①What are the main drivers behind today’s rally in the Hong Kong stock market? ②How do institutions view the future market trend?
Cailian Press, October 27 (Editor Hu Jiarong) — Today, Hong Kong’s three major indices collectively rose, with positive market sentiment. By the close, the Hang Seng Index was up 1.05% at 26,433.70 points; the Technology Index gained 1.83% to 6,171.08 points; and the China Enterprises Index increased by 1.10% to 9,467.22 points.
Note: Performance of the Hang Seng Index
This round of market surge has been driven by dual positive catalysts. First, the basic consensus reached during the China-U.S. business consultations may help improve market risk appetite.
Domestic policy developments have also brought favorable news, as the ’15th Five-Year Plan’ explicitly emphasizes accelerating high-level technological self-reliance and strength, providing a clear development direction and policy support for sectors such as AI, domestic computing power, and other advanced technologies.
However, Huatai Securities noted today that since the second half of the year, southbound capital inflows into Hong Kong have exceeded HKD 500 billion, nearing their previous forecast of HKD 570 billion. With year-end assessments approaching, the pace of subsequent inflows may slow down. The sentiment indicator has now retreated to a neutral range of 51.7, indicating relatively balanced upside and downside risks. Investors with higher risk tolerance can gradually position themselves, but the optimal timing for significant increases in positions may still require waiting.
Today’s Market
In terms of market performance, securities firms, insurance companies, semiconductor stocks, pharmaceuticals, technology networks, and consumer electronics shares all performed strongly.
The Large Financial Sector Leads the Rally, Driven by Better-than-Expected Performance from Brokerage and Insurance Firms
Brokerage and insurance stocks showed strong performance today. By the close, Xingzheng International (06058.HK), CICC (03908.HK), and Orient Securities (03958.HK) rose by 8.16%, 2.56%, and 1.94%, respectively.
Note: Performance of brokerage stocks.
On the news front, the broker sector performed strongly, primarily benefiting from outstanding third-quarter earnings. CITIC Securities’ net profit attributable to shareholders for the first three quarters of 2025 increased by 37.9% year-on-year, while East Money’s net profit surged by 50.6%. The industry’s prosperity continued to recover. In the first half of 2025, all 49 listed brokers reported positive growth in net profits, with 10 companies achieving revenues exceeding 10 billion yuan and two recording net profits surpassing 10 billion yuan.
By the close of trading, ZhongAn Online (06060.HK), Prudential (02378.HK), and China Life Insurance (02628.HK) rose by 3.83%, 2.39%, and 1.37%, respectively.
Note: Performance of insurance stocks.
Insurance stocks benefited from improved investment returns and better-than-expected liability performance. China Life Insurance issued a profit forecast, predicting that its net profit attributable to shareholders for the first three quarters would grow by approximately 50% to 70% year-on-year, with the growth rate in the third quarter alone reaching 74.9% to 106.4%, significantly surpassing market expectations. This was mainly due to robust equity market performance and the reversal of loss-making contracts amid rising interest rates.
Dual drivers of policy and fundamentals propel semiconductor sector.
Semiconductor stocks performed strongly across the board, with Huahong Semiconductor (01347.HK) and SMIC (00981.HK) rising by 4.98% and 3.50%, respectively.
Note: Performance of semiconductor stocks
In terms of policy, a recent meeting of the National Development and Reform Commission emphasized “accelerating high-level self-reliance and strength in science and technology.” The frequency of the word “technology” in the meeting communiqué notably increased, highlighting strategic importance. At the industry level, major memory chip manufacturers such as Samsung and SK Hynix plan to raise DRAM and NAND flash memory prices by up to 30% in the fourth quarter, signaling the potential start of a “super cycle.”
Pharmaceutical sector bolstered by earnings growth; tech giants benefit from improved risk appetite.
In pharmaceutical stocks, JOINN Laboratories (06127.HK), Wuxi Apptec (02359.HK), and Tigermed (03347.HK) rose by 8.66%, 4.0%, and 3.67%, respectively.
Note: The performance of pharmaceutical stocks
In terms of updates, Wuxi Apptec reported a year-on-year increase of 84.84% in net profit for the first three quarters, reflecting strong performance. The company also announced plans to transfer its equity stake in clinical research-related subsidiaries for RMB 2.8 billion to further optimize its asset structure.
In tech and internet stocks, Baidu Group-SW (09888.HK), Alibaba-SW (09988.HK), and JD Health-SW (09618.HK) increased by 6.20%, 3.15%, and 2.33%, respectively.
Note: Performance of tech stocks.
Regarding updates, easing tensions between China and the U.S. have created a favorable external environment for the technology and internet sector. Guotai Haitong Securities noted that the narrative in the internet industry is shifting toward ‘AI empowerment,’ supported by favorable policies and continued capital inflows. The fourth quarter still holds upside potential for Hong Kong-listed stocks, with technology stocks remaining the main focus.
Consumer electronics enter a new product cycle as Apple’s supply chain sentiment improves.
Consumer electronics stocks performed actively, with Foxconn Interconnect Technology (06088.HK), FIH Mobile (02038.HK), and Lens Technology (06613.HK) rising by 7.47%, 3.08%, and 2.67%, respectively.
Note: Performance of consumer electronics stocks.
According to a report by Huaxin Securities, sales of the iPhone 17 series grew 14% within 10 days of its launch in the Chinese and U.S. markets compared to the previous generation, with the base model performing particularly well in China. Apple is expected to launch a foldable screen product in 2026, which could usher in a new cycle of growth for the supply chain. Mainland-based related suppliers are anticipated to continue benefiting from this trend.
Unusual stock price movements.
Meitu Surges Nearly 8% as September Revenue from Three Core Apps Hits New Year-on-Year High
Meitu (01357.HK) rose 7.88%, closing at HKD 8.90. According to a research report by CICC, data from DotDot shows that combined revenue from Meitu’s three core apps—Meitu Beauty, Meitu Camera, and Wink—in September increased by 38% year-on-year and 1% month-on-month. Overseas revenue saw significant growth, with monthly revenue hitting a new high, surging 56% year-on-year and 9% month-on-month. Domestic revenue grew by 29% year-on-year.
CGN Power Rises Nearly 4% as China Maintains World’s Largest Installed Nuclear Capacity
CGN Power (01816.HK) climbed 3.92%, closing at HKD 3.18. According to Zeng Yachuan, Director of the Department of Nuclear Power at the National Energy Administration, global nuclear power generation reached a decade-high in 2024, with strong growth momentum expected to continue. Multiple international authoritative institutions have raised their nuclear energy development forecasts for four consecutive years, projecting that global installed nuclear capacity will exceed 900 gigawatts by 2050, doubling current levels.
