GMT EIGHT - OPPORTUNITIES IN CHINA

Citi Warns Food Supply Risks Are Underestimated: El Nio Combined with High Energy Costs Raises Upside Risks for Grains and Oilseeds

Recently, Citi released a commodities research report noting that the global CBOT grains and oilseeds market is currently in a special cycle where multiple risks are converging.

Bank of Japan's price trend indicator jumps above 3%, providing grounds for further rate hikes.

The Bank of Japan's gauge of underlying inflation rose to its highest level in three years, far exceeding the bank's 2% target and providing grounds for the authorities to continue raising interest rates.

Commodity futures close

Container shipping index Europe route futures fell 6.96% consecutively, asphalt rose 4.79% consecutively, liquefied petroleum gas rose 4.50% consecutively, caustic soda fell 4.38% consecutively, and lithium carbonate rose 3.77% consecutively.

Oil Price Shock Meets AI Boom: Asian Emerging Currencies Diverging Sharply

The oil price surge and the artificial intelligence (AI) boom are intensifying the divergence in the foreign exchange market.

Novartis AG Sponsored ADR (NVS.US) Q3 revenue up 4% year-over-year; long-term pipeline impairment weighs on net profit.

Novartis (NVS.US) released its third-quarter 2026 financial results on Tuesday.

JPMorgan Asset Management CIO: US Treasury returns could reach 7%-8% over the next 12 months, with longer-dated bonds offering more value

The US bond market is expected to deliver returns of approximately 7% to 8% over the next 12 months.

The power super-cycle is about more than just AI! Morgan Stanley: The "Three A" forces are pushing the global power shortage beyond expectations, and about half of market demand is not yet priced in.

Morgan Stanley says the upgrade in electricity consumption driven over the past three years by data centers and semiconductor fabs is now spreading to the industrial and residential sectors. The "Three A" forcesAI agents (Agentic), air conditioning (Aircons), and reshoring/supply chain restructuring (Allshoring)will push the global power shortage beyond expectations.

Cyberport Hong Kong: Community enterprises have raised over HK$74.5 billion in cumulative financing, with 19 companies successfully listing within the year.

Cyberport Hong Kong will hold the "Cyberport Venture Capital Forum" from November 4 to 5.

Japan's economy is undergoing a positive shift! Moody's: Growth and inflation show "encouraging" signs, but resilience still faces a key test.

The rating agency Moody's believes that encouraging signs are emerging on Japan's path toward sustained economic growth and stable inflation, but a key test will be whether this resilience can withstand future shocks.

HK Stock Market Move | HSBC HOLDINGS (00005) fell more than 5% in the afternoon; third-quarter reported profit before tax rose 32%, slightly below expectations.

HSBC HOLDINGS (00005) plunged in the afternoon, with its share price hitting a new low since June this year. As of press time, it fell 5.06% to HK$135, with a turnover of HK$2.145 billion.

When AI starts "catching" patients after discharge: iFlytek Healthcare's (02506) inflection point lies beyond the medical record.

While most AI healthcare companies are still battling over tender shares for in-hospital assisted diagnosis, iFlytek Healthcare has already moved the battlefield outside the hospital: AI patient management.

FERRETTI (09638) reported new orders of EUR665 million for the first three quarters, a year-on-year decrease of approximately 13.8%.

FERRETTI (09638) announced its results for the nine months ended September 30, 2026. New orders: new orders for the nine months of 2026 amounted to EUR665 million, a decrease of approximately 13.8% compared with EUR771 million for the nine months ended September 30, 2025 (the nine months of 2025). During the period, the Company was affected by drastic changes in the geopolitical and macroeconomic environment. Ongoing uncertainties have led to prolonged negotiation periods, particularly for orders in the made-to-order yacht and superyacht segments and in the Middle East and Africa region (Middle East and Africa).

HSBC HOLDINGS (00005) will pay a third-quarter dividend of US$0.1 per share on December 17.

HSBC HOLDINGS (00005) announced that it will pay a third-quarter dividend of US$0.1 per share on December 17, 2026.

HSBC HOLDINGS (00005) Announces First Three Quarters Results: Profit After Tax of US$22.9 Billion, Up 28% Year-on-Year

HSBC Holdings (00005) announced its third-quarter 2026 results, with revenue increasing by US$800 million compared with the third quarter of 2025 to US$18.6 billion, mainly reflecting growth in net interest income from banking operations. Benefiting from increased customer activity, fees and other income from the Corporate and Institutional Banking business also rose, with growth coming from Global Transaction Banking and the Debt and Equity Markets businesses, while fees and other income from investment product distribution under Wealth Management and from Private Banking also recorded growth. However, part of the increase was offset by valuation losses at Corporate Centre and by the non-recurrence of a one-off favorable impact from insurance operations in the third quarter of 2025.

Xiaohongshu is verifying the removal of Mbapp-related materials.

Xiaohongshu Issues Statement Regarding Mbapp: Xiaohongshu firmly opposes any behavior that hurts national sentiments. Upon verification, Xiaohongshu entered into a content collaboration with Kylian Mbapp in 2024, and the collaboration expired and concluded on December 31, 2024. Currently, the platform is continuously verifying and removing relevant materials. Thank you to the vast number of netizens and users for their attention.

Energy bills become the top election issue in the midterms: oil prices under Trump exceed Biden's for the first time, and deep-red states may turn into swing states.

Under Trump, the average gasoline price has exceeded Biden's for the first time; oil prices rose 43% and diesel 70% over eight months to record highs. High energy costs are turning deep-red states into swing states and becoming the focal point of the midterm elections.

HSBC Holdings' third-quarter revenue was US$18.620 billion, compared with US$17.788 billion in the same period last year; profit before tax was US$9.632 billion, compared with US$7.295 billion in the same period last year.

AI capital expenditure is tied to the lifeline of South Korea's economy, and the central bank warns that the decline in exports could reach US$100 billion! Why does Goldman Sachs still remain bullish on South Korean stocks and the two memory giants?

The Bank of Korea warned that if AI spending slows, the country's chip export value could fall by as much as US$100 billion.

A-share Midday Review | Shanghai Composite Index falls 0.13%, electric motor sector leads gains, banking and retail defy the trend

The market showed a divergent pattern of "indices opening higher and then falling, thematic sectors diverging and rotating, and heavyweight defensive sectors outperforming."

National Standard "Basic Requirements for Smart Freight Hubs" Released

Recently, the State Administration for Market Regulation (Standardization Administration of China) approved and released the national standard "Basic Requirements for Smart Freight Hubs" (GB/T 481722026).

5% Yielding US Treasuries Fall Out of Favor! BlackRock: Sovereign Bonds Are No Longer the First Choice; the AI Debt Wave Is the Best Opportunity in Years

BlackRock says the AI debt wave is the best fixed-income opportunity in years, with global high-grade AI financing surpassing US$300 billion in 2026, roughly triple last year's level, and it prefers secured short-dated debt over long-dated bonds.

HKD HIBOR rates fall broadly; one-month rate drops for second straight day to 2.70%

On October 27, HKD HIBOR rates fell broadly, with the one-month rate, which is linked to mortgage loans, at 2.70000%, down 5.000 basis points.

New Stock News | Xinyi Automobile Glass reportedly plans Hong Kong IPO next year, aiming to raise US$600 million to US$700 million

Market rumors suggest that Xinyi Automobile Glass plans to IPO in Hong Kong next year, aiming to raise US$600 million to US$700 million.

National Energy Administration: In January-September 2026, nationwide electricity market trading volume increased by 18.9% year on year.

On October 27, according to the National Energy Administration, in September 2026, electricity trading volume completed by power trading institutions nationwide reached 673.7 billion kWh, up 17.5% year on year.

As semiconductors suffer heavy losses, tech bulls set their sights on AI applications! ServiceNow (NOW.US) shares surge against the trend, as Morgan Stanley focuses on "agentic consumption + workflow upgrades"

From October 19 to 23, the company's stock price rose for five consecutive trading days, with cumulative gains of 11.97% during that period, while the Philadelphia Semiconductor Index fell 3.21% over the same period; on October 22, the Philadelphia Semiconductor Index plunged 6.72% and the Nasdaq Composite Index fell 2.60%, yet ServiceNow rose 2.53%.

HUITONGDA NET (09878): More than 1,000 Apple authorized stores under "Jujia Yuntong" simultaneously launch the new iPhone Duo.

At 8:30 a.m. on October 23, the Youyin Communications store in Baohua Town, Jurong, Jiangsu Province, simultaneously sold the new iPhone Duo in the urban market.

Citadel warns: the tech stock selloff is just the first alarm bell, and the AI trade has "almost no margin for error"

The tech stock selloff shows growing doubts about AI profitability, with Citadel Investment saying the AI trade has very little margin for error; Gray says demand is parabolic, and capital expenditure has become a two-way risk.

New Stock Analysis | Denglin Technology: Revenue Exceeds RMB200 Million in 4 Months, Is the Inflection Point Ahead of the Cost Curve?

Viewed in isolation, Denglin's financial inflection point is merely an operational improvement at a small company. Placed within the industry's frame of reference, however, it has caught a track that is rapidly widening.

ILUVATAR COREX (09903) bank credit lines reach RMB12 billion; diversified financing system strengthens supply chain and delivery assurance.

ILUVATAR COREX (09903)'s latest announcement shows that the company has obtained a total of RMB12 billion in bank credit lines, of which more than 80% remains unused.

Bank of Korea warns: if AI spending slows, South Korea's chip exports could fall by as much as $100 billion.

According to data from the Bank of Korea, if large US technology companies slow their capital expenditure in artificial intelligence next year, South Korea's semiconductor exports could be $50 billion to $100 billion lower than previous forecasts. In a written response submitted to lawmaker Ahn Do-geol, the Bank of Korea constructed a "pessimistic scenario" aimed at assessing the impact on South Korea's economy if US tech giants cut their massive infrastructure spending. Under this scenario, the sharp drop in exports would cause South Korea's GDP growth rate next year to fall by about 0.4 percentage points; at the same time, it would also push South Korea's current account surplus far below the Bank of Korea's previous forecast of a $430 billion surplus for 2027. The scenario assumes that the unit price of South Korean semiconductor products will fall by 10%.

Open-weight models capture 72% share in one year: Morgan Stanley warns software gains flow only to companies that control complex workflows

Open-weight models' share rose from 22% to 72% in one year. Morgan Stanley says the software dividend is not universal, and value will flow to companies with the deepest moats that control complex workflows.

BOJ's "hawkish pause" is only awaiting official announcement; market focus has already shifted to the December monetary policy signal.

Given that the BOJ just raised rates to a 31-year high last month, all respondents predicted the BOJ would keep rates unchanged. But they also all expect the central bank to raise rates in December or January.

A-share Market Open Brief | Tech hardware sector leads gains, all three major indices open higher

As of 9:40, a total of 3,471 stocks in the Shanghai and Shenzhen markets rose, 1,795 fell, and 311 were flat. There were 24 limit-up stocks and 5 limit-down stocks, with advancers accounting for 62% of the total.

National Bureau of Statistics: Profits of industrial enterprises above designated size nationwide grew 15.5% in January-September.

On October 27, data from the National Bureau of Statistics showed that from January to September, industrial enterprises above designated size nationwide achieved total profits of RMB6.03374 trillion, a year-on-year increase of 15.5% (calculated on a comparable basis).

HK Stock Market Move | NEW GONOW RV (00805) Plunges Over 35%, Named by Hong Kong SFC for Highly Concentrated Shareholding; Stock Had Risen as Much as 10-Fold in the Previous 6 Months

NEW GONOW RV (00805) opened sharply lower this morning, with its share price plunging more than 35% at one point.

Morgan Stanley loudly declares the US stock market correction is nearing its end! It sticks to its year-end S&P target of 8,000 points and identifies three major catalysts for a counteroffensive.

Just as Morgan Stanley continues to hold a bullish view on the stock market, recent market action has precisely demonstrated this semiconductor-led tech stock rebound momentum. The Philadelphia Semiconductor Index rose 0.44% on October 23 and gained a further 2.82% on the 26th.

Broker Morning Meeting Highlights | Supply constraints persist in 26Q4 as commodity divergence deepens

SDIC Securities believes that after the deep-V rebound, the technical rebound has sufficient momentum and supporting evidence, and both the win rate and risk-reward at the current position are fairly good; however, patience is required, and investors should not approach the market with a reversal mindset.

iPhone Duo's debut stumbles! Apple Inc. (AAPL.US) responds: only affects a "small number" of devices, contact AppleCare for a free replacement

Apple's first foldable phone, the iPhone Duo, was reported to have a bright-line defect on its inner screen during its first weekend on the market. Apple said it affects a small number of devices and promised replacements, while iFixit indicated that the hinge design may be the culprit.

ZHAOKE OPHTH-B(06622) Manufacturing Site Receives GMP Certification from Australia's Therapeutic Goods Administration

ZHAOKE OPHTH-B (06622) announced that the Company's manufacturing site in Nansha, Guangzhou, China, has recently received Good Manufacturing Practice (GMP) certification from Australia's Therapeutic Goods Administration (TGA).

A-share Pre-market Briefing | Philadelphia Semiconductor Index rises 2.8%; Central Bank establishes swap facility for large non-bank redemptions in the bond market

The People's Bank of China has decided to establish a Bond Market Non-Bank Large-Value Redemption Swap Facility (BNSF). The central bank said the move is intended to maintain bond market stability, and participating institutions should continue to meet prudential financial market management requirements.

Selling chips, providing leasing, and offering residual value support: Broadcom Inc. (AVGO.US) teams up with four Wall Street giants to raise US$63 billion to "pump funds" into Anthropic's chip procurement

Broadcom Inc. has reached a US$63 billion deal with Bank of America, Blackstone, Citigroup, and Morgan Stanley to finance the purchase of chips for AI model developer Anthropic PBC. The transaction is structured through a newly established special purpose company, which has secured funding commitments from the financial firms to purchase Broadcom chips and lease them to Anthropic.

INSILICO (03696) Announces Preliminary Positive First-in-Human Clinical Trial Data for Generative AI-Designed ISM6331 in the Treatment of Mesothelioma and Other Solid Tumors at ESMO 2026

INSILICO (03696) announced that the Company recently released preliminary positive data from the first-in-human Phase I clinical trial of ISM6331.

HUTCHMED (00013) to Hold Expert Interpretation Meeting to Discuss Latest Clinical Data on Savolitinib for Non-Small Cell Lung Cancer

HUTCHMED (00013) announced that it will jointly hold an online expert interpretation meeting with Citigroup Global Markets Asia Limited (Citigroup) for analysts and investors to discuss the latest Phase III clinical data on savolitinib for the treatment of MET-driven non-small cell lung cancer recently presented at the 2026 European Society for Medical Oncology (ESMO) Annual Congress. The online meeting will be held on Thursday, November 5, 2026, at 4:30 p.m. Hong Kong Time / 8:30 a.m. Greenwich Mean Time / 3:30 a.m. Eastern Time.

SBP GROUP (01177): TQ-A3334 "TLR7 agonist" and TQA3605 "core protein allosteric modulator" granted Breakthrough Therapy Designation by CDE

SBP GROUP (01177) announced that TQ-A3334, a "Toll-like receptor 7 (TLR7) agonist," and TQA3605, a "core protein allosteric modulator," both Class 1 innovative drugs independently developed by the company's subsidiary Chia Tai Tianqing Pharmaceutical Group Co., Ltd. (Chia Tai Tianqing), have been granted Breakthrough Therapy Designation by the Center for Drug Evaluation (CDE) of China's National Medical Products Administration. The two innovative drugs each address two major unmet needs in the treatment of chronic hepatitis B (CHB): functional cure and low-level viremia (LLV).

CHINAGOLDINTL (02099): Jiama Mine Operations Unaffected by Earthquake and Annual Production Guidance Reiterated

China Gold International (02099) announced that the Company's Jiama copper-gold polymetallic mine (Jiama Mine) was not affected by the earthquake that occurred in the Tibet Autonomous Region. The Company reiterates the annual production guidance for the Jiama Mine and believes that the mine is expected to meet the guidance.

Goldman Sachs orchestrates US$210 billion in mega financing deals in a single day! AI "funding relay" boosts confidence, adding further support to the semiconductor bull market narrative.

Goldman Sachs' US$210 billion trading day was driven by the AI financing boom. Goldman Sachs Group Inc. co-led a US$95 billion equity offering for Meta Platforms Inc., was the sole structuring agent for SpaceX's US$40 billion chip financing deal, and was named lead underwriter for Anthropic PBC's initial public offering; these deals are a windfall for Goldman Sachs, which will likely earn at least tens of millions of dollars (or even hundreds of millions of dollars) as a result.

LEGENDHOLDING (03396): Levima Advanced Materials Corporation (003022.SZ) reported a net profit attributable to shareholders of RMB527 million for the first three quarters, up 126.92% year on year.

LEGENDHOLDING (03396) announced the first three quarters of 2026 results for Levima Advanced Materials Corporation (003022.SZ): operating revenue of RMB7.951 billion, up 74.04% year on year; net profit attributable to shareholders of the listed company of RMB527 million, up 126.92% year on year; basic earnings per share of RMB0.39.

CHINAGOLDINTL (02099): Changshanhao Mine has resumed mining operations and reiterates annual production guidance

CHINAGOLDINTL (02099) announced that mining operations at the Company's Changshanhao Gold Mine (Changshanhao Mine) have resumed, and the annual production guidance for the Changshanhao Mine is reiterated.

Chip Giant Races into Quantum: Intel Corporation (INTC.US) Acquires Startup Classiq to Build Full-Stack Quantum Business

Intel announced the acquisition of Israeli quantum startup Classiq for an undisclosed amount, expected to close in the first half of 2027; Lip-Bu Tan said the company will build a full-stack quantum computing business.

HK Stock Concept Tracker | WuXi AppTec Again Raises Full-Year 2026 Performance Guidance; Institutions: Continue to Favor the Trend of Innovative Drugs Going Overseas (with Concept Stocks)

WuXi AppTec has further raised its full-year 2026 performance guidance. The company now expects total revenue for 2026 to be raised from RMB58.5 billionRMB60.5 billion to RMB61 billionRMB61.9 billion, and the year-on-year growth rate of revenue from continuing operations to be raised from 35%39% to 40%42%.

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CLSA: Reiterates Wuxi AppTec (02359.HK) "Outperform" rating, target price HK$262

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Indonesia's benchmark stock index fell 2% to 5,265.31 points.

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Porsche AG: Sales volume in 2027 will be lower than in 2026, which is a headwind.

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France plans to release 10 million barrels of diesel from strategic reserves to stabilize oil prices; no plan to replenish stocks.

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FFR Officially Lists on Nasdaq: Jia Yueting Serves as CEO, Robot Sales Exceed 300 Units in October

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