Mei Ri Jing Ji Xin Wen·2025-10-20 06:24Core Viewpoint - The Hong Kong stock market saw a collective rise in major indices, particularly the Hang Seng Technology Index, which increased by over 2.5%. The gaming sector, especially companies like NetEase, Alibaba, and Tencent, showed strong performance, driven by a significant increase in the issuance of domestic game licenses [1][2]. Group 1: Market Performance - The Hang Seng Technology Index ETF (513180) followed the index's upward trend, with notable gains in tech stocks, particularly in the gaming sector [1]. - NetEase, a leading gaming company, surged over 5% in the afternoon session, contributing to the overall positive sentiment in the market [1]. Group 2: Industry Insights - The National Press and Publication Administration reported the issuance of 1,195 domestic game licenses from January to September 2025, marking a year-on-year increase of 24.61% [1]. - Open Source Securities highlighted that the gaming sector's valuation has become attractive again after recent adjustments, suggesting that supply and demand dynamics could continue to drive the gaming cycle upward [1]. - CITIC Securities expressed a strong recommendation for the gaming sector, noting that despite recent pullbacks, demand remains stable and the sector has shown resilience during peak consumption periods [1]. Group 3: Valuation Metrics - As of October 17, the latest valuation (PETTM) for the Hang Seng Technology Index ETF (513180) was 22.13 times, which is below 75% of the time since the index's inception, indicating a favorable valuation environment [2]. - The outlook for the Hong Kong tech sector is optimistic, with expectations of benefiting from AI trends and potential foreign capital inflows due to a favorable interest rate environment [2].