Weekly | Bears Strike Back as the HSI Pulls Back!
This week, Hong Kong stocks lost steam after a brief rally. The $HSI(HSI)$ fell 0.97%, slipping back below the 26,000 mark.
China–U.S. Talks Steal the Spotlight
All eyes were on Busan, where the Chinese and U.S. presidents held a high-profile meeting. Ahead of the summit, trade teams met in Kuala Lumpur and reached initial consensus on several key economic issues.
The talks yielded progress on tariffs, rare earths, and agricultural purchases. Both sides agreed to lift previous export control measures, while the U.S. will cut fentanyl-related tariffs to 10%. President Trump even announced plans to visit China next April.
Despite the upbeat tone, investors worried the final deal might fall short of expectations, leading to a pullback in Hong Kong and A-share markets.
AI Stocks Take a Beating
As trade tensions eased, Chinese companies rolled out their Q3 earnings in bulk. Major AI names — $Eoptolink Technology Inc.,Ltd.(300502)$ $Suzhou Tfc Optical Communication Co.,Ltd.(300394)$ $Zhongji Innolight Co.,Ltd.(300308)$ $Victory Giant Technology(Huizhou) Co.,Ltd.(300476)$ $CHINA MIČRO SEMICON (SHENZHEN) LIMITED(91276)$ $Montage Technology Co., Ltd.(91210)$ — all missed expectations.
Their stocks plunged, dragging down the broader AI and semiconductor sectors. The ChiNext Index tumbled over 4% in two days, and Hong Kong’s related tech names followed suit.
Financials Under Pressure
Weaker risk appetite added to the pain. Several heavyweight banks, including $CCB(00939)$ and $PSBC(01658)$ , reported softer-than-expected earnings. Their declines pulled the entire financial sector lower.
On Friday morning, China’s October manufacturing PMI came in at 49 — missing estimates of 49.6 and down 0.8 points from last month. The data signaled a cooling manufacturing landscape and dampened sentiment further.
Most sectors ended the week lower, with IT, financials, and healthcare lagging the most.
Despite the slump, mainland investors kept the faith. Southbound funds inflows hit HK$27.49 billion this week, showing steady confidence in Hong Kong assets.
Major Events in Hong Kong Stocks This Week
1.China released its 15th“Five-Year Plan” outline, naming quantum tech, bio-manufacturing, hydrogen and fusion energy, brain–machine interfaces, embodied intelligence, and 6G as future growth engines.
2.The Fed cut rates by 25 bps and said balance sheet runoff will end in December, but Powell hinted at a possible pause in rate cuts afterward.
3.The China–U.S. leaders’ meeting in Busan raised hopes of a trade pact as early as next week.
4.China’s official manufacturing PMI dropped to 49, below expectations.
5. $NVIDIA(NVDA)$ ’s market cap soared past $5 trillion, sparking strong moves in “AI chain” stocks.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1: $XIAOMI-W(01810)$ . Shares slid for four straight sessions. Citi warned Q3 results may miss due to weak smartphone margins and IoT sales, though internet and EV businesses held steady.
Top4: $DEEPEXI TECH(01384)$ . Hong Kong’s newest AI darling made a stunning debut as “the first enterprise AI model stock.” The IPO was oversubscribed 7,569x, the most in HKEX history, and surged 150.56% on day one.
Top8: $ZIJIN GOLD INTL(02259)$ Gold stocks swung wildly as U.S.–China tensions eased. Spot gold briefly dipped below $3,900/oz before bouncing above $4,000 on Fed rate cuts.
Top10: $BYD COMPANY-100(01211)$ . Q3 results disappointed, revenue fell 3% YoY and net profit plunged 32.6%. Shares dropped over 6% after the report.
Next Week's Hong Kong Stock Market Events
1. Next Friday, China will release October trade data, a key read on export trends.
2. Earnings ahead: $Advanced Micro Devices(AMD)$ $Qualcomm(QCOM)$ $ARM Holdings(ARM)$ $HKEX(00388)$, all set to move markets.
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