GMT EIGHT - OPPORTUNITIES IN CHINA

A-share Market Close | Shanghai Composite Index Rises 0.19%; Oil and Banking Stocks Strengthen, Computing Power Hardware Stocks Weaken

On October 26, the three major A-share indices collectively opened lower in the morning and moved downward, then fluctuated and rebounded in the afternoon. The Shanghai Composite Index turned positive in late trading and closed near its intraday high, while the Shenzhen Component Index, ChiNext Index, and STAR 50 all closed lower.

Net profit grew more than twofold in the first three quarters, with Shenzhen Senior Technology Material (06067) achieving high performance growth driven by both "domestic + overseas" markets.

As the "third pole" of batteries, separators are the most competitive segment in the lithium battery industry chain.

Eurozone Q3 economic growth may slow; ECB likely to hold steady this week.

Weakening economic growth momentum may be one reason for the European Central Bank to temporarily hold off on raising interest rates.

Earnings Preview | After the Philadelphia Semiconductor Index enters a bear market, another major earnings test: Can NXP Semiconductors NV's (NXPI.US) automotive foundation and hidden AI storyline support its valuation?

NXP Semiconductors will report its third-quarter fiscal 2026 results after the U.S. market close on October 27. With the Philadelphia Semiconductor Index down more than 26% from its June high and the sector as a whole having entered a technical bear market, the significance of this earnings report goes beyond the single-quarter figures themselves.

National Energy Administration: As of the end of September, China's cumulative installed power generation capacity reached 4.13 billion kilowatts, up 11.2% year on year.

On October 26, the National Energy Administration released national electricity statistics for January to September.

National Energy Administration: As of the end of September, China's cumulative installed wind and solar capacity exceeded 2 billion kilowatts.

Data from the National Energy Administration show that as of the end of September 2026, cumulative installed wind and solar power capacity reached 2.01 billion kilowatts.

Contrarian in the French debt selloff: A$370 billion pension fund adds positions, betting fiscal risks are overestimated

Australia's second-largest pension fund is buying French government bonds. The institution believes the market has overpriced France's fiscal troubles and the prospect of European Central Bank rate hikes.

JLL: Hong Kong Grade A office vacancy rate falls for five consecutive months, dropping to 12.4% month-on-month in September

JLL noted in a report that the overall vacancy rate in Hong Kong's Grade A office market has fallen for the fifth consecutive month, dropping to its lowest level since May 2023.

Defense tech investment boom heats up, private equity giant warns 'a lot of bubble' is emerging.

Private capital is pouring heavily into defense tech, with growth-stage investment reaching US$4 billion in the first three quarters of 2026, but inflated valuations and exit challenges are fueling bubble concerns.

From OpenAI to Malaysia, Masayoshi Son Rolls Out the "SoftBank ASI Blueprint"! US$50 Billion Investment Plan Ignites Bullish Sentiment in Semiconductors

In 2000, Masayoshi Son made his first investment in Alibaba for approximately US$20 million. Through long-term shareholding, he subsequently shared in what can be called an "investment myth"the record-setting massive value growth of a Chinese e-commerce platform as it moved from its initial startup phase of huge losses into the global capital market spotlight. Today, OpenAI, which Son has backed with huge sums, along with a range of AI computing power leaders, in his view likewise possess unparalleled growth potential to become large-scale user gateways and enterprise technology platforms.

Earnings Preview | Optical Communications Taking the Lead + CECEP Solar Energy Awaiting Recovery: Is Now the Right Time to Position in Corning Inc (GLW.US) Ahead of Earnings?

Corning (GLW.US) will release its third-quarter 2026 financial results on October 27.

MReferral: September MReferral Mortgage Rate Index stands at 3.18%, with room for further decline expected within the year

The September 2026 MReferral Mortgage Rate Index (MMI), which reflects the actual mortgage rate level generally available to new mortgage customers, stood at 3.18%, up slightly by 6 basis points month-on-month.

"Demand destruction" versus the risk of an attack on Saudi Arabia in a tug-of-war, international oil prices fall more than 2%.

Traders weighed the risk of an attack on Saudi Arabia against the impact of a sharp drop in demand, and oil prices fell more than 2%.

Inflation shock combined with economic resilience! Bank of England sends its strongest hawkish signal in over three years, with a November rate hike all but certain.

BOESPEAK, a natural language processing model that tracks the remarks of Bank of England Monetary Policy Committee (MPC) members, shows that the central bank officials are sending the most hawkish signal in more than three years, paving the way for a rate hike as early as next month.

HKMA: The Fifth Global Financial Leaders' Investment Summit will be held from November 2 to 4.

During the summit, financial leaders will discuss emerging opportunities and potential risks brought by macroeconomic trends, financial market developments, and technological advancements to different industries, assets, and regions.

Hong Kong Property: Hong Kong property market outlook is clear, full-year 2026 home prices expected to record double-digit gains

Ma Tai-yeung said that benefiting from population growth and strong rental demand, coupled with the favorable policies of the Policy Address and the five-year plan, the outlook for Hong Kong's property market is clear, and home prices are expected to maintain double-digit gains for the full year.

Lula's election victory thwarts right-wing bets; Brazilian stocks and currency may see sharp volatility.

Investors had bet on a change of government in Brazil, and with Lula's election victory, those positions are expected to be unwound en masse amid sharp volatility in the coming week.

John Lee: Hong Kong can leverage its green finance advantages to support the Belt and Road green transition

On October 26, the "Belt and Road Green Innovation Conference" was held in Hong Kong for the first time.

Shenzhen Stock Exchange: Robotechnik Intelligent Technology (03757) to be included in Stock Connect eligible securities

Shenzhen Stock Exchange adds Robotechnik Intelligent Technology (03757) to Stock Connect eligible securities.

MAGNUSCONCORDIA (01172) subsidiary and Sichuan Juxinghua Trading separately entered into sale and purchase agreements for the purchase and sale of properties

MAGNUSCONCORDIA (01172) announced that on October 26, 2026, the seller, MAGNUSCONCORDIA Development (Chengdu) Co., Ltd. (an indirectly wholly-owned subsidiary of the Company), and the buyer, Sichuan Juxinghua Trading Co., Ltd., separately entered into sale and purchase agreements for the purchase and sale of the properties.

YIDU TECH (02158): Wins bid for the next-generation big data platform project of the First Affiliated Hospital of Chongqing Medical University

YIDU TECH (02158) announced that recently, its affiliate Yidu Cloud (Beijing) Technology Co., Ltd. won the bid for the next-generation big data platform project of the First Affiliated Hospital of Chongqing Medical University, with a total project amount of approximately RMB13.29 million.

ALPHAMAB-B (09966): Phase I/II Clinical Study Results of JSKN033 in Treating CC Patients Who Failed Standard Therapy Published as a Rapid Oral Presentation at the 2026 ESMO Congress

ALPHAMAB-B (09966) announced that the clinical study results of JSKN033 (a high-concentration subcutaneous injectable combination formulation composed of a HER2 bispecific ADC and a PD-L1 immune checkpoint inhibitor) in the Phase I/II clinical study in China (Study No.: JSKN033-102) for the treatment of CC patients who failed standard therapy have been published as a rapid oral presentation at the 2026 ESMO Congress.

ALPHAMAB-B (09966): Latest results from two Phase III clinical studies of anbenitamab (KN026) presented as late-breaking abstract oral presentations at the 2026 ESMO Congress

ALPHAMAB-B (09966) announced that the significant results of anbenitamab (trade name: Ennituo, development code: KN026), jointly developed with JMT Biological, a subsidiary of CSPC Pharmaceutical Group, for first-line treatment of HER2+ BC, and the updated OS analysis for second-line and above treatment of HER2+ GC/GEJ, were presented as late-breaking abstract oral presentations at the 2026 ESMO Congress.

INTRON TECH (01760) reported total revenue of approximately RMB5.57 billion for the first three quarters, up about 21.4% year on year.

INTRON TECH (01760) announced a business update for the third quarter ended September 30, 2026. For the nine months ended September 30, 2026, the Group's total revenue was approximately RMB5.57 billion (unaudited), representing a year-on-year increase of approximately 21.4% compared with the same period in 2025.

TIANJIN DEV (00882): Tianjin Lisheng Pharmaceutical's net profit attributable to shareholders for the first three quarters was RMB78.51 million, down 78.82% year-on-year.

TIANJIN DEV (00882) announced the results of Tianjin Lisheng Pharmaceutical for the nine months ended September 30, 2026, with total operating revenue of RMB888 million, down 11.84% year-on-year; net profit attributable to owners of the parent company of RMB78.51 million, down 78.82% year-on-year; and basic earnings per share of RMB0.25.

H&H INTL HLDG (01112): Total revenue for the first three quarters rose 24.5% year on year on a reported basis.

H&H INTL HLDG (01112) announced that for the nine months ended September 30, 2026, total revenue rose 24.5% year on year on a reported basis (up 24.4% on a like-for-like basis) to RMB13.448 billion, mainly driven by strong growth in the Adult Nutrition & Care segment and the Infant Nutrition & Care segment. In the third quarter, the Group increased investment in the launch of strategic new products and strengthened various initiatives targeting core markets and selected expansion markets to support sustainable growth.

Ministry of Commerce: In the first three quarters, the total profit of key contacted commodity markets increased by 5.8% year on year.

Ministry of Commerce: In the first three quarters, the total profit of key contacted commodity markets increased by 5.8% year on year. The head of the Department of Circulation Development of the Ministry of Commerce discusses the development of China's wholesale and retail industries from January to September 2026.

A $5 billion blockbuster emerges? JPMorgan maintains "Neutral" rating on Amgen (AMGN.US): A good drug does not equal a good entry point.

Amgen's Imdelltra first-line maintenance data show an HR of 0.42, with survival nearly doubled; Morgan Stanley estimates it will become a $5 billion blockbuster; however, it maintains a Neutral rating and a $350 price target.

The Securities and Futures Commission of Hong Kong has for the first time approved secondary market trading of a tokenized fund offered to the public.

The Securities and Futures Commission of Hong Kong has approved secondary market trading of the world's first batch of tokenized funds offered to the public on SFC-licensed virtual asset trading platforms (VATPs).

A-share Midday Review | Shanghai Composite Index falls 0.18%, ChiNext Index drops 1.65%, pharmaceutical commerce sector bucks the trend

The market showed a divergent pattern of "broad index declines, growth stock pullbacks, and consumer and pharmaceutical commerce sectors bucking the trend with active gains."

Fed and ECB Poised to Pause Together, So Why Is Global Funding Still Struggling for Relief? JPMorgan Outlook: The Logic of Continued Rate Hikes Is Still Weighing on Stocks and Bonds

JPMorgan's latest research report shows that the core financial market trading theme linked to this week's monetary policy decisions by the Fed, ECB, and Bank of Japan is how strong a tightening bias policymakers will maintain after announcing a October rate-hike pause, as the market broadly expects.

Earnings Preview | After a 30% Stock Decline, SK Hynix (SKHY.US) Faces a Major Earnings Test: Can HBM4 Ramp-Up and DRAM Price Increases Reignite Its Rally?

SK Hynix will release its fiscal 2026 third-quarter results on October 28.

HKD HIBOR falls across the board; one-month rate reverses from gains to losses at 2.75%

On October 26, HKD HIBOR fell across the board, with the one-month rate, which is linked to mortgage payments, reported at 2.75000%, down 2.893 basis points.

Goldman Sachs: The yen has regained its "safe-haven king" status, becoming the most effective tool for hedging against AI market shocks.

Goldman Sachs says the yen has become a better tool for hedging against AI shocks, with a policy shift reducing depreciation risk; it recommends shorting USD/JPY and shorting EUR/JPY.

New Stock News | Xinhehua Passes HKEX Hearing, Ranks 2nd in China by 2025 Revenue from Traditional Chinese Medicine Decoction Pieces Products

According to the prospectus, Xinhehua is a supplier of large-scale traditional Chinese medicine ("TCM") decoction pieces products (i) in China.

Colliers: Central Grade A office rents outperform the market; bullish on West Kowloon's locational advantages in attracting Chinese enterprises to set up operations

The recovery pace of the Central office market is clearly ahead of the overall market, mainly benefiting from the rebound in the capital markets, the expansion of the financial services sector, and the continued increase in demand for premium office space.

Trump plays the "manufacturing card" again to build momentum for the midterm elections: Audi to build a $4 billion plant in the US, planning annual output of 200,000 SUVs.

Audi plans to invest $4 billion to build a plant in the US, with annual output of 200,000 SUVs and 4,500 jobs created; the German union criticizes the CEO's overture as "baffling," with the final decision pending approval by Volkswagen's supervisory board.

Median survival extended by 5.7 months! Roche's (RHHBY.US) new lung cancer drug wins in head-to-head trial, major catalyst for oncology business

Roche's investigational lung cancer drug divarasib, in a late-stage clinical trial, extended patient survival by nearly six months compared with competing therapies, potentially further strengthening the Swiss pharmaceutical company's oncology portfolio.

The Ministry of Finance plans to issue the 2026 book-entry discounted (69th tranche) treasury bonds, with a total face value of 60 billion yuan for bidding.

On October 26, the Ministry of Finance issued a notice on matters related to the issuance of the 2026 book-entry discounted (69th tranche) treasury bonds.

Goldman Sachs: Yen's hedging value rises, can cushion market shocks triggered by AI

Goldman Sachs said that although the global backdrop still suggests the yen may weaken further, compared with recent years, the yen now appears to have become a more attractive hedging tool for pro-cyclical portfolios.

Is global aging reshaping the investment logic for stocks and bonds? Pension "longevity bills" are accelerating, and stocks, bonds, and private markets are set to receive massive long-term capital.

As people live longer and birth rates decline, pension funds are forced to stretch their assets over decades of retirement. At the same time, the number of workers contributing to these systems is shrinking.

Chan Kwok-ki: As of September, Hong Kong's various talent schemes received about 690,000 applications, and 320,000 talents have arrived in Hong Kong.

On October 25, Chan Kwok-ki, Chief Secretary for Administration of Hong Kong, said at an event that the SAR government is actively recruiting international talent needed for the development of the country and Hong Kong.

Dimon Sounds the "Fivefold Alarm"! Facing the Pincer of Massive Fiscal Deficits and High Interest Rates, Is the Coca-Cola-Style "Cash Cow" Ever Outdated?

The core of Dimon's warning is that the U.S. economy is still expanding, but the price investors must pay to sustain growth and take on risk is rising.*

A-share Market Open Brief | All Three Major Indices Open Lower, Precious Metals Lead Declines, Computing Power Chain Weakens

On October 26, the Shanghai Composite Index opened 0.53% lower at 3,671.00 points, the Shenzhen Component Index opened 0.97% lower at 11,560.36 points, and the ChiNext Index opened 1.43% lower at 2,645.74 points. The STAR 50 opened 0.89% lower at 1,333.48 points.

Survival period doubled! AstraZeneca's new gastric cancer drug sone-ve targets $5 billion in annual sales, ADC takes another step toward replacing chemotherapy.

AstraZeneca's gastric cancer ADC doubles patient survival, extending life by 5 months, targeting $5 billion in annual sales; competing with Takeda and Astellas for the Claudin 18.2 target.

The First Health and Longevity Promotion Forum was held in Suzhou.

The event was jointly hosted by China Life Garden Suzhou Yajing and Shulan Medical.

A-share Pre-market Report | 1,028 Companies Disclose Q3 Reports, 176 Companies Post Net Profit Growth Exceeding 100% YoY

Wind data shows that as of 18:00 on October 25, a total of 1,028 listed companies in the A-share market had disclosed their third-quarter reports, of which 548 companies reported year-on-year growth in net profit attributable to shareholders of the listed company, accounting for approximately 53.31%.

Brokerage Morning Meeting Highlights | The computing power industry is still growing but will return to rationality.

CITIC Securities research report states that the China-US computing power sector is in a highly prosperous construction cycle. Amid rapid growth, North American computing power construction faces difficulties in both investment and financing.

After the Nasdaq suffered a two-week slump, "faith in AI" is teetering! Capital is shifting from chasing growth to questioning the return on AI investment.

The three major tech companies are expected to report solid growth when they release earnings, but investors' focus is on their investments in artificial intelligence and when those investments will pay off. Investors "currently have zero patience for higher capital expenditures," and given rising oil prices and other macroeconomic issues, the market's reaction to any disappointing news could be ruthless, as anxiety levels are already high.

HK Stock Concept Tracker | ESMO Annual Congress: Chinese Pharmaceutical Companies Successively Announce Latest Innovative Drug Data (with Concept Stocks)

Eli Lilly presented the first clinical data for its investigational next-generation FR-targeting ADC in platinum-sensitive ovarian cancer at the 2026 ESMO Congress.

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Salubris (002294.SZ) released its performance for the first three quarters, with net profit attributable to shareholders of RMB 644 million, up 10.93% year on year.

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Hongxun Technology (603015.SH) released its performance for the first three quarters, with net profit attributable to the parent company of 28.32 million yuan, a year-on-year decrease of 11.65%.

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Huangshanghuang (002695.SZ) released its performance for the first three quarters, with net profit attributable to the parent company of 103 million yuan, a year-on-year increase of 2.21%.

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Pinming Technology (688109.SH) released its first three quarters performance, with net profit attributable to the parent company of 4.05 million yuan, a year-on-year decrease of 91.63%.

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Citi: China Coal Energy (01898.HK) Q3 net profit below expectations, maintains "Buy" rating

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