Hong Kong stocks continued to decline with a subdued performance across the three major indices. The accelerated buildout of the next-generation power grid under the 15th Five-Year Plan, fueled by AI computing demand for power infrastructure, alongside record-high international metal prices entering the traditional "golden September, silver October" demand season, shaped today's session.

At the close, the Hang Seng Index fell 0.17% to 25,274.96 points, with total turnover reaching HK$204.945 billion. The Hang Seng Tech Index dropped 0.76% to 4,420.79 points. Among the top Hong Kong-listed ETFs by scale, Tracker Fund of Hong Kong (02800) declined 0.15% to HK$25.84, CSOP Hang Seng Tech Index ETF (03033) fell 0.91% to HK$4.332, while CSOP SK Hynix Daily (2x) Leveraged Product (07709) surged 6.86% to HK$44.56.

Sector Highlights

The grid equipment sector delivered a standout performance, driven by the accelerated development of the next-generation power grid and AI computing's increasing demand for power infrastructure. By the close, Grid Equipment ETF Guotai (561380.SH) climbed 2.51% to RMB 0.735, Grid Equipment ETF E Fund (560390.SH) rose 2.12% to RMB 0.867, and Grid Equipment ETF ChinaAMC (159326.SZ) advanced 1.88% to RMB 1.676.

The National Energy Administration recently convened a deployment meeting for next-generation power grid construction, explicitly calling for accelerated development of major transmission corridors, backbone grids, and distribution networks, integrated with technologies such as artificial intelligence and flexible grid-forming solutions. Total fixed-asset investment in the national power grid during the 15th Five-Year Plan period is confirmed to exceed RMB 5 trillion, opening up long-term growth potential for industry chain companies.

Hua Xin Securities noted that from an investment perspective, the next phase warrants greater attention to the continued spillover of AI capital expenditure into infrastructure segments. As gigawatt-scale data center projects increase, demand certainty is rising for grid connection, transformers, switchgear, HVDC, and energy storage components, which also offer longer delivery cycles and stronger supply constraints compared to server chassis. Power infrastructure and storage devices are poised to become the two AI hardware investment themes with longer-lasting prosperity and clearer earnings delivery paths, following GPUs.

Meanwhile, the nonferrous metals sector saw a modest uptick, buoyed by record-high international metal prices and the onset of the peak demand season. By the close, Nonferrous Metals ETF Fullgoal (159168.SZ) gained 2.05% to RMB 0.897, Nonferrous Metals ETF TIANHONG (159157.SZ) rose 2.01% to RMB 0.863, and Nonferrous Metals ETF CSOP (512400.SH) advanced 1.76% to RMB 1.853.

LME copper prices continue to set fresh historical highs, with a tight supply-demand balance providing underlying support for the sector. China Galaxy Securities analysis points to ongoing tightness in concentrate supply transmitting to the smelting stage, while the impending US tariff on refined copper imports exacerbates regional copper shortages. Domestic refined copper inventories continue to draw down, pushing prices higher. Additionally, improving liquidity sentiment, along with concerns over US debt and dollar credit, has driven gold prices to rebound from lows. The arrival of the peak season, coupled with sustained domestic inventory drawdowns, supports aluminum prices, while potential El Ni帽o disruptions to new Southeast Asian electrolytic aluminum capacity ease supply concerns.

Institutional Outlook

According to Everbright Securities strategy views, Hong Kong stocks have recently exhibited a pronounced seesaw effect relative to other overseas indices, reflecting capital migration across Asian markets. Uncertainty over Fed rate hikes remains a source of pressure, though the recent strength of the renminbi is broadly favorable for Hong Kong stocks. Opportunities in the Hang Seng Tech Index for the fourth quarter deserve attention for several reasons: first, fundamental clearing, with the earnings revision cycle nearing its end; second, capital rotation, as funds shift from high-valuation growth segments to undervalued Hong Kong tech; and third, the potential realization of overseas rate cut expectations serving as an external catalyst. Additionally, reforms to the Hang Seng Tech Index may attract more capital focused on hard technology. On the defensive front, high-dividend sectors retain safe-haven appeal and can serve as a core portfolio anchor.