{ETtoday News Agency, November 5} With the U.S. midterm elections settled, Democrats have regained the majority in both the House and Senate. Concerns have emerged that nearly half of the proposed AI data center projects across the U.S. could face stricter local scrutiny, sparking market worries over tightening investment in AI infrastructure. Asian stocks plunged sharply today, with South Korean equities crashing over 5%, while Hong Kong stood out, gapping up nearly 400 points to break above the 24,000 level. Apart from AI infrastructure concepts, most sectors rallied. Major tech and internet heavyweights Alibaba (09988) and Tencent (00700) together contributed over 290 points to the Hang Seng Index's rise, driving the index higher throughout the day. The index closed at 24,796, surging 877 points or 3.7%—the largest single-day point gain since February 21, 2025. The Hang Seng China Enterprises Index closed at 8,369, up 311 points or 3.9%. The Hang Seng Tech Index closed at 4,154, up 218 points or 5.5%. Market sentiment turned highly enthusiastic, pushing main board turnover to a surge of 356.7 billion yuan. However, note that northbound funds accelerated outflows, with a net outflow reaching as high as 21.3 billion yuan.
Major tech and internet stocks attracted strong capital inflows. Alibaba surged 8.45% to close at HK$109.1, rising for five consecutive days with a cumulative gain of 13.53%. Tencent rose 7.17% to HK$430.4, also gaining for five consecutive days with a cumulative rise of 13.98%. Meituan (03690) climbed 6.78% to HK$80.3, NetEase (09999) jumped 9.07% to HK$199.6, Xiaomi (01810) soared 8.83% to HK$31.3, JD.com (09618) gained 6.95% to HK$113.9, and Baidu (09888) rose 5.36% to HK$80.65.
With hopes that global geopolitical factors may stabilize under Democratic checks and balances, HSBC (00005) closed up 4.04% at HK$141.1, Standard Chartered (02888) rose 3.83% to HK$227.8, and AIA (01299) gained 2.47% to close at HK$78.85.
Risk appetite improved, driving biotech stocks higher. China Biopharmaceuticals (01177) led the blue chips with a 9.22% gain, closing at HK$5.625. BeiGene (06160) rose 7.34% to HK$248.6, Akeso (06855) gained 6.7% to HK$30.24, CStone Pharmaceuticals (09926) advanced 6.48% to HK$87.85, and Lekkerchem (03933) rose 6.41% to HK$7.8.
Multiple incoming Democratic governors previously pledged to block large-scale data center expansions, cooling demand for AI infrastructure. Lenovo Group (00992) plunged 6.86% to HK$19.41, Kingboard Laminates (01888) tumbled 12.43% to HK$32.68, Yangtze Optical Fibre and Cable (06869) fell 12.48% to HK$96.1, and Hua Hong Semiconductor (01347) dropped 2.04% to HK$67.3. However, SMIC (00981) rose 2.28% to HK$47.5.
Oil prices declined. PetroChina (00857) fell 4.16% to HK$10.36, CNOOC (00883) dropped 2.1% to HK$23.28, Sinopec (00386) eased 0.41% to HK$4.835. Weichai Power (02338), a leading domestic diesel firm, plunged 5.2% to HK$23.68. Shipping stock Orient Overseas (00316) fell 3.46% to HK$156.2.
The top three turnover stocks for the Hang Seng Index, the China Enterprises Index, and the Tech Index were Tencent, Alibaba, and Xiaomi respectively. (ey)
Major tech and internet stocks attracted strong capital inflows. Alibaba surged 8.45% to close at HK$109.1, rising for five consecutive days with a cumulative gain of 13.53%. Tencent rose 7.17% to HK$430.4, also gaining for five consecutive days with a cumulative rise of 13.98%. Meituan (03690) climbed 6.78% to HK$80.3, NetEase (09999) jumped 9.07% to HK$199.6, Xiaomi (01810) soared 8.83% to HK$31.3, JD.com (09618) gained 6.95% to HK$113.9, and Baidu (09888) rose 5.36% to HK$80.65.
With hopes that global geopolitical factors may stabilize under Democratic checks and balances, HSBC (00005) closed up 4.04% at HK$141.1, Standard Chartered (02888) rose 3.83% to HK$227.8, and AIA (01299) gained 2.47% to close at HK$78.85.
Risk appetite improved, driving biotech stocks higher. China Biopharmaceuticals (01177) led the blue chips with a 9.22% gain, closing at HK$5.625. BeiGene (06160) rose 7.34% to HK$248.6, Akeso (06855) gained 6.7% to HK$30.24, CStone Pharmaceuticals (09926) advanced 6.48% to HK$87.85, and Lekkerchem (03933) rose 6.41% to HK$7.8.
Multiple incoming Democratic governors previously pledged to block large-scale data center expansions, cooling demand for AI infrastructure. Lenovo Group (00992) plunged 6.86% to HK$19.41, Kingboard Laminates (01888) tumbled 12.43% to HK$32.68, Yangtze Optical Fibre and Cable (06869) fell 12.48% to HK$96.1, and Hua Hong Semiconductor (01347) dropped 2.04% to HK$67.3. However, SMIC (00981) rose 2.28% to HK$47.5.
Oil prices declined. PetroChina (00857) fell 4.16% to HK$10.36, CNOOC (00883) dropped 2.1% to HK$23.28, Sinopec (00386) eased 0.41% to HK$4.835. Weichai Power (02338), a leading domestic diesel firm, plunged 5.2% to HK$23.68. Shipping stock Orient Overseas (00316) fell 3.46% to HK$156.2.
The top three turnover stocks for the Hang Seng Index, the China Enterprises Index, and the Tech Index were Tencent, Alibaba, and Xiaomi respectively. (ey)
