A-share Pre-market Briefing | Traders Bet on at Least Two Fed Rate Hikes Next Year; Alibaba Plans to Spin Off T-Head for Hong Kong Listing

Pre-market Briefing 1. All three major U.S. stock indices closed lower; Nvidia down over 9% cumulatively Type: Market | Sentiment impact: Negative The three major U.S. stock indices closed lower collectively on November 10, with the Nasdaq down 0.74%, the Dow down 0.30%, and the S&P 500 down 0.38%. Nvidia fell over 5% and has dropped more than 9% cumulatively over the past two trading days, with market capitalization evaporating by more than US$420 billion. The Philadelphia Semiconductor Index fell 0.35%, with chip stocks mixed: Intel and ARM fell over 2%, Broadcom rose nearly 4%, and TSMC rose over 2%. The memory sector was weak, with SK Hynix falling over 3%. 2. U.S. October CPI rose 0.4% month-on-month, above market expectations Type: Macro | Sentiment impact: Negative U.S. October CPI rose 0.4% month-on-month, above market expectations, while core CPI rose 0.3% month-on-month. Following the data release, U.S. Treasury yields jumped, with the 2-year yield rising as much as 20 basis points to 4.77%. Traders maintained a 100% expectation of a Fed rate hike in December and increased bets on at least two rate hikes before mid-2027. Dallas Fed President Logan said she still believes at least two 25-basis-point hikes are needed, and the pace may need to be faster than the Fed's actions this autumn. 3. Shanghai issues marine economy "15th Five-Year Plan" proposal, targeting marine industry value-added of RMB350 billion Type: Industry | Sentiment impact: Positive The Shanghai Municipal Ocean Bureau issued the "Implementation Plan for the Development of Shanghai's Marine Economy during the 15th Five-Year Plan Period," proposing that by 2030 the value-added of the marine industry should be no less than RMB350 billion. The plan explicitly calls for accelerating the development of ocean observation equipment, ocean satellite communications, underwater communications and navigation, and advancing the R&D and application of key equipment such as ocean sensors, ocean intelligent Siasun Robot&Automation, and submersibles. It also proposes studying the establishment of a marine data trading platform and encouraging the development of vertical large models in the marine field. 4. Alibaba plans to spin off T-Head for separate listing on Hong Kong Main Board Type: Company | Sentiment impact: Positive Alibaba announced plans to spin off its wholly-owned subsidiary T-Head (Shanghai) Technology Co., Ltd. for a separate listing on the Main Board of the Hong Kong Stock Exchange. T-Head submitted its listing application to the Hong Kong Stock Exchange in confidential form on September 11. Investment Calendar November 11November 13: 17th Caixin Summit (Beijing) Institutional Views 1. CITIC SEC: A-shares have experienced the growing pains of growth and the revaluation of blue chips; supply-side clearing may bring revaluation of blue-chip stocks. 2. Huayuan Securities: The Fed kept rates unchanged at its October meeting with a 10:2 vote; the rate hike pause has not removed inflation constraints. 3. Guotai Haitong: The construction industry's 2026 Q3 results are under overall pressure, with cleanrooms and steel structures performing relatively well. Positive/Negative Outlook 1. OpenAI edge-device product shipments imminent; AI glasses provide synchronized catalyst Type: Market buzz Trend research report: OpenAI edge-device product shipments are imminent, with Meta and Apple AI glasses providing synchronized catalysts; combined with easing cost-side memory price increase pressure, the industry chain is expected to benefit from the ramp-up cycle of edge AI hardware. 2. Market expected to lead with valuation repair after external disturbances ease marginally Type: Institutional commentary CICC: Recent external disturbances have shown signs of weakening, while the earnings side remains resilient. If marginal easing continues, the market is expected to undergo valuation repair first, and A-shares may continue their structural. 3. Commercialization penetration of humanoid Siasun Robot&Automation expected to be delayed by one year Type: Institutional commentary Morgan Stanley: Affected by factors such as price declines and limited product maturity, the commercialization penetration timeline for humanoid Siasun Robot&Automation is expected to be delayed by about one year, and progress toward scale will still need to be gradual. Announcement Summary Positive announcements 1. Qingdao Foods: Controlling shareholder Huatong Group plans to transfer 29.24% of the company's equity to Tsingtao Brewery Group by agreement for RMB965 million; upon completion, the controlling shareholder will change to Tsingtao Brewery Group 2. Guangdong Provincial Expressway Development: Plans to acquire 25% equity of Guangzhu Section Company and 25% equity of Yuezhao Company for RMB1.437 billion in cash; upon completion, shareholding ratios will reach 100% and 50%, respectively 3. Huali Industrial Group: Plans to invest no more than US$500 million of its own funds in O-Net Technologies to acquire no more than 25% equity Negative announcements 1. Shandong Longda Meishi: The CSRC has decided to open an investigation into the company on suspicion of information disclosure violations 2. Zhongzhu Healthcare Holding: A wholly-owned subsidiary terminates a capital increase and share expansion agreement 3. LWGF: Employee shareholding platform plans to reduce its shareholding Overseas Markets The three major U.S. stock indices closed lower collectively, with the Nasdaq down 0.74%, the Dow down 0.30%, and the S&P 500 down 0.38%; U.S. October CPI exceeded expectations, U.S. Treasuries were sold off, the 2-year yield surged as much as 21 basis points at one point, and the Dallas Fed president said two more rate hikes are needed. Chip stocks were mixed, with Nvidia down over 5% and down more than 9% cumulatively over the past two days, while Broadcom rose nearly 4%. The Livermore China Concept Leaders Index closed down 0.39%, Futu Holdings fell over 5%, and NIO and iQIYI fell over 3%. Spot gold fell 2.59%, and WTI crude oil fell 0.93%.