Hong Kong stocks closed (11.04) | The Hang Seng Index closed up 1.67%. Innovative pharmaceuticals, gold stocks, and AI industry chains rose in the afternoon, and Pharmacomics surged across the board

The Zhitong Finance App learned that the US media predicted that the Democratic Party would take back control of the National Assembly, Hong Kong stocks would fluctuate and rise in the afternoon, and the Hengke Index would rise nearly 2%. At the close, the Hang Seng Index rose 1.67% or 393.53 points to 23919.50 points, with a full-day turnover of HK$236.896 billion; the Hang Seng State-owned Enterprises Index rose 1.44% to 8057.59 points; and the Hang Seng Technology Index rose 1.77% to 3936.02 points.

CICC previously pointed out that the implementation of the election or the reduction of policy uncertainty would present an opportunity to clear up risks. In the pre-election phase, the market repeatedly played games on topics such as the US-Iran conflict, the Russian-Ukrainian conflict, and AI regulation, and all parties wanted to maximize the value of their own chips before the election, causing great policy uncertainty. Once the election results are implemented, these games will subside, and the policy direction will instead become clear.

Blue-chip stock performance

Yao Ming Biotech (02269) closed sharply higher. At the close, it rose 12.22% to HK$48.32, with a turnover of HK$2,347 billion. Germany's Fresenius signed an exclusive development agreement with Pharmaceutical Biotech, and Fresenius received exclusive options for up to 37 potential first batch of biosimilar candidate products. According to the company, this is the largest development agreement announced by the biosimilar industry to date.

In terms of other blue-chip stocks, Huahong Hongli (01347) rose 15.75% to HK$68.7; Yao Ming Kangde (02359) rose 12.39% to HK$197.8; Hengan International (01044) fell 2.29% to HK$21.32; and China Resources Beer (00291) fell 1.93% to HK$20.34.

Popular sector aspects

On the market, the index opened low and moved higher on one side. After falling 23,385 points in early trading, the pharmaceutical chain took the lead. The rise spread to gold and computing hardware in the afternoon, reaching a maximum of 23,919 points. The innovative drug industry chain is the strongest main line. CXO and innovative drugs exploded simultaneously; gold stocks relayed in the afternoon, and photovoltaics, robotics, and AI hardware rotated to make up for gains. On the other side, consumer stocks bucked the trend, and both Hengan International and China Resources Breweries weakened.

Innovative drug concept stocks have exploded across the board. At the close, Biosetu-B (02315) rose 16.94% to HK$42.1; Kingsley Biotech (01548) rose 12.51% to HK$34; Rongchang Biotech (09995) rose 12.31% to HK$70.25; and BeiGene Shenzhou (06160) rose 10.18% to HK$231.6.

Data show that in the first three quarters of 2026, the total revenue of Shenwan Pharmaceutical's biological sector increased by 2.13% year on year, and net profit to mother increased by 12.78% year on year. Looking ahead to the fourth quarter, the League of Nations People's Livelihood believes that with the end of the three-quarter reporting period, the market will soon enter a performance vacuum period, and the style is expected to shift from “speculating on performance” to “speculating on story space.” Under the current industry comparison and chip structure, innovative drugs with theme lines and high odds are expected to become the focus of Q4. In particular, second-tier and third-tier innovative drugs with good chip structures, as well as new technology tracks such as AIDD (AI drug development) and mRNA, are worth paying attention to.

Gold stocks rallied in the afternoon. At the close, Chifeng Gold (06693) rose 18.15% to HK$31.5; Lingbao Gold (03330) rose 17.04% to HK$16.76; Tongguan Gold (00340) rose 15.09% to HK$2.555; and Zijin Gold International (02259) rose 14.58% to HK$133.6.

Spot gold rallied in the afternoon and broke through 4,000 US dollars/ounce intraday, reaching a high of 4013.83 US dollars, up 2.13% during the day. According to data from the World Gold Council, the net purchases of global central banks in the third quarter were 321 tons, an increase of 42% over the previous year, a record high in a single quarter since the fourth quarter of 2024. Furthermore, the Democratic Party election contributed to the weakening of the US dollar and provided support for the price of gold. According to US media predictions, the Democratic Party will not only take control of the House of Representatives in the midterm elections, but will also take back control of the Senate. After this midterm election, the Democratic Party will regain control of the National Assembly.

PV stocks increased their gains in the afternoon. At the close, Xinyi Solar (00968) rose 10.19% to HK$2.055; GCL Technology (03800) rose 9.48% to HK$0.635; Follett Glass (06865) rose 8.83% to HK$5.67; and Goldwind Technology (02208) rose 6.96% to HK$7.68.

The three-quarter report for the photovoltaic industry came to an end. The eight leading companies in the industry chain had a total net loss of about 27.7 billion yuan, but signs of structural improvements showed: Aixu Co., Ltd. reversed losses in a single quarter, Longji Green Energy reduced losses by more than 40% month-on-month, and cash flow was positive. Other analysts believe that changes in the stock market may be related to the US midterm elections. The market may expect that the rise of the Democratic Party will positively drive the new energy industry. Changjiang Securities believes that the sector is currently at the triple bottom of “valuation bottom+position bottom+fundamental bottom.”

Robotics concept stocks moved higher. At the close, Zhaowei Mechatronics (02692) rose 14.62% to HK$33.24; Joyson Electronics (00699) rose 10.10% to HK$10.85; Nobicom (02635) rose 9.72% to HK$5.135; and Huaqin Technology (03296) rose 9.41% to HK$55.8.

Wang Xingxing, founder of Yushu Technology, said at the 2026 World Internet Conference Wuzhen Summit Internet Entrepreneurs Forum that next year is likely to be a tipping point for the development of the robot industry or robot model. Wang Xingxing also explained that a few months ago, Yushu Technology began exploring the self-evolution of physical AI models internally. According to reports, recently, many large model makers are continuing to expand their layout in the field of physical intelligence, which is expected to catalyze an increase in commercialization expectations in the industry. Huayuan Securities believes that the OpenAI robot layout has gradually moved from early equity investment and external technical cooperation to independent research and development of models, data, and hardware. The release of its technology demonstration (Demo) and industrialization progress are expected to become an important catalyst for the global humanoid robot industry in the future.

The AI industry chain rebounded sharply in the afternoon. At the close, ASMPT (00522) rose 10.72% to HK$112.6; Changfei Optical Fiber Cable (06869) rose 9.25% to HK$109.8; SMIC (00981) rose 8.96% to HK$46.44; and Zhongji (03308) rose 7.58% to HK$667.

Zhongji Xuchuang clarified last night that the vast majority of overseas customers have not revised their requirements or orders, that some customers have made structural adjustments to their products, and that demand for 1.6T from some customers has even increased compared to before. In addition, Higashiyama Precision also announced that the controlling shareholder proposed an annual return of not less than 1 billion yuan. It is worth mentioning that AMD's third-quarter revenue and adjusted earnings per share both exceeded market expectations. Furthermore, the latest fourth quarter revenue guidance was also significantly higher than analysts' expectations. This financial report effectively allayed recent market concerns about “a slowdown in AI capital expenditure” and “early overdraft of high valuations”, and injected strength into the entire AI sector.

Popular exotic stocks

Lenovo Group (00992) is trending strongly. At the close, it was up 6.00% to HK$20.84.

AMD Chairman and CEO Su Zifeng said during the 2026 third quarter results conference call that the deployment of Helios rack-level AI systems is expected to increase significantly in the fourth quarter. When introducing delivery progress, she clearly mentioned that as production increases, OEM and ODM partners such as Lenovo Group, HPE, Dell, and Supermicro will begin delivering related systems.

Yingpai Pharmaceutical-B (07630) performed well. At the close, it was up 9.59% to HK$8.625.

Yingpai Pharmaceutical announced that the board of directors decided to use no more than HK$100 million to buy back H shares in the open market. All required capital comes from the company's own funds. Furthermore, depending on market conditions, the company may further repurchase H shares within the scope of the repurchase authorization granted by the shareholders' meeting.

Yum China (09987) improved after the results. At the close, it was up 2.38% to HK$387.8.

Yum China announced results. Total revenue for the third quarter was US$3.477 billion, up 8% year on year; operating profit was US$451 million, up 13% year on year. It achieved 10 consecutive quarters of growth in system sales, operating profit, and operating margin. The net addition of nearly 700 stores in the third quarter was close to 700, a record high in a single quarter.

Bruco (00325) continues to be pressurized. At the close, it was down 6.10% to HK$51.55.

Bruker announced on October 22 that Zhu Weisong, the controlling shareholder, chairman of the board of directors, executive director and CEO, sold 3.849 million shares of the company's shares, which is equivalent to about 1.56% of the company's shares, involving an amount of about HK$251 million. The sale is due to the shareholders' own capital needs and financial arrangements, and is a private matter at the shareholders' level.