approximately US$108 million, a decrease of 39.15% over the previous year. The adjusted property EBITDAR was approximately US$255 million, a year-on-year decrease of 17.19%.