Hong Kong's three major indices opened lower and quickly plummeted, with the Hang Seng Index once falling by more than 1.6%. The losses gradually narrowed throughout the day thereafter.
According to Zhitong Finance APP, the three major Hong Kong stock indexes opened lower and quickly plunged, with the Hang Seng Index once falling over 1.6%. The losses gradually narrowed throughout the day. By the close, the Hang Seng Index fell by 0.48%, or 128.31 points, to 26,829.46 points, with a total turnover of HKD 173.803 billion; the Hang Seng China Enterprises Index dropped by 0.52% to 9,523.87 points; the Hang Seng Tech Index declined by 0.55% to 6,514.19 points.
BOCOM International released a research report stating that due to the impact of the National Day and Mid-Autumn Festival holidays, the market is expected to briefly enter a "low season" mode. Coupled with uncertainties regarding the short-term U.S. government funding bill, overseas disruptive influences may be amplified. Meanwhile, the market remains divided on the timing and magnitude of the Federal Reserve's interest rate cuts. In the short term, a "conditional rate cut" is likely to remain the main theme, and fluctuating expectations may cause market volatility.
Performance of blue-chip stocks
Geely Auto (00175) performed notably well, closing up 3.36% at HKD 19.67 with a turnover of HKD 9.62 billion, contributing 6.07 points to the Hang Seng Index. On October 6, Geely Auto announced its plan to implement a share repurchase program with a maximum amount of HKD 2.3 billion. JPMorgan stated that it believes the repurchase proposal indicates that management considers Geely undervalued. Given its robust profit momentum, market forecasts for this year and next have been raised between 25% and 30%; JPMorgan also predicted that Geely’s net profit in the third quarter of this year would reach approximately RMB 3.8 billion, primarily driven by sales growth.
Among other blue-chip stocks, Hengan International (01044) rose by 3.46% to HKD 26.32, contributing 0.84 points to the Hang Seng Index; NetEase-S (09999) increased by 2.92% to HKD 239.6, contributing 14.8 points to the Hang Seng Index; SMIC (00981) fell by 1.7% to HKD 89.5, dragging down the Hang Seng Index by 10.97 points; CNOOC (00883) dropped by 1.39% to HKD 18.5, weighing on the Hang Seng Index by 6.35 points.
In popular sectors,
On the market front, gold stocks continued their sharp upward trend, with Chifeng Gold and Zijin Gold International hitting new highs, although gains narrowed towards the close. Oracle’s lower-than-expected profit margin weighed on cryptocurrency-related and cloud computing concept stocks. Additionally, aviation stocks and mainland property developers also saw declines across the board.
1. Gold stocks led the gains, with several stocks reaching new highs. By the close, Chifeng Gold (06693) surged by 13.26% to HKD 37.58; China Silver Group (00815) rose by 12.5% to HKD 0.9; Shandong Gold (01787) climbed by 7.61% to HKD 42.7. Notably, Zijin Gold International (02259) once jumped over 7% to a record high but retreated towards the close and ended down by 0.48%.
On Wednesday, spot gold broke through the $4,000 per ounce mark, continuing to set new records. It has surged nearly $1,400 per ounce year-to-date, representing an increase of over 52%. Spot silver also rose more than 2% during the day. JPMorgan released a research report stating that every $10 billion quarterly increase in nominal gold demand could push prices up by approximately 3% quarter-on-quarter. Even a slight reallocation from the $29 trillion U.S. Treasury market to gold would be sufficient to drive gold prices above $5,000 per ounce.
Cryptocurrency-related stocks performed weakly. By the close, Boyaa Interactive (00434) fell 8.48% to HKD 7.12; OKCoin Group (01499) dropped 7.69% to HKD 0.36; Blue Harbor Interactive (08267) declined 5.63% to HKD 0.67; and Osl Group (00863) slipped 1.91% to HKD 16.96.
On Tuesday, the CME Bitcoin futures BTC main contract fell 2.78% compared to Monday's New York tail-end session, dropping below $123,000. The CME Ether futures DCR main contract fell 4.67%, closing at $4,542. The plunge in Bitcoin weighed on cryptocurrencies and related concept stocks. Analysts noted that Bitcoin retreated after hitting new highs due to profit-taking by traders, with the previous rally driven by institutional demand, favorable macroeconomic factors, and seasonal momentum.
Cloud computing concept stocks were hit by negative news. By the close, Mingyuan Cloud (00909) fell 4.92% to HKD 3.48; Kingsoft Software (03888) dropped 2.01% to HKD 33.2; Alibaba-W (09988) declined 1.61% to HKD 177.6; and SUNeVision Holdings (01686) fell 1.45% to HKD 6.8.
A report citing internal documents revealed that Oracle’s NVIDIA cloud business generated $900 million in sales over the three months ending in August, with a gross margin of 14%. This 14% gross margin already accounts for data center labor, electricity, and some equipment depreciation costs, while other unspecified depreciation expenses would further erode profits by seven percentage points. Over the past year, the business had an average gross margin of about 16%, and the company’s overall gross margin is expected to decline significantly from recent levels of around 70%.
Hot Movers
Changfeng Pharmaceuticals (02652) debuted on its first day of listing. By the close, it surged 161.02% to HKD 38.5.
Changfeng Pharmaceuticals priced its IPO at HKD 14.75, issuing a total of 41.198 million shares, with each lot consisting of 500 shares, raising net proceeds of approximately HKD 525 million. Public information indicates that Changfeng Pharmaceuticals primarily focuses on the research, production, and commercialization of inhalation technologies and drugs for treating respiratory diseases. During the performance record period, the group obtained six product approvals from China’s National Medical Products Administration (NMPA) and the U.S. FDA, generating significant sales revenue. CF017, an inhalable budesonide suspension for treating bronchial asthma, was Changfeng Pharmaceuticals' first approved product.
Xinjiang Xinxin Mining Industry (03833) continued its recent uptrend. By the close, it rose 16.88% to HKD 3.6.
Xinjiang Xinxin Mining Industry previously announced that to promote the company's sustained and stable development and enhance sustainable income and shareholder returns, the board approved plans to issue A-shares and list them on a Chinese securities exchange. According to the interim report, Xinjiang Xinxin Mining Industry wholly owns four nickel-copper mines—Karatongke, Huangshan East, Huangshan, and Xiangshan—as well as two vanadium mines, Xianghe Street and Mujia River, and the Kaercha'er fluorite mine. Notably, since announcing its return to the A-share market, the company’s stock price has nearly doubled.
3. Jinli Permanent Magnet (06680) rose against the market trend, closing 9.19% higher at HKD 24.
The U.S. government is actively rebuilding its domestic rare earths supply chain. On October 6, the Trump administration was reportedly discussing taking a stake in Critical Metals, potentially giving the U.S. direct ownership of the largest rare earth mining project in Greenland. Notably, the U.S. government has recently succeeded in acquiring stakes in lithium giant Lithium Americas and MP Materials, the U.S. rare earths leader that owns the Mountain Pass mine. Guojin Securities believes that rising prices, supply-side reforms, supply disruptions, and the sector’s enhanced strategic importance will continue to drive valuation and earnings growth in the rare earths sector.
4. Jiangxi Copper Co., Ltd. (00358) continued to reach new highs. At the close, it rose by 6.02%, trading at HKD 35.20.
The suspension of operations at the Grasberg copper mine is expected to further widen the copper supply gap from Q4 2025 to 2026. Additionally, the Copper Branch of the China Nonferrous Metals Industry Association expressed strong opposition to ‘internecine’ competition within the copper smelting industry. Analysts suggest that the overcapacity in smelting is expected to ease, with smelters likely to see improved profitability going forward. Public data indicates that Jiangxi Copper is the leading copper smelting company in China, with an annual cathode copper production capacity of 2.1 million tons, and copper business revenue accounting for more than 70% of its total.
