①What are the reasons for the strong performance of insurance stocks? ②Why did home appliance stocks rise?
Cailian Press, November 12 (Editor Hu Jiarong) - The three major indexes of Hong Kong stocks closed collectively higher. As of the close, the Hang Seng Index rose 0.85% to 26,922.73 points; the Technology Index increased by 0.16% to 5,933.99 points; and the China Enterprises Index gained 0.82% to 9,538.99 points.
Note: Performance of the Hang Seng Index
Today's Market
In terms of market performance, insurance, real estate, pharmaceuticals, and home appliance stocks strengthened, while automobile and gold stocks showed weakness.
Collective strength in insurance stocks
At the close, China Life Insurance (stock code 02628.HK) rose 4.30%, New China Life Insurance (01336.HK) climbed 3.76%, and PICC Group (01339.HK) increased by 3.48%.
Note: Performance of insurance stocks.
In terms of news, according to recent reports, several large insurance companies have begun launching "opening red" products. The design of these products places more emphasis on participating policies with floating returns – guaranteed income plus variable dividends. However, the primary source of dividends comes from the actual operating surplus of the insurance company, which particularly tests insurers' investment and operational capabilities.
Currently, the predetermined interest rates for insurance products have been continuously adjusted downward for three years, reaching their lowest levels in nearly 20 years. For example, rates for ordinary products have decreased from 3.5% to 2.0%, while those for participating policies have fallen from 3.0% to 1.75%. In comparison, the reduction in predetermined interest rates for participating policies is smaller than that for ordinary products, offering certain yield advantages.
GF Securities believes that, looking ahead to 2026, the floating returns of participating insurance policies and the expansion of bank branches are expected to drive new business growth. Improved profit-margin differentials are likely to drive an increase in value rates, with overall value projected to maintain steady growth.
Real estate stocks continued their rebound.
By the close of trading,远洋集团 (03377.HK) rose 10.48%, 世茂集团 (00813.HK) climbed 9.43%, and 中国海外宏洋集团 (00081.HK) gained 5.17%.
Note: Performance of real estate stocks.
CICC issued a research report stating that the performance of the real estate market in terms of volume and price in 2025 will be in the early stage of 'stabilizing after halting declines,' characterized by a 'moderating decline.' To accelerate the market's transition from 'moderating decline' to 'stabilizing after halting declines,' bottlenecks at the implementation level for various supply and demand adjustment policies still need to be addressed. Under a neutral scenario, the firm expects the overall housing sales decline to narrow slightly in 2026, with the decline in real estate investment potentially flattening. In an optimistic scenario, land acquisition and construction starts would show elasticity first and could serve as leading indicators to monitor.
Pharmaceutical stocks showed active performance.
By the close of trading, 三叶草生物-B (02197.HK) surged 8.80%, 百奥赛图-B (02315.HK) increased 5.56%, and 科伦博泰生物-B (06990.HK) rose 4.80%.
Note: The performance of pharmaceutical stocks
In terms of news, at a press conference held by the National Center for Disease Control, it was mentioned that the peak of this year’s flu epidemic in China during the autumn and winter seasons is expected to occur between mid-to-late December and early January.
Clover Biopharmaceuticals-B, which saw significant gains today, primarily focuses on vaccine research and production rather than directly manufacturing flu medications. The company specializes in developing COVID-19 vaccines and influenza vaccines, aiming to improve public health through preventive vaccines rather than therapeutic drugs.
Home appliance stocks benefit from the Double 11 boost.
At the close of trading, Hisense Home Appliances (00921.HK) rose 6.99%, TCL Electronics (01070.HK) increased by 4.78%, and Midea Group (00300.HK) gained 4.36%.
Note: Performance of home appliance stocks.
In terms of news, JD.com released its Double 11 data last night. According to sales category data, JD.com ranked first in online sales in the 3C digital products, large home appliances, and small home appliances categories. Daily necessities achieved a year-on-year growth rate of 36%, while apparel grew by 30% year on year.
Automobile stocks generally experienced a pullback.
At the close of trading, Nio-SW (09866.HK) fell by 6.65%, XPeng Motors-W (09868.HK) dropped 3.04%, and Geely Auto (00175.HK) declined by 2.48%.
Note: Performance of automobile stocks.
While most automobile stocks adjusted downward, some analysts pointed out that China’s market is expected to see a peak in electric vehicle consumption in November and December, driven by policy adjustments.
Gold stocks faced downward pressure.
At the close of trading, Zijin Gold International (02259.HK) fell by 2.50%, Lingbao Gold (03330.HK) dropped by 2.46%, and China Gold International (02099.HK) declined by 2.07%.
Note: The performance of gold stocks.
In terms of news, despite the weak performance of gold stocks today, according to JPMorgan Private Bank, driven by strong gold purchases from central banks in emerging market economies, gold prices could soar above USD 5,000 per ounce by the end of 2026.
Alex Wolf, Head of Global Macro and Fixed Income Strategy at the bank, predicts that gold prices could reach between $5,200 and $5,300 per ounce. If the highest target price is achieved, this would represent an increase of approximately 27% compared to the current level of $4,143 per ounce.
Unusual stock price movements.
Giant Legend surged over 19% intraday and plans to form a joint venture with Unitree Robotics.
Giant Legend (06683.HK) rose by 7.79%, surging over 19% intraday. In terms of news, the company's wholly-owned subsidiary, Star Creation (Kunshan) Entertainment Co., Ltd., signed a joint venture cooperation agreement with Beijing Lingyi Technology Co., Ltd. (a wholly-owned subsidiary of Unitree Robotics). Both parties will jointly establish Yuxing Entertainment Technology Co., Ltd., each holding 50% of the joint venture's equity.
Hesai fell more than 9% as institutions lowered its target price to USD 25.
Hesai-W (02525.HK) dropped 9.53%, closing at HKD 170. In terms of news, the company released its unaudited financial report for Q3 2025 on November 11. Data showed that this quarter, the company achieved revenue of CNY 800 million, representing a year-on-year increase of 47.5% and maintaining positive growth for the sixth consecutive quarter. In terms of LiDAR deliveries, the total delivery volume for Q3 was 441,398 units, of which ADAS product deliveries amounted to 380,759 units, marking a significant year-on-year increase of 193.1%.
However, some analysis pointed out that, on a quarterly basis, the delivery growth rate of ADAS LiDAR has significantly slowed down. The quarter-on-quarter increase for this quarter was 25.43%, showing a notable decline compared to previous levels.
