A-share Evening Hotspots | US CPI Exceeds Expectations! Rate Hike Bets Increase, US Stocks and Treasuries Both Fall, Gold and Silver Plunge

Evening Major News Roundup 1. US CPI Exceeds Expectations! Rate Hike Bets Intensify, US Stocks and Treasuries Both Fall, Gold and Silver Plunge Importance: Data released by the US Bureau of Labor Statistics on Wednesday showed that the September Consumer Price Index (CPI) rose 3.7% year-over-year, higher than the market expectation of 3.6% and further expanding from the previous reading of 3.4%. Core CPI rose 2.6% year-over-year, also exceeding the expected 2.5%, with the previous reading at 2.4%. This was the fastest increase in US consumer prices in five months, with the persistence of inflationary pressure surpassing previous market expectations. After the data release, traders increased bets on a Federal Reserve rate hike in October, while also expecting the Fed to raise rates three more times by the end of 2027. In the markets, as of 22:46 when this article was published, the three major US stock indices were lower, with the Dow down 0.06%, the Nasdaq down 0.80%, and the S&P 500 down 0.66%. AI hardware stocks fell across the board, with the Philadelphia Semiconductor Index dropping over 2%, AMD falling more than 3%, and Nvidia dropping over 2%. The US 10-year Treasury yield rose 10 basis points intraday to 5.31%. Gold and silver both plunged, with spot gold losing the $4,080/oz level, down 1.95% intraday, and spot silver extending its intraday decline to 5%, quoted at $56.18/oz. 2. Q3 Financial Data Released! What Are the Highlights? Where Did the Financial "Living Water" Flow? Importance: The People's Bank of China released September financial data. The data showed that at the end of September, the stock of social financing scale was 468.17 trillion yuan, up 7.1% year-over-year. In the first three quarters, the cumulative increment of social financing scale was 27.46 trillion yuan, 2.63 trillion yuan less than the same period last year. At the end of September, the balance of broad money (M2) was 359.63 trillion yuan, up 7.2% year-over-year. The balance of narrow money (M1) was 116.76 trillion yuan, up 3.2% year-over-year. What are the highlights of the financial data for the first three quarters, and where did the financial "living water" flow? On one hand, the diversified financing structure continued to optimize. From the perspective of the social financing increment structure, bond and equity financing still accounted for the bulk. On the other hand, the credit structure continued to optimize, with loans in the areas of the "five major articles" of finance maintaining double-digit growth for consecutive periods, and the proportion of new loans rising to over 70%. Market analysts noted that since the beginning of this year, the central bank has introduced two packages of structural monetary policy measures, which are targeted, pragmatic, and effective policies against the backdrop of the transition between old and new growth drivers. They can guide financial institutions to further improve their adaptability in serving the real economy, and also help financial institutions themselves adapt to economic structural adjustment and expand the space for financial services development. In the next stage, as the integrated effects of both existing and incremental monetary policy measures become more evident, the financial system will continue to provide strong support for the high-quality development of the real economy. 3. Major Portfolio Reshuffle! A Quick Look at the Latest Northbound Capital Position Adjustments Importance: The latest Northbound capital holdings at the end of Q3 have been released. Wind data shows that as of September 30, Northbound capital held a total of 3,531 stocks, with holdings in 42 stocks exceeding 10 billion yuan in market value. The largest overweight sector for Northbound capital was the electronics sector, and the largest overweight stock was Contemporary Amperex Technology. In Q3, Northbound capital increased its holdings in 1,982 stocks, increased holdings by more than 50 million shares in 55 stocks, and increased holdings by more than 2 billion yuan in market value in 21 stocks. Among the top ten overweight stocks of Northbound capital, in Q3 Northbound capital significantly increased positions in Midea Group Co., Ltd, China Merchants Bank, WuXi AppTec, Zijin Mining Group, and other stocks, while reducing positions in Contemporary Amperex Technology, Zhongji Innolight, NAURA Technology Group, and other stocks. 4. Tech Sector Hits "Freezing Point"? Well-Known Fund Manager Speaks Out: Time to Start Being Optimistic Importance: The tech sector bore the brunt of this round of adjustment. When tech will stabilize is also the focus of greatest market attention. Recently, some well-known fund managers have begun to turn optimistic on the tech sector. Yang Ruiwen, fund manager of the Jingzhong Zhejiang Grandwall Electric Science&Technology team, said he has now become more optimistic and will proactively increase efforts to uncover undervalued opportunities. But it should also be noted that the era of strong beta where the tech sector rises and falls in unison has ended. What follows is a typical structural market, where the core competition is underlying research and stock-picking ability. 5. Central Bank: 700 Billion Yuan Outright Reverse Repo Operation to Be Conducted on October 15, with a Term of 6 Months Importance: The central bank announced that, in order to maintain ample liquidity in the banking system, on October 15, 2026, the People's Bank of China will conduct a 700 billion yuan outright reverse repo operation through fixed-quantity, rate-based bidding with multiple-price winning bids, with a term of 6 months (182 days), maturing on April 15, 2027 (postponed in case of holidays). 6. China-EU Trade and Investment Consultation Mechanism Achieves Positive Results; BYD Company Limited and Other Automakers Jointly Issue Statements Importance: On October 14, BYD Company Limited, Geely Holding, and CHERY AUTO issued statements on the same day regarding the second regular meeting of the China-EU Trade and Investment Consultation Mechanism. BYD Company Limited stated that the consultation results effectively managed trade differences, avoided escalation of friction, took into account the actual conditions and reasonable concerns of both Chinese and European industries, and created a stable, predictable, and sustainable cooperation environment for China-EU hybrid vehicle trade. Opportunities to Watch Ahead The editor has sorted through market-watched investment opportunities and found that lithography machines and other areas are drawing attention. 1. Major Breakthrough! Domestic EUV Light Source Prototype Debuts: Localization Rate Reaches 90% According to reports, at the 26th China International Industry Fair, Langdao Suiyan publicly displayed an EUV light source system prototype for the first time. This is the most advanced domestically produced EUV light source prototype publicly displayed to date, and is called the "heart" of high-end lithography machines. This marks a major breakthrough in the domestic EUV light source field, with a key step already taken from the laboratory toward industrialization. The light source system exhibited this time has a localization rate of 90%, with the vast majority of core components independently developed, and its technical route is consistent with leading international manufacturers. It can be used for chip exposure testing. A Guosheng research report believes that for domestic lithography machines, domestic demand exceeds domestic supply, and high-end lithography machines are still in the R&D stage and have not yet achieved large-scale mass production. Amid continuously tightening geopolitical risks, the domestic lithography machine supply chain has broad room for substitution. In addition, the following sectors are also worth watching: 2. Commercial Space | One Rocket, Ten Satellites: Zhuque-2 Improved Y4 Carrier Rocket Launched Successfully. 3. Chips | Report: TSMC Expected to Complete 2027 Capacity Target Ahead of Schedule, 2nm Monthly Capacity Raised to 120,000 Wafers. 4. Storage | SK Hynix: AI Infrastructure Performance Scale Expected to Increase About 20-Fold by 2030, Simultaneously Launching MARS System and HBF. 5. Hydrogen Energy | Filling Shortcomings and Unifying Standards: State Administration for Market Regulation Issues 15 National Hydrogen Energy Standards. 6. Computing Power Infrastructure | Institution: Q3 China Intelligent Computing Center Industry Investment Reached 728.8 Billion Yuan, Up 34.4% Year-over-Year. 7. Data Elements | Shandong: Province to Form More Than 30 Data Industry Clusters, with Average Annual Growth Rate of Data Industry Scale Reaching Over 20%. 8. Green Power | Wind Power Industry Issues "Beijing Initiative": Expand Diversified Application of Green Power, Reach 5 Billion Kilowatts of Installed Capacity by 2060. Listed Company Positive and Negative Announcements The editor reminds readers to pay attention to Fspg Hi-Tech's preliminary net profit increase of 1,500%, etc.; for negative announcements, note that Inner Mongolia BaoTou Steel Union was fined 2 million yuan, etc. Positive Announcements 1. Fspg Hi-Tech: Expected net profit for the first three quarters of 1.2 billion yuan1.4 billion yuan, up 1,329.95%1,568.28% year-over-year before restructuring. 2. Satellite Chemical: Expected net profit for the first three quarters of 8.700 billion yuan9.700 billion yuan, up 131.69%158.32% year-over-year. 3. Rongsheng Petro Chemical: Expected net profit for the first three quarters of 7.800 billion yuan8.200 billion yuan, up 777.93%822.95% year-over-year. 4. Wus Printed Circuit: Expected net profit for the first three quarters of 5.45 billion yuan5.7 billion yuan, up 100.54%109.74% year-over-year. 5. Unisplendour Corporation: Expected net profit for the first three quarters of 2.420 billion yuan3.060 billion yuan, up 72.38%117.97% year-over-year. Negative Announcements 1. Inner Mongolia BaoTou Steel Union: Fined 2 million yuan due to a safety accident. 2. Jiangxi Fushine Pharmaceutical: Controlling shareholder, actual controller, and chairman Bao Jianhua placed under detention. 3. *ST Qingyue: Received administrative penalty decision from the CSRC, fined 172 million yuan. 4. Chengdu RML Technology: Shareholder Chen Fashu reduced holdings by 4.94 million shares, stake fell to 6.8578%. 5. Shandong Linglong Tyre: Expected net profit for the first three quarters to decline 94.09% to 94.69% year-over-year. This article is reprinted from "Tencent Zixuangu". GMTEight editor: Li Fo.