According to the Securities Times app, the Hong Kong stock market rebounded slightly today, with all three major indices closing slightly higher, but there was a temporary plunge in the afternoon. As of the close, the Hang Seng Index rose by 0.1% or 20.49 points to 20498.95 points, with the market turnover falling again, decreasing to 154.804 billion Hong Kong dollars for the day; Hang Seng China Enterprises Index rose by 0.31% to 7363 points; Hang Seng Tech Index rose by 0.66% to 4521.63 points.

Guoyuan International believes that although there may be short-term adjustments in the Hong Kong stock market, the market may be close to completing the mid-to-long-term market bottoming out process. The long-term market trend still needs to consider the ultimate strength and effectiveness of future fiscal policies. If the stimulus measures ultimately lead to a significant recovery in domestic demand and promote the effect of deleveraging the economy, the long-term market outlook for Hong Kong stocks is very promising.

Blue chip performance

Geely Auto (00175) led the blue chips. As of the close, it rose by 7.06% to 13.64 Hong Kong dollars, with a turnover of 2.168 billion Hong Kong dollars, contributing 8.82 points to the Hang Seng Index. China CITIC International stated that with Geely Auto continuously breaking through in the new energy market and strengthening its position in the gasoline vehicle market, the bank expects Geely's profits to continue to recover in the next two years and may exceed the profit peak of the previous profit cycle (2016 to 2018). The bank reiterated its 'buy' rating on Geely Auto with a target price raised to 19 Hong Kong dollars.

In other blue-chip stocks, Li Auto Inc. (02015) rose by 4.99% to 101 Hong Kong dollars, contributing 10.83 points to the Hang Seng Index; JD Health (06618) rose by 3.44% to 28.55 Hong Kong dollars, contributing 1.76 points to the Hang Seng Index; BYD Electronic (00285) fell by 3.19% to 33.4 Hong Kong dollars, dragging down the Hang Seng Index by 1.44 points; Sun Hung Kai Properties (00016) fell by 2.14% to 84.45 Hong Kong dollars, weighing down the Hang Seng Index by 3.95 points.

Hot sectors

In the market, large technology stocks fluctuated, with Meituan up nearly 2% and Alibaba down 0.56%. Stocks related to the three-child policy performed strongly, with Beike Medical soaring 17%; consumer stocks regained momentum, with dairy product, theater, and sporting goods stocks all rising; Associations have called for component bidding not lower than cost price, and photovoltaic stocks continued to rise; In September, monthly production and sales of new energy vehicles reached a record high, with German Chancellor reiterating opposition to the EU imposing tariffs on Chinese electric vehicles, leading to a rise in auto stocks; Electrical utility, brokerage, and mainland real estate stocks were active. On the other hand, insurance stocks, golden industrial concept stocks, and apple supplier stocks showed weak performance.

1. Most auto stocks rose. As of the close, Geely Auto (00175) rose by 7.06%, to HK$13.64; Li Auto Inc. (02015) rose by 4.99%, to HK$101; Great Wall Motor (02333) rose by 3.17%, to HK$13.66; Xpeng (09868) rose by 2.79%, to HK$42.35.

According to the Mid-Term Association's data, in September, new energy vehicle production and sales reached 1.307 million and 1.287 million units respectively, up by 19.7% and 17% month-on-month, and 48.8% and 42.3% year-on-year, with monthly production and sales hitting a historical high, and the sales of new energy vehicles accounting for 45.8% of total new car sales. Everbright Securities believes that under multiple policy bullish factors such as the promotion of trade-ins for old cars in the automobile sector and decreased consumer loan interest rates, the trend of automobile consumption recovery is clear and optimistic about the prospect of total car volume recovery in 2H24E. In addition, German Chancellor Scholz recently stated that China has excelled in the field of electric vehicles and reiterated Germany's opposition to tariffs on Chinese electric vehicles.

2. Photovoltaic stocks continued to rise. At the close, Flat Glass (06865) rose by 3.61%, to HK$11.48; GCL Tech (03800) rose by 3.45%, to HK$1.2; Xinte Energy (01799) rose by 3.06%, to HK$7.74; Xinyi Solar (00968) rose by 2.42%, to HK$3.38.

The China Photovoltaic Industry Association has called for component bidding not to be lower than cost price, with the calculation indicating the low cost of components in October to be 0.68 yuan/W, expecting to provide the market with authoritative cost data for reference by the entire industry and government regulatory authorities to promote healthy industry development. Sinolink points out that the PV Association has continuously taken action to maintain the industry ecosystem and fair competitive order, helping the industry's prosperity to bottom out and reverse; The reshuffling of the supply side will still be dominated by market forces, with the expectation of a strong signal of capacity clearance from 24Q4 to 25Q1, likely further strengthening the market's confidence in establishing the industry bottom and improving supply-demand relations.

3. Electrical utility stocks generally rose. At the close, Huaneng Power International, Inc. (00902) rose by 4.81%, to HK$4.58; Huadian Power International Corporation (01071) rose by 4.44%, to HK$4.23; Datang International Power Generation (00991) rose by 3.95%, to HK$1.58; China Res Power (00836) rose by 2.98%, to HK$20.75.

On October 15, inter-provincial electricity spot markets officially entered operation, marking a milestone in the construction of a unified national electricity market system, further expanding the scope of marketized electricity trading in China and laying the foundation for a unified national electricity market system. Guoyuan believes that the further expansion of the country's marketized electricity trading range is conducive to optimizing the allocation of power resources and will greatly promote the integration of new energy; Thermal power provides important support for the stable operation of the power system, and can flexibly adjust output according to price changes in the spot market, further consolidating profitability stability.

4. China-affiliated brokerage stocks were active. At the close, China Merchants (06099) rose by 3.37%, to HK$14.1; Swhy (06806) rose by 2.16%, to HK$2.37; China Galaxy (06881) rose by 2.13%, to HK$6.7; China International Capital Corporation (03908) rose by 1.83%, to HK$14.48.

The central bank conducted the first operation of securities, funds, and insurance companies exchanging convenience yesterday. The amount of this operation is 50 billion yuan, using the rate bidding method, with 20 institutions participating in the bidding. The highest bid rate is 50bp, the lowest bid rate is 10bp, and the bid rate is 20bp. On the same day, China International Capital Corporation reached the first pledged repurchase transaction under the "securities, funds, and insurance companies exchanging convenience", with the pledged securities being the 2024 first batch of convenience bonds of the central bank. Open Source Securities pointed out that the SFISF exchange convenience terms exceeded expectations, beneficial for stimulating the enthusiasm of brokers to use tools, contributing incremental funds to the capital market, indicating positive signals for stock market regulation, and the new tools are expected to enhance the capabilities of brokers.

Popular fluctuating stocks

1. ZTE (00763) fell after its results were announced. It closed down 8.03% at HK$19.36.

ZTE announced its financial results for the third quarter of 2024, with revenue of approximately 27.557 billion yuan, a decrease of 3.94% year-on-year; the net profit attributable to common shareholders of the listed company was approximately 2.174 billion yuan, a decrease of 8.23% year-on-year. For the period of January to September, revenue reached about 90.045 billion yuan, an increase of 0.73% year-on-year; the net profit attributable to common shareholders of the listed company was approximately 7.906 billion yuan, an increase of 0.83% year-on-year.

2. Youzan (09880) surged on high volume. It closed up 20.07% at HK$107.7.

Tesla recently released the latest Optimus update, showcasing its latest achievements in autonomous walking and human interaction in a video. Institutions believe that as Optimus's performance continues to improve, its commercialization is approaching, and catalysts related to humanoid robot industry are expected to continue to be released towards the end of the year. Youzan officially launched the new-generation industrial humanoid robot Walker S1 and has successfully entered BYD's automobile factory for training.

3. CGN Mining (01164) strengthened once again. It closed up 19.59% at HK$2.32.

China International Bank pointed out that the positive outlook on U.S. nuclear power demand by the market may strengthen its supply and demand fundamentals. The bank believes that U.S. nuclear power plant owners are still waiting for the election results before deciding on future development progress. Republicans are generally considered more supportive of nuclear power, which may accelerate approvals, especially environmental approvals, making the market more bullish on nuclear power and uranium.

Genscript Bio (01548) significantly increased. As of the close, it rose by 9.15% to HK$12.88.

Genscript Bio announced that the board of directors decided to deconsolidate Legend Group and treat it as an investment in an associated company. The deconsolidation is expected to have a significant impact on the group's consolidated financial statements for the year ending December 31, 2024. Due to the substantial difference between the market value of Legend Biotech's stock and the carrying amounts of its assets and liabilities at the deconsolidation date, a significant amount of income is expected to be recognized upon deconsolidation.