Hong Kong stocks closed (11.05) | The Hang Seng Index rose 3.67% to 20,000, and Sike online stocks rose strongly, and AI hardware and oil stocks were under pressure throughout the day

The Zhitong Finance App learned that the Democratic Party took back both houses of the Senate and House of Representatives in the US midterm elections. The US dollar, US bond yields and oil prices fell sharply. Overnight, the NASDAQ China Golden Dragon Index rose 3.49%, and Hong Kong stocks generally rose. The Hang Seng Index soared more than 800 points in a single day to break through the 244 mark, and the Hengke Index surged more than 5%. At the close, the Hang Seng Index rose 3.67% or 877.48 points to 24796.98 points, with a full-day turnover of HK$356.667 billion; the Hang Seng State-owned Enterprises Index rose 3.87% to 8369.08 points; and the Hang Seng Technology Index rose 5.55% to 4154.29 points.

CITIC Securities believes that the valuation level of Hong Kong stocks is close to the low point when “equal tariffs” broke out last year, yet corporate profit expectations are showing a trend of bottoming out and rebounding. If the US implements fiscal consolidation and the Federal Reserve starts cutting interest rates in the second half of 2027, it is also expected to push the comprehensive discount rate of Hong Kong stocks downward. Overall, we judge that Hong Kong stocks are expected to break out of the volatile upward trend in 2027. The first half of the year is subject to the fulfillment of performance expectations, and the second half of the year will be accompanied by an improvement in liquidity or an increase in valuation.

Blue-chip stock performance

China Biopharmaceuticals (01177) led the blue chip increase. At the close, it rose 9.22% to HK$5.625, with a turnover of HK$1,178 billion. China Biopharmaceuticals announced that it has reached a major external license with multinational pharmaceutical company Boehringer Ingelheim for next-generation oncology treatments, covering 6 pre-clinical projects for innovative drugs. The company can receive a down payment of US$358 million, with a potential total of up to US$7 billion, setting a new record for the company's BD transaction amount.

In terms of other blue-chip stocks, Ideal Automobile-W (02015) rose 8.94% to HK$47.5; Xiaomi Group-W (01810) rose 8.83% to HK$31.3; Weichai Power (02338) fell 5.20% to HK$23.68; and CNPC (00857) fell 4.16% to HK$10.36.

Popular sector aspects

On the market, the “blue wave” of the US midterm elections swept through Congress. Funding poured from AI hardware to AI applications and internet platforms, and Wealth Technology Network stocks exploded collectively. Apple Bank of China's AI officially landed, and Alibaba rose more than 8%; the official version of Hybrid Hy4 was released, and Tencent rose more than 7%; and robotics, aviation, and photovoltaics also rotated upward. On the other side, AI hardware stocks such as storage, optical communications, and PCB concepts had the highest declines; the geographical premium was quickly cleared, and Brent oil once plummeted 10% on Wednesday, putting “three barrels of oil” under collective pressure.

Innovative drug concepts are highly differentiated. At the close, BeiGene (06160) rose 7.34% to HK$248.6; Baiosetu-B (02315) rose 2.09% to HK$42.98; Rongchang Biotech (09995) rose 1.49% to HK$71.3; and Kingsley Biotech (01548) fell 0.94% to HK$33.68.

The innovative medicine sector is highly favorable. China Biopharmaceuticals announced after the market on November 4 that it has reached a major external license with multinational pharmaceutical company Boehringer Ingelheim for next-generation oncology treatments, covering 6 innovative drug pre-clinical projects. The company can receive a down payment of US$358 million, with a potential total of up to US$7 billion, setting a new record for the company's BD transaction amount. It is worth mentioning that according to the latest data disclosed by the National Development and Reform Commission, the total amount of foreign technology licensing transactions for China's innovative drugs reached about 130 billion US dollars in the first three quarters of this year, approaching the historical high of 135.6 billion US dollars for the whole of 2025.

The robot concept continues to gain momentum. At the close, Xiangong Intelligence (06106) rose 12.28% to HK$67.2; Laifu Harmonic (03952) rose 6.45% to HK$30.02; and Horizon Robot-W (09660) rose 5.92% to HK$3.755.

There have been many catalysts in the humanoid robot industry recently. On November 4, Wang Xingxing, founder, chairman and CEO of Yushu Technology, said at the 2026 World Internet Conference Wuzhen Summit Internet Entrepreneurs Forum that 2027 is likely to become a critical point in the development of the robot industry or robot model, and robot capabilities are expected to increase dramatically next year; JD said it will launch the “JD Physical AI Acceleration Plan” and will purchase 3 million robots in the next five years; in addition, Zhiyuan recently released the next generation Go-3Preview, a model with a fixed base, proposed effective intelligent working hours for the first time concept.

New energy stocks such as photovoltaics strengthened moderately. At the close, GCL Technology (03800) rose 3.94% to HK$0.66; Goldwind Technology (02208) rose 3.58% to HK$7.955; Follett Glass (06865) rose 3.44% to HK$5.865; and Xinyi Solar (00968) rose 3.41% to HK$2.125.

The US midterm elections have basically been held, and the Democratic Party is expected to control both houses of the US Congress. The market generally believes that the Democratic Party's rise to power has a positive drive for the new energy industry, and that the Democratic Party's advantage in congressional and local elections will greatly consolidate and continue green energy subsidies and policy support in the Inflation Reduction Act (IRA). Guojin Securities believes that under the IRA framework, tax incentives for industries such as photovoltaics, energy storage, wind power, and SOFC are expected to remain complete, medium- to long-term capital expenditure expectations for green power operators are consolidated, and US new energy installed capacity expectations are expected to rise.

Aviation stocks rose collectively. At the close, China Eastern Airlines (00670) rose 6.57% to HK$2.675; China Southern Airlines (01055) rose 4.81% to HK$3.05; and Air China (00753) rose 4.79% to HK$3.935.

The US midterm elections were held, and the Democratic Party won both houses of the Senate and the House of Representatives. The market expects that subsequent military action against Iraq will be restrained by Congress. Brent crude oil once plummeted by more than 10% on Wednesday, falling below 95 US dollars. For the aviation industry, the price of oil is the most direct variable on the profit table. In the first three quarters of this year, the three major airlines lost a total of 8.435 billion yuan, all citing a sharp rise in aviation fuel costs as the main reason for the change in performance. Wanlian Securities previously pointed out that if oil prices fall later and the core factors suppressing aviation stocks are mitigated, the sector is more resilient to repair.

AI hardware had the highest decline. At the close, Changfei Optical Fiber Cable (06869) fell 12.48% to HK$96.1; ASMPT (00522) fell 10.30% to HK$101; Zhongji Innox (03308) fell 6.45% to HK$624; and Cambridge Technology (06166) fell 6.36% to HK$59.6.

Overnight, the Philadelphia Semiconductor Index fell 3.13% to a half-year low due to market concerns that the US Democratic Party won a big victory in the midterm elections or that supervision of AI data center construction would be strengthened. Huatai Securities pointed out that the unanimous expectations before the election did not take into account regulatory variables, short-term market or trading 27/28 Capex downsizing risks. The real impact will first be reflected in delays in power transmission to the park and delays in equipment procurement, inspection and repayment. Comprehensive demand independence and delivery determinism to maintain sector ranking: consumer electronics > design > foundry > storage > equipment.

Popular exotic stocks

It rallied in the afternoon (01753). At the close, it was up 20.87% to HK$1.245.

The popularity of Chinese short dramas going overseas continues to rise, ushering in a bright moment of global development. According to reports, Daiba has set up a complete business closed loop of “content generation - distribution and monetization - iterative optimization”. The AI short drama business recorded net profit for three consecutive months in July, August, and September. The number of new broadcasts added over 45.8 billion times in the third quarter was over 45.8 billion, more than nine times the cumulative total of 5 billion in the first half of the year.

Kingdee International (00268) is trending strongly. At the close, it was up 15.38% to HK$9.53.

Kingdee International signed a contract amount of 1.02 billion yuan for AI native products in the first three quarters; the ARR subscription at the end of September was about 4.604 billion yuan, an increase of about 19.3% year on year; and the net increase in ARR in the third quarter increased by about 46.9% year on year. The net renewal rates (NDR) for Kingdee AI Xinghan, Kingdee AI Starry Sky, and Kingdee AI Star were 101%, 97%, and 95%, respectively.

Huiliang Technology (01860) strengthened throughout the day. At the close, it was up 12.18% to HK$10.68.

AppLovin's third-quarter revenue was US$2.85 billion, up 55% year over year; net profit was US$1,439 million, up 72% year over year. The company also gave revenue guidance of 2,365 billion to 2,395 million US dollars for the fourth quarter, exceeding market expectations. Huiliang Technology's main product is the programmatic interactive advertising platform Mintegral, which is regarded by the market as the counterpart of AppLovin's business model in Hong Kong stocks.

Weimeng Group (02013) surged higher in the intraday period. At the close, it was up 6.62% to HK$0.725.

Recently, Weimeng Group announced that it has connected to Alipay's AI open platform. Based on this access, Weimeng can help merchants build smart devices and link Alipay applets. At the same time, it also supports packaging existing business services into agents. Alipay provides a dialogue portal to support stores, products, and order placement capabilities.