According to Futu News on October 21, the three major indices of Hong Kong stocks rose simultaneously, $Hang Seng Index (800000.HK)$ Up 0.65%, $Hang Seng TECH Index (800700.HK)$ up 1.26%, $Hang Seng China Enterprises Index (800100.HK)$ up 0.76%.

At the close, 1,315 stocks in Hong Kong rose, 883 fell, and 999 remained unchanged.    

The specific sector performance is as follows:

In terms of sectors, tech stocks surged collectively, with Bilibili-W up 8.88%, NetEase-S up 2.04%, Alibaba-W up 1.98%, Kuaishou-W up 1.96%, Xiaomi Group-W down 1.44%, SenseTime-W up 1.25%, and Tencent Holdings up 0.48%.

Apple-related stocks rose across the board, with Cowell Electronic up 5.92%, Foxconn Interconnect Technology up 5.03%, Lens Technology up 4.92%, Q Tech up 4.54%, AAC Technologies up 3.92%, BYD Electronics up 3.77%, Sunny Optical up 2.93%, and VST ECS up 2.41%.

Insurance stocks performed strongly, with China Life Insurance rising 6.04%, New China Life Insurance up 4.82%, Ping An up 2.95%, China Taiping up 2.69%, China Pacific Insurance up 2.64%, PICC Group up 1.97%, PICC Property up 1.55%, and AIA up 1.11%.

Semiconductor stocks stood out, with Baik Microelectronics up 4.55%, SMIC up 3.13%, Ingdan Innovation up 1.89%, and Innoscience up 1.13%.

Sporting goods stocks generally rose, with Li Ning up 3.32%, 361 Degrees up 2.52%, Yue Yuen Industrial up 2.42%, Top Sports up 2.22%, Anta Sports up 2.10%, China Dongxiang up 2.08%, Eagle Vision up 0.84%, and Xtep International up 0.35%.

Lithium battery stocks broadly advanced, with BYD Electronics up 3.77%, CATL up 3.03%, Zhengli New Energy down 2.71%, CALB up 1.41%, and Tianneng Power up 1.33%.

Most new consumption stocks declined, with Pop Mart down 8.08%, Mao Geping down 4.1%, Giant Biogene down 4.01%, Blok up down 3.98%, Lao Pu Gold down 3.88%, and Guming down 3.85%.

In terms of individual stocks,$GIANT BIOGENE (02367.HK)$A drop of over 4%; Citi stated that market reaction to Canfem’s subdued performance in the Double Eleven pre-sales was an overreaction.

$SHANDONG MOLONG (00568.HK)$Surged over 8%, the company’s A-shares hit the daily limit today, with the market paying attention to the ‘deep earth economy’.

$TRANSTHERA-B (02617.HK)$Dropped over 11%, as the company plans an H-share full circulation, accounting for approximately 11.33% of the total issued shares.

$REMEGEN (09995.HK)$Rose over 4%, with 10 studies presented at ESMO; institutions are optimistic about its accelerated overseas expansion.

$BOSIDENG (03998.HK)$ Surged over 9%; the cooling weather is beneficial for winter clothing sales, and the extended Spring Festival next year raises the peak season’s potential.

$J&T EXPRESS-W (01519.HK)$Increased nearly 2%, driven by better-than-expected Q3 business volumes in Southeast Asia and new markets.

$GOLDEN LEAF INT (08549.HK)$Plummeted over 17%, hitting a record low since listing and falling below the issue price.

$JIANGSU HORIZON (02625.HK)$Dropped over 23%, halving from the month’s high, with initial shares unlocked at the beginning of this month.

$FLOWING CLOUD (06610.HK)$Fell over 14% in the afternoon to hit an all-time low, with a recommendation to consolidate shares at a 20-to-1 ratio.

$XUANZHUBIO-B (02575.HK)$Surged over 33%, rising more than 2.3 times above the IPO price, as the company enters a commercialization boom this year.

Top 10 in today’s trading volume

Hong Kong Stock Connect funds

Regarding Stock Connect, today’s southbound trading under Stock Connect recorded a net inflow of HKD 1.171 billion.

Institutional Views

Bank of America has $CATL (03750.HK)$ / $Contemporary Amperex Technology (300750.SZ)$ raised its earnings forecasts for 2025 to 2027 by 3%, 3%, and 3%, respectively. The target price for the H-share has been increased from HKD 570 to HKD 605, while the target price for the A-share has been raised from CNY 467 to CNY 495. The ‘Buy’ rating is reiterated, taking into consideration factors such as the robust growth prospects of its energy storage system batteries, the potential of its new battery technologies to help expand market share, and expectations of maintaining healthy profit margins alongside strong overseas shipment growth.

Morgan Stanley has downgraded $SMIC (00981.HK)$ The rating was upgraded from ‘In-Line with the Market’ to ‘Overweight,’ and the target price was significantly increased from HKD 40 to HKD 80. The Morgan Stanley report highlights that the rapid adoption of artificial intelligence (AI) applications in China, coupled with policy support for domestic AI GPUs, will substantially boost demand for advanced process wafer manufacturing over the next two years. In view of the strong demand for domestically produced AI chips, forecasts for China’s AI GPU sales revenue have been revised upwards, with a projected compound annual growth rate (CAGR) of 62% from 2024 to 2027.

Bank of America Securities issued a research report stating that within China’s internet sector, they believe $TENCENT (00700.HK)$ Tencent has the most attractive investment portfolio, including AI-driven growth potential, a stable competitive landscape, and shareholder returns at an appealing valuation. The firm views Tencent as a primary beneficiary of AI application and monetization in China, with its advertising and cloud revenues potentially experiencing accelerated growth, validating the benefits of AI technology to its core business. The firm also believes that the ongoing integration of AI functionalities into WeChat (for instance, through AI agents directly recommending services or products within WeChat) could drive a re-rating of the stock in the medium term. The ‘Buy’ rating is reiterated, with the target price raised from HKD 690 to HKD 780.

Editor/KOKO