A-share pre-market report | Shenzhen announces major merger and reorganization policies. Tesla, Inc. (TSLA.US) sets record revenue in Q3 but profits decline.

Pre-market News 1. Shenzhen issues major policies on mergers and acquisitions, targeting a total market value of listed companies exceeding 20 trillion yuan Type: Macro Sentiment Impact: Positive Shenzhen has issued an action plan to promote high-quality development of mergers and acquisitions, aiming to comprehensively improve the quality of listed companies in the region by the end of 2027. The total market value of domestic and overseas listed companies is expected to exceed 20 trillion yuan, with the cultivation of 20 companies with market values of over a trillion yuan. The mergers and acquisitions market is expected to see both quantity and quality increase, with more than 200 completed merger projects and a total transaction volume exceeding 100 billion yuan, as well as the implementation of a number of industry demonstration cases. 2. Tesla's Q3 revenue sets a record but profits decline, stock price drops nearly 5% after hours Type: Company Sentiment Impact: Negative Tesla's Q3 revenue reached a record of $28.1 billion, a 12% year-on-year increase, with a net profit of $1.77 billion, a 29% year-on-year decrease, leading to a nearly 5% drop in its stock price after hours. The decline in profits mainly reflects price cuts for electric vehicles and a 50% increase in operating costs, attributed to spending on artificial intelligence (AI) and "other research and development projects." 3. Trump says US and China will reach agreement on trade issues at APEC summit next week, Foreign Ministry responds Type: Macro Sentiment Impact: Neutral President Trump has stated that he expects the US and China to reach an agreement on trade issues at the upcoming APEC summit next week, although he noted that the two leaders may not necessarily meet. A spokesperson for the Foreign Ministry stated that high-level diplomacy plays an irreplaceable strategic role in Sino-US relations, with the two leaders maintaining close exchanges and communication. Regarding the specific issue mentioned, the spokesperson did not provide any information at the moment. 4. Draft rules on performance benchmark for public funds to be released soon, standardizing performance benchmarks at the right time Type: Industry Sentiment Impact: Positive The China Securities Investment Fund Association will soon release a draft of rules on performance benchmark for public funds. The introduction of performance benchmark rules means that the association may simultaneously release multiple performance benchmarks for fund managers to choose from based on the characteristics of their products. This benchmark will become a core standard for evaluating whether fund managers outperform their peers and generate excess returns. Investment Calendar Siasun Robot & Automation International Summit will be held today Investment Tips Investment Tip: Everyone has such biases in their subconscious, thinking that when they give advice to others, they are considering others, but they are actually acting in their own interests. - Charlie Munger's "The Way of Munger" Institutional Views 1. Debon Securities: If the subsequent volume continues to decline, beware of the risk of insufficient market liquidity support, focusing on deep economic issues, etc. 2. Huajin Securities: The implementation of the "14th Five-Year Plan" may have limited impact on the A-share trend, but it may further strengthen the technology theme. 3. Orient: The market turnover is showing a shrinkage trend, making it difficult to be aggressive in operations. The technology sector is expected to continue to make progress. Upcoming Trends: 1. A total of 166 games have been issued in October! 37 Interactive Entertainment Network Technology Group, Kingnet Network, and other products are listed. Type: Market discussion Jianghai Securities: The gaming sector has good cash flow, with continuous increase in policy support and deepening of AI game development. The gaming sector has seen significant adjustments recently, with valuations becoming attractive. The gaming sector investment opportunities are expected to remain promising. 2. The new generation of Hongmeng operating system is officially released, supporting file transfer with Apple devices. Type: Market discussion Xiangcai Securities: The deep integration of intelligent body on Hongmeng 6.0 is expected to promote the landing of end-side AI applications, improve the experience of end-side AI applications, and further promote the volume of AI terminals, suggesting to pay attention to investment opportunities in the Huawei terminal industry chain. 3. L4 level intelligent connected vehicles expected to be fully popularized by 2040, benefiting the automobile intelligent industrial chain. Type: Market discussion CITIC SEC: L4 autonomous driving is showing positive changes in multiple scenarios. Leading domestic companies are accelerating their layout, and autonomous driving technology is gradually empowering from closed scenarios to open roads. It is expected that each link in the industrial chain will accelerate the process of technology research and development and product launch, benefiting the automobile intelligent industrial chain. Announcement Express Positive announcements 1. China United Network Communications: Net profit for the first three quarters increased by 5.2% year-on-year, and the computing power business achieved breakthroughs in scale. 2. Hithink RoyalFlush Information Network: Net profit in the third quarter increased by 145% year-on-year, driven by increased demand for financial information services. 3. Hengdian Entertainment: Net profit for the first three quarters increased by 1085% year-on-year. Negative announcements 1. Telink Semiconductor (Shanghai) Co., Ltd.: The second largest shareholder, National Fund, plans to reduce its stake in the company by no more than 2%. 2. Yantai China Pet Foods: Received an administrative regulatory measure decision from the Shandong Securities Regulatory Bureau. 3. Jiangsu Hanvo Safety Product: Net profit for the first three quarters decreased by 12.85% year-on-year. Overseas Markets Custom Geely Tips: Trade tensions escalate again as the three major US indices collectively fell, with most large-cap technology stocks declining. In terms of individual stocks, Netflix plunged 10% after its earnings report. Most popular Chinese stocks also saw declines.