Market Overview
Hong Kong’s equity market closed higher on October 2, with all main indices advancing. The tech sector led the charge, jumping more than 3% and hitting the strongest levels since November 2021. At the close, the Hang Seng Index rose 1.61% to 27,287.12, the Hang Seng Tech Index climbed 3.36% to 6,682.86, and the Hang Seng China Enterprises Index gained 1.77% to 9,724.38.
Tech Leaders Rally on AI Optimism
Technology stocks powered the day’s gains. Among the notable movers, Semiconductor giant Semiconductor Manufacturing International Corp (00981.HK) surged 12.70%, Hua Hong Semiconductor (01347.HK) rose 7.12%, and Shanghai-based Fudan University Zhi (01385.HK) advanced 4.70%. In the internet and consumer tech space, Kuaishou (01024.HK) jumped 8.57%, Baidu (09888.HK) up 4.50%, JD.com (09618.HK) up 3.10%, and Tencent (00700.HK) gaining 2.04%.
Analyst View: AI Investment Driving Re-rating
Guoxin Securities highlighted that valuations of China’s internet giants are converging toward global peers. Tencent and Meta, and Alibaba and Google, have returned to similar valuation ranges. The firm noted that domestic tech leaders are entering a phase of intensified AI investment, drawing a parallel to the mid-2023 wave led by Microsoft and Meta. In this cycle, near-term profits may be challenged by AI spending, but stock prices will be driven by the pace of AI investment and advances in models, technologies, and applications.
Sector Snapshots
Semiconductors led the rally within the technology space: SMIC (00981.HK) up 12.70%, Hua Hong Semiconductor (01347.HK) +7.12%, and Shanghai Fudan (01385.HK) +4.70%.
Gold Stocks benefited from a surge in gold prices, with Tongguan Gold (00340.HK) +15.13%, Zijia Gold International (02259.HK) +14.13%, and Lingbao Gold (03330.HK) +10.86%.
Consumer Electronics saw strength as demand expectations improved: Lens Technology (06613.HK) +9.19%, Hengtong Precision (06088.HK) +8.62%, and FIH Mobile (02038.HK) +8.10%.
Photo-voltaic (PV) Stocks attracted capital flow: Xinyi Solar (00968.HK) +9.88%, Sunshine Energy (00757.HK) +8.65%, and Folate Glass (06865.HK) +6.25%.
Pharmaceuticals edged higher as the medical sector eyes a pickup in innovation funding and overseas expansion: WuXi Helian (02268.HK) +7.15%, Junshi Biologics (01877.HK) +7.09%, and Tigermed (03347.HK) +4.02%.
Auto and New Energy Vehicles
The September performance of new-energy vehicle makers provided a boost to the sector: NIO (09866.HK) +6.62%, Li Auto (09863.HK) +3.99%, and BYD (01211.HK) +3.36%.
Notable Intraday Movers
Kuaishou surged 8.57% to HK$91.85 following news that its video-generation model, Kuaishou 2.5 Turbo, topped global benchmarks, fueling excitement about AI-driven content platforms. Three-Leaf Clover Biologics (02197.HK) jumped 21.15% to HK$2.75 after announcing the first patient enrollment for an I‑phase trial of a respiratory vaccine candidate based on its platform.
Looking Ahead
With AI investment intensifying across leading Chinese tech firms, investors will monitor how margins weather near-term AI costs and how quickly models and applications translate into revenue growth. The broad-based strength in semiconductors, PV materials, and healthcare equities suggests a continued appetite for AI-enabled growth stories, even as profits adjust to ongoing reinvestment in technology and infrastructure.
