Hong Kong stocks closed (09.28) | Hang Seng Index closed up 0.54%, AI hardware, gold stocks fell, NetEase (09999) rose nearly 5% and led blue chips

The Zhitong Finance App learned that the trend of the three major Hong Kong stock indices diverged, and the Hang Seng Technology Index was dragged down by hardware stocks such as semiconductors. At the close, the Hang Seng Index rose 0.54% or 132.42 points to 24642.51 points, with a full-day turnover of HK$177.482 billion; the Hang Seng State-owned Enterprises Index rose 0.63% to 8216.84 points; and the Hang Seng Technology Index fell 0.37% to 4,296 points.

Huatai Securities pointed out that from a medium-term perspective, Hong Kong stock valuation repair space may still be suppressed by total global liquidity. Therefore, it is still recommended to use dividends as a base position, but it is necessary to control exposure to industries where dividend rate advantages are more difficult than A-shares converge and increase dividend rates, such as banks, coal, and more oil and gas allocations. From a short-term perspective, innovative drugs and CXO leaders have recovered in the US interest-rate hike deal. They can continue to hold, but beta flexibility is limited, so they need to select stocks and set take-profit.

Blue-chip stock performance

NetEase (09999) led the blue chip increase. At the close, it rose 4.86% to HK$189.7, with a turnover of HK$1.912 billion. Goldman Sachs pointed out that it evaluated NetEase's main game pipeline in 2027 and believes that the game pipeline will boost the company's revenue after the lackluster 2026. If executed properly, the bank expects the game pipeline to contribute more than 10% in incremental revenue next year.

In terms of other blue-chip stocks, China Overseas Development (00688) rose 3.78% to HK$12.89; CNPC shares (00857) rose 3.08% to HK$9.7; Huahong Hongli (01347) fell 4.62% to HK$105.3; and SMIC (00981) fell 3.63% to HK$61.05.

Popular sector aspects

On the market, TechNet shares had mixed ups and downs. NetEase rose nearly 5%, Tencent rose 0.73%, and Ali fell 0.65%. Energy stocks rose collectively, with oil and gas, coal, and electricity stocks all showing the highest gains; domestic housing and domestic bank stocks mostly picked up; multiple negative points disrupted market sentiment, and AI concept stocks, led by optical communications, fell; rising US bond interest rates suppressed precious metals valuations, and gold stocks pulled back across the board.

AI hardware stocks such as optical communications fell sharply. At the close, Changfei Optical Fiber Cable (06869) fell 16.62% to HK$155.5; Zhongji Xuchuang (03308) fell 12.21% to HK$1,028; and Cambridge Technology (06166) fell 11.93% to HK$101.9.

US bipartisan lawmakers proposed a bill prohibiting the use of Chinese optical modules for sensitive federal systems and listing Zhongji Xuchuang and Xinyisheng as restricted suppliers; Hengtong Optoelectronics plans to raise no more than 6.636 billion yuan in capital to be invested in nine projects including optical communications. The market is worried that the wave of production expansion will cause overcapacity. Notably, OpenAI said it has suspended training of its latest generation artificial intelligence models. According to reports, OpenAI suspended model development for the second time in three months. This move further raised concerns about AI slowing down.

Gold stocks declined across the board. At the close, Lingbao Gold (03330) fell 10% to HK$19.08; Shandong Gold (01787) fell 9.35% to HK$18.13; and Chifeng Gold (06693) fell 5.22% to HK$33.8.

Rising interest rates on US bonds put pressure on precious metals valuations. As of press release, spot gold had fallen below 4,150 US dollars/ounce. On Friday, the 30-year US Treasury yield hit 5.53% intraday, setting a new record high since 2004. Today, US Treasury yields continue to soar. The 10-year and 30-year US Treasury yields rose above 5.20% and 5.50% respectively. It is worth noting that the current stalemate in the Strait of Hormuz has made expectations for interest rate hikes high. According to the latest news, US President Trump said in an interview that “it is expected that negotiations will continue with Iran this week.” However, the day before, Trump rejected Iran's plan to end the war.

Electricity stocks rose collectively. At the close, Huaneng Power (00902) rose 5.97% to HK$5.95; CGN Power (01816) rose 3.74% to HK$3.05; Huadian Power (01071) rose 3.53% to HK$4.11; and China Resources Power (00836) rose 3.58% to HK$19.67.

The results of the monthly electricity price agreement for Jiangsu and Guangdong in October were announced. The average weighted average price of centralized transactions in Jiangsu reached 395.32 yuan/megawatt-hour in October, up 50.8 yuan/megawatt-hour from month to month, up 54.6 yuan/megawatt-hour; the average monthly comprehensive transaction price in Guangdong reached 456.78 yuan/megawatt-hour, up 53.5 yuan/megawatt-hour from month to month, up 84.4 yuan/megawatt-hour year on year. Guosheng Securities pointed out that electricity prices in Jiangsu and Guangdong both rose month-on-month in October, and the signs of a steady rise in electricity prices strengthened, and continued to monitor changes in market expectations for the 2027 Changxie electricity price negotiations by the end of the year.

Some domestic housing stocks picked up. At the close, China Jinmao (00817) rose 6.69% to HK$1.275; C&D International Group (01908) rose 5.89% to HK$12.77; Greentown China (03900) rose 4.18% to HK$6.105; and Vanke Enterprise (02202) rose 3.27% to HK$2.525.

On September 24, four departments in Beijing jointly issued implementation rules for the commercial housing sales system. SDIC Securities pointed out that Beijing was the first city to implement the rules, and the demonstration effect was strong. Raising the pre-sale threshold and closed-loop supervision of capital lengthening the repayment cycle will help housing enterprises with sufficient capital and strong delivery capacity accelerate the differentiation of the industry; the declining delivery risk of buyers is expected to restore confidence in entering the market. According to monitoring data from the China Index Research Institute, as of September 24, the country had introduced more than 870 real estate-related policies.

Oil and coal stocks rose. At the close, CNPC shares (00857) rose 3.08% to HK$9.7; China Shenhua (01088) rose 3.02% to HK$45.08; China Coal Energy (01898) rose 2.21% to HK$10.66; and China Petroleum & Chemical (00386) rose 1.69% to HK$4.5.

US President Trump said on the 27th that it is expected that the US and Iran will resume negotiations within the next week. However, at the same time, he said that he “has been considering” whether to resume military attacks on Iran. Iranian Foreign Minister Alagzi said that Iran is ready to restart war with the US, but it has not given up contacts through diplomatic channels. Furthermore, as of September 24, according to the China Coal Market Network, the spot prices of Q4500, Q5000, and Q5500 thermal coal at Qinhuangdao Port were reported at 807, 888, and 988 yuan/ton, up 14 yuan/ton, up 15 yuan/ton, and 17 yuan/ton respectively from last week.

Popular exotic stocks

Litmi (01936) resumed trading and soared. At the close, it was up 116.09% to HK$1.88.

Litmi announced that the offender Innovation Forge Holdings Limited acquired a total of about 363.8 million shares from the seller, accounting for about 77.94% of the expanded share capital at a total cost of HK$224 million. The cash offer price was HK$0.617 per share, a discount of approximately 29.08% over the closing price of HK$0.87 before the suspension of trading. The company also stated that it would consider paying a special dividend of HK$0.29 per share.

Goodboy International (01086) saw a huge increase in sales volume. At the close, it was up 24.54% to HK$1.345.

Goodboy International announced that the offender plans to privatize the company through planned arrangements. The cancellation price for each planned share is HK$1.5 million, a 38.89% premium over the closing price of HK$1.08 on September 25. The maximum cash cost payable by the offeror is about HK$1,322 million. The offender is also wholly owned by Song Zheng, the chairman and executive director of the company.

Zhonghuan New Energy (01735) continues to be strong. At the close, it was up 13.26% to HK$11.7.

In the first half of this year, Zhonghuan Renewable achieved revenue of about HK$6.33 billion, an increase of 56.3% year on year; gross profit of about $130 million, up 50.0% year on year. The revenue structure ushered in a qualitative change. As the second growth curve, the AI computing power business soared to 1,047 billion yuan during the period, accounting for nearly 20%, indicating that the company is opening up a new dimension of growth outside of the traditional renewable energy business.

Sagiteng Juchuang (02498) performed brilliantly. At the close, it was up 4.31% to HK$16.7.

Suteng Juchuang announced that its second-generation high-precision ultra-wide-angle all-solid-state digital lidar E2 and the “1000-wire” ultra-long-range automotive-grade digital lidar EM4 are officially connected to the NVIDIA Holoscan Sensor Bridge (hereinafter referred to as “HSB”). As a result, RoboSense has become the world's first lidar solution partner to achieve mass production delivery in the Nvidia HSB ecosystem.

Makihara shares (02714) rallied intraday. At the close, it was up 3.57% to HK$37.12.

According to Zhuochuang information, in July-August, due to policy restrictions, production cuts began to accelerate. The market entered the second wave of concentrated production cuts. The cumulative decline reached 2.50% for two consecutive months, and production cuts in September were still ongoing, and the number of sows eliminated began to decline in mid-late month. Open Source Securities believes that short-term supply and inventory pressure continues, and the acceleration of sow removal strengthens expectations for medium-term improvement.