A-share Evening Highlights | Positive News! Tech Stocks Post Broad Earnings Surges; "Yi Zhongtian" Nets Over RMB35 Billion in First Three Quarters

Evening Highlights of Major News 1. Communique of the 20th CPC Central Committee's Fifth Plenary Session: Make full and effective use of macro policies to promote sustained economic development toward new, better and more positive directions Importance: The Fifth Plenary Session of the 20th Central Committee of the Communist Party of China was held in Beijing from October 26 to 29, 2026. The plenum decided that the 21st National Congress of the Communist Party of China will be held in Beijing in the second half of 2027. The plenum stressed adhering to the general tone of seeking progress while maintaining stability, fully, accurately and comprehensively implementing the new development philosophy, accelerating the construction of a new development pattern, making full and effective use of macro policies, deeply tapping the potential of domestic demand, further deepening reform and opening up, promoting sustained economic development toward new, better and more positive directions, ensuring the completion of this year's main economic and social development targets and tasks, and achieving a good start for the "15th Five-Year Plan." 2. Positive News! Tech stocks post broad earnings surges; "Yi Zhongtian" nets over RMB35 billion in first three quarters Importance: On the evening of October 29, earnings from technology leaders were released in batches. With Zhongji Innolight and Eoptolink Technology Inc. releasing their third-quarter reports today, all third-quarter reports of the A-share "Yi Zhongtian" companies have been disclosed, with the three companies' combined net profit in the first three quarters exceeding RMB35 billion. Among them, Zhongji Innolight achieved substantial growth in revenue and net profit, and simultaneously launched a share cancellation repurchase plan. Eoptolink Technology Inc. continued high growth in the first three quarters, but third-quarter single-quarter profit rose 61% year-on-year and fell 19% quarter-on-quarter. In addition, Semight Instruments, the second-highest-priced A-share stock after Kweichow Moutai, saw Q3 net profit up 3,488% year-on-year and up 220% quarter-on-quarter; storage leader GigaDevice Semiconductor Inc. saw net profit in the first three quarters increase more than 9-fold, with Q3 net profit down 21% quarter-on-quarter; Foxconn Industrial Internet's net profit in the first three quarters exceeded RMB40 billion, a record high for the same period. Founder analysis believes that after the market has fully adjusted, the allocation value of sectors with earnings and logic becomes more prominent. Market stabilization depends on technology, while trend formation depends on domestic demand. From a medium-term perspective, attention is recommended on three allocation opportunities: first, oversold rebounds in tech stocks; second, the allocation value of domestic demand and pro-cyclical sectors, including the real estate and infrastructure chain and some consumer goods; third, the non-bank financial sector, which responds most directly to monetary policy changes, has a good match between earnings and valuation, and can stabilize the index. 3. Google plunges over 14%! Biggest single-day drop in its history; Buffett "steps on a landmine" Importance: On October 29, as of 21:50 for this report, Google plunged over 14%, its biggest single-day drop in history, with total market value evaporating nearly US$550 billion. On the news front, the 2026 third-quarter earnings report released by Google's parent company Alphabet showed that Alphabet's third-quarter revenue was nearly US$127.58 billion, up 25% year-on-year, below market expectations; net profit was approximately US$26.47 billion, down about 24% year-on-year, and net profit under non-US GAAP fell 34% year-on-year. Free cash flow was -US$9.1 billion, negative for the second consecutive quarter. The selloff in Google's stock price may also deal a relatively large blow to Berkshire. According to Barron's, Berkshire continued to increase its position in Alphabet in the first half of 2026, including participating in the company's US$85 billion equity offering in early June, buying US$10 billion worth of shares at about US$350 per share. Buffett said in a CNBC interview in July that buying Alphabet shares was his own decision. 4. All 9 active ETFs in the Shanghai market complete fundraising; products already started building positions today Importance: The first batch of active ETFs began fundraising on October 23. As of 15:00 on October 29, all 9 active ETFs in the Shanghai market had successfully completed fundraising, with total subscription funds exceeding RMB19.5 billion and raised funds of RMB18 billion (each with a fundraising cap of RMB2 billion). More than 150,000 households participated in the subscription of Shanghai-market active ETFs, among which institutional investors accounted for about 25%, reflecting institutional investors' recognition of the long-term investment value of the capital market. Some active ETFs already started building positions today. 5. US September core PCE rises 3.1% year-on-year; Fed may raise rates by 25 basis points in December Importance: On October 29 local time, data released by the US Department of Commerce showed that the US personal consumption expenditures price index rose 3.6% year-on-year in September, and the core personal consumption expenditures price index, excluding food and energy prices, rose 3.1% year-on-year. Analysis believes that, affected by Middle East geopolitical conflicts pushing up international oil prices, rising energy prices drove an overall inflation rebound in September, and the market is watching whether companies will pass fuel costs on to consumers. Core PCE is the inflation indicator the Fed values most, and its services subcomponent reflects whether domestic price pressures remain stubborn. Once this subcomponent data rises further, financial markets will bet more on the Fed raising rates by 25 basis points at its monetary policy meeting in December this year. 6. Microsoft returns to the US investment-grade bond market after 9 years, plans to raise US$25 billion to step up AI investment Importance: Microsoft is seeking to raise at least US$25 billion through its first US investment-grade bond offering in more than nine years, joining a financing boom among competitors to raise funds to support the artificial intelligence (AI) investment wave. According to people familiar with the matter, Microsoft has not yet finalized the size of the bond offering, and the specific amount may be adjusted according to market demand. The people said Microsoft will issue up to 10 tranches of bonds with maturities ranging from 2 to 40 years. One of the people added that the longest-dated bonds, maturing in 2066, have initial price guidance of up to 1.35 percentage points above US Treasury yields. 7. EU plans discriminatory restrictive measures against Chinese products; Commerce Ministry responds Importance: At the Ministry of Commerce's regular press conference on Thursday, a media outlet asked that the EU side is studying extending the trade understanding arrangement reached between China and the EU in the hybrid vehicle sector to chemicals and other fields. In response, Ministry of Commerce spokesperson Huang Ling said that artificially imposing limits on normal trade is suspected of violating WTO rules and not only fails to help improve the EU's industrial competitiveness, but instead increases the burden on downstream industries, further pushing up the EU's inflation level and affecting the security and stability of global industrial and supply chains. Huang Ling said that China has repeatedly stressed that China is not the root cause of the problems facing the EU, but a partner in solving them, and is willing to strengthen dialogue and consultation with the EU side, continue to explore solutions to each other's economic and trade concerns, and promote China-EU trade toward upward balance and forward development. However, China firmly opposes any protectionist behavior that abuses trade defense tools. If the EU side insists on going its own way and adopts discriminatory restrictive measures against Chinese products, China will certainly take all necessary measures to firmly safeguard its own interests and the legitimate rights and interests of enterprises. Opportunities in Advance The editor has sorted through market-watched investment opportunities and found that brain-computer interfaces and other areas are drawing attention. 1. Ultrasound repairs the brain! China's brain-computer interface technology achieves new progress According to CCTV, Shenzhen is currently hosting the Guangdong-Hong Kong-Macao Greater Bay Area International Brain-Computer Interface Industry Innovation Conference, while also launching China's first Guangming Brain Science and Technology Week. At the conference, a brain-computer interface successfully stood out, overturning our understanding of traditional brain-computer interfaces: without opening the skull or implanting electrodes, it "converses" with the brain using ultrasound. This is the new-generation non-invasive ultrasound brain-computer interface technology tackled by research teams including the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences. A Changjiang research report pointed out that, as technical standards and review points for various categories of brain-computer interface are successively introduced and implemented, the brain-computer interface industry is expected to establish a complete standard discourse system from "hardware components" to "software algorithms," and the industry is expected to enter a standardized development stage, with its commercialization progress expected to accelerate. In addition, the following sectors are also worth watching: 2. Large models | Tencent: WorkBuddy will open support for third-party agents; Tencent Cloud's overseas AI demand achieves triple-digit growth. 3. Weight-loss drugs | Eli Lilly's third-quarter revenue rose 39% year-on-year to US$24.4 billion, and it raised its full-year revenue guidance. 4. Shipping | Maersk announced an increase in freight rates on Far East to Northern Europe and Mediterranean routes, effective from November 16. 5. Panels | Institution: With the entry of new MacBook Pro models, global OLED notebook shipments are estimated to grow more than 40% year-on-year in 2027. 6. Broad consumer | Ministry of Commerce: Since the beginning of this year, trade-ins have driven digital product sales up 44.8% year-on-year. Positive and Negative Announcements from Listed Companies For positive announcements, the editor reminds attention to several companies disclosing repurchase plans, etc.; for negative announcements, note Muyuan Foods Group's continued quarter-on-quarter loss in the third quarter, etc. Positive announcements 1. Advanced Micro-Fabrication Equipment Inc. China: Chairman proposes repurchasing RMB400 million to RMB500 million of shares 2. Hua Hong Grace Semiconductor: Chairman and President of the Board proposes repurchasing RMB300 million to RMB500 million of shares 3. China Petroleum & Chemical Corporation: Third-quarter net profit RMB13.6 billion, up 64% year-on-year; continues to carry out A-share and H-share repurchases 4. Puya Semiconductor (Shanghai) Co., Ltd.: Third-quarter net profit up 3,876% year-on-year and up 26% quarter-on-quarter 5. Epoxy Base Electronic Material Corporation: Third-quarter net profit up 2,545% year-on-year and up 455% quarter-on-quarter; copper-clad laminate product sales increased and selling prices rose Negative announcements 1. Victory Giant Technology: Third-quarter net profit down 52% year-on-year and down 66% quarter-on-quarter 2. China United Network Communications: Third-quarter net profit down 31% year-on-year and down 16% quarter-on-quarter 3. Muyuan Foods Group: Third-quarter net loss RMB3.241 billion, continuing quarter-on-quarter losses, with hog prices falling 4. Changzhou Nrb Corporation, up for four consecutive limit-up sessions: Third-quarter net profit down 89.88% year-on-year and down 95% quarter-on-quarter This article is reprinted from "Tencent Zixuan Stocks"; GMTEight editor: Jiang Yuanhua.