GMT EIGHT - OPPORTUNITIES IN CHINA

Commodity futures open

Container shipping index Europe route futures fell 4.33% consecutively, Shanghai crude oil fell 3.52% consecutively, fuel oil fell 3.10% consecutively, liquefied petroleum gas fell 2.19% consecutively, and paraxylene fell 2.05% consecutively.

A-share Pre-market Briefing | Dow Rises 1.02%, Data Group Established, Intelligent Computing Power Up 146%

The three major U.S. stock indices closed mixed, with the Dow rising 1.02%.

South Korea's exports extend strong growth in the first 20 days of October, chip exports surge 222.5%.

South Korea's exports maintained strong growth in the first 20 days of October, driven by semiconductor shipments fueled by robust global artificial intelligence (AI) demand.

Broker Morning Meeting Highlights | Financial Street Holdings Forum Releases Reform Signals, Focusing on Interest Rate Anchor Shift and Market Stabilization Mechanism Main Line

Guotai Haitong believes that the shift in the policy rate anchor, support for non-bank liquidity, and the market stabilization mechanism are advancing in tandem, accelerating inclusive reform of the capital market.

As CoreWeave (CRWV.US) bonds come under pressure, fund managers who have put real money on the line firmly stand by the company: the sell-off is an "overreaction"

CoreWeave's bond yields and credit default swaps remain elevated, but John Lloyd of Janus Henderson sees an opportunity.

HUTCHMED (00013) and GSK's licensing agreement for the KRAS-EGFR antibody-drug conjugate therapy in territories outside China has completed the transaction

HUTCHMED (00013) announced that, following the announcement dated September 3, 2026 and the satisfaction of customary closing conditions including antitrust review, the exclusive development and licensing agreement between the company's subsidiary Hutchison MediPharma (Shanghai) Limited (HUTCHMED Limited) and a subsidiary of GSK plc ("GlaxoSmithKline") has completed the transaction. The agreement grants the GSK subsidiary the rights to develop and commercialize HMPL-A830 worldwide, excluding Mainland China, Hong Kong, Macau, and Taiwan.

SBP GROUP (01177): TQC2731 Injection "TSLP monoclonal antibody" Phase III registrational clinical trial for chronic rhinosinusitis with nasal polyps completes enrollment of all participants

SBP GROUP (01177) announced that the Phase III registrational clinical trial of TQC2731 Injection "TSLP monoclonal antibody," a Class 1 innovative drug independently developed by the Group's subsidiary Chia Tai Tianqing Pharmaceutical Group Co., Ltd. (Chia Tai Tianqing), for the maintenance treatment of chronic rhinosinusitis with nasal polyps (CRSwNP), has recently completed enrollment of all participants.

After consecutive rate hikes, South Korea's central bank is expected to "catch its breath" this week, but high inflation and the chip boom still support the tightening cycle.

Economists generally expect the Bank of Korea to keep interest rates unchanged this week to assess the impact of its rare consecutive rate hikes, while continuing to leave room for further increases.

Strategy (MSTR.US) flashes a "golden cross" signal for the first time in more than three years; after the last occurrence, it surged 700%!

Strategy flashes its first golden cross since March 2023: after the last occurrence, it rose nearly 700% over the following 12 months.

JPMorgan Asset Management includes Bitcoin in long-term assumptions for the first time: 10% annualized return over ten years, but 55% volatility becomes a concern.

J.P. Morgan Asset Management has included Bitcoin in its long-term capital market assumptions for the first time, projecting that its returns over the next decade could outperform stocks, bonds, and golda development seen as a milestone in Bitcoin's acceptance on Wall Street.

Musk Accelerates "Superintelligence" Ambitions: SpaceX (SPCX.US) and Tesla, Inc. (TSLA.US) Discuss $3.5 Trillion Merger, ASML Holding NV ADR Rushes Deliveries for Terafab

Musk says SpaceX and Tesla have begun discussing a merger, while ASML and other companies are accelerating the supply of chip manufacturing equipment for Terafab.

"Cash-burn-to-monetization" loop validated for the first time! SI business drives SpaceX (SPCX.US)'s first quarterly profit since going public, as Musk presses the "merge" button

In one evening, Musk gave three answers at once: the company can make money; AI can "carry the flag"; and the merger with Tesla is real.

Industrial and Commercial Bank of China (01398) will distribute an interim dividend of HK$1.77332 per 10 shares on November 25.

Industrial and Commercial Bank of China (01398) announced that it will distribute an interim dividend of HK$1.77332 per 10 shares for the six months ended June 30, 2026, on November 25, 2026.

Agricultural Bank Of China (01288) will distribute an interim dividend of HK$1.522165 per 10 shares on November 25.

Agricultural Bank of China (01288) announced that it will distribute an interim dividend of HK$1.522165 per 10 shares for the six months ended June 30, 2026, on November 25, 2026.

ASCENTAGE(06855) Lisaftoclax Receives Breakthrough Therapy Designation for the Treatment of Treatment-Naive Chronic Lymphocytic Leukemia/Small Lymphocytic Lymphoma (CLL/SLL)

ASCENTAGE (06855) announced that its original Class 1 novel drug Bcl-2 inhibitor Lisaftoclax (generic name: lisaftoclax; development code: APG-2575) has been included by the Center for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA) in the "Breakthrough Therapy Designation" list for the treatment of adult patients with treatment-naive chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) in combination with acalabrutinib.

Wells Fargo: Sentiment Indicator Flashes a "Buy" Signal; Hyperscalers May Take Over as Market Leaders

Wells Fargo's latest sentiment indicator shows that U.S. stocks, after falling amid AI concerns and elevated oil prices, have dropped to attractive levels and issued a "buy" signal for the first time since June 2025.

New Stock News | Hemei Pharmaceutical Passes HKEX Hearing, Cumulative Loss of 253 Million Over Two Years, Core Product Just Beginning Commercialization

According to a disclosure by the Hong Kong Stock Exchange on October 20, Ganzhou Hemei Pharmaceutical Co., Ltd. has passed the listing hearing for the Main Board of the Hong Kong Stock Exchange.

MOFCOM Spokesperson Answers Questions on the US Sanctioning Chinese Enterprises on the Grounds of Stealing Trade Secrets

The rapid development of Chinese AI companies is the result of long-term commitment to basic research and continuous investment in innovation. It is an achievement of scientific and technological self-reliance and open cooperation, which benefits both China and the US and the world. It has nothing to do with the so-called theft of trade secrets.

Netflix (NFLX.US) Q3 revenue up 12% year-over-year; full-year advertising revenue forecast cut; shares fall over 5% after hours.

Driven by subscriber growth, membership price increases, and higher advertising revenue, Netflix's Q3 revenue grew nearly 12% year-over-year, net profit surged 44% year-over-year, and operating margin further expanded.

GME GROUP (08188) Honored with the Hong Kong Securities Analysts Association Market Share Annual Award 2026

GME GROUP (08188) Announcement: The Company announces that on October 16, 2026, at the "Listed Company Annual Awards 2026" presentation ceremony organized by the Hong Kong Securities Analysts Association and HOY TV, it was presented with the award "Hong Kong Securities Analysts Association Market Share Annual Award 2026." The award recognizes listed companies with outstanding performance, honoring their excellent corporate governance, sustained growth, and innovative capabilities, thereby highlighting the high-quality development and robust vitality of Hong Kong's financial market.

United Airlines Holdings, Inc. (UAL.US) Reports Record Third-Quarter Revenue, Up Over 17% Year-over-Year to Nearly $17.9 Billion

Benefiting from strong passenger demand, higher ticket prices, and growth in premium cabin business, United Airlines' Q3 revenue grew 17.4% year-over-year, hitting a record high.

Five key takeaways from SpaceX's Q3 financial report

1. Elon Musk responded to the ongoing merger rumors between SpaceX and Tesla, stating that the two companies have set up a special committee to explore merger options. He said the merger is not a certainty, but he thinks it would be a good choice. 2. After predicting last quarter that SpaceX would achieve $100 billion in annual recurring revenue by the end of this year, management further raised expectations and now expects annual recurring revenue to reach $500 billion to $1 trillion by the end of 2027. 3. Chief Financial Officer Bret Johnsen forecast that the company's revenue in the first quarter of next year will fall in the range of $33 billion to $37 billion, significantly above analysts' expectations. 4. This is SpaceX's first profitable quarter, with net profit of $4.4 billion. Revenue in the SpaceX SI segment also exceeded the Starlink connectivity business for the first time, proving that this new business has strong profitability and robust customer demand. AI-related investment is the main direction of SpaceX's capital expenditure, although related spending this quarter was lower than analysts had previously expected. 5. The next Starship launch is highly significant. SpaceX plans to achieve full recovery of the vehicle body after launch, a goal the team has not yet accomplished. SpaceX President Gwynne Shotwell also mentioned that the team plans to conduct a key Starship orbital refueling verification test in early 2027.

Overnight US stocks | The three major indices closed mixed; SpaceX (SPCX.US) and Tesla, Inc. (TSLA.US) are exploring the possibility of a merger.

At the close, the Dow Jones Industrial Average rose 530.08 points, or 1.02%, to 52,496.11; the S&P 500 gained 21.92 points, or 0.29%, to 7,712.65; and the Nasdaq Composite fell 6.07 points, or 0.02%, to 26,424.82.

Anthropic Prepares for an Epic IPO! Future Compute Spending Could Reach $750 Billion, First-Half Net Loss of $80.7 Billion

According to media reports citing a draft initial public offering prospectus from AI startup Anthropic, the company may need to invest up to $750 billion in additional compute over the coming years as it prepares to list on the U.S. stock market.

SpaceX (SPCX.US) Q3 revenue surged 161% year-over-year and turned profitable, with superintelligence business revenue soaring 830%.

Driven by the rapid expansion of its superintelligence business and the continued growth of its Starlink business, SpaceX's third-quarter revenue surged 161% year-over-year, achieving a turnaround from loss to profit.

AI trades are expected to make a comeback after the US midterm elections! Citadel Securities: Investors are waiting for the right moment to re-enter the market.

Scott Rubner, Head of Equity and Derivatives Strategy at Citadel Securities, said that as the US midterm elections approach, investors are temporarily avoiding AI-related stocks, but this situation may reverse after the November elections.

Strong AI server demand drives Super Micro Computer, Inc. (SMCI.US) quarterly revenue guidance far above expectations, with shares surging over 12% after hours.

Super Micro Computer's preliminary quarterly results, released ahead of schedule on Tuesday, significantly exceeded Wall Street expectations.

U.S. stocks close: The three major stock indices closed mixed.

The Dow rose 1.02%, the S&P 500 gained 0.29%, and the Nasdaq fell 0.02%. Equifax rose 11.31%, Hasbro gained 11.20%, Moderna rose 6.69%, General Motors fell 6.83%, DaVita fell 6.38%, and Genuine Parts fell 5.17%. Among the "Magnificent Seven": Tesla rose 1.54%, Amazon gained 0.07%, Nvidia fell 0.29%, Microsoft fell 0.31%, Apple fell 1.00%, Google fell 1.11%, and Meta Platforms fell 1.59%.

US housing market continues to cool! September pending home sales index plunges 7.3% month-over-month; housing starts and building permits both decline.

As US mortgage rates climbed rapidly in September, the housing market once again took a significant hit.

WTI and Brent crude both rose by more than $1 in a short burst, now at $96.72/barrel and $104.99/barrel respectively. Earlier reports said negotiations between Iran and the United States are still ongoing, and reports that the two sides are about to reach an agreement are untrue.

A-share Evening Highlights | Breaking! National Data Group Established, Which Sectors May Benefit?

Guolian Minsheng pointed out that the establishment of the National Data Group is expected to drive public data from fragmentation toward coordinated management, transforming data resource advantages into AI industry advantages. Vendors with capabilities in data element operations, governance, and security are expected to benefit fully.

US Stock Market Move | Chip stocks turn losses into gains; Seagate Technology Holdings PLC (STX.US) rises over 2%.

On Tuesday, the Philadelphia Semiconductor Index continued to climb during intraday trading, rising more than 1%. Chip stocks turned losses into gains. Seagate Technology Holdings PLC (STX.US) fell more than 2% at one point intraday and, as of press time, has risen more than 2%.

DEEP SOURCE (00990) plans to acquire a 176-hectare plot to build an AI data center campus, with 120 megawatts of power reserved.

Deep Source Holdings (00990) announced that on October 18, 2026, the buyer, Deep Source (PN) Sdn Bhd (an indirectly wholly-owned subsidiary of the Company), entered into a sale and purchase agreement with the seller, ASAS Panorama Sdn Bhd, pursuant to which the seller agreed to sell and the buyer agreed to purchase the property at a price of RM417 million (equivalent to HK$802 million), intended to be used as development land for an artificial intelligence data center and upstream and downstream industry projects.

SICC Co.,Ltd.(02631) reported a net profit attributable to shareholders of RMB 27.216 million for the first three quarters, up 2,330.24% year on year.

SICC Co.,Ltd. (02631) announced that for the nine months ended September 30, 2026, operating revenue was RMB 1.559 billion, up 40.22% year on year; net profit attributable to shareholders of the listed company was RMB 27.216 million, up 2,330.24% year on year; basic earnings per share were RMB 0.06.

DRAM business resilience exceeds expectations! Morgan Stanley is bullish on Applied Materials' (AMAT.US) long-term growth potential and maintains a $563 price target.

Morgan Stanley, after attending Applied Materials' recent investor breakfast and the EPIC R&D center open event, said it has greater confidence in the company's long-term development strategy and competitive position.

US Stock Market Move | Omvoh's Phase III trial in pediatric ulcerative colitis succeeds; Eli Lilly (LLY.US) rises over 5%, with its stock price hitting an all-time high.

On Tuesday, Eli Lilly (LLY.US) rose over 5% to $1,309.39, with its stock price hitting an all-time high.

Wall Street envisions a new bull market curve for semiconductors! Amid the AI agent frenzy, EDAthe "mother of chips"may become a new anchor for capital.

Supported by recurring revenue fundamentals, the two EDA supergiants in the world's largest marketSynopsys (SNPS.US) and Cadence Design Systems (CDNS.US)are expected to expand the EDA software market size and achieve stronger profitability and valuation expansion room through AI agent application products.

Morgan Stanley Earnings Preview: Cadence Design Systems (CDNS.US) Q3 Results Poised for Steady Growth, Commercialization of AI Design Tools a Key Focus

Morgan Stanley noted in its latest research report that as the complexity of AI chip design continues to increase and the application of AI tools in the semiconductor R&D process gradually expands, electronic design automation software giant Cadence Design Systems is expected to usher in a new round of growth opportunities.

US Stock Market Move | Cloud computing service provider concept stocks broadly declined; IREN Ltd (IREN.US) fell nearly 6%.

On Tuesday, cloud computing service provider concept stocks broadly declined, with IREN Ltd (IREN.US) falling nearly 6%.

DIAGENS-B(02526) grants a total of 779,000 share awards

DIAGENS-B (02526) announced that on October 20, 2026, pursuant to the 2026 Share Incentive Plan and in accordance with its terms, it granted a total of 779,000 share awards to 23 employee participants (including 238,300 share options and 540,700 restricted share units). Vesting of the share awards is subject to acceptance by the participants and the fulfillment of certain vesting conditions.

PHANCY (06682) grants a total of 5.1514 million share options.

PHANCY (06682) announces that pursuant to the share option and restricted share unit scheme amended on September 10, 2026, the Company granted a total of 5.1514 million share options to eligible persons on October 20, 2026. Each share option entitles the relevant grantee to subscribe for or purchase one ordinary share of the Company listed on the Stock Exchange at HK$23.432 per H share, subject to acceptance of the share options by the grantees.

Shenzhen Hans CNC Technology (03200) achieved a net profit attributable to shareholders of approximately RMB 1.544 billion in the first three quarters, a year-on-year increase of 214.03%.

Han's CNC Technology (03200) announced that in the first three quarters of 2026, the company achieved operating revenue of approximately RMB 7.841 billion, a year-on-year increase of 100.90%; net profit attributable to shareholders of the listed company was approximately RMB 1.544 billion, a year-on-year increase of 214.03%, mainly driven by significant growth in demand for high-end AI PCBs, including high-layer-count HDI boards for next-generation rack server computing power and switching units, N+N structure high-layer-count boards, and mSAP-type substrates for 800G and 1.6T high-speed optical modules. Driven by the dual factors of demand growth and technological advancement, downstream PCB companies' investment has continued to surge. The company seized the market opportunity of downstream customers' capacity expansion and upgrades, achieving substantial order growth across its entire product line.

CATHAY GP HLDGS (01981) subsidiary grants an unsecured loan with a principal amount of up to RMB 45 million.

CATHAY GP HLDGS (01981) announced that on October 20, 2026, Bicheng Art (a wholly-owned subsidiary of the Company, as lender) entered into a loan agreement with Mr. Pu Shulin (an executive Director and controlling shareholder of the Company, as borrower), pursuant to which Bicheng Art agreed to provide Mr. Pu with an unsecured loan with a principal amount of up to RMB 45 million, for a term of 12 months from the date of drawdown, at an annual interest rate of 3.3%.

US Stock Market Move | Optical communication concept stocks broadly declined; Credo Technology (CRDO.US) fell over 5%.

On Tuesday, optical communication concept stocks broadly declined, with Credo Technology (CRDO.US) and Applied Optoelectronics (AAOI.US) falling more than 5%.

US Stock Market Move | Profit guidance misses expectations for a third consecutive increase; General Motors Company (GM.US) falls over 5%.

On Tuesday, General Motors (GM.US) fell more than 5% to $78.07.

Top 10 US stock market cap companies saw a rare across-the-board decline in early trading; Nvidia, Apple, and others under collective pressure.

All top ten US-listed companies by market capitalization saw their share prices fall across the board. Nvidia dropped 1.12%, Apple fell 0.47%, both Alphabet Class A and Class C declined 0.39%, Microsoft slipped 0.30%, Amazon edged down 0.09%, TSMC fell 0.20%, SpaceX dropped 2.22%, Meta lost 2.36%, and Broadcom declined 0.54%. Among them, Meta and SpaceX posted the steepest declines.

SINOPHARM(01099): China National Accord Medicines Corporation achieved a net profit attributable to shareholders of RMB 346 million in the third quarter, up 18.91% year on year.

Sinopharm Group (01099) announced that China National Accord Medicines Corporation achieved total operating revenue of approximately RMB 55.066 billion in the first three quarters of 2026, a year-on-year decrease of 0.11%; net profit attributable to shareholders of the listed company was approximately RMB 952 million, a year-on-year decrease of 0.48%; basic earnings per share were RMB 1.56. In the third quarter of 2026, operating revenue was RMB 18.800 billion, up 2.57% year on year; net profit attributable to shareholders of the listed company was RMB 346 million, up 18.91% year on year.

MOFCOM Spokesperson Answers Questions on the U.S. Department of Homeland Security's Notice of Federal Procurement Exclusion and Removal Order Targeting Chinese Companies

MOFCOM Spokesperson Answers Questions on the U.S. Department of Homeland Security's Notice of Federal Procurement Exclusion and Removal Order Targeting Chinese Companies.

After the Philadelphia Semiconductor Index's eight-day losing streak, storage leads the counterattack! Morgan Stanley declares the HDD super cycle is not over, and Seagate and Western Digital are set to soar 80%.

Morgan Stanley's core judgment is that the HDD super upcycle is still continuing, while share prices had already prematurely and excessively priced in peak earnings and intensifying price competition.

The Dow opened down 0.01%, the Nasdaq fell 0.37%, and the S&P 500 dropped 0.15%. Among leading tech stocks, Advanced Micro Devices fell 1.49%, Meta Platforms dropped 1.48%, and Intel declined 1.41%. The Nasdaq Golden Dragon China Index rose 0.06%, with XPeng up 3.69% and Li Auto up 3.28%.

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Moody's: Affirms VNET Group (VNET.US) "B1" corporate family rating, outlook "positive"

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Bank of China (03988.HK) Johannesburg Branch issues RMB 2 billion bonds with a coupon rate of 1.60%.

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Stock index futures opened in the morning session.

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The STAR 50 rose 1.06% intraday. Among its constituent stocks, Montage Technology gained 3.04%, Yuanjie Semiconductor rose 2.44%, Hwatsing Technology climbed 2.05%, and Hygon Information Technology advanced 2.00%.

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