GMT EIGHT - OPPORTUNITIES IN CHINA

Zhao Jian: Every year there are ghost stories about a US stock market crash. Will this time again end with more fright than harm?

This year, 2026, the story is even being broadcast in two parts. The first half is the US-Iran wardecapitation strikes, retaliation, the shadow over the Strait of Hormuz, and oil prices soaring; the second half is a midterm election upheaval, with Democrats controlling both chambers and beginning to settle scores with data centers, as faith in computing power capital expenditure suffers a fundamental blow. Once again, US stocks are being pushed underwater.

Cui Dongshu: Automakers' "having more children" intensifies competition, with 129 new models launched in the first 10 months

Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), wrote that in the recent passenger car market, the launch of new models in the traditional fuel vehicle segment has gradually slowed, while new energy vehicles have significantly increased the introduction of new products.

Report: China's total energy investment may reach US$940 billion in 2026

At the 2026 Energy Transition Conference, the Global Energy Transition Report (2026) was officially released.

True or false? Musk drops a bombshell: SoftBank's gas turbine order is in default

On Friday, Eastern Time, Tesla and SpaceX CEO Musk dropped a bombshell on social platform X: "SoftBank is defaulting on its gas turbine order."

Oil's "crashing week": just 8 days ago it was still "raging with war"; after the midterms, hedge funds sold off US$6.6 billion

Brent crude posted the largest weekly decline in history since 1988 this week, plunging from US$118 to below US$98. Hedge funds net sold US$6.6 billion, and that figure does not yet include the 8.7% single-day crash on midterm election day, so next week's data will be even more brutal. Highly dramatic is that, just as funds were beating a large-scale retreat and options were quietly turning bullish, US forces launched a surprise airstrike on Iranian facilities over the weekend, and a geopolitical reversal could ignite an epic short squeeze at any moment.

In 2026, China's total energy investment may reach US$940 billion.

On the 7th, the China Enterprise Reform and Development Society released the "Global Energy Transition Report." Data shows that China has built the world's largest and fastest-growing renewable energy system. Peng Huagang, President of the China Enterprise Reform and Development Society, introduced that in the first half of this year, the share of coal-fired power generation in China dropped to 49.7%, falling below 50% for the first time, and coal power is shifting from a main power source to a backstop guarantee and system regulation source. It is expected that China's total energy investment will reach 940 billion US dollars in 2026, ranking first globally. China's renewable energy technology still occupies a dominant position globally, supplying 70% of the world's wind power equipment and 80% of photovoltaic module equipment, driving down the global costs of wind power and photovoltaic power generation by more than 60% and 80%, respectively.

After tech stocks' "Black Week," Wall Street calls for "buying the dip"

Morgan Stanley made a clear statement that "the next two to three weeks are the time to add to positions." Ed Yardeni characterized the decline as a "correction" rather than a bursting bubble. The average year-end target for the S&P 500 among major Wall Street institutions is 7,973 points. But most strategists believe the direction of AI policy remains the biggest variable.

CoreWeave (CRWV.US) Sends Letter to Texas Governor-Elect Seeking "Data Center Consultation"

In this open letter, Michael Intrator stated that CoreWeave "strongly supports" Hinojosa's principled position that data center growth must benefit the people of Texas. "We welcome the opportunity to work with your transition team on the responsible advancement of already-approved projects, as well as on clear, durable standards for future development," he said.

CRIC: Overall sell-through rate at new project launches in key cities was approximately 45.7% in October.

CRIC Real Estate Research said in a report that new project launches in key cities in October continued the strategy of "small-batch, multi-batch additional launches."

CITIC SEC: Tech upward revisions continue; watch for Q4 earnings delivery

CITIC Securities stated in a research report that it recommends prioritizing earnings delivery in the electronics industry, tracking the stability of machinery forecasts and banks' profit contribution to dividends, while for manufacturing and consumer sectors, the focus should be on the magnitude of downward forecast revisions and the profit recovery in the fourth quarter.

All 18 of the first batch of active ETFs closed their subscriptions early.

As of November 7, 17 of the first batch of 18 active ETFs have issued establishment announcements, but data such as the fundraising period and allotment ratio for the 18 products as a whole have already been disclosed. The latest data show that all 18 active ETFs ended fundraising early, with 3 products sold out in one day; the total subscription amount for the 17 products that initiated pro-rata allotment was nearly 44 billion yuan, exceeding the 34 billion yuan fundraising scale by nearly 10 billion yuan. Specifically, the 17 established products have more than 300,000 valid subscription accounts, including not only external investors but also "insiders" such as fund companies' own funds, executives and investment research professionals, and shareholders. As of November 6, some ETFs have already shown net value fluctuations. According to interviewees, the first batch of active ETFs is expected to be listed and traded in mid-to-late November, with the initial confirmed listing date for one public fund manager being November 23.

CITIC SEC: Fund holdings in the food and beverage sector recovered in Q3; recommends increasing allocation to leading baijiu companies at the industry bottom.

CITIC Securities released a research report stating that in 2026Q3, both the scale and proportion of fund holdings in the food and beverage sector stabilized and rebounded, mainly because after the tech investment rally cooled in Q3, some funds returned to consumer leaders with stabilized fundamentals and attractive dividend returns.

China Securities Co.,Ltd.: The inflection point of the chemical industry's capacity cycle has arrived; extremely low inventories are brewing a new round of the bullwhip effect.

China Securities Co., Ltd. released a research report stating that the profitability of the chemical industry has already risen from the bottom, but the valuation level remains at a low point, constrained by oil prices.

Berkshire (BRK.A.US/BRK.B.US) Q3 operating profit falls 5.8%: buybacks highest of the year, cash rises to $377.4 billion

Berkshire Hathaway's third-quarter operating profit fell 5.8% year on year, but its single-quarter buyback scale hit the highest level of the year, while its cash reserves rose to $377.4 billion, setting a new all-time high.

Musk throws out another astonishing target: SpaceX annualized revenue of $500 billion next year, Starlink computers going to space simultaneously, Terafab chip capacity aiming for one terawatt.

Musk said SpaceX's annualized revenue is expected to exceed US$500 billion by the end of next year, and Terafab plans to achieve an annual chip production capacity of one terawatt, equivalent to 30 times next year's global AI chip output; the Starlink computer co-designed with Nvidia will begin entering orbit in the third quarter of 2027. At the same time, he expects AI agent traffic to reach 1,000 times human internet traffic over the next five years.

Slapped in the face from both sides! "Insufficient power" vs. "excess computing power" either way, the result is "selling AI"

Demand is real, but the returns on the next trillion dollars are uncertain. With hyperscaler free cash flow already turning negative, total leverage at the 97th historical percentile, and the 2027 capex bill about to land on the bond market at scale, any year-end rebound may be a window to sell.

Just after betting on AI, it hit a market shock! Berkshire reports earnings tonight, and Abel's transformation faces a major test.

Less than a year into his tenure at the helm of Berkshire Hathaway, Greg Abel has staked more than US$10.9 billion on the AI sector, a complete break from Buffett's tradition of avoiding tech stocks. However, Alphabet's share price has already fallen below the build-up cost, Bending Spoons continues to slide, and the AI bet is now being tested by reality. Meanwhile, third-quarter earnings per share are expected to fall 6% year on year, buybacks are forecast to plunge from US$4.5 billion to US$1.6 billion, and how to deploy US$358 billion in cash will test the new leader's capital allocation prowess.

Apollo plans to spend US$75 billion on AI chips, a scale far exceeding that of any Neocloud.

Private equity giant Apollo is reshaping the AI chip financing landscape with a staggering US$75 billion betUS$35 billion to purchase Google TPUs for lease to Anthropic, and US$40 billion to acquire Nvidia Vera Rubin chips for lease to SpaceX. This scale far exceeds the US$27 billion of the largest neocloud, CoreWeave, making Apollo the world's fourth-largest chip reserve holder after only Amazon, Microsoft, and Google.

"Profit resilience" becomes the key phrase in Q3 earnings reports; how much further can Beijing Chunlizhengda Medical Instruments (01858) go after four consecutive trading days of gains?

In the first three quarters of this year, Chunlizhengda Medical Instruments' revenue was RMB626 million, down 17.14% year-on-year; net profit attributable to shareholders over the same period was RMB189 million, down 1.55% year-on-year; corresponding net profit attributable to shareholders after deducting non-recurring gains and losses was RMB181 million, a slight increase of 0.24% year-on-year.

Qatar says major progress made in US-Iran talks! Vance deeply involved, mediation elevated to highest level of US government.

Signals of a thaw have emerged in the US-Iran talks, with Qatar's prime minister making a rare, high-profile statement that he "believes a solution can be reached," while US Vice President Vance has personally stepped in, communicating closely with mediators from multiple countries almost daily. Meanwhile, Trump held a call with the Emir of Qatar, during which the two sides discussed how to ease regional tensions and how to advance a comprehensive agreement to end the crisis, among other topics.

Signaling a rebound? Goldman Sachs' U.S. stock fear index has reached "extreme levels."

Goldman Sachs' volatility fear index has surged to 9.57, approaching the maximum score, with its single-day gain the third-largest in history and its two-day combined move setting a new all-time record. Historical data shows that after the index breached the 9.5 threshold 15 times, the S&P 500 rose an average of 4.6% over the following three months, with an 80% win rate. But Goldman Sachs traders warn: forced liquidation has not yet fully cleared, and the market is still searching for a bottom, yet opportunities on the other side are becoming increasingly hard to ignore.

Is winning the election merely the last straw? The market finally confronts the threat of AI "circular financing."

JPMorgan's head of trading pointed out that the AI trade was already on shaky ground, and the midterm elections may merely be "the last straw that breaks the camel's back." Meanwhile, the AI circular financing risk long ignored by the market is resurfacing: hyperscale cloud computing companies are increasingly reliant on external financing to support expansion, with capital flowing through the industrial chain spanning chips, optical communications, storage, and data centers. Once financing conditions tighten or market confidence reverses, this mutually reinforcing growth loop could also reverse rapidly.

Nvidia is pressing for orders, and TSMC is set to make memory chips too!

TSMC is evaluating a move into advanced memory chips at Nvidia's request, with 3D DRAM as a potential entry point. If the plan materializes, TSMC will extend from logic chip foundry into the memory sector, further strengthening its influence in the AI supply chain.

Tesla, Inc. (TSLA.US) Cybertruck: From a cracked window to discontinuation, the end of a three-and-a-half-year run

Since its unveiling in 2019, the Cybertruck has been mired in controversythe window demo failed on launch day, production was delayed by four years, the price climbed from US$39,900 all the way to over US$100,000, and it racked up 11 recalls. One day before the discontinuation was announced, Tesla raised the price once again, bringing this highly dramatic vehicle to a thought-provoking close.

No change to policy course! Trump replaces White House Chief of Staff, appoints "hardliner" Stephen Miller.

After the midterm election defeat, Trump not only did not change course, but instead promoted hardline core figure Stephen Miller to White House Chief of Staff. This 41-year-old "iron-fisted figure," who led mass immigrant deportations and reshaped the federal bureaucracy, will take charge of the power center as Democrats take full control of Congress. Meanwhile, Chief of Staff Wiles, who maintained communication with the business community, has quietly departed, meaning a key channel from the corporate world to the White House is closing.

Continuous purchases for 24 consecutive months! China's central bank expanded its gold purchases by 830,000 ounces in October, with the pace clearly accelerating.

At the end of October, China's gold reserves stood at 78.30 million ounces, up 830,000 ounces from 77.47 million ounces at the end of September, marking 24 consecutive months of gold reserve expansion. Total official reserve assets were US$3.777561 trillion, down about US$11.9 billion from US$3.789425 trillion at the end of September, mainly dragged down by a decline in the valuation of gold.

SpaceX (SPCX.US) Sees Board Change: Alphabet Inc. Class C Executive Departs as Tesla, Inc. Merger Evaluation Advances

SpaceX (SPCX.US) said on Friday that Don Harrison has resigned from the company's board of directors.

IMAGI INT'L (00585) Surges Over 40% in a Single Week: HK$171 Million Acquisition of AI Visual Effects Assets, Full Strategic Transformation into the AI Film and Television Sector

Imagi International (00585) showed strong stock performance this week, with a cumulative gain of 40.61% in a single week, and its year-to-date cumulative gain has expanded to 705%.

State Administration of Foreign Exchange: As of the end of October 2026, China's foreign exchange reserves stood at US$3.4052 trillion.

As of the end of October 2026, China's foreign exchange reserves stood at US$3.4052 trillion, up US$4.9 billion, or 0.14%, from the end of September.

Musk: SpaceX (SPCX.US) Q4 revenue expected to grow about 70% quarter-over-quarter; government contract revenue share to fall below 10%

Musk said on Friday that SpaceX (SPCX.US) will continue to become less dependent on U.S. government procurement contracts.

ZYLOXTB (02190) Partners with GL Capital to Make a Strategic Investment in LIFETECH SCI, Committed to Building China's Leading Pan-Vascular and Structural Heart Intervention Platform

This strategic investment is expected to integrate the two parties' resources in R&D innovation, product portfolio, and global commercialization, laying the foundation for building China's leading pan-vascular and structural heart intervention platform and further enhancing the competitiveness of Chinese brands in the international market.

New cloud providers face another headwind: Microsoft Corporation (MSFT.US) reportedly plans to reduce its partner list and build its own data centers.

People familiar with the matter said Microsoft (MSFT.US) plans to reduce its list of Neocloud partners, shifting focus to working with a few key suppliers and building its own data centers.

He Lifeng holds a video call with U.S. Treasury Secretary Bessent and Trade Representative Greer

On the evening of November 6 Beijing time, He Lifeng, Chinese lead person for China-US economic and trade affairs and Vice Premier of the State Council, held a video call with US lead persons Treasury Secretary Bessent and Trade Representative Greer. The two sides, focusing on implementing the important consensus reached by the Chinese and US heads of state at their meetings in Beijing and Washington and the outcomes of economic and trade consultations, conducted candid, in-depth and constructive exchanges on important economic and trade issues of mutual concern. The Chinese side expressed solemn concern over recent US economic and trade restrictive measures against China. The two sides agreed that under the strategic guidance of the two heads of state, they will continue to give full play to the role of the China-US economic and trade consultation mechanism, continuously strengthen cooperation, properly manage differences, and promote the sustained, stable and sound development of China-US economic and trade relations, helping to build "a constructive China-US strategic stability relationship based on respect, fairness and reciprocity."

Daly: High inflation has persisted for too long; the Fed may need to raise rates further.

Daly said on Friday that she expects the Fed will need to raise rates further, but like other policymakers, she believes the pace and timing of rate hikes remain uncertain.

France's fiscal crisis, EU political restructuring, and geopolitical conflicts are intertwined, and Europe may face a systemic test in 2027.

France's fiscal deterioration and political turmoil are exacerbating systemic risks in the EU. The budget deficit has risen to 5.1% of GDP, public debt has exceeded 115%, the budget bill has been rejected, and Fitch has lowered its rating outlook. ECB rescue efforts face obstacles such as pressure on Germany, while France's general election, Poland's political crisis, and geopolitical conflicts further heighten uncertainty. In 2027, euro asset risk premiums may face a repricing.

After the Nasdaq plunge, the "retail army" stepped in to buy the dip! NVIDIA Corporation (NVDA.US) was a popular target, but net buying was relatively modest.

After U.S. stocks suffered their worst single-day selloff since 2025 on Thursday, U.S. retail investorslong known for their enthusiasm for buying the dipre-entered the market on Friday, seeking to seize the rebound opportunity after the tech stock rout.

The U.S. debt ceiling crisis could arrive as early as February next year; Wall Street warns the government may face default risk as early as August.

Wall Street strategists warned that as the U.S. Treasury raises its borrowing expectations and plans to maintain record cash reserves, the U.S. government may hit the statutory debt ceiling as early as February 2027, significantly earlier than previously expected.

US Consumer Confidence Rises to a Three-Month High in November as Inflation Expectations Ease; Concerns Over High Prices and AI Bubble Persist

US consumer confidence unexpectedly rebounded to a three-month high in November, mainly driven by improved views on personal finances and the economic outlook.

OpenAI Completes First Tranche of Approximately US$11 Billion New Funding Round at a Valuation of US$1.25 Trillion

As market concerns over the AI industry's massive capital expenditures intensify, OpenAI's latest funding size and valuation have both been revised down from their initial targets, reflecting investors' increasingly cautious stance toward the AI sector.

Overnight US stocks | The three major indices closed mixed, with most chip stocks rebounding; Micron Technology, Inc. (MU.US) rose over 5%.

At the close, the Dow Jones Industrial Average fell 237.32 points, or 0.46%, to 51,285.73; the S&P 500 Index rose 23.13 points, or 0.31%, to 7,376.86; and the Nasdaq rose 264.42 points, or 1.09%, to 24,579.42.

Google spends $548 million to buy Qualcomm shares.

According to a securities filing submitted on Friday, Google has purchased nearly 3 million shares of chipmaker Qualcomm, representing less than 0.5% of Qualcomm's total share capital. As Qualcomm aggressively enters the AI data center market, this investment will give Google exposure to Qualcomm's business. The filing shows that the search giant spent approximately $548 million to buy 2,976,982 Qualcomm shares. In addition, Google also holds shares in chip design company Arm and has reached a stock agreement worth up to $12.2 billion with chip design company Marvell, with the two parties collaborating to develop Google's self-developed AI chipthe Tensor Processing Unit.

US stocks close: The three major stock indices closed mixed.

The Dow fell 0.46%, the S&P 500 rose 0.32%, and the Nasdaq rose 1.10%. RKLB rose 15.37%, Coherent Corp rose 13.54%, Airbnb rose 11.69%, Axon Enterprise fell 18.05%, and Microchip Technology fell 10.14%. Among the "Magnificent Seven": Tesla rose 4.18%, Nvidia rose 2.87%, Meta Platforms rose 0.84%, Google rose 0.75%, Amazon fell 0.33%, Apple fell 0.51%, and Microsoft fell 0.98%.

US Stock Market Move | Q3 turned profitable, sharply raised full-year revenue guidance, Moderna (MRNA.US) rose over 5%.

On Friday, Moderna (MRNA.US) rose over 5% to $254.36.

HG SEMI (06908) plans to issue shares and convertible bonds to early redeem promissory notes, settling HK$41.4176 million of debt without cash payment.

HG SEMI (06908) announced that on February 10, 2026, the Company issued to the holder Red Mont Global Limited a promissory note in the amount of HK$40.816 million as consideration for the acquisition of the entire equity interest in Red Mont HK Limited, with the note maturing in August 2027. On November 6, 2026 (after trading hours), the Company entered into an early redemption agreement with the holder in respect of the early redemption of the note by the Company.

RF GREEN EN AI (00527) intends to issue subscription shares to Yinghui, Ruiyuan and Yuan Wanyong.

RF GREEN EN AI (00527) announced that on November 6, 2026, the Company entered into the Yinghui Subscription Agreement with Yinghui, pursuant to which the Company has conditionally agreed to allot and issue 321.7 million Yinghui Subscription Shares to Yinghui at the Yinghui Subscription Price of HK$0.23 per Share, for an aggregate consideration of HK$74 million, to be satisfied by way of settlement of the Yinghui Convertible Bonds.

US Stock Market Move | Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rises over 6%, plans to enter advanced memory chip manufacturing.

On Friday, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rose over 6% to $376.65.

CASABLANCA (02223) subsidiary intends to sell 100% equity of Junyu International Investment for HK$50 million

CASABLANCA (02223) announced that on 6 November 2026 (after trading hours), the seller Casablanca Home Holdings Limited (a direct wholly-owned subsidiary of the Company) and the buyer Asset International Holdings Limited entered into a share purchase agreement, pursuant to which the seller has conditionally agreed to sell, and the buyer has conditionally agreed to purchase, the entire issued share capital of the target company Junyu International Investment Limited, for a consideration of HK$50 million.

ZYLOXTB (02190) plans to indirectly acquire a stake in LIFETECH SCI (01302) to establish a vascular intervention platform, and concurrently issue new H shares at a premium of approximately 13.5% to raise net proceeds of approximately HK$864 million.

ZYLOXTB (02190) announced that on November 6, 2026, LIFETECH SCI (01302) intends to issue approximately 926 million shares of the target company to Lighthouse SPV, representing approximately 16.7% of the total issued shares of the target company as enlarged by the allotment and issue of LIFETECH shares, for a total consideration of approximately HK$1.4821 billion; the Company intends to subscribe for Lighthouse shares, representing approximately 60.0% of the total issued shares of Lighthouse SPV as enlarged by the allotment and issue of Lighthouse shares, for a consideration of approximately HK$889.3 million.

China Aluminum International Engineering Corporation (02068) intends to enter into an EPC general contracting contract for the Guinea alumina project.

China Aluminum International Engineering Corporation (02068) announced that on November 6, 2026, following deliberation and approval at the 11th meeting of the fifth session of the board of directors, the company intends to enter into an engineering, procurement, and construction (EPC) general contracting contract as the general contractor with China Aluminum Guinea Co., Ltd. (Chinalco Guinea). Accordingly, Chinalco Guinea, as the project owner, intends to engage the company to provide EPC services for the Guinea alumina project located in the Boffa region of the Republic of Guinea. The EPC general contracting contract is a fixed lump-sum contract, with an expected contract price of approximately RMB6.556 billion, and the contract price shall not be adjusted except for adjustments stipulated in the contract terms.

BENQ HOLDING (02581): Qisda Corporation's segment operating profit for the first three quarters was NT$183 million, down 57.17% year-on-year.

BenQ Hospital (02581) announced that its controlling shareholder Qisda Corporation reported total revenue of NT$9.53 billion for the first three quarters of 2026, up 11.47% year-on-year; segment operating profit was NT$183 million, down 57.17% year-on-year.

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