Hang Seng Tech Hits 4-Year High, Remains -40% Below All Time High

Key News

Asian equities were mixed overnight, as Hong Kong outperformed and Thailand underperformed.

After an initial dip, growth stocks in Hong Kong climbed higher on robust volume, propelling the Hang Seng Tech Index to a four-year high as it closed above recent resistance. Concerned with Hong Kong outperforming and Thailand underperforming about missing the rally? The index remains just -40.93% below its February 17, 2021, peak.

Both Hong Kong and Mainland China growth stocks benefited from positive sentiment following the previous day’s announcement by the National Development and Reform Commission (NDRC) of 500 billion Renminbi (RMB) (approximately $71 billion) in support for the artificial intelligence (AI) initiative, and privately held DeepSeek’s launch of its V3.2-Exp model. The NDRC also announced that 69 billion RMB raised from the issuance of ultra-long Treasury bonds has been distributed to local governments for consumer subsidies, pushing the year-to-date total to 300 billion RMB.

Further fueling growth stocks, privately held AI company Zhipu announced its GLM-4.6 large language model is utilizing chips from Cambricon. Hong Kong-listed humanoid robotics maker UB Tech Robotics gained +8.98% after selling 30 million RMB worth of Walker S robots to Tianqi, and Tesla Inc. stated intentions to manufacture its Optimus humanoid robot at scale in 2026.

Hong Kong hosted the world's largest initial public offering (IPO) so far this year, as Zijin Gold International rose by +68.46% on debut. Mirroring yesterday’s trend, favored stocks in policy-supported subsectors led the market, including Alibaba Group Holding Ltd. (+2.08%), Tencent Holdings Ltd. (+0.45%), and Xiaomi Corporation (+0.85%). Software, retailers, automakers (especially electric vehicles), non-ferrous metals, entertainment, media, electrical equipment (with Contemporary Amperex Technology Co. Ltd. (CATL) up +4.48%), as well as pharmaceuticals and biotech, performed strongly.

For a sense of today's dynamics, compare the factors driving outperformance in Hong Kong to those driving underperformance. Meanwhile, Mainland China also posted gains, led by growth-focused sectors, though market breadth was not as robust as in Hong Kong. The technology hardware, communication equipment, insurance, and brokerage sectors all experienced profit-taking.

September’s official Manufacturing Purchasing Managers’ Index (PMI) registered 49.8, versus August’s 49.4 and expectations of 49.6. The official Non-manufacturing PMI was 50, compared to August’s 50.3 and expectations of 50.2, while the Composite PMI edged up to 50.6 from 50.5. This means manufacturing activity contracted again—though at a slower pace—while the non-manufacturing and services sectors expanded at a subdued rate, dragged down by declines in real estate and the restaurant and catering sectors. The mediocre economic data raise the odds of further policy support for the economy.

The China Automobile Dealers Association reported that inventory levels increased year-over-year and declined month-over-month, with 54.8% of dealers citing weaker-than-expected sales in September.

Hong Kong investment bankers remained busy as China Guoxin Services Holding Ltd. and Shenzhen Rui Ming Technology Co. both filed for initial public offerings, following filings by China Natural Holdings Ltd. and Shenzhen JX Semiconductor Technology the previous day.

There will be no China Last Night publication tomorrow as Hong Kong and Mainland China are closed for the start of the Golden Week holiday. Mainland China’s markets will remain closed until Thursday, October 9. Hong Kong will reopen on Thursday but will be closed again next Tuesday, October 7.

Last Night's Performance

Country / Index	Ticker	1-Day Change
China (Hong Kong)	HSI Index	0.9%
Hang Seng Tech	HSTECH Index	2.2%
Hong Kong Turnover	HKTurn Index	1.9%
Hong Kong Short Sale Turnover	HKSST Index	-7.8%
Short Turnover as a % of Hong Kong Turnover	N/A	12%
Southbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	1977.05
China (Shanghai)	SHCOMP Index	0.5%
China (Shenzhen)	SZCOMP Index	0.4%
China (STAR Board)	Star50 Index	1.7%
Mainland Turnover	.chturn Index	0.9%
Northbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	Not Available
Jing Daily China Global Luxury Index	CHINALUX Index	0.1%
Japan	NKY Index	-0.2%
India	SENSEX Index	-0.1%
Indonesia	JCI Index	-0.8%
Malaysia	FBMKLCI Index	0.1%
Pakistan	KSE100 Index	1.2%
Philippines	PCOMP Index	-0.7%
South Korea	KOSPI Index	-0.2%
Taiwan	TWSE Index	0.9%
Thailand	SET Index	-1.1%
Singapore	STI Index	0.7%
Australia	AS51 Index	-0.2%
Vietnam	VNINDEX Index	-0.3%

Indicator	Hong Kong	Mainland
Today's Volume % of 1-Year Average	131%	130%
Advancing Stocks	344	2615
Declining Stocks	147	2304
Outperforming Factors	Liquidity, Growth, Momentum	Liquidity, Growth, Momentum
Underperforming Factors	Low Volatility, Dividend Yield, Large Cap	Dividend Yield, Low Volatility
Top Sectors	Healthcare, Materials, Discretionary	Real Estate, Materials, Healthcare
Bottom Sectors	Energy, Financials	Financials, Staples, Utilities
Top Subsectors	Non Ferrous Metals, Semis, Electrical Equipment	Aerospace/Military, Base Metals, Precious Metals
Bottom Subsectors	Petroleum/Petrochemical, Household/Personal Products, Telecommunication Services	Communication Equipment, Insurance, Diversified Financials
Southbound Connect Buys	Alibaba (Very Large), Hua Hong Semi, Tencent, Xiaomi (Large), Kuaishou, Meituan, SMIC (Moderate)
Southbound Connect Sells	UBTech,XtalPi (Tiny)

MSCI China All Shares Index	# of Stocks	Average 1-Day Change (%)
Hong Kong Listed	152	1.21
Communication Services	9	1
Consumer Discretionary	28	1.79
Consumer Staples	13	0.62
Energy	6	-1.38
Financials	24	-0.01
Health Care	12	3.07
Industrials	21	0.86
Information Technology	10	1.58
Materials	10	2.51
Real Estate	7	1.55
Utilities	12	0.41
Mainland China Listed	395	0.41
Communication Services	7	0.32
Consumer Discretionary	29	0.96
Consumer Staples	24	-0.48
Energy	13	-0.25
Financials	64	-0.89
Health Care	32	1.93
Industrials	61	1.34
Information Technology	90	0.07
Materials	54	2.48
Real Estate	6	2.71
Utilities	15	-0.26

US & Hong Kong Dually Listed	Ticker	1-Day Change (%)
Tencent HK	700 HK Equity	0.5
Alibaba HK	9988 HK Equity	2.1
JD.com HK	9618 HK Equity	1.4
NetEase HK	9999 HK Equity	2.1
Yum China HK	9987 HK Equity	0.4
Baozun HK	9991 HK Equity	2.4
Baidu HK	9888 HK Equity	1.3
Autohome HK	2518 HK Equity	-0.8
Bilibili HK	9626 HK Equity	6.6
Trip.com HK	9961 HK Equity	-0.3
EDU HK	9901 HK Equity	-0.7
Xpeng HK	9868 HK Equity	3.6
Weibo HK	9898 HK Equity	1.7
Li Auto HK	2015 HK Equity	2.9
Nio Auto HK	9866 HK Equity	3.1
Zhihu HK	2390 HK Equity	1.7
KE HK	2423 HK Equity	1
Tencent Music Entertainment HK	1698 HK Equity	0.4
Meituan HK	3690 HK Equity	1.7

Hong Kong's Most Heavily Traded by Value	1-Day Change (%)
ALIBABA GROUP HOLDING LTD	2.1
TENCENT HOLDINGS LTD	0.5
XIAOMI CORP-CLASS B	0.8
ZIJIN GOLD INTERNATIONAL CO	68.5
SEMICONDUCTOR MANUFACTURI-H	4
MEITUAN-CLASS B	1.7
KUAISHOU TECHNOLOGY	7.2
HUA HONG SEMICONDUCTOR LTD-H	11
BYD CO LTD-H	1.5
ZIJIN MINING GROUP CO LTD-H	1.4

Shanghai and Shenzhen's Most Heavily Traded by Value	1-Day Change (%)
EOPTOLINK TECHNOLOGY INC L-A	-5.8
ZHONGJI INNOLIGHT CO LTD-A	-3.1
EAST MONEY INFORMATION CO-A	-1.7
SUNGROW POWER SUPPLY CO LT-A	-1.8
LUXSHARE PRECISION INDUSTR-A	-0.2
VICTORY GIANT TECHNOLOGY -A	-1.8
SEMICONDUCTOR MANUFACTURIN-A	3
CONTEMPORARY AMPEREX TECHN-A	1.2
GIGADEVICE SEMICONDUCTO-CL A	8.2
CAMBRICON TECHNOLOGIES-A	0.1

Last Night's Exchange Rates, Prices, & Yields

• CNY per USD 7.11 versus 7.12 yesterday
• CNY per EUR 8.36 versus 8.34 yesterday
• Yield on 10-Year Government Bond 1.86% versus 1.89% yesterday
• Yield on 10-Year China Development Bank Bond 1.98% versus 2.00% yesterday
• Copper Price +1.45%
• Steel Price -0.55%