Hong Kong stocks rebound! The Hong Kong Stock Connect Technology ETF and Hang Seng Medical ETF, which have seen continuous inflows despite declines, rose over 1%.

Gelonghui, October 15th | The Hong Kong stock market opened higher and continued to rise today, with the Hang Seng Tech Index up more than 1%. Internet stocks and innovative pharmaceutical sectors led gains, as JD Health and Bilibili rose over 4%, while Ali Health and Alibaba gained more than 3%, driving the Hang Seng Pharmaceutical ETF and the Stock Connect Technology ETF up by over 1%. In terms of news, ① Federal Reserve Chair Powell warned on Tuesday that the U.S. labor market is showing further signs of distress, hinting at one more rate cut opportunity before the October monetary policy meeting. ② On October 14, the Hong Kong Stock Exchange announced plans to launch a Hang Seng Biotechnology Index futures contract, further optimizing its expanding derivatives ecosystem. The new futures contract will begin trading on November 28, 2025, and will provide investors with precise risk management tools. From a capital flow perspective, Hong Kong equities have seen continuous pullbacks in the first four trading days of October, with the Stock Connect Technology ETF falling over 9% cumulatively from October 9 to October 14, but attracting net inflows of CNY 270 million during this period. The Hang Seng Pharmaceutical ETF fell over 10% in the same period, also recording net subscriptions of CNY 175 million. Amid renewed U.S.-China tensions and the tech sector’s retreat, dividend strategy ETFs regained investor attention, with the defensively positioned Hong Kong SOE Dividend ETF (513910) receiving net inflows of CNY 279 million in a single day yesterday. Notable products and their price movements as of press time: A global representative of the pharmaceutical industry chain: Hang Seng Pharmaceutical ETF (159892), +1.04%, with its top ten weighted stocks including several biopharmaceutical companies hitting new highs: BeiGene, Wuxi Bio, Akeso Bio, Sino Biopharm, and 3SBio. A stronger tech investment tool for Hong Kong stocks: Stock Connect Technology ETF (159101), +1.01%, with over 60% exposure to the Mag 7 including Alibaba and Tencent, the highest among peers, and an overweight position in innovative drugs, with unique components such as BeiGene, Innovent Bio, and Akeso Bio. 'SOE + High Dividend Hong Kong Stocks': Hong Kong SOE Dividend ETF (513910), +0.88%, with key holdings including COSCO Shipping Holdings, Orient Overseas International, CITIC Bank, China Construction Bank, CNOOC, and PetroChina.