NewTimeSpace | Hong Kong Market Close: The Three Major Indices Opened Higher and Moved in a Choppy Range, with the Hang Seng Index Closing Up 0.52%, While Themes Such as Defense and Building Materials Led the Gains

NewTimeSpace reported, on October 16, 2026, the three major Hong Kong indices opened higher and moved in a choppy range, with the Hang Seng Index up 0.52%, the Hang Seng TECH Index up 1.16%, and the Hang Seng China Enterprises Index up 0.31%. The market turnover was 178.2 billion HKD, lower than that of the previous trading day. Southbound funds saw a net selling of 3.568 billion HKD.

On the market, by industry. Themes such as defense, building materials, and steel led the gains. Themes such as durable consumer goods, household goods, and electrical equipment led the declines.

Of which, 60 constituent stocks of the Hang Seng Index rose and 33 fell. On the upside, LENOVO GROUP rose 8.0%, NEW ORIENTAL-S rose 5.9%, and BEONE MEDICINES rose 4.4%. On the downside, CHINA LIFE fell 2.9%, WH GROUP fell 2.6%, and POP MART fell 2.3%.

Among the Hang Seng TECH Index constituents, 24 rose and 5 fell. On the upside, TENCENT MUSIC-SW rose 3.8%, NIO-SW rose 3.5%, and KUAISHOU-W rose 2.5%. On the downside, HUA HONG GRACE fell 2.1%, XIAOMI-W fell 1.6%, and BYD ELECTRONIC fell 1.5%.

Among Hong Kong Stock Connect constituents, MICOT PHARMA-B soared 64.1%, SHANGHAI FUDAN rose 13.1%, and DUALITYBIO-B rose 10.9%. On the downside, YUNJI plunged 25.1%, ABLE DIGITAL plunged 15.5%, and VIEWTRIX TECH fell 10.5%.

SDIC Securities (Hong Kong) Limited stated that the two data sets released last night both came in above expectations, yet the bond market moved in the opposite direction, which is the key to understanding the current market. The 10-year US Treasury yield fell 13 basis points to 5.06%, the 2-year yield fell back to about 4.75%, and the curve showed a bull-flattening pattern. This reflects that market expectations for the future rate-hike path are largely priced in, with the probability of at least one more hike before December close to 90%, and the new data can hardly push front-end pricing much higher.

In addition, the recent AI credit stress has also triggered safe-haven buying of Treasuries, on top of short covering after crowded positioning. The trigger was that the five-year credit default swap (CDS) of CoreWeave (CRWV.US) rose by as much as 74.5 basis points to 1,194.5 basis points, a record high, implying a probability of default over the next five years of more than 60%. Its bonds maturing in 2031 with a 9% coupon fell to about 82.75 cents, with the yield rising to 14.5%. Large cloud providers' annual capital expenditure is heading toward 1 trillion USD, a considerable part of which relies on debt financing, and the market has begun to have concerns about the sustainability of the funding supply. (Source: "Hong Kong Stock Market Morning Report" by SDIC Securities (Hong Kong) Limited, 20261016)