The three major Hong Kong stock indices opened lower again, fell sharply in early trading, with the Hang Seng Tech Index once dropping over 1.5%, narrowed losses before noon, and maintained narrow-range fluctuations in the afternoon. By the close, the Hang Seng Index fell 0.62% or 150.06 points to 24,130.5 points, with turnover of HK$94.7 billion; the Hang Seng China Enterprises Index fell 0.57% to 8,082.4 points; the Hang Seng Tech Index fell 0.68% to 4,194.49 points. Galaxy Securities noted that the current investment mainline for Hong Kong stocks is short-term repair trading and structural defensive positioning. The core market contradiction lies between liquidity repair expectations from the return of southbound capital and the suppression of valuations by high overseas interest rates. Within the week, attention should be paid to the minutes of the Federal Reserve's September monetary policy meeting and the 10-year U.S. Treasury auction for clues on the rate path. A medium-term reversal has not yet been confirmed, the market lacks catalysts for a trend-based upward move, and the rebound is more structural.

Blue-Chip Performance

Weichai Power (02338) led blue-chip gains. By the close, it rose 4.68% to HK$30.86, with turnover of HK$605 million. JPMorgan raised its target price for Weichai Power, citing improving shipment prospects, resilient margins, accelerating growth in the AI data center business, and progress in commercializing solid oxide fuel cells (SOFC). The recent stock price pullback stems from negative market sentiment toward the AI data center power supply chain and macroeconomic headwinds, rather than deterioration in Weichai's business execution or fundamentals. Among other blue chips, Sun Hung Kai Properties (00016) rose 2.2% to HK$106.7; China Unicom (00762) rose 2.11% to HK$43.5; HSBC Holdings (00005) fell 1.9% to HK$149.9; Alibaba-W (09988) fell 2.59% to HK$105.4.

Hot Sectors

On the board, affected by cloud vendors' capital expenditure expectations and the upcoming quarterly reports of the two memory giants, AI hardware stocks collectively declined. Memory concept stocks, optical communications, and semiconductor sectors led the losses. The World Health Organization downplayed the risk of pneumonic plague in Russia, and the biopharmaceutical sector, which performed strongly yesterday, gave back gains across the board. Some mainland property stocks surged in late trading.

AI hardware stocks collectively declined. By the close, Junzhi Group (01300) fell 5.44% to HK$3.3; CIG Shanghai (06166) fell 2.97% to HK$114.3; GigaDevice Innovation (03986) fell 2.66% to HK$431; Hua Hong Semiconductor (01347) fell 2.68% to HK$105.3. Founder Securities noted that the continued expansion of cloud vendors' capital expenditure is an important support for this round of AI hardware行情, but rising investment scale and stock price increases are not always synchronized. Whether the market expectation that the growth rate of cloud capital expenditure has peaked this round holds true may have significant guiding significance for the sustainability of future AI hardware stock行情. Barclays estimates that the capital expenditure of the five major vendors has consumed about 90% of operating cash flow, and they may need to borrow or sell assets to maintain the pace of construction. In addition, with Samsung and SK Hynix quarterly reports approaching, the market is concerned that won appreciation will erode third-quarter performance.

The biopharmaceutical sector gave back gains across the board. By the close, GenScript Biotech (01548) fell 12.7% to HK$42.9; Joinn Laboratories (06127) fell 8.39% to HK$29.5; CanSino Biologics (06185) fell 6.4% to HK$38; Harbour BioMed-B (02142) fell 6.08% to HK$12.82. A suspected plague virus infection incident in Russia's Irkutsk region has drawn international attention. After a laboratory researcher died suspectedly from pneumonic plague infection, Russian government authorities implemented quarantine and testing for relevant contacts. The World Health Organization stated that the current outbreak poses a "very low" risk to areas outside the country. In addition, Citi released a research report in late September downgrading Moderna's rating from "Neutral" to "Sell" and significantly cutting its target price from $80 to $60.

Some mainland property stocks surged in late trading. By the close, R&F Properties (02777) rose 32.3% to HK$0.213; Shimao Group (00813) rose 22.64% to HK$0.065; CIFI Holdings (00884) rose 16.67% to HK$0.035; Sino-Ocean Group (03377) rose 14.71% to HK$0.039. Recently, multiple real estate companies have announced progress on debt restructuring. LVGEM China Real Estate signed a restructuring support agreement, with the winding-up petition hearing adjourned to April 6, 2027; Agile Group plans to resolve approximately $5.183 billion in all-category offshore financial debt by transferring approximately 64.6% equity after restructuring; Shimao Group recently received a winding-up petition from a third party to the Hong Kong High Court, and the company stated it will oppose it. In addition, the Ministry of Finance and other ministries issued a notice on implementing an interest subsidy policy for residential mortgage loans, and institutions indicated it is expected to promote the release of home purchase demand from first-time buyers.

Notable Stock Movements

Baige Online (02672) rose on heavy volume in late trading, with cumulative gains exceeding 35% during the month. By the close, it rose 15.28% to HK$74.7. Baige Online recently announced that on September 28, the board reviewed and approved a proposal to convert 170 million unlisted shares held by five domestic share shareholders of the company into H shares of the company, representing approximately 52.91% of the company's total issued share capital as of the announcement date. As of the announcement date, the company has not yet submitted filing application documents to the China Securities Regulatory Commission for full circulation of H shares.

Chervon Holdings (02285) rose against the market, up 5.41% by the close to HK$31.54. On September 10, former CEO of Techtronic Industries Joseph Galli Jr joined Chervon Holdings as the new CEO. Within the following two to three weeks, Galli recruited and promoted four key senior executives for the North American business, three of whom had previously worked together in Techtronic's Milwaukee business. Daiwa noted that Galli is building his team and replicating past strategies, investing in professional user research and job site marketing to build customer trust and brand penetration.

CGN Mining (01164) opened higher and moved up. By the close, it rose 5.23% to HK$2.215. Google parent Alphabet agreed to purchase nuclear power from Constellation Energy, an agreement that will drive an additional 890 megawatts of reactor capacity, a move interpreted by the market as a continuation of the tech giant's AI infrastructure capital expenditure narrative. In addition, the U.S. Department of Energy made a conditional loan commitment of up to $4.2 billion to Vistra to upgrade three nuclear facilities, planning to add 433 megawatts of generating capacity and maintain nearly 4 gigawatts of baseload power supply.

Sa Sa International (00178) pulled up in late trading, rising 5.26% by the close to HK$1.2. Sa Sa International previously issued a positive profit alert, expecting profit for the six months ended September to exceed HK$150 million, compared with HK$50.2 million in the same period last year. This was mainly due to strong same-store sales in Hong Kong and Macau, as well as rapid growth in the company's B2BC online sales and profitability. Jefferies believes the profit alert brought a surprise to the market, as the announcement was earlier than expected, demonstrating the company's sustained net profit recovery momentum.