Zhitong Hong Kong stock trading unravels | Technology has not stopped falling, France is adding chaos, OpenAI's entry into the market, and the machine ignites sector sentiment

[Anatomy Dashboard]

The two markets have begun to diverge again. Today, A-shares continued to stabilize under part of the broad-based volume, while Hong Kong stocks jumped to the bottom, and the Hang Seng Index closed down 1.32%.

At the opening ceremony of the 2026 Financial Street Forum annual meeting, Pan Gongsheng, Governor of the People's Bank of China, said that he will launch a large redemption liquidity support tool for non-bank institutions with the General Financial Supervisory Authority and the China Securities Regulatory Commission. The simple explanation is that when faced with a large centralized redemption, non-bank institutions such as funds, brokerage firms, and financial management companies can use high-quality assets such as bonds in their hands as collateral to the central bank and temporarily obtain a sum of cash to pay and redeem the market to prevent a collapse in liquidity in the stock and bond market. This is a back-and-forth precautionary measure; it is not a financial stimulus to the stock market. Furthermore, the central bank clearly stated that it will take the opportunity to switch the period for the main types of operation in the open market to overnight. The suspense is when it will be implemented. This benefit is still at the level of expectations. Overall, Hong Kong stocks are relatively disappointed with these so-called benefits. Today, securities and insurance categories have all declined. Xinhua Insurance (01336) has dropped nearly 6%, and bank stocks have also generally declined.

Technology stocks have not stopped falling. Zhou Xiaochuan, the former governor of the People's Bank of China, stated on October 20 at the 2026 Bund Annual Conference “AI and the Productivity Revolution: Macro Impacts Under Technological Transition” that research should be carried out and plans should be made to deal with the financial risks that may be brought about by AI-related investment failures, and that attention should be paid to this statement. Many overseas global hedge funds are beginning to doubt whether the artificial intelligence investment boom will continue. According to data from Goldman Sachs trading department, in the five trading days up to October 15, hedge funds reduced their positions in technology stocks at the fastest rate in at least ten years. US stocks were also in disarray before the market. Memory chip stocks generally fell. SK Hynix fell about 4%, Western Digital fell about 2%, SanDisk fell about 2%, Micron Technology fell about 2%, and Seagate Technology fell about 2%. In stark contrast, Apple, which has a “light AI” narrative, bucked the trend and strengthened. The total market capitalization surpassed 5 trillion US dollars for the first time, approaching Nvidia's highest market capitalization position in the world.

The current international environment is also deteriorating, and another incident occurred in France, the pioneer of Europe: anti-government protests that swept through the country turned into riots and robberies over the weekend, and the French authorities imposed curfews in parts of various cities such as Paris, Lille, and Nice. Although the cause was only a school protest, it eventually turned into a major riot. The root cause was that France's finances were unable to resist it. France's debt as a share of GDP had reached 119%, nearly double the 60% reference value stipulated in the European Union Treaty, and the government drastically cut various benefits, triggering all kinds of dissatisfaction. After the riots in France, protesters also appeared in Madrid, Spain, Rome, Italy, Brussels, Belgium, and Lisbon, Portugal. Local wars continue, and all kinds of backlash have come out. It is false that the capital market is not panicking.

Of course, capital markets are also trying to explore opportunities. Robots are indeed the general direction of the future. The giants are all at a loss. OpenAI is laying out a humanoid robot research and development circuit, and will take the development of intelligent robot systems as the core research direction, and the official website will begin recruiting all kinds of talents. According to Ultraman's predictions, OpenAI is expected to launch an effective demonstration prototype in 2027, but it will take several years for humanoid robots to actually be publicly applied.

Tesla said it is building the first batch of Optimus production lines and expanding the data center capacity for artificial intelligence training; the Ministry of Industry and Information Technology: Using humanoid robots as small incisions to drive the development of a large-scale intelligent industry, mentioned that 26H1, China's humanoid robot production was 4W+, exceeding 10w throughout the year.

Fermentation is more intense in the direction of physical AI, because this is the only way to go. Hong Kong Stock's “First Physical AI Stock” May 1st Vision (06651) recently revealed that the revenue of the physical AI business increased by more than 500% year on year; it received an intended order for 20,000 units in just 2 days after launch, and the total number of orders within one month of release had already exceeded 200 million yuan. It is regarded by the market as the target of Hong Kong stock's scarce physical AI infrastructure. Today, it has risen more than 22%; Hesai (02525): Officially released the 3D world data engine Kosmo One and the cloud platform Kosmo World, simultaneously launched the AI space camera Kosmo One and the cloud platform Kosmo World, from the vehicle Lidar extended to physical AI data infrastructure to find a second growth curve, rising more than 10%.

The standard for humanoid robots (09880), the AMR leader in warehousing, Jijia-W (02590), Xiangong Intelligence (06106), which focuses on mobile robot controllers and robot brains, and Sanhua Intelligent Control (02050), which specializes in valves, thermal management, and execution components, all increased 6%.

The Information Office of the State Council held a press conference today (October 20). At the conference, it was explained that the Party Central Committee and the State Council attach great importance to the development of next-generation intelligent manufacturing. Ministry of Industry and Information Technology: Policies and measures relating to next-generation intelligent manufacturing are being studied and drafted to accelerate the deep integration of artificial intelligence and manufacturing.

At the end of the day, AI+ is AI+. For example, Connett Optics (02276) of AI glasses increased by more than 4%, and the net profit of TCL Electronics (01070) in the first three quarters increased 45% to 55%, up more than 6%; different groups (06090) mainly make AI childcare products, and the company's business is expanding, using physical AI as a connecting point to further extend the business reach from indoor home scenarios to a wider range of living spaces such as mobile cockpits and household robots, up nearly 11%; the MT200 industrial AI BOX solution launched by MeiG (03268) is connected to the Qualcomm IQ10 platform. The platform's peak computing power reached 700 TOPS, mainly aimed at robotics and industrial automation, with an increase of nearly 8%.

On October 23, the 2026 Golden Butterfly (00268) Global Creators Conference will be held in Beijing. With the theme of “Let every enterprise become an AI native organization”, the conference focused on the three main lines of AI management ideas, AI management technology, and AI management practices, focusing on improving work efficiency, decision-making ability, and management intelligence. The company's contract amount for AI native products reached 1.02 billion yuan in the first three quarters. ARR increased 19.3% year on year in the third quarter, and the net increase in ARR increased by 46.9% year on year, up nearly 7% year on year.

There are also many incentives in the direction of innovative medicines. Roche has once again signed a major agreement with Hanson Pharmaceuticals (03691), with potential milestone payments of up to US$15 billion. The latest agreement covers a broad portfolio of ADC projects, including the company's two ADCs that are already in pre-clinical development, as well as several projects developed with targets proposed by Roche, which increased by more than 8%; Lepu Biotech (02157) focuses on tumor treatment and ADC research and development, and the positive results of the CMG901 global phase III study of the ADC drug candidate developed jointly with Connoah (02162) were selected for ESMO's major research summary and will be reported at the Chairman's seminar. Lepu Biotech (02157) rose more than 10%, and Konoah (02162) rose more than 5%; there were other increases.

[Section Focus]

Today, Oracle announced that it has reached a non-binding agreement with AstraZeneca to explore the use of artificial intelligence (AI) and real-world data to identify patients eligible for clinical trials, accelerate the generation of medical evidence, and integrate relevant research results into daily diagnosis and treatment processes. It is reported that this collaboration is expected to combine AstraZeneca's scientific and therapeutic expertise with Oracle's capabilities in health data, cloud computing, artificial intelligence, analysis, and clinical workflows.

This news has undoubtedly brought new impetus to AI pharmaceutical concept stocks. The main varieties are: Insili Intelligence (03696), Jingtai Holdings (02228), Jietai Technology-P (07666), and CSPC Group (01093), which has cooperated with AstraZeneca.

[Individual Stock Mining]

Hehuang Pharmaceutical (00013): Overseas orders are growing strongly, and the innovation pipeline continues to be fulfilled

The 2026 ESMO Conference will be held in Madrid, Spain from October 23 to 27 (local time). ESMO's official website will publish more than 90 LBA titles, of which 12 of the most groundbreaking LBA studies and the most transforming clinical practice will be presented at the ESMO General Conference. Hutchison Pharmaceutical's two phase III lung cancer studies with sevotinib and osimitinib were both selected for LBA breakthrough summaries and oral reports.

Comment: The company's current ESMO will disclose: complete OS/PFS curve, subgroup data, detailed safety data, and quality of life score; focus on monitoring savotinib (and yellow) + osimitinib (AstraZeneca), compared with chemotherapy, for EGFR mutant non-small cell lung cancer with MET overexpression/amplification after osidinib resistance. Once the data is effective, it will bring about catalysis.

The company is one of the few full-chain self-innovating oncology drug platforms in China. All 4 new Class 1 anti-tumor drugs have been approved domestically, and fruquintinib has successfully gone overseas in Europe, America, and Japan. It is the first domestically produced original research targeted drug to achieve global commercialization.

Ace product, fruquintinib (ioot): domestic benchmark, approved in 38 countries around the world; Takeda is responsible for overseas sales; new indications for kidney cancer and endometrial cancer are included in medical insurance; domestic sales have returned to the growth channel, and overseas sales are the company's largest source of revenue; pipeline continued to be realized: sevolotinib (Warisan, the first MET inhibitor in China) added gastric cancer indications; newly approved variglatinib (iLinda) to fill the gap in FGFR2 fusion treatment for intrahepatic cholangiocarcinoma; The listing application is in progress.

Overseas orders are growing strongly. Overseas licensing of fruquintinib (Takeda): Overseas commercial sales agreement. Takeda is responsible for sales in markets such as the US, Europe, Japan, etc., with sales share and milestone payments. Continued sales volume in many overseas countries is a continuous sales order. Large BD milestone revenue elasticity: The ATTC platform HMPL-A830 GSK collaboration will continue to bring in cash inflows and increase R&D capital in the future.

The company's later expectations are SAFFRON Global Phase III: AstraZeneca submits an FDA/EMA listing application (NDA/MAA). SAFFRON is a global multi-center study. After ESMO announces the complete OS, subgroups, and safety, AstraZeneca will advance the global declaration based on this set of data.