NewTimeSpace | Hong Kong Market Close: The Three Major Indices Fluctuated and Weakened, with the Hang Seng Index Closing Down 0.73%, While Themes Such as Coal and Industrial Trade & Commerce, Conglomerates Led the Gains

NewTimeSpace reported, on October 27, 2026, the three major Hong Kong indices continued to weaken, with the Hang Seng Index down 0.73%, the Hang Seng TECH Index down 1.48%, and the Hang Seng China Enterprises Index down 0.45%. The full-day market turnover was 178.3 billion HKD, higher than that of the previous trading day. Southbound funds saw a net selling of 1.238 billion HKD.

On the market, from an industry perspective. Themes such as coal, industrial trade & commerce, conglomerates, and telecommunications services led the gains. Themes such as pharmaceuticals & biologics, defense, and electrical equipment led the declines.

Of the Hang Seng Index constituents, 33 rose and 61 fell. On the downside, LONGFOR GROUP fell 7.06%, HSBC HOLDINGS dropped 5.56%, and XIAOMI-W fell 4.61%. On the upside, LI NING rose 5.92%, LENOVO GROUP rose 2.94%, and CHINA SHENHUA rose 2.36%.

Among the Hang Seng TECH Index constituents, 4 rose and 26 fell. On the downside, HORIZONROBOT-W fell 5.87%, LEAPMOTOR fell 4.84%, and SENSETIME-W fell 3.49%. On the upside, Z.AI rose 8.90%, SUNNY OPTICAL edged up 0.64%; HUA HONG GRACE edged up 0.47%.

Among Hong Kong Stock Connect constituents, on the upside, BRAINAURORA-B soared 27.13%, STAR SHINE HLDG rose 11.44%, and NEW VISION CO rose 10.75%. On the downside, DUALITYBIO-B plunged 27.93%, REALORD TECH plunged 20.71%, and KEYMED BIO-B fell 14.38%.

Guoyuan International Holdings Limited said that global markets are still disturbed by AI investment returns, high interest rates and Middle East energy risks. The Fed is expected to pause rate hikes in October, but high oil prices and inflation pressure mean that the tightening cycle has not yet ended, and the high interest rate environment will still constrain the valuation of growth assets.

Guoyuan International Holdings Limited believes that last week's correction in Hong Kong stocks has spread from a retracement in some high-elasticity sectors to a broader contraction in risk appetite, with the decline in global risk appetite, cooling domestic policy expectations and marginally weakening southbound funds jointly constituting the pressure. In the short term, it takes "indexes fluctuating weak, with continued internal differentiation" as the base case. In the technology direction, it continues to focus on whether AI capital expenditure can truly translate into revenue, profit and free cash flow, giving priority to enterprises that are already profitable, with low leverage and strong self-financing capability; at the same time, defensive directions with relatively stable cash flow such as staple consumption, utilities and financials can be allocated. (Source: "Hong Kong Market Weekly Report: Risk Appetite Contracts, Hong Kong Stocks Continue Their Correction" by Guoyuan International Holdings Limited, 20261026)