On October 10, Caishare News (Editor: Feng Yi) reported that the Hong Kong stock market momentum is picking up, with the Hang Seng Index rising by 2.98%, the Hang Seng China Enterprises Index up by 3.46%, and the Hang Seng Tech Index up by 2.05%.

Let's take a look at today's market highlights: core technology stocks are becoming active again, stabilizing the Hang Seng Index under pressure from adjustments; stocks beginning with middle letters are strong, supporting the overall market, with funds rushing into infrastructure stocks in play; positive policies continue to be introduced, and real estate stocks are heating up, initiating a rebound.

[Core technology stocks become active again, stabilizing the Hang Seng Index under pressure from adjustments]

On the market today, core technology stocks have become active again, with Meituan up by 5%, JD.com up by 3.4%, and Alibaba, Xiaomi, Baidu, and Tencent all showing increases.

It is worth noting that Meituan's year-to-date increase is as high as 136.51%, leading among various technology giants. Moreover, in recent market trends, Meituan has been at the forefront of the gains.

According to the latest research released by Morgan Stanley, Meituan's operating profit for the third quarter is expected to grow by 37%. Goldman Sachs believes that benefiting from government policy direction, Meituan's Gross Transaction Value (GTV) for core local businesses will double between 2024 and 2029.

In addition, according to the Hong Kong Stock Exchange disclosure on October 9, JPMorgan increased its shareholding in Meituan by approximately HKD 0.997 billion on October 3.

In other hotspots, brokerage stocks rebounded driven by gtja and haitong sec resuming trading, while high-speed rail infrastructure and real estate policy expectations lifted one after another; resource stocks such as oil and coal also followed the uptrend.

Today's sector adjustments mainly focused on semiconductors, biomedical, and retail directions.

Overall, hang seng index, after the intense fluctuations of the previous two days, partially digested the adjustment pressure accumulated during the National Day. Hang Seng Index traded at 325.327 billion Hong Kong dollars today, dropping to the average level during the National Day holiday, with a total short-selling amount of 30.455 billion Hong Kong dollars, short-selling funds accounting for 9.36%, close to the average over the last 5 days.

Alibaba-W, semiconductor manufacturing international corporation, and Meituan-W ranked top three in short-selling amounts, with 1.819 billion Hong Kong dollars, 1.388 billion Hong Kong dollars, and 1.277 billion Hong Kong dollars respectively.

Strong support from sectors beginning with middle letter boosts the overall market, as funds rush to allocate investments in infrastructure stocks.

From the market perspective, today the sector beginning with middle letter collectively strengthened, becoming an important stabilizing factor for the market.

On one hand, before the market opened, the central bank announced the creation of an initial 500 billion yuan swap facility to support institutions such as securities, funds, and insurance companies to exchange stock assets for incremental liquidity. Huachuang Securities pointed out that after financial institutions borrow securities from the central bank, they are highly likely to obtain funds through pledged repurchase agreements, still need to consider funding costs, therefore policies may be more favorable for equity assets with stable income such as high dividend.

Huachuang Securities noted that after financial institutions borrow securities from the central bank, they are highly likely to obtain funds through pledged repurchase agreements, still need to consider funding costs, therefore policies may be more favorable for equity assets with stable income such as high dividend.

On the other hand, as the central bank's monetary tools are implemented, the market is increasingly looking forward to the subsequent fiscal efforts, especially the news conference attended by Minister of Finance Lan Fo'an over the weekend.

According to statistics, as of October 10, the Ministry of Finance has issued 752 billion yuan of ultra-long-term special national bonds this year, supporting the implementation of major national strategies, key areas of security capacity building, supporting large-scale equipment updates, and the exchange of old for new consumer goods.

Short-term funds have also significantly shifted towards related areas to seize opportunities for speculation, with leading sectors such as China Railway Construction, CNBM and others leading the gains today.

CITIC Securities stated that in recent times, favorable policies in various areas such as finance, real estate, and capital markets have been frequent, driving the reshaping of market confidence in the capital markets and expectations for policy implementation and improvement in the fundamentals. In the current fundamental environment, follow-up incremental policies may focus on fiscal intensification and monetary easing.

Positive policies continue to be introduced, and real estate stocks show signs of rebounding

In addition, boosted by the positive impact of improved sales during the National Day, mainland real estate stocks also rebounded today, demonstrating a positive market response to the fundamentals.

It is worth mentioning that apart from financial policies such as monetary and fiscal policies, the real estate industry can be described as one of the industries that has received the most frequent policy support in recent periods.

Since October, regional adjustments related to real estate policies have been introduced in provinces such as Shandong, Henan, and Sichuan.

Recently, the Ministry of Housing and Urban-Rural Development, together with the Banking and Insurance Regulatory Commission, held a national video conference to promote the work of safeguarding transactions and housing, emphasizing the expansion of the coverage of the "white list". Ensure that compliant real estate projects are fully included.

International rating agency Moody's stated that a series of policies recently introduced by China to stimulate economic growth, stabilize the real estate market, and support the capital markets will boost market confidence. If these measures are coordinated and implemented effectively, they are expected to support GDP growth.

In the short term, since the main logic of the Hong Kong stock market has not changed, the performance of real estate and financial stocks after the market stabilizes remains a key factor in determining how far the upward trend can go, worth investors' attention.