GMT EIGHT - OPPORTUNITIES IN CHINA

Hong Kong General Chamber of Commerce launches three major strategic initiatives to help Hong Kong seize emerging opportunities.

The three major initiatives launched by the Hong Kong General Chamber of Commerce are dedicated to helping members explore opportunities in the "Northern Metropolis," drive AI adoption across the board, and leverage top-tier international networks to "go global" and expand, providing businesses with a powerful strategic engine to capture a new round of growth and comprehensively enhance their international competitiveness.

From the stock price pullback after the interim results were realized to the surge and testing of the market, is VIVA BIOTECH (01873) about to usher in a rebound moment?

A flurry of positive news drove several Hong Kong-listed CRO/AI drug discovery sector names to move collectively on September 17, directly raising market risk appetite for VIVA BIOTECH's (01873) AI CRO platform and CDMO commercialization logic.

Citi: Expects the Fed to keep rates unchanged in October and December, and resume rate cuts in June 2027.

As inflation continues to cool, Citi expects the Fed to resume rate cuts in June 2027.

Midland Realty: Hong Kong property market recovery momentum remains solid, maintains full-year home price growth forecast of 15%

Currently, the Hong Kong property market's recovery momentum remains solid. Short-term fluctuations in interest rates are not expected to have a significant impact on medium- to long-term property prices. In addition, Hong Kong's improving economy, ample liquidity, rising rents, population growth, and declining inventory are all favorable to the property market. Therefore, the forecast of a 15% increase in property prices for the full year is maintained.

HKGAI welcomes multiple key innovation and technology measures, fully committed to advancing "AI industrialization and industry AI-ization"

HKGAI will actively implement the national "15th Five-Year Plan" and Hong Kong's first five-year plan, continue to advance independent research and development and practical application of AI technology in Hong Kong, nurture local innovation and technology talent, and fully assist Hong Kong in building itself into an international innovation and technology center and a hub for high-end talent.

Japanese companies rarely dislike a weak yen! Exchange rate volatility is 'harmful'; a weak yen may cause chaos in financial markets.

Japanese corporate executives are increasingly calling for a stronger yen, and even companies that benefit from a weak yen are no exception.

Bernstein: Computing Power Racing Ahead, Electricity Taking the Baton, China's AI Cost Advantage Ignites Long-Term Opportunities in Grid Energy Storage

Bernstein's September 2026 research report focuses on the linkage between China's AI industry and its power system, pointing out that China has formed a structural competitive advantage in AI development by leveraging electricity costs, energy infrastructure, and policy coordination.

A-share Market Close Review | Shanghai Composite Index Falls 0.41%, All Three Major Indices Close Lower, Agriculture Sector Surges Against the Trend

The three major A-share indices rallied then pulled back, closing lower across the board, with the BSE 50 leading the decline. On the board, agriculture-related sectors such as planting, genetically modified organisms, and corn posted the largest gains, while pharmaceuticals and automobiles were also active.

JLL: Fed rate hike has no impact on Hong Kong property market for now; continued rate hikes will hit the commercial real estate and residential markets.

Henry Mok stated that since major banks in Hong Kong have not raised the prime rate in response to the US rate hike, there will be no impact on the Hong Kong property market for now.

Morgan Stanley: China's advanced packaging to reach 100 billion by 2029, equipment makers outperform OSATs, top pick ACM Research (ACMR.US)

Morgan Stanley released a research report stating that China's advanced packaging remains an AI-driven long-term growth track, but there is a divergence between industry scale growth and OSAT profit growth.

John Lee: Five-year plan proactively aligns with the national 15th Five-Year Plan, systematically mapping out Hong Kong's economic and social development blueprint.

Hong Kong's first five-year plan is a blueprint for the systematic planning of the region's economic and social development over the next five years, and is a forward-looking, strategic and directional guiding document; the 2026 Policy Address, meanwhile, is the annual action plan for implementing the five-year plan.

Bank of England may become a "laggard" in the global tightening wave? Holding steady tonight is the consensus, but energy inflation has pushed November rate-hike bets to 80%.

The Bank of England will announce its latest interest rate decision on Thursday at 19:00 Beijing time.

The rate hike is finally here! The Fed's tightening cycle may restart, and global markets could face a chain reaction of shocks.

The Federal Reserve is tightening monetary policy, and its impact is likely to extend far beyond the United States.

Goldman Sachs: Expects the Fed to raise rates by another 0.25% in October.

The bank's forecasts for the fourth quarter of this year and the fourth quarter of next year are 3.2% and 2.2%, respectively, while the FOMC median is 3.4% and 2.5%.

New Stock News | Shenzhen Forms Syntron Information (06700) IPO subscription closes, margin financing oversubscribed 5.8 times, involving approximately HK$640 million

Shenzhen Forms Syntron Information (06700) opened for subscription from September 14 to 17. The subscription period has now closed, and the shares will be listed and traded on the Hong Kong Stock Exchange on September 22.

New Stock News | Nuzhen Technology (09856) Subscription Period Ends; Margin Subscription Amount Reaches HK$15.545 Billion, 26.42 Times Oversubscribed

Optical communications and optical connectivity products supplier Nuzhen Technology (09856) conducted its public offering from September 14 to September 17, 2026, and the subscription period has now closed.

Hong Kong's three note-issuing banks keep prime rates unchanged; mReferral expects HKD interbank rates may challenge levels above 3%

Hong Kong's three note-issuing banks, HSBC, Bank of China (Hong Kong) (02388), and Standard Chartered Hong Kong, announced that they will keep interest rates unchanged.

Singapore launches over 200 AI courses, with multiple MiniMax (00100) products included in a supporting subscription plan.

MiniMax (00100) products MiniMax Agent, Hailuo AI, and MiniMax Audio have been included in this program through the Singtel AI Pass, providing supporting tools for local residents to learn and use AI.

CONTINENTAL H (00513) issues profit warning, expects annual loss of not less than HK$600 million, widened year-on-year.

CONTINENTAL H (00513) issues profit warning, expects annual loss of not less than HK$600 million, widened year-on-year. The Company announces that the Group is expected to record a loss of not less than HK$600 million for the year ended 30 June 2026, as compared to a loss of approximately HK$331 million for the year ended 30 June 2025. The expected increase in loss is mainly attributable to the loss recognised on the disposal of the mining business.

From the Token frenzy to a $1.3 trillion AI server blue ocean: AI inference computing power is exploding across the board, and leaders like Dell are entering a "volume + price + share" golden era.

Leaders in global AI server cluster manufacturing, such as Dell, are simultaneously sharing in two growth dividends: "the accelerating expansion of the AI server market size" and "a substantial increase in order share from core AI cloud computing customers such as large enterprises and neoclouds," rather than merely passively benefiting from hardware price increases.

Ministry of Agriculture and Rural Affairs: By 2030, overall grain production capacity will steadily increase to around 1.45 trillion jin.

Recently, the Ministry of Agriculture and Rural Affairs issued the "15th Five-Year Plan for National Crop Farming Development."

Hong Kong International Airport: August passenger traffic up 3.5% year-on-year, handling a total of 5.86 million passengers.

Hong Kong International Airport continued to record steady growth in August 2026, handling a total of 5.86 million passengers and 34,995 flight movements, up 3.5% and 0.5% year-on-year respectively.

A-share Midday Review | The three major indices rallied then pulled back; fiberglass and innovative drug concepts were active, while auto stocks surged.

The market showed a divergent pattern of "indices rallying then pulling back, more stocks declining than advancing, and rapid rotation of hot spots."

CBRE: Hong Kong banks are relatively likely to raise their prime rates; the residential market is expected to enter a consolidation phase in the second half of the year.

The bank expects the market to enter a consolidation phase in the second half of 2026.

HKD interbank rates mixed; one-month rate turns from up to down at 2.90%

On September 17, HKD interbank rates were mixed, with the one-month rate, which is linked to mortgage loans, reported at 2.90000%, down 5.000 basis points.

Federal Reserve's "hawkish rate hike" shockwave: The "triple stranglehold" of a strong dollar, high oil prices, and high interest ratesAsian foreign exchange markets face another storm of capital outflows.

As the Federal Reserve raises benchmark interest rates for the first time in three years and two months, and international oil prices remain firmly above $100, emerging economies may once again face the "triple burden" of high oil prices, a strong dollar, and high interest rates.

Texas grid's 8-gigawatt "admission tickets" are all issued! Bernstein: Amid power scarcity, miners like IREN (IREN.US) will become AI infrastructure landlords collecting "rent"

ERCOT's first batch of baseload list is out, with 8 gigawatts of power secured; Bernstein expects scarcity to drive up rents and is bullish on six stocks including IREN and CIFR.

The stock price surged 70% from its bottom and then gave back all its gains. Is the renaming effect of B&K CORP-B (02396) no match for fundamentals?

During intraday trading on September 16, Qingcheng New Drug fell to a low of HK$3.5, meaning that within a nearly one-month downtrend, the company's stock price had completely given back its earlier gains and returned to its lowest level since listing on July 13.

John Lee responds to the Policy Address: AI regulation and encouraging childbirth given equal weight; business sector jointly promotes 30,000 youth internships and jobs.

On September 17, John Lee, Chief Executive of the Hong Kong Special Administrative Region, attended a joint radio broadcast program to respond to listeners' questions on multiple measures in the new Policy Address, covering topics including artificial intelligence development and regulation, policies to encourage childbirth, and youth employment support.

HKMA Chief Executive Eddie Yue: Financial markets are operating normally, reminds the public to be mindful of interest rate risks.

The HKMA will continue to closely monitor market changes and maintain monetary and financial stability.

The yen broke through the 156 mark overnight, as the Federal Reserve's hawkish rate hike pushes the Bank of Japan to a "high-pressure moment."

After the Federal Reserve's rate hike, the yen fell to 156.42 overnight, with the market betting that the Bank of Japan will raise rates by 25 basis points on Friday; if its stance is dovish, the yen could slide to 158 or even 160.

Classics never go out of style! Berkshire plans to increase its stakes in Japan's five major trading houses, "strong cash flow + dividends + buybacks" firmly locking in long-term capital.

According to Masahiro Okafuji, chairman of the Japan Foreign Trade Council, Berkshire Hathaway is considering increasing its stakes in Japanese trading companies. Berkshire Hathaway holds more than 10% stakes in Mitsubishi Corporation, Sumitomo Corporation, Mitsui & Co., Marubeni Corporation, and Itochu Corporation, and may increase its stakes in these companies.

J.P. Morgan Asset Management: The Fed may wait until December to hike rates again.

Xu Changtai stated that these economic forecasts have reinforced the Fed's confidence in a "soft landing" scenario: economic growth remains resilient, the unemployment rate stays low, and inflation shows a slow downward trend.

A-share Market Opening Brief | All three major indices open lower; glass and fiberglass sector strengthens.

On September 17, the Shanghai Composite Index opened 0.38% lower at 3,877.00 points, while the Shenzhen Component Index opened 0.33% lower at 13,409.88 points.

CICC: How does a Fed rate hike affect A-shares?

In September, the FOMC announced a 25bp rate hike, raising the benchmark rate to 3.75%-4.00%, in line with market expectations.

Brokerage Morning Meeting Highlights | Fed Rate Hike: Future Allocation Focuses on Technology and Sectors with Improved Supply and Demand

CICC believes that with the Fed raising interest rates, future allocation should focus on technology and sectors with improved supply and demand.

Is the AI investment frenzy poised for another push? The Fed's rate hike finally lands, and the "most painful moment" for US Treasuries welcomes contrarian buying.

Bob Michele of JPMorgan Asset Management said his team has begun buying long-term bonds in the US, Japan, and Australia, calling current prices "just too cheap." Michele believes a series of central bank actions and the potential stabilization trend in the Middle East are key drivers supporting the debt market.

A-share Pre-market Briefing | Cultural and Tourism "15th Five-Year Plan" Released, Eight Major Tasks Deployed, Token Economy Welcomes Another Boost

The cultural and tourism development "15th Five-Year Plan" has been released, deploying eight key aspects of the tourism industry.

Warsh Shows His Hawkish Claws, and the Bond Market Believes It: U.S. Treasury Yield Curve Flattens as Rate-Hike Bets Heat Up Across the Board

The bond market is showing growing confidence that Federal Reserve Chairman Kevin Warsh will deliver on his commitment to curb inflationwhich has now exceeded policymakers' target for five consecutive years.

Zijin Mining Group (02899) subsidiary Zijin Xiamen Equity contributes RMB 1 billion to participate in the Times Shenyuan Fund.

Zijin Mining Group (02899) announced that on September 15, 2026, its wholly-owned subsidiary Zijin Xiamen Equity signed a partnership agreement with partners including Xiamen Puquan and Kunkun Investment. Zijin Xiamen Equity, as one of the limited partners, participated in the investment in the Times Shenyuan Fund, with a subscribed capital contribution of RMB 1 billion, holding a 20.4081% subscribed proportion of the fund.

CITIC SEC: Fed's September rate hike meets expectations; oil prices become the key going forward; another 25bps hike possible within the year.

The pace and magnitude of the Fed's subsequent rate hikes will depend to a large extent on oil prices. CITIC Securities expects the Fed to raise rates by another 25bps within the year and likely stay put next year.

The Fed's dot plot loses another dot, and Warsh continues to refuse to draw a roadmap for the market.

On the latest dot plot released on September 16, only 18 dots appeared. The one absent belonged to Federal Reserve Chairman Kevin Warsh. And this marks the second consecutive time that Warsh has refused to leave his own projection on the dot plot.

After 15 years, planning to re-enter the server market: How ambitious is Apple Inc. (AAPL.US) about AI computing power? Major banks debate "distant water" versus "immediate thirst"

According to sources cited by tech media outlet The Information, Apple Inc. (AAPL.US) is considering entering the enterprise server market, with plans to use its self-developed M-series Ultra chips paired with NVIDIA's (NVDA.US) networking equipment.

Geopolitical flames ignite the "military investment frenzy"! Carlyle bets that the "mid-sized forces" in the defense industry are entering a golden age.

As the U.S. government seeks greater participation from private enterprises, emerging companies in the U.S. defense sector offer abundant investment opportunities. The Carlyle Group has established a dedicated fund to support and develop smaller defense companies, and has carried out acquisitions such as Secturion Systems, as well as financing for Castelion.

The Hong Kong Monetary Authority raises its benchmark interest rate by 25 basis points to 4.25%.

On the same day, the Hong Kong Monetary Authority raised its benchmark interest rate by 25 basis points to 4.25%.

EVERG VEHICLE (00708) Announces 2026 Interim Results: Profit Attributable to Shareholders of RMB 186 Million, Turning Profitable Year-on-Year

Evergrande Vehicle (00708) Announces 2026 Interim Results for the Six Months Ended June 30, 2026: The Group recorded revenue of RMB 8.725 million during the period, up 34.07% year-on-year; profit attributable to owners of the Company for the period was RMB 186 million, turning profitable year-on-year; basic earnings per share were RMB 1.713 cents.

The usual post-rate-hike ritual! Trump blasts the Fed, fuming that "rates should be at 1% or lower."

After the Federal Reserve ignored his repeated calls to lower borrowing costs and announced a 25 basis point rate hike, U.S. President Trump demanded lower interest rates.

EVERG VEHICLE (00708) Announces 2025 Annual Results: Loss Attributable to Shareholders of RMB 891 Million, Turning from Profit to Loss Year-on-Year

Evergrande Vehicle (00708) Announces 2025 Annual Results: Revenue of RMB 13.011 Million, Down 75.59% Year-on-Year; Loss Attributable to Shareholders of RMB 891 Million, Turning from Profit to Loss Year-on-Year; Basic Loss per Share of RMB 0.08218

EVERG VEHICLE (00708) Announces 2025 Interim Results: Loss Attributable to Shareholders of RMB 585 Million, a Year-on-Year Decrease of 97.11%

Evergrande Vehicle (00708) announced its interim results for the period ended June 30, 2025. During the period, the Group recorded revenue of RMB 6.508 million, a year-on-year decrease of 83.04%; loss attributable to shareholders of RMB 585 million, a year-on-year decrease of 97.11%; basic loss per share of 5.398 cents.

New Stock News | Comprehensive new materials supplier Red Avenue New Materials Group (603650.SH) passes HKEX hearing, has established a global customer base.

According to a disclosure by the Hong Kong Stock Exchange on September 16, Red Avenue New Materials Group Co., Ltd. (referred to as: Red Avenue New Materials, 603650.SH) has passed the listing hearing for the Main Board of the Hong Kong Stock Exchange, with Haitong International as its sole sponsor.

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Aohong Electronics (605058.SH): There may be a risk of a subsequent decline following a relatively large short-term gain.

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Cathay Pacific Airways (00293.HK) August passenger volume up 5% year-on-year

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In July, the overall volume of goods exports and imports in Hong Kong rose by 31.6% and 23.6% year-on-year respectively.

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Hong Kong's seasonally adjusted unemployment rate rose to 3.8% from June to August, while the underemployment rate rose to 1.9%.

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Standard Chartered Group (02888.HK) spent GBP 8.2519 million to repurchase 359,400 shares on September 16.

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