Hong Kong's three major stock indices opened higher but closed lower, with financial stocks posting strong gains. HSBC Holdings PLC (HSBC) surged over 4%.

The Hong Kong market saw a midday slump, with tech and semiconductor stocks broadly declining. The Hang Seng Tech Index fell more than 1%. The financial sector bucked the trend, driven by HSBC's positive earnings. Gold prices extended losses, pressuring precious metal stocks.

Four new stocks debuted on the Hong Kong Exchange, closing with varying gains. Meanwhile, Hong Kong's Securities and Futures Commission took further action against individuals involved in the Ding Yifeng case.

**Hang Seng Tech Index Drops Over 1%** On October 28, Hong Kong's major indices retreated after a higher open. By the close, the Hang Seng Index fell 0.33% to 26,346.14, while the Hang Seng Tech Index dropped 1.26%, and the Hang Seng China Enterprises Index declined 0.97%.

Sector-wise, financial stocks outperformed, while tech and semiconductor shares weakened in the afternoon. Precious metals and healthcare stocks lagged. Among Hang Seng Tech Index constituents, SMIC fell 3.26%, while SenseTime, Li Auto, NetEase, and BYD Electronic each lost over 2%. Tencent, Xiaomi, Meituan, and Alibaba declined more than 1%.

East Asia Securities noted that Hong Kong stocks maintain a medium-term upward trend despite recent volatility. Factors behind the earlier pullback have eased, and market sentiment on tariffs has adjusted amid U.S.-China dialogue. Tech sector performance hinges on U.S. tech earnings. The firm expects tech stocks to rebound strongly in Q4 but advises monitoring dividend stocks, which historically perform well from November to December.

**Financial Sector Rallies as HSBC Jumps 4%** Banking stocks led gains, with HSBC rising over 4%. Bank of China (Hong Kong), China Construction Bank, Hang Seng Bank, and China Merchants Bank also closed higher. AIA Group climbed more than 3%.

At midday, HSBC reported Q3 2025 pre-tax profit of $7.3 billion, down $1.2 billion year-on-year. Adjusted pre-tax profit rose 3% to $9.1 billion. Revenue increased 5% to $17.8 billion. The bank also raised its full-year net interest income and return on tangible equity guidance.

**Precious Metals Under Pressure as Risk Sentiment Eases** Jewelry stocks like Mengke Gold, Lao Feng Xiang, and Chow Tai Fook fell 0.07%, 3.96%, and 4.55%, respectively. Gold miners Zijin Mining, International Gold, and Tongguan Gold dropped 5.59%, 5.45%, and 5.11%. COMEX gold slid below $3,920/oz.

**Healthcare Stocks Weaken** Biotech and pharmaceutical stocks declined, with Duality Biologics down over 5%. Simcere Pharmaceutical, XtalPi, and WuXi AppTec lost more than 2%. Galaxy Securities noted the sector shows signs of structural recovery after prolonged valuation adjustments. The firm expects robust innovation drug licensing deals in H2, potential valuation boosts from global rate cuts, and improving CXO industry fundamentals. Medical equipment demand may rebound with policy support.

**Four IPOs Debut in Hong Kong** Four new listings debuted on the Hong Kong Exchange. Deepexi Tech (DEEPEXI TECH) soared over 150%, Bama Tea (BAMA TEA) jumped 86%, Cambridge Technology rose 33%, and Sany Heavy Industry gained 2%. Deepexi raised HK$710 million, with its retail offering oversubscribed 7,569.83 times. Bama Tea's IPO was 2,680.04 times oversubscribed.

**Hong Kong SFC Tightens Grip on Ding Yifeng Case** On October 27, Hong Kong's Securities and Futures Commission (SFC) obtained court orders freezing assets of 12 individuals accused of manipulating Global Smart Holdings' shares between October 2018 and March 2019. The freeze covers up to HK$82.4 million. The case is part of broader proceedings against Ding Yifeng's former chairman and 28 others. Global Smart has since delisted.