GMT EIGHT - OPPORTUNITIES IN CHINA

Bernstein: After software stocks outperform, Japanese AI hardware valuations pull back, and a window for positioning is opening

Bernstein previews Japan IT hardware 2Q26 earnings, noting strong fundamentals, earnings upgrades, and valuation pullback, with opportunities across all three themes: software, AI components, and energy/defense.

A-share Market Close Review | ChiNext Index rebounds from lows to gain 4.16%, multiple stocks in the Siasun Robot&Automation industry chain hit limit up

On October 23, the three major A-share indices collectively opened lower in the morning and fell in one direction, then rebounded quickly in the afternoon and collectively turned positive, forming a deep-V reversal, with the Shanghai Composite Index closing near its intraday high.

SEYOND (02665) LiDAR Now Standard Across All Roewe Jiayue 07 Trims; Pre-sales Surpass 50,000 Units! Tripartite Ecosystem Collaboration Accelerates Large-Scale Deployment of Intelligent Driving

SAIC Roewe's all-new AI-native large five-seat SUV, the Jiayue 07, has officially launched, with pre-sales orders surpassing 50,000 units. The new model comes standard across all trims with Seyond's (02665) high-performance main-view LiDAR, features the Momenta R7 world model, and jointly builds an advanced intelligent driving system with Volcano Engine.

ETF trading volume in the two markets reached 693.776 billion yuan, the highest since February this year.

As of now, total ETF turnover across the two markets stands at RMB 693.776 billion, an increase of RMB 88.989 billion compared with the same time yesterday, marking the highest ETF turnover since February 2026. By category, equity ETF turnover is RMB 236.195 billion, bond ETF turnover is RMB 282.252 billion, money market ETF turnover is RMB 63.606 billion, commodity ETF turnover is RMB 12.844 billion, and QDII ETF turnover is RMB 98.879 billion. Today, E Fund ChiNext ETF turnover is nearly RMB 20 billion, while Huatai-PineBridge CSI 300 ETF and ChinaAMC STAR 50 ETF each exceed RMB 15 billion, with notable volume increases across multiple broad-based ETFs.

Ministry of Finance: Securities transaction stamp duty in the first three quarters was 239.1 billion yuan, up 65.1% year on year.

On October 23, the Ministry of Finance released the fiscal revenue and expenditure situation for the first three quarters of 2026.

XIZHI TECH-P (01879) "Share Swap Window" Faces Capital Test, Awaiting Inflection Point in Optoelectronic Computing Power Realization Curve

For XIZHI TECH-P, the price elasticity seen in the early post-listing period has given way to cooler scrutiny as valuations are digested: the market's focus is shifting from "pricing the story" to "pricing execution."

In the first three quarters, national fiscal revenue increased by 5.1% year on year.

Fiscal revenue and expenditure are a "barometer" reflecting economic performance. Data released by the Ministry of Finance on October 23 shows that in the first three quarters of this year, fiscal revenue grew steadily, with nationwide general public budget revenue at approximately 17.23 trillion yuan, up 5.1 percent year on year, an increase 0.4 percentage points higher than in the first half of the year. Of this, nationwide tax revenue in the first three quarters was approximately 14.07 trillion yuan, up 6.1 percent year on year, an increase 0.8 percentage points higher than in the first half. On the expenditure side, nationwide general public budget expenditure in the first three quarters was approximately 21.02 trillion yuan, up 1 percent year on year, with spending related to investment in people well guaranteed.

MOFCOM Spokesperson Answers Questions on the U.S. Department of Defense's Release of So-Called Research Security Review Results

China urges the U.S. side to respect facts, follow the common laws of global scientific and technological exchanges and cooperation and the trend of the times, and immediately stop its wrong practice of taking discriminatory and restrictive measures against Chinese research institutions.

UK September retail sales fall more than expected, October consumer confidence drops sharply.

UK retail sales fell by 0.4% in September, a sharper decline than expected.

ECB rate hike endgame debate: Economists expect a December finale, while the market bets on three more hikes.

Economists expect the ECB to hold rates steady next week and then deliver the final hike of this cycle in December. That view stands in sharp contrast to market bets that several more hikes are still to come.

Hui Ching-yu: Striving to assist no fewer than 220 additional family offices in establishing or expanding their operations in Hong Kong between 2026 and 2028

Hui Ching-yu mentioned that the preferential tax regimes for funds, single family offices, and carried interest will be further optimized.

The 33rd APEC Finance Ministers' Meeting concludes in Hong Kong, having deliberated and adopted two statements and produced multiple outcome documents.

On October 21, the 33rd APEC Finance Ministers' Meeting concluded in Hong Kong.

Baijiu Shangmei Group Releases NexxAI Unattended Digital Retail Operations Agent Ecosystem, Achieving the Leap from Copilot to Autopilot

Baijiu chose to enter the e-commerce operations domain with NexxAI, connecting years of brand service experience and business scenarios with agent technology, continuously validating and refining them through practical application.

Shanghai: Strive to cultivate 10 digital-intelligence-native unicorn enterprises by 2028, with the penetration rate of AI applications in the industrial services sector reaching over 85%.

The Shanghai Municipal Commission of Economy and Informatization has issued the "Shanghai Action Plan for Accelerating the High-Quality Development of AI-Empowered Industrial Services." The overall goals are: by 2028, the penetration rate of AI applications in industrial services to reach over 85%, and to strive to cultivate 10 digital-intelligent native unicorn enterprises. Build 5 industry-level collaborative design platforms; focus on key areas such as high-end equipment and complete vehicle manufacturing to enhance supply chain resilience and security; promote 500 high-quality enterprises to build flexible manufacturing service systems and create Shanghai advanced-level smart factories; popularize embedded quality inspection in key industries such as integrated circuits and new energy vehicles; and further enhance predictive equipment operation and maintenance service capabilities. This will provide strong support for the city's acceleration of new industrialization and the building of a modern industrial system.

Hui Ching-yu: Hong Kong's "tokenization" is moving toward the implementation stage, and the financial ecosystem is becoming more complete.

Hong Kong's Secretary for Financial Services and the Treasury, Hui Ching-yu, pointed out that Hong Kong's "tokenization" progress is moving from the "experimental stage" toward the "implementation stage."

Invest Hong Kong: Assisted around 550 local and overseas companies in opening or expanding operations in Hong Kong in the first nine months of this year.

In the first nine months of this year, we assisted around 550 overseas and Mainland companies in opening or expanding their businesses in Hong Kong, and it is estimated that these companies will bring in over HK$70 billion in direct investment in the first year of setting up or expanding their operations.

Paul C. H. W. (Packman) appointed as Chairman of the Market Misconduct Tribunal and the Securities and Futures Appeals Tribunal for a term of 3 years

On October 23, the Hong Kong government announced that the Chief Executive has appointed Paul C. H. W. (Packman), a former judge of the Court of First Instance of the High Court, as Chairman of the Market Misconduct Tribunal and the Securities and Futures Appeals Tribunal.

GIORDANO INT'L (00709) achieved revenue of HK$820 million in the third quarter, a year-on-year decrease of 8.3%.

GIORDANO INT'L (00709) announced that for the quarter ended September 30, it achieved revenue of HK$820 million, a year-on-year decrease of 8.3%; the Group's same-store sales were HK$605 million, a year-on-year decrease of 7.1%; global brand sales were HK$893 million, a year-on-year decrease of 7.7%. For the year ended September 30, it achieved revenue of HK$2,734 million, a year-on-year decrease of 3.3%; the Group's same-store sales were HK$1,992 million, a year-on-year decrease of 2.7%; global brand sales were HK$3,082 million, a year-on-year decrease of 3.4%.

A-share Midday Review | Shanghai Composite Index Falls 1.20%, Major Financials Buck the Trend, Computing Power Hardware Sector Tumbles Broadly

A-shares fluctuated and weakened in early trading, with the Shanghai Composite Index falling more than 2% intraday and briefly losing the 3,600-point level, before narrowing its decline.

Commodity futures morning session close

Fuel oil rose 6.09% consecutively, low-sulfur fuel oil rose 5.88% consecutively, liquefied petroleum gas rose 5.87% consecutively, silver fell 5.49% consecutively, propylene rose 3.91% consecutively, polypropylene rose 2.98% consecutively, butadiene rubber rose 2.97% consecutively, and Shanghai crude oil rose 2.95% consecutively.

AI tech panic intensifies bond selloff, global credit spreads rise to 17-month high.

AI technology concerns push global credit spreads to a 17-month high.

HKD HIBOR developments mixed; one-month rate rises for second straight day to 2.78%

On October 23, HKD HIBOR developments were mixed, with the one-month HIBOR, which is linked to mortgage rates, reported at 2.77893%, up 3.393 basis points.

The combined turnover of the Shanghai and Shenzhen stock markets exceeded 1 trillion yuan, an increase of 146.9 billion yuan compared with the same time the previous day.

Ministry of Commerce: From January to September, the momentum for e-commerce development in China continued to innovate, with online retail supporting consumption growth.

Recently, the head of the E-commerce Department of the Ministry of Commerce introduced the development of China's e-commerce from January to September 2026.

Ministry of Housing and Urban-Rural Development: Implement 1,500 old neighborhood and factory renovation projects, support eligible projects in issuing REITs.

On October 23, the General Office of the Ministry of Housing and Urban-Rural Development and others issued guiding opinions on promoting the renovation and upgrading of old neighborhoods and factory areas.

National Bureau of Statistics: China's Innovation Index grew by 6.4% in 2025 compared with the previous year.

In 2025, China's Innovation Index showed steady growth, the innovation environment continued to improve, new development drivers accumulated and expanded, and scientific and technological innovation capabilities continued to rise, providing strong support for high-quality economic development.

Quarterly results continue to show double growthhas Contemporary Amperex Technology (03750) fallen into a "golden pit"?

While lithium carbonate prices have fallen from 200,000 yuan/ton toward 100,000 yuan/ton and profits across the lithium battery industry have generally declined, Contemporary Amperex Technology (03750), as the downstream leader in the lithium battery sector, has seen both revenue and profit surge.

Hong Kong Health Bureau: eHealth registrations exceed 6.57 million, will be developed into a comprehensive health tool for citizens.

On October 23, Professor Lo Chung-mau, Secretary for Health of Hong Kong, delivered opening remarks at the Legislative Council Panel on Health Services meeting on the latest developments of "eHealth+".

Hong Kong's Financial Services and the Treasury Bureau: Two gold refiners establish presence in Hong Kong, adding strong momentum to Hong Kong's "Gold Grand Plan"

The Financial Services and the Treasury Bureau of Hong Kong stated that the establishment of two gold refiners in Hong Kong at a time when the city is fully committed to building an international gold trading hub adds strong momentum to Hong Kong's "Gold Grand Plan."

NVIDIA's 800VDC architecture ignites a new track for electrical equipment! Legrand and Siemens named by Goldman Sachs.

Goldman Sachs noted in a research report released recently that investor discussions are increasingly focusing on NVIDIA's 800VDC architecture and the progress of major electrical equipment original equipment manufacturers (OEMs) racing to develop related product portfolios.

AI selloff boosts safe-haven demand, Japanese bonds and yen both rise.

Amid safe-haven demand triggered by AI concerns, Japanese government bond yields fell, and the yen hit a one-month high.

Morgan Stanley Backs SpaceX (SPCX.US): MARS and PIE Open a New Narrative, Starship's 15th Flight Becomes a Key Catalyst

Morgan Stanley maintains its "Overweight" rating on SpaceX (SPCX.US) with a price target of $300 in its latest research report.

A-share Market Open Brief | All Three Major Indices Open Lower; Precious Metals and Communication Equipment Lead Declines

On October 23, the Shanghai Composite Index opened 0.94% lower at 3,623.57 points, the Shenzhen Component Index opened 1.49% lower at 11,187.55 points, and the ChiNext Index opened 1.66% lower at 2,534.16 points.

Ministry of Commerce: In the First Three Quarters, Consumption's Role as the "Main Engine" Continued to Consolidate, with "Goods + Services" Consumption Developing in Parallel

On October 23, the head of the Department of Consumer Promotion of the Ministry of Commerce discussed the situation of China's consumer market in the first three quarters of 2026.

The continuous main contract for liquefied petroleum gas rose 5% during the day and is now reported at 7,191.00 yuan.

Fuel oil continuous main contract rises 5% intraday, now at 5,053.00 yuan.

Bernstein goes against the grain to turn bullish on chip stocks: Market concerns over slowing memory ASP growth are overdone, with Seagate (STX.US) as top pick and SanDisk (SNDK.US) also favored.

Bernstein has released its latest research report, maintaining an overall constructive view on memory and HDD, and believes that the recent pullback has already overpriced concerns about slowing growth.

UK Consumer Confidence Suffers "Brexit-Level" Collapse: 11-Point Plunge in October, Holiday Retail Sounds the Alarm

UK consumer confidence plunged in October, with soaring fuel prices making households acutely feel the cost-of-living shock from the Middle East conflict.

$40 Billion Bond Issuance, Interest Rate as High as 8.3%! SpaceX (SPCX.US)'s AI Gamble Also Exposes the "Financing Winter" of AI Infrastructure

According to media reports citing people familiar with the matter, SpaceX is preparing to complete a debt issuance of up to $40 billion, with an interest rate significantly higher than its previous borrowing costs, reflecting growing investor concerns about financing for artificial intelligence (AI) infrastructure.

Broker Morning Meeting Highlights | U.S. Macro Fragility Manageable, Computing Power and Semiconductor Equipment Momentum Continues

Huafu Securities believes that U.S. macroeconomic fragility is generally manageable, but the margin of safety in valuations is relatively thin, and risk assets may experience periodic adjustments.

TENNOR THERAP-B(06872): First patient enrolled in the multicenter Phase IIb clinical trial of rifaquizone (TNP-2092) administered via intra-articular injection for the treatment of prosthetic joint infection

TENNOR THERAP-B (06872) announced that the first patient has been enrolled in the multicenter Phase IIb clinical trial of its investigational drug candidate rifaquizone (TNP-2092) administered via intra-articular injection for the treatment of prosthetic joint infection (PJI). The trial is designed to further evaluate the efficacy, safety, and pharmacokinetic profile of rifaquizone (TNP-2092) in treating PJI without debridement or revision surgery, marking a key stage in the clinical development of this potentially disruptive new drug product.

TS Lombard scenario analysis: AI bubble burst could trigger a 30% plunge in the S&P 500 and $20 trillion in market value wiped outbut don't rush to short!

In a scenario analysis released on Thursday, TS Lombard's Dario Perkins predicted that if AI capital expenditure collapses, about $20 trillion in U.S. stock market value would be wiped out, triggering $125 billion to $190 billion in credit losses.

CSPC PHARMA (01093): Batoclimab Injection (Subcutaneous Injection) Receives Drug Registration Certificate Issued by the National Medical Products Administration

CSPC PHARMA (01093) announced that Batoclimab Injection (Subcutaneous Injection) (trade name: Enlida) (the product), licensed by the company's subsidiary CSPC NBP Pharmaceutical Co., Ltd. from Harbour BioMed (Shanghai) Co., Ltd., has obtained a drug registration certificate issued by the National Medical Products Administration (NMPA) of China, for use in combination with conventional drugs for the treatment of adult patients with anti-acetylcholine receptor (AChR) antibody-positive generalized myasthenia gravis (gMG).

Japan's September core CPI rose 2.1% year-on-year, exceeding the central bank's 2% target for the first time in nine months! Broadening inflation strengthens expectations of a near-term rate hike.

Data released on Friday showed that Japan's September core Consumer Price Index (CPI) rose 2.1% year-on-year, exceeding the Bank of Japan's 2% inflation target for the first time in nine months, indicating that price pressures are spreading and reinforcing market expectations of a near-term rate hike.

HBM HOLDINGS-B(02142): Batoclimab Injection (Subcutaneous Injection) Receives NMPA Approval for Marketing for the Treatment of Generalized Myasthenia Gravis

HBM Holdings-B (02142) announces that the National Medical Products Administration (NMPA) of China has approved the marketing of Batoclimab Injection (Subcutaneous Injection) (Batoclimab Subcutaneous Injection) (170 mg (1 mL)/vial) for use in combination with conventional therapeutic drugs for the treatment of adult patients with anti-acetylcholine receptor (AChR) antibody-positive generalized myasthenia gravis (gMG). Batoclimab (HBM9161) is the Company's core product under Chapter 18A of the Listing Rules. Batoclimab Subcutaneous Injection is the Group's first approved product and also the first anti-neonatal Fc receptor (FcRn) therapy to complete full clinical development for gMG patients in China.

ASCLETIS-B(01672) strategic partner Sagimet announces that the first patient has been dosed in the U.S. Phase III clinical trial of denifanstat (ASC40) for the treatment of moderate-to-severe acne

ASCLETIS-B (01672) announced that its strategic partner Sagimet Biosciences Inc. (Sagimet), a clinical-stage biopharmaceutical company committed to developing fatty acid synthase (FASN, a key regulator of lipid synthesis) inhibitors for acne, has completed dosing of the first patient in its pivotal U.S. Phase III clinical trial AURORA of denifanstat (ASC40), which is being conducted in adults and adolescents aged 12 and older with moderate-to-severe acne.

Western Digital Corporation (WDC.US) can't escape the "sell the news" reaction eitherwhat exactly is the AI trade pricing in?

Western Digital's stock fell after it reported earnings, as AI concerns overshadowed its solid outlook.

Capital Scarcity Meets Debt Frenzy: From AI Clouds to French Sovereign Debt, CDS Spreads Widen Across the BoardWho Is Paying for High Leverage?

From AI companies financing data center projects to the heavily indebted French government, credit markets are flashing warning signs as investors grow increasingly wary of borrowing risks.

DoubleLine Capital: Large-scale debt issuance and weak demand will continue to exert pressure; remains bearish on long-term U.S. Treasuries.

Jeffrey Sherman, Deputy Chief Investment Officer at DoubleLine Capital, said he remains bearish on long-term U.S. Treasuries, believing that large-scale government debt issuance and weak demand will continue to put pressure on the Treasury market.

New Stock News | Csg Smart Science & technology (300222.SZ) files with the Hong Kong Stock Exchange again, ranking first in China by cumulative revenue from industrial robotic arms.

According to a disclosure by the Hong Kong Stock Exchange on October 22, Csg Smart Science & technology Co., Ltd. has submitted an application for listing to the Main Board of the Hong Kong Stock Exchange, with Huatai Financial Holdings (Hong Kong) Limited and Guoyuan Financing (Hong Kong) Limited as its joint sponsors.

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China Chemical (601117.SH): Contract value signed from January to September was 285.366 billion yuan.

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CLSA: Cuts Fuyao Glass (03606.HK) H-share target price by 9.5% to HK$67, maintains "Outperform" rating

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Hong Kong Stock Movement | Jiaxin International Resources (03858.HK) rose over 6% in late trading; Rotterdam tungsten APT futures are expected to launch trading in early next year.

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iQOO partners with Unreal Engine to explore lowering the barrier to high-quality ray tracing implementation

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Hong Kong Stock Movement | UBTECH (09880.HK) Rises Over 7% as Company Establishes Presence in Ras Al Khaimah, UAE to Jointly Advance the Implementation of Humanoid Robot Projects

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