Overview

• By mid-morning Friday, the Hang Seng Index slipped about 0.5% and the Hang Seng Tech Index fell 1.7%, with deeper losses reported by lunchtime in Hong Kong.
• Despite the pullback, the market remained on track for a weekly gain of roughly 3.9%, the strongest since early March.
• Mainland exchanges stayed shut for Golden Week through October 8, curbing Southbound participation and keeping Hong Kong trading lighter than usual.
• Recent gains were fueled by policy support including an NDRC plan to allocate 500 billion yuan to AI and the distribution of 69 billion yuan from ultra-long bonds for consumer subsidies.
• Company and deal news added catalysts as Alibaba highlighted Amap’s single-day 360 million users and 2.6 billion AI-assisted requests, and Zijin Gold International’s blockbuster IPO advanced toward inclusion in the Hang Seng Composite Index on October 16.