①Why did Bilibili soar? ②How do institutions view the subsequent market trend?
Cailian Press, October 21 (Editor Hu Jiarong) The Hong Kong stock market continued its strong performance from yesterday, showing a comprehensive recovery. As of the midday close, the Hang Seng Index rose 1.65% to 26,286.47 points; the Hang Seng Tech Index surged 2.60% to 6,087.53 points; and the Hang Seng China Enterprises Index climbed 1.79% to 9,397.97 points, with market sentiment significantly improving.
Technology leads the rise, with sustained capital inflows providing support.
From the performance on the board, the technology, gaming, lithium battery, and consumer electronics sectors became the main drivers of the market’s upward momentum, with technology stocks particularly standing out. By the midday close, Bilibili-W (09626.HK), Kuaishou-W (01024.HK), and Alibaba-W (09988.HK) rose by 10.60%, 3.85%, and 3.83% respectively, leading the tech sector higher.
Note: Performance of tech stocks.
On the news front, the market widely expects a 99% probability of a Federal Reserve rate cut next week, with another potential cut in December, boosting expectations of global liquidity easing. Meanwhile, during the recent adjustment period in Hong Kong stocks, Southbound funds and ETF investments have continued to accumulate positions against the trend—Southbound funds have net purchased over HKD 45 billion since October, with year-to-date net purchases exceeding HKD 1.2 trillion, setting a new historical record, providing solid support for the market.
In terms of individual stocks, Bilibili-W (09626.HK) surged 10%. The catalyst came from the strong performance of its gaming business: “Escape from Duckov,” a PvE top-down extraction shooter game developed by Team Soda and published by Bilibili, has sold over 500,000 copies since its launch on October 16. Additionally, “Trickster Joker,” an anime-style card RPG game distributed by Bilibili, hit the top spot on the iOS free games charts in Hong Kong, Macau, Taiwan, and Japan the day after its international release on October 9. These dual positives propelled the stock upward.
The gaming sector also performed strongly, with OurGame (06899.HK) and Kingsoft Software (03888.HK) rising by 24.14% and 3.54%, respectively.
Note: Performance of gaming stocks
In terms of news, as market risk appetite recovers, valuation repair momentum for the gaming sector is becoming evident.
The lithium battery industry chain has shown strong activity.
Lithium battery-related stocks performed well, with BYD Electronics (00285.HK), CATL (03750.HK), and CALB (03931.HK) rising by 4.59%, 4.26%, and 2.34%, respectively.
Note: Performance of lithium battery stocks
In terms of news, CATL disclosed its Q3 2025 earnings report yesterday. In the third quarter, it achieved revenue of RMB 104.186 billion, a year-on-year increase of 12.90%; net profit attributable to shareholders reached RMB 18.549 billion, surging 41.21% year-on-year. The better-than-expected performance further boosted confidence in the sector.
Consumer electronics benefit from favorable developments in Apple’s supply chain.
Consumer electronics stocks were lifted by strong sales of Apple’s new products, with Lens Technology (06613.HK), Cowell E&E (01415.HK), and Q Technology (01478.HK) rising by 7.96%, 6.79%, and 6.08%, respectively.
Note: Performance of consumer electronics stocks.
According to Counterpoint Research, iPhone 17 series sales in the first 10 days after launch in the Chinese and U.S. markets grew by 14% compared to the same period for iPhone 16. Notably, sales of the standard version nearly doubled in the Chinese market, while demand for the Pro series was particularly strong in the U.S. market.
Driven by this positive development, Apple’s stock price hit a new all-time high on Monday, closing at $262.24 with a single-day increase of 3.94%, bringing its total market capitalization to $3.89 trillion. With this valuation, Apple surpassed Microsoft to become the second most valuable publicly traded company in the US, trailing only NVIDIA.
Institutional investors are bullish on the mid-to-long-term prospects of Hong Kong’s technology sector.
CSC Financial’s latest research report indicates that the Hang Seng Tech Index has seen continuous net inflows of funds over the past month, becoming a key area for capital allocation. This is followed by related sectors such as innovative pharmaceuticals in Hong Kong stocks, Hang Seng Internet & Technology, China Internet 50, and Nasdaq 100. By contrast, net outflows from sectors like the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Healthcare are relatively smaller, reflecting investors’ preference for technology growth sectors, with high-dividend sectors seeing reduced interest.
Looking ahead, institutions believe that Hong Kong’s technology sector will significantly benefit from global industrial trends represented by AI. With expectations of Fed rate cuts driving foreign capital backflow and sustained inflows from Southbound funds, the Hang Seng Tech Index is expected to maintain strong performance in the fourth quarter, making it a focus of investment value.
