The Hong Kong stock market continued its volatile trajectory, with all three major indices closing in positive territory. On October 29, the Hang Seng Index rose 0.32% to 20,665.24, while the Hang Seng Tech Index advanced 0.98% to 4,618.68. The Hang Seng China Enterprises Index gained 0.36%, settling at 7,417.53.
This mixed performance reflects ongoing market consolidation amid cautious investor sentiment and anticipation for stronger economic catalysts.
Market Consolidation Ahead of Key Catalysts
Recent analysis from CICC suggests that the Hong Kong market is currently digesting recent gains through a period of range-bound trading, primarily driven by sector-specific momentum rather than broad-based rallies. The outlook remains contingent on upcoming policy developments and macroeconomic data.
Similarly, Zhongtai International notes that weak economic recovery momentum and uncertainty around policy implementation are limiting upside potential. Notably, the 21,200 level on the Hang Seng Index represents a high-volume resistance zone, requiring significant investor conviction to突破 (break through). However, from a valuation standpoint, the index becomes increasingly attractive below 19,500, with technical support observed between 19,700 and 20,100 points.
👉 Discover how global investors are positioning ahead of the next market breakout
Sector Performance: Crypto and EVs Shine Amid Energy and Property Slump
While the broader market remained range-bound, sectoral performance revealed clear leadership trends. Cryptocurrency-related equities and electric vehicle (EV) manufacturers outperformed, while oil and real estate stocks faced selling pressure.
Oil Stocks Retreat as Geopolitical Tensions Ease
Energy names were among the worst performers. China Petroleum & Chemical Corporation (00386.HK) declined 2%, China Petroleum & Chemical Corp (00857.HK) dropped 2.19%, and CNOOC Ltd (02883.HK) fell 1.88%.
This downturn followed a sharp drop in U.S. WTI crude prices, which plunged over 6% on Monday—the largest single-day fall in more than two years. The sell-off was attributed to de-escalating Middle East tensions after Israel refrained from targeting Iran’s nuclear or oil infrastructure.
However, crude prices have since stabilized. At the time of writing, WTI futures were up 0.40% at $67.65 per barrel, indicating short-term stabilization in energy markets.
Property Sector Under Pressure Despite Policy Hopes
Real estate stocks also struggled, with Zhongliang Holdings (02772.HK) plunging 7.09%,旭辉控股集团 (00884.HK) down 5.06%, and Ronshine China (03301.HK) slipping 4.84%.
Despite recent policy easing—including measures introduced in late September—market sentiment remains fragile. According to Huachuang Securities, September saw marginal improvements in seasonally adjusted home sales volume and value. High-frequency data from first-tier cities indicate early signs of recovery, suggesting October’s year-on-year sales figures may improve.
Still, the sustainability of this rebound remains uncertain. Analysts believe further policy support is likely under the government’s “stabilize before rebound” directive, creating potential opportunities for investors watching for a second wave of stimulus measures.
Crypto-Linked Stocks Surge on Hong Kong’s Virtual Asset Push
One of the day’s strongest-performing sectors was cryptocurrency-related equities, fueled by regulatory momentum and improving market sentiment.
OSL Group (00863.HK) soared 16.45%, Meitu Company (01357.HK) climbed 12.20%, and Hashkey Technology (01611.HK) gained 8.21%.
The rally followed a landmark announcement from Hong Kong Exchanges and Clearing (HKEX), which revealed plans to launch a Virtual Asset Index Series on November 15. This initiative aims to establish transparent and reliable benchmark pricing for digital assets like Bitcoin and Ethereum during Asian trading hours. By standardizing price references across exchanges, the index series supports Hong Kong’s ambition to become a leading digital asset hub in Asia.
Concurrently, spot Bitcoin prices breached $71,000—reaching their highest level since June—driven by strong inflows into U.S.-listed Bitcoin ETFs and growing speculation around a potential Donald Trump victory in the upcoming U.S. presidential election.
👉 Explore how institutional adoption is reshaping the future of digital assets
Why This Matters for Investors
The introduction of regulated benchmarks signals maturing infrastructure in Hong Kong’s crypto ecosystem, potentially attracting more institutional capital and improving market efficiency.
Electric Vehicle Stocks Rally on Strong Sales Outlook
Automotive stocks, particularly EV makers, also posted strong gains. NIO (09866.HK) surged 9.75%, Leapmotor (09863.HK) rose 3.48%, and XPeng (09868.HK) advanced 2.57%.
This momentum aligns with upbeat industry forecasts. The China Passenger Car Association (CPCA) projects October’s retail sales at approximately 2.2 million units—a year-on-year increase of 8.2% and a month-on-month rise of 4.3%. More notably, new energy vehicle (NEV) sales are expected to reach 1.15 million units, representing a 52.3% penetration rate in total car sales.
NIO’s outperformance was further supported by Macquarie upgrading its rating to “Buy” from “Neutral.” Although the firm lowered its Hong Kong share target price from HK$64 to HK$52, it raised its U.S.-listed ADR target from $5 to $6.6, citing improving delivery visibility and product cycle strength.
Southbound Capital Continues Inflow Trend
Investor sentiment was also buoyed by sustained southbound capital flows via the Stock Connect programs. On October 29, net inflows reached HK$6.753 billion. Year-to-date, total southbound purchases have accumulated to HK$560.5 billion—an indicator of strong mainland investor appetite for Hong Kong-listed assets.
This consistent capital influx underscores confidence in valuations and long-term structural opportunities in sectors such as tech, green energy, and financial innovation.
Notable Stock Movers
ChaPanda Jumps Over 10% Post-Hong Kong Connect Inclusion
ChaPanda (02555.HK) surged 10.36% to HK$9.27 following its inclusion in the Southbound trading program. Analysts highlight that access to mainland investors typically enhances liquidity and re-rating potential. Since its inclusion on September 10, ChaPanda has gained over 40%.
Bilibili Rises Nearly 3% on Strong Revenue Forecast
Bilibili (09626.HK) climbed 2.87% to HK$172 amid positive earnings sentiment. Nomura forecasts third-quarter revenue growth of 25%, reaching RMB 7.3 billion, while Bank of America Securities expects results to beat consensus estimates, with a constructive outlook for Q4.
Frequently Asked Questions (FAQ)
Q: Why did Hong Kong stocks rise despite ongoing volatility?
A: The gains reflect selective strength in high-growth sectors like crypto and EVs, supported by policy developments and improving fundamentals, even as broader economic recovery remains uneven.
Q: What is driving the surge in crypto-related stocks in Hong Kong?
A: The upcoming launch of HKEX’s Virtual Asset Index Series is boosting confidence in regulatory clarity and market infrastructure, attracting both retail and institutional interest.
Q: Are electric vehicle stocks sustainable as a long-term investment?
A: With NEV penetration now exceeding 52% in China and continued government support for green transportation, EV makers benefit from strong tailwinds—though competition remains intense.
Q: How does southbound capital impact the Hong Kong market?
A: Sustained inflows signal strong mainland demand for undervalued or growth-oriented Hong Kong assets, providing liquidity support and helping stabilize sentiment during global uncertainty.
Q: Is the current rally in crypto stocks linked to Bitcoin’s price movement?
A: Yes—rising spot Bitcoin prices above $71,000, fueled by ETF inflows and macro speculation, directly benefit companies with exposure to digital asset trading and infrastructure.
Q: What should investors watch next in the Hong Kong market?
A: Key factors include policy follow-through on real estate stabilization, quarterly earnings surprises, and adoption trends following the launch of official crypto benchmarks.
👉 Stay ahead of market shifts with real-time insights and digital asset tools