Market recap: Tech-led rally boosts Hong Kong equities
Hong Kong’s stock market closed higher on Oct 2, with the main indices broadly advancing and tech stocks leading the charge. The Hang Seng Index (HSI) rose 1.61% to 27,287.12, while the tech-heavy Tech Index jumped 3.36% to 6,682.86. The China Enterprises Index climbed 1.77% to 9,724.38, underscoring a broader risk-on mood as investors priced in stronger growth prospects for the sector.
Tech sector shines as Chinese internet giants rally
Tech stocks led the gains, with several heavyweight components delivering solid performances. In particular, mid-cap and leading internet players posted notable increases: SMIC (00981.HK) up 12.70%, Kuaishou (01024.HK) up 8.57%, Baidu (09888.HK) up 4.50%, JD.com (09618.HK) up 3.10%, and Tencent Holdings (00700.HK) up 2.04%. The strength in these names helped push the Tech Index to its fresh high for the current cycle.
Analysts from Guoxin Securities noted that valuations of Hong Kong’s internet giants are converging toward overseas peers. The report highlighted that Tencent’s current multiple aligns with recent levels seen by Meta and Google-era peers, suggesting a broader normalization of tech valuations in light of expanding AI investments by domestic leaders.
AI investment cycle: a driver of near-term profitability and long-term growth
The market narrative centers on AI spending intensifying among Chinese tech behemoths. This mirrors the pattern seen in the West in mid-2023 when major players began deploying massive capital toward AI models, hardware, and related platforms. The short-term impact may weigh on near-term profits due to heavy reinvestment, but price trajectories are increasingly tied to the pace of AI deployment, model improvements, and real-world applications rather than immediate earnings. Investors are watching how edge cases and operational efficiencies from AI will translate into future revenue streams.
Sector snapshots: where the gains came from
Semiconductors
Semiconductor stocks were among the day’s strongest performers. SMIC (00981.HK) rose 12.70%, Hua Hong Semiconductor (01347.HK) up 7.12%, and Shanghai Fudan (01385.HK) up 4.70%, reflecting expectations that AI workloads will sustain a robust demand for state-of-the-art memory and logic chips as global AI deployments scale.
Gold
Gold mining and related plays benefited from elevated bullion prices. End-of-day quotes showed Tongguan Gold (00340.HK) +15.13%, ChinA Gold International (02259.HK) +14.13%, and Lingbao Gold (03330.HK) +10.86%, as COMEX futures breached key levels on the way to fresh records.
Consumer electronics
Consumer electronics stocks also led gains, with blue-chips and suppliers rising on strong demand signals. Lens Technology (06613.HK) +9.19%, Hengteng Precision (06088.HK) +8.62%, and FiiTech (02038.HK) +8.10% were among the top performers, as investors anticipated continued uptake of connected devices and components in mass-market applications.
Photovoltaics
PV shares attracted attention as upstream prices showed resilience. Xinyi Solar (00968.HK) +9.88%, Sunlike Energy (00757.HK) +8.65%, and Folong Glass (06865.HK) +6.25% benefited from improved supply-and-demand dynamics and expectations of stabilizing component prices in the near term.
Pharmaceuticals
Healthcare stocks also gained on optimism around stronger financing activity and R&D progress. WuXi AppTec (02268.HK) +7.15%, JunsBio (01877.HK) +7.09%, and Tigermed (03347.HK) +4.02% reflected renewed interest in China’s innovative drug development and contract research sectors.
New-energy auto sector
Consumer interest in electric vehicles remained robust. Notable movers included NIO (09866.HK) +6.62%, Leapmotor (09863.HK) +3.99%, and BYD (01211.HK) +3.36%, as September delivery data underscored strong growth and a constructive demand backdrop for NEVs in Asia’s largest market.
Notable stock-specific moves
In addition to the sector winners, Kuaishou (01024.HK) surged 8.57% to HK$91.85 after AI benchmarks crowned its generative video model as a top performer globally. On the micro-cap front, Clover Biotech (02197.HK) jumped more than 20% after announcing the initiation of Phase I trials for a respiratory vaccine candidate, SCB-1022/SCB-1033, marking a notable clinical milestone for the company.
Looking ahead
Market participants will continue weighing the near-term earnings impact of AI investment against the longer-term growth potential of AI-enabled platforms, data services, and next-generation chips. With valuations increasingly in line with international peers, the Hong Kong market remains sensitive to global tech cycles, central bank signals, and shifts in appetite for risk assets. The presence of strong sector breadth—from semiconductors to auto and healthcare—suggests the market could sustain its recent momentum, provided external headwinds remain contained.
