NewTimeSpace | Hong Kong Market Close: The Three Major Indices Continued to Weaken, with the Hang Seng Index Closing Down 0.90%, While Themes Such as Semiconductors and Defense Strengthened Against the Trend

NewTimeSpace reported, on October 21, 2026, the three major Hong Kong indices continued to weaken, with the Hang Seng Index down 0.90%, the Hang Seng TECH Index down 1.26%, and the Hang Seng China Enterprises Index down 1.08%. The market turnover was 176.6 billion HKD, lower than that of the previous trading day. Southbound funds saw a net selling of 4.435 billion HKD.

On the market, by industry. Themes such as semiconductors, defense, and building materials strengthened against the trend. Themes such as electrical equipment, paper & packaging, and durable consumer goods led the declines.

Of which, 28 constituent stocks of the Hang Seng Index rose and 64 fell. On the downside, CATL plunged 11.41%, POP MART fell 4.84%; LAOPU GOLD fell 4.04%. On the upside, LENOVO GROUP rose 2.93%, BEONE MEDICINES rose 2.66%, and SUNNY OPTICAL rose 2.16%.

Among the Hang Seng TECH Index constituents, 8 rose and 22 fell. On the downside, TENCENT fell 4.04%, ALI HEALTH fell 3.77%, and BYD COMPANY fell 3.39%. On the upside, Z.AI rose 2.31%, HORIZONROBOT-W rose 1.59%, and SENSETIME-W rose 0.44%.

Among Hong Kong Stock Connect constituents, VIEWTRIX TECH soared 20.19%, BRAINAURORA-B soared 17.05%, and SEER TECH rose 16.26%. On the downside, WELLCELL HOLD plunged 28.49%, REALORD TECH plunged 15.89%, and MANYCORE TECH fell 13.20%.

Guoyuan International Holdings Limited believes that high interest rates do not necessarily mean lower AI capital expenditure, but they raise the threshold for investment returns and widen the differences among companies in financing capacity, earnings quality and capital efficiency. In the short term, Hong Kong stocks still take "index fluctuation, with differentiation and rotation emerging within the market" as the base case. For the technology direction, focus on companies that are already profitable, with improving free cash flow, low leverage, and capital expenditure that can be effectively converted into revenue and profits; at the same time, financials, utilities and some consumption directions with stable cash flows can be allocated to reduce portfolio volatility. As the marginal momentum of southbound funds weakens, subsequent sustained gains of Hong Kong stocks will rely more on upward revisions of corporate earnings and improvement in domestic fundamentals. (Source: "Hong Kong Market Weekly Report: High Interest Rate Constraints Persist, with Divergence Across Hong Kong Stock Sectors" by Guoyuan International Holdings Limited, 20261020)