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# Hang Seng Rises 0.51% on Oct 26, 2026 as Tech Losses Narrow
- URL: https://bullquill.com/china-hong-kong-stocks-daily-brief-2026-10-26/
- Published: 2026-10-26T09:34:10.000Z
- Updated: 2026-10-26T09:34:10.000Z
- Description: Hong Kong extended its rebound while mainland tech and AI hardware shares fell again as the Communist Party plenum opened and investors waited for a week of rate decisions and earnings.
- Author: Rowan Ashby
- Tags: Markets, Daily Brief, China & Hong Kong, Hang Seng Index, CSI 300, People's Bank of China, China, #lang-en, #tr-china-hong-kong-stocks-daily-brief-2026-10-26

## Key takeaways

- The Hang Seng Index rose 118.44 points, or 0.51%, to 23,211.81 on Monday, October 26, 2026, as losses in Hong Kong tech shares narrowed, according to Yahoo Finance data and The Standard.
- The Hang Seng Tech Index slipped 0.36% to 3,857.53, while Hong Kong turnover was HK$175.8 billion, The Standard reported.
- On the mainland, the Shanghai Composite edged up 0.19% to 3,697.52, but the Shenzhen Component fell 1.19% to 11,534.38 and the ChiNext index dropped 1.71% to 2,638.23.
- The blue-chip CSI 300 was almost flat, down 0.04% at 4,103.54, as technology stocks led declines ahead of central bank meetings and big earnings, Reuters reported via Business Recorder.
- The People's Bank of China (PBOC) set the yuan midpoint at 6.7162 per dollar, its strongest since February 2, 2023, but 471 pips weaker than the Reuters estimate of 6.6691.

## Session recap

China and Hong Kong stocks split on Monday. Hong Kong extended Friday's rebound while mainland growth and tech shares fell again, as the Communist Party's Central Committee opened a four-day plenum in Beijing. For the wider picture, see [Asian and global markets today](https://bullquill.com/markets/). This brief follows [our October 23 China & Hong Kong brief](https://bullquill.com/china-hong-kong-stocks-daily-brief-2026-10-23/), when mainland stocks bounced on suspected state-backed ETF buying.

__China and Hong Kong benchmarks, October 26, 2026__
| Instrument            | Close/Level | Change  | % change | As of (UTC)      | Source                                  |
| --------------------- | ----------- | ------- | -------- | ---------------- | --------------------------------------- |
| Shanghai Composite    | 3,697.52    | +7.04   | +0.19%   | 2026-10-26 07:00 | Yahoo Finance; The Standard             |
| Shenzhen Component    | 11,534.38   | −139.45 | −1.19%   | 2026-10-26 07:00 | Yahoo Finance; The Standard             |
| ChiNext               | 2,638.23    | −45.87  | −1.71%   | 2026-10-26 07:00 | Yahoo Finance                           |
| CSI 300               | 4,103.54    | −1.79   | −0.04%   | 2026-10-26 07:00 | Yahoo Finance                           |
| Hang Seng Index       | 23,211.81   | +118.44 | +0.51%   | 2026-10-26 08:10 | Yahoo Finance; The Standard             |
| Hang Seng Tech        | 3,857.53    | −14.13  | −0.36%   | 2026-10-26 08:10 | Yahoo Finance; The Standard             |
| USD/CNY PBOC midpoint | 6.7162      | −0.0018 | −0.03%   | 2026-10-26 01:15 | Reuters via Investing.com; Tradingpedia |

Changes are calculated from Friday's closes: Shanghai 3,690.48, Shenzhen 11,673.83, ChiNext 2,684.10, CSI 300 4,105.33, Hang Seng 23,093.37 and Hang Seng Tech 3,871.66 (Yahoo Finance). A lower midpoint means a stronger yuan; Friday's fixing was 6.7180\. A full-day southbound Stock Connect figure for October 26 was not available from a verifiable source at the time of writing.

Intraday, the Shanghai Composite traded between 3,664.82 and 3,699.01, according to Yahoo Finance. At the midday break it was down 0.2%, the CSI 300 was down 0.5% and the STAR50 had fallen 1.9%, Reuters reported. Hong Kong's benchmark was up about 100 points at noon on half-day turnover of HK$93 billion, The Standard said, and added a little more in the afternoon.

## What drove it

### Tech and AI hardware stocks led mainland losses

Technology shares drove the mainland decline, according to Reuters via Business Recorder. The CSI 5G communications index fell 3.7% in morning trade. Optical-module makers Eoptolink Technology and Zhongji Innolight were among the biggest early decliners, and chipmakers Hygon Information Technology and SMIC also fell, according to a Trading Economics market note on TradingView. That explains why the tech-heavy Shenzhen Component and ChiNext lagged the Shanghai Composite, which has a larger weight in banks and state-owned firms.

### A busy week of earnings and rate decisions

Reuters said investors were cautious ahead of central bank meetings and corporate earnings that will test confidence in the AI spending boom. The US Federal Reserve, the Bank of Japan and the European Central Bank all meet this week, with rates widely expected to stay unchanged, Reuters reported. In China, results from companies such as BYD and Kweichow Moutai are due and will be read as a gauge of household demand, according to Trading Economics.

### Hong Kong: tech losses narrowed

The Standard attributed the Hang Seng's gain to narrower losses in technology shares. The Hang Seng Tech Index finished only 0.36% lower after last week's regulation-driven slide in e-commerce names. Bloomberg reported that the index closed 5% lower on October 22 after Chinese regulators moved against e-commerce operators.

### Structural worries remain

Morgan Stanley strategists cited "concerns over selling caused by trust tax, pressure on ecommerce, a weakening macro" as factors that accelerated the correction, Reuters reported. For the A-share market, they said a key signal would be when the "National Team" begins buying in a high-profile way. The CSI 300 posted a record-long weekly losing streak last week despite heavy ETF trading. Weak jobs data add to the picture; see our report on [China's youth unemployment in September](https://bullquill.com/china-youth-unemployment-september-2026/).

### Currency

The yuan hit a fresh four-year high against the dollar on Monday, Reuters reported. Onshore spot traded at 6.6691 per dollar at 02:52 UTC and touched 6.6682, its strongest since June 2022\. Softer oil prices and lower US Treasury yields weighed on the dollar. Barclays said the PBOC continues to resist faster appreciation through weaker-than-expected fixings, Reuters reported.

## Political & policy watch

- **Fifth plenum:** The 20th Central Committee's fifth plenary session runs from October 26 to 29 in Beijing, according to a Politburo statement carried by Xinhua and reported by Reuters. Official reports frame the agenda around "full and rigorous" party self-governance. Investors are watching for any economic policy signals, Reuters said, though none had been published by the close.
- **PBOC stance:** The central bank kept its one-year loan prime rate at 3.0% and the five-year rate at 3.5% on October 20, Reuters reported. Governor Pan Gongsheng announced a liquidity backstop for non-bank financial institutions on October 19, according to his speech text published by the BIS.
- **US–China trade truce:** US Treasury Secretary Scott Bessent has said the truce runs to January 10, 2027, CNBC reported. Several measures, including China's pause on some rare-earth export controls, are due to lapse on November 9–10 unless extended.

## What to watch next

- **October 26–29:** Communist Party fifth plenum in Beijing; a closing communiqué is usually released at the end.
- **October 27, 01:30 UTC:** China's September industrial profits (NBS release calendar).
- **October 27–28:** US Federal Reserve policy meeting. Hong Kong's currency peg ties local rates to Fed decisions.
- **October 31, 01:30 UTC:** China's official October PMIs (NBS).
- **November 9–10:** scheduled lapse of several US–China truce measures unless formally extended.

## Risk checklist for readers

- **Divergent indices.** The Shanghai Composite and the ChiNext can move in opposite directions because their sector weights differ sharply.
- **Policy meetings.** Plenum communiqués are often general; markets may react to wording rather than concrete measures.
- **Earnings season.** Results from large AI, consumer and auto companies can move sector indices sharply on release days.
- **Currency effects.** The onshore yuan may trade up to 2% either side of the PBOC midpoint, and exchange-rate moves change returns for overseas investors.
- **Unconfirmed support.** State-backed buying is usually inferred from ETF volumes and is not announced in advance.
- **Check final figures.** Vendor data can differ slightly; exchange and index-provider releases are the reference for final values.

## Frequently asked questions

### Why is the Hang Seng up today?

On October 26, 2026 the Hang Seng rose 0.51% to 23,211.81 as losses in Hong Kong technology shares narrowed after last week's sell-off, according to The Standard. Investors were also positioning ahead of Fed, Bank of Japan and ECB meetings later in the week, Reuters reported.

### What is the difference between the Shanghai Composite and the ChiNext?

The Shanghai Composite tracks all shares listed in Shanghai and is weighted toward banks, energy and state-owned firms. ChiNext is a Shenzhen board for growth and technology companies, so it often moves more sharply and can diverge from the Shanghai Composite on the same day.

### What is a Communist Party plenum and why do markets watch it?

A plenum is a full meeting of the Communist Party's Central Committee, held several times between party congresses. It approves key decisions and personnel changes, and its closing communiqué is read for signals on economic and regulatory policy.

## Sources

- [Yahoo Finance: Hang Seng Index (^HSI)](https://finance.yahoo.com/quote/%5EHSI/?ref=bullquill.com)
- [Yahoo Finance: Hang Seng Tech Index (HSTECH.HK)](https://finance.yahoo.com/quote/HSTECH.HK/?ref=bullquill.com)
- [Yahoo Finance: SSE Composite Index (000001.SS)](https://finance.yahoo.com/quote/000001.SS/?ref=bullquill.com)
- [Yahoo Finance: Shenzhen Component (399001.SZ)](https://finance.yahoo.com/quote/399001.SZ/?ref=bullquill.com)
- [Yahoo Finance: ChiNext Index (399006.SZ)](https://finance.yahoo.com/quote/399006.SZ/?ref=bullquill.com)
- [Yahoo Finance: CSI 300 Index (000300.SS)](https://finance.yahoo.com/quote/000300.SS/?ref=bullquill.com)
- [The Standard: Hang Seng Index rises on Monday, interest rate decisions in focus this week](https://www.thestandard.com.hk/finance/article/346521/Hang-Seng-Index-rises-on-Monday-interest-rate-decisions-in-focus-this-week?ref=bullquill.com)
- [The Standard: Hang Seng Index rises at noon on Monday, tech selloff eases](https://www.thestandard.com.hk/finance/article/346495/Hang-Seng-Index-rises-at-noon-on-Monday-tech-selloff-eases?ref=bullquill.com)
- [Business Recorder (Reuters): China stocks slip as tech shares lead declines before key central bank meetings](https://www.brecorder.com/news/40445957/china-stocks-slip-as-tech-shares-lead-declines-before-key-central-bank-meetings?ref=bullquill.com)
- [Bloomberg: Alibaba leads Hong Kong tech slide on China regulatory move](https://www.bloomberg.com/news/articles/2026-10-22/alibaba-shares-post-steepest-drop-in-two-months-on-china-curbs?ref=bullquill.com)
- [TradingView (Trading Economics): China stocks kick off week lower](https://tradingview.com/news/te%5Fnews:594819:0-china-stocks-kick-off-week-lower?ref=bullquill.com)
- [Reuters via Investing.com: China's yuan climbs to fresh 4-year high ahead of key policy meetings](https://www.investing.com/news/economy-news/chinas-yuan-climbs-to-fresh-4year-high-ahead-of-key-policy-meetings-4971368?ref=bullquill.com)
- [Tradingpedia: China central bank narrows yuan fix as trading begins](https://www.tradingpedia.com/2026/10/26/china-central-bank-narrows-yuan-fix-as-trading-begins/?ref=bullquill.com)
- [Reuters via Internazionale: Central Committee plenum set for October 26-29](https://www.internazionale.it/ultime-notizie-reuters/2026/09/21/china-s-xi-chairs-politburo-central-committee-plenum-set-for-october-26-29?ref=bullquill.com)
- [BIS: Pan Gongsheng, Thoughts on several issues of interest to the market](https://www.bis.org/speeches/20261021-thoughts-several-issues-interest-market?ref=bullquill.com)
- [Reuters via Investing.com: China leaves loan rates steady for 17th month](https://www.investing.com/news/economy-news/china-leaves-loan-rates-steady-for-17th-consecutive-month-4958644?ref=bullquill.com)
- [CNBC: US–China trade truce extended, Bessent says](https://www.cnbc.com/2026/09/24/us-china-trade-truce-bessent-trump-xi.html?ref=bullquill.com)
- [Federal Reserve: FOMC meeting calendar](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm)
- [National Bureau of Statistics: Regular press release calendar 2026](https://www.stats.gov.cn/english/PressRelease/ReleaseCalendar/202512/t20251226%5F1962154.html?ref=bullquill.com)

This article is for information only and is not investment advice.