The Hang Seng Index opened lower and traded in a narrow range throughout the day on October 7. By the close, the Hang Seng Index fell 0.62% to 24,130.5 points; the Hang Seng Tech Index dropped 0.68% to 4,194.49 points; the Hang Seng China Enterprises Index declined 0.57% to 8,082.4 points; and the Hang Seng Biotech Index slid 2.76%. Total market turnover for the day was HK$94.7 billion, down from HK$98.265 billion in the previous trading session. Among Hang Seng Index constituents, 46 rose and 46 fell.

The stocks leading the Hang Seng Index lower included: Hua Hong Semiconductor, which dropped 2.68% as AI hardware shares declined amid market concerns that cloud providers have exhausted their cash flows and attention turned to the sustainability of future capital expenditure; Alibaba fell 2.59% after institutions cut their target prices and noted that its forward price-to-earnings ratio was below its 10-year average; and WuXi Biologics declined 2.07%.

The stocks leading the Hang Seng Index higher included: Weichai Power, which surged 4.68% as its AIDC business is expected to drive mid-term earnings growth and valuation improvement; Sun Hung Kai Properties, which rose 2.20%; and China Unicom, which gained 2.11%.

Genscript Biotech Plummets 17.62% at One Point

Affected by a dual impact of new share issuance and weakening overall sector sentiment, Genscript Biotech shares opened sharply lower and at one point plunged 17.62%, closing the day at HK$42.90 per share, down 12.70%. On October 6, Genscript Biotech's September 2026 securities变动 monthly return filed with the Hong Kong Stock Exchange showed that in September the company issued a total of approximately 83.08 million new shares through option exercises and placements, increasing its total share capital from approximately 2.201 billion shares to approximately 2.284 billion shares.

Biotech Sector Sees Sharp Correction

Allist Pharmaceuticals announced that its global Phase III trial of furmonertinib had failed, sending its U.S. stock price plunging 46.98% and triggering a broad correction across the Hong Kong pharmaceutical sector. The Hang Seng Biotech Index tumbled 2.76%. In addition to Genscript Biotech, QuantumPharm plunged 12.10%, Insilico Medicine fell 10.62%, and Ascentage Pharma dropped 10.62%, leading declines among biopharmaceutical index constituents.

On October 6, ArriVent BioPharma (NASDAQ: AVBP) and its Chinese partner Allist Pharmaceuticals simultaneously announced that the FURVENT (NCT05607550) Phase III trial evaluating furmonertinib monotherapy in patients with previously untreated locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC) harboring EGFR exon 20 insertion mutations did not meet its primary endpoint of progression-free survival (PFS) as assessed by blinded independent central review (BICR). This means that furmonertinib, widely regarded by the industry as the "world's first oral TKI monotherapy to cover first-line EGFR exon20ins," failed to cross the statistical threshold at the most critical registration endpoint, and its overseas first-line registration pathway is forced to undergo reassessment. Hu Jie, Vice Chairwoman and Deputy General Manager of Allist Pharmaceuticals, said: "Furmonertinib is an excellent third-generation EGFR-targeted drug that has been fully validated from clinical research to clinical practice. Multiple indications have been approved and included in medical insurance, and several other indications are still under development. We are working with ArriVent to evaluate the complete FURVENT dataset to determine the next steps."

Weichai Power Surges Against the Trend

Weichai Power surged against the market trend, rising as much as 8.01% at one point, and closed the day at HK$30.86 per share, up 4.68%, leading blue-chip gains. Year to date, Weichai Power has accumulated a gain of 69.24%. JPMorgan released a research report stating that it maintains an "Overweight" rating on Weichai Power and raised its target price from HK$55 to HK$57, citing the company's improving shipment outlook, resilient profit margins, accelerating growth in its AI data center business, and progress in commercializing solid oxide fuel cells. JPMorgan noted that Weichai Power's recent share price pullback stemmed from negative sentiment in the market regarding the AI data center power supply chain and macroeconomic headwinds, rather than any deterioration in the company's business execution or fundamentals. Industry benchmarking data from Bloom Energy, Ceres, and leading marine or gas engine manufacturers all indicate that Weichai Power has multi-year growth potential, and the upside potential from domestic and overseas AIDC computing power demand as well as its solid oxide fuel cell business has not yet been fully reflected in market consensus expectations and valuations.