NewTimeSpace | Hong Kong Market Close: The Three Major Indices Opened Higher and Surged, with the Hang Seng Index Closing Up 3.67%, While Themes Such as Consumer Discretionary Retail and Daily Consumer Retail Led the Gains

NewTimeSpace reported, on November 5, 2026, the three major Hong Kong indices opened higher and surged, with the Hang Seng Index up 3.67%, the Hang Seng TECH Index up 5.55%, and the Hang Seng China Enterprises Index up 3.87%. The turnover of the Hong Kong market was 356.7 billion HKD, with notably higher volume than the previous trading day. Southbound funds saw a net selling of 21.287 billion HKD.

On the market, from an industry perspective. Themes such as consumer discretionary retail, daily consumer retail, and software services led the gains. Themes such as oil and petrochemicals, coal, and semiconductors led the declines.

Of which, 82 constituent stocks of the Hang Seng Index rose and 13 fell. On the upside, SBP GROUP rose 9.22%, NETEASE rose 9.07%, and LI AUTO-W rose 8.94%. On the downside, LENOVO GROUP fell 6.86%, WEICHAI POWER fell 5.20%, and PETROCHINA fell 4.16%.

Among the Hang Seng TECH Index constituents, 27 rose and 3 fell. On the upside, ILUVATAR COREX rose 9.44%, XIAOMI-W rose 8.83%, and ALIBABA-W rose 8.45%. On the downside, HUA HONG GRACE fell 2.04% and Z.AI fell 1.69%.

Among Hong Kong Stock Connect constituents, INNOGEN-B rose 17.68%, DRINDA rose 16.58%, and KINGDEE INT'L rose 15.38%. On the downside, YOFC plunged 12.48%, KB LAMINATES plunged 12.43%, and CCTC plunged 10.76%.

CITIC Securities stated that in 2026, Hong Kong stocks were dragged down by weakening domestic demand earnings and liquidity pressure, showing a "performance plus valuation" double kill. Looking ahead to 2027, Hong Kong stock earnings will grow moderately, with the Hang Seng Index and the Hang Seng Composite Index expected to grow 7.4% and 9.9% respectively, the Hang Seng TECH accelerating to 24.8%, and consumption and technology replacing cyclicals as the main incremental drivers; overseas rate hike expectations are fully priced in, the Fed may restart rate cuts in the second half, easing discount rate pressure, but financing unlocks and a slowdown in southbound flows will still keep funding conditions relatively tight in the first half of 2027. Currently, the dynamic PEs of the Hang Seng Index and the Hang Seng TECH are 9.67 and 13.10 times respectively, at historical lows, and policy support and mutual market access reform are expected to support a recovery. In terms of allocation, it suggests balancing growth and dividend: on the growth side, allocate to four major directions of biotechnology, AI applications, intelligent driving, and embodied AI; on the dividend side, use bond-like assets as ballast while also considering dividend growth. (Source: CITIC Securities, 20261105, "Hong Kong Market | Risks Fully Priced In, Recovery Rally Expected to Begin: 2027 Investment Strategy")