Hong Kong stocks closed (10.06) | The Hang Seng Index fell 0.67%, dropping below 27,000. Gold and cryptocurrency concepts led the gains, with SMIC and Hua Hong Semiconductor reaching new highs

According to Zhitong Finance APP, the three major indices of the Hong Kong stock market opened lower collectively and fluctuated throughout the day, with the Hang Seng Index falling below the 27,000 mark. By the close, the Hang Seng Index was down 0.67% or 183.15 points, reporting at 26,957.77 points, with a total turnover of HKD 121.257 billion; the Hang Seng China Enterprises Index fell 0.88%, reporting at 9,573.38 points; the Hang Seng Tech Index dropped 1.1%, reporting at 6,550.3 points.

Guosen Securities released a research report stating that the Federal Reserve's stance has effectively become more dovish, which helps improve liquidity from overseas. Additionally, in the context of earnings downgrades, the Hong Kong stock market saw further increases in August and September, which is unusual and indicates that the risk premium framework based on Chinese bond rates is beginning to systematically take effect, opening up space for further upward movement in the Hong Kong stock market this year. The firm has raised its target price for Hong Kong stocks in 2025 to 29,000 points based on a weighted risk premium calculation.

Blue Chip Performance

Li Auto-W (02015) led the decline among blue chips, closing down 3.31% at HKD 96.3, with a turnover of HKD 613 million, dragging the Hang Seng Index down by 7.19 points. On October 1, Li Auto announced its delivery data for September. Li Auto delivered 33,951 vehicles in September, a year-on-year decrease of 36.8%, marking a fourth consecutive month of year-on-year decline. HSBC stated that Li Auto launched its new mid-to-large five-seat pure electric SUV, the Li Auto i6, at the end of last month, which performed strongly after its launch and is expected to significantly boost the company's sales in the fourth quarter. However, considering the sales and pricing pressures of the EREV lineup, the sales forecast for 2025 to 2027 has been lowered by 22% to 31%.

In other blue chip stocks, AIA (01299) rose 1.28%, reporting at HKD 75.2, contributing 15.86 points to the Hang Seng Index; HSBC (00005) rose 0.91%, reporting at HKD 110.9, contributing 20.43 points; Alibaba-W (09988) fell 2.49%, reporting at HKD 180.5, dragging the Hang Seng Index down by 69.67 points; Orient Overseas International (00316) fell 2.62%, reporting at HKD 122.6.

Popular Sectors

On the market, the precious metals sector led the gains among the non-ferrous metals sector, with China Daye Non-Ferrous Metals soaring 18%. Weak dollar trading pushed Bitcoin to break new highs, with most cryptocurrency concept stocks rising; recently strong chip stocks surged again, with SMIC and Hua Hong both reaching historical highs during the session. On the other hand, gaming stocks and lithium battery sectors fell.

1.     Gold stocks and cryptocurrency concept stocks led the gains. By the close, Tan Gold Mining (00621) rose 40.38%, reporting at HKD 0.73; China Silver Group (00815) rose 14.29%, reporting at HKD 0.8; OSL Group (00863) rose 12.71%, reporting at HKD 17.29; Boyaa Interactive (00434) rose 7.46%, reporting at HKD 7.78.

Stimulated by the U.S. government shutdown, market concerns about U.S. fiscal issues and the depreciation of the dollar intensified, pushing gold and Bitcoin prices to new highs, with gold surpassing USD 3,900 per ounce and Bitcoin exceeding USD 125,000. Citibank analyst Alex Saunders stated that Bitcoin is now seen as a "digital gold," which helps explain the correlation in price movements between the two Based on the continuous demand from investors, he set a target price of $181,000 for Bitcoin within 12 months.

2.    Chip stocks continue their recent strength, with SMIC and Hua Hong both hitting historical highs during the session. As of the close, ASMPT (00522) rose 6.44% to HKD 89.3; Hua Hong Semiconductor (01347) rose 4.57% to HKD 91.5; SMIC (00981) rose 0.17% to HKD 91.05.

Goldman Sachs raised the target prices for SMIC and Hua Hong Semiconductor for the fourth consecutive time. Analysts believe that after the launch of the DeepSeek V3.2-Exp model, API costs have decreased by more than 50%, significantly lowering the AI threshold and driving explosive demand for downstream chips. Goldman Sachs raised the target price for both companies to HKD 117, believing that with the development of domestic AI solutions, from models to semiconductors, SMIC and Hua Hong Semiconductor are expected to become China's leading foundries and benefit in the long term.

3.    The Weikang system collectively rose. As of the time of publication, Weikang Medical (00853) rose 6.62% to HKD 15.3; Weikang Robotics-B (02252) rose 5.4% to HKD 32.42; Xintong Medical-B (02160) rose 3.97% to HKD 1.57; Weikang Brain Science (02172) rose 0.55% to HKD 12.87.

In terms of news, Weikang Medical recently announced the restructuring of its arrhythmia management business. Its subsidiary, Weikang Xintong, plans to merge with CRM Cayman. After the merger is completed, CRM Cayman will become a wholly-owned subsidiary of Weikang Xintong. Previously, market participants pointed out that this merger aims to alleviate the pressure of "meeting listing standards" in the arrhythmia business. Morgan Stanley stated that the smooth completion of the transaction would help eliminate significant uncertainties that have been troubling the company.

4.    Gaming stocks fell sharply. As of the close, Melco International Development (00200) fell 6.51% to HKD 5.46; MGM China (02282) fell 4.7% to HKD 15.63; Galaxy Entertainment (00027) fell 2.99% to HKD 40.88; Suncity Group Holdings (00880) fell 2.5% to HKD 3.12.

The Macao Gaming Inspection and Coordination Bureau previously announced that the gross gaming revenue in Macao for September was MOP 18.289 billion, a year-on-year increase of 6%. Morgan Stanley released a research report stating that Macao's total gaming revenue in September was below market and its expectations, mainly due to a typhoon that caused casinos to suspend operations for 33 hours. It is worth noting that during the National Day Golden Week, affected by Typhoon "Maidum," Macao once hoisted a "No. 8 Typhoon Signal." The president of the Macao Tourism Industry Council, Hu Jingguang, stated that "Maidum" had a minimal impact on the number of visitors during the long holiday, and it is expected that the Golden Week can still achieve a daily target of 150,000 visitors.

Popular Active Stocks

1. Beijing University Blue Sky Universe (08095) surged today with increased volume, closing up 71.6% at HKD 1.39. According to the JBD Xiangyao Display WeChat official account, on September 22, 2025, Shanghai Xiangyao Display Technology Co., Ltd. (JBD) announced a substantial breakthrough in the display quality of full-color waveguide AR glasses in collaboration with Applied Materials (AMAT) and Thunderbird Innovation. The related results were first implemented in the Thunderbird X3 Pro, significantly enhancing the visual performance of consumer-grade waveguide AR glasses. Public information shows that Shanghai Xiangyao Display Technology Co., Ltd. was established in 2015, and Beijing University of Posts and Telecommunications is one of JBD's early investors, participating in multiple rounds of financing.

2. Zijin Gold International (02259) hits a new high. As of the close, it rose 8.24%, reporting HKD 147.2, doubling from the IPO price.

On October 2, the Hang Seng Index Company announced that Zijin Gold International meets the requirements for rapid inclusion in the Hang Seng Composite Index and will be included in the Hang Seng Composite Index, Hang Seng Composite Industry Index - Materials, Hang Seng Composite Large Cap Index, and Hang Seng Composite Large and Mid Cap Index after the market closes on October 15, 2025, effective from October 16, 2025. Public information shows that Zijin Gold International was spun off from Zijin Mining (02899) and is Zijin's gold mining enterprise outside of China, holding interests in eight gold mines in Central Asia, South America, Oceania, and Africa.

3. Kintor Pharmaceutical-B (02171) performs well. As of the close, it rose 15.87%, reporting HKD 21.76.

Kintor Pharmaceutical announced that it will present clinical data for CT0596 at the 67th American Society of Hematology (ASH) Annual Meeting. In addition, on September 20, the National Healthcare Security Administration announced that the expert review work for the first version of the commercial insurance innovative drug catalog has been completed. It is reported that all five CAR-T drugs, including Kintor Pharmaceutical's Sai Kaize, passed the expert review and are expected to be included in this year's basic medical insurance catalog and commercial insurance innovative drug catalog