GMT EIGHT - OPPORTUNITIES IN CHINA

Is the A-share market adjustment nearing its end? What are the main investment themes? Here come the strategies from ten major brokerages.

The latest strategic views from ten major brokerages are freshly released.

CMSC: Which is more critical, fundamentals or liquidity?

Domestically, the bank believes that there is still room for government bond prices to rise, and at the equity level, it maintains its view that traditional energy > consumer, and dividend > others.

CITIC SEC: The securities industry still shows resilience in earnings growth, and the dividend allocation value of leading institutions is prominent.

The securities industry should position its strategies around earnings growth resilience and the investment value of "new dividend" opportunities.

Sinolink: An index-level rebound in A-shares needs to wait; focus on gold, the energy chain, and export/overseas expansion

For A-share investors, the worst environment is now behind us, with AI narrowing to US tech.

Guotai Haitong 26Q3 Banking Sector Earnings Preview: Steady Improvement Shows Resilience; Revenue Growth May Strengthen Further

We expect banks' 26Q3 revenue growth to strengthen further, with profit growth also showing a steady improvement trend.

Founder: The market bottoming area is gradually becoming clear; focus on three aspects of allocation opportunities.

Founder Securities believes that after the market has undergone sufficient adjustment, the bottoming area is gradually becoming clear, and the time to position for an oversold rebound is ripe.

The Annual Meeting of the Organ Transplantation Branch of the Chinese Medical Association was held! Zhenhealth Medical (02697)'s organ perfusion system was featured in an expert academic report.

The 31st Annual Meeting of the Organ Transplantation Branch of the Chinese Medical Association opened in Zhengzhou. Two studies were conducted using the organ perfusion system independently developed by Zhenhealth Medical (02697), focusing respectively on extracorporeal liver cross-circulation and orthotopic whole-liver xenotransplantation in non-human primates.

Will 2029 see a memory "red ocean"? South Korean finance minister speaks out: semiconductor boom to last at least until next year

South Korean Finance Minister Lee Hyung-il said on Saturday that the semiconductor industry's boom is expected to last at least until 2027.

CoreWeave's "double whammy in stocks and bonds"the "eye of the storm" in this round of the AI crash

CoreWeave's stock price plunged 25% in a single week, its junk bond yields soared to 15%, and its probability of default exceeded 60%, triggering an AI infrastructure financing crisis. This "double whammy in stocks and bonds" spread to the Philadelphia Semiconductor Index, which fell 11%, and the Nasdaq 100, which posted its worst weekly performance of the year. Market participants warned that this is a turning point for credit pricing in the AI boomthe high-leverage, debt-heavy expansion model is undergoing a severe test in a high-interest-rate environment.

Guojin Macro: When the US and Europe Become Sources of Financial Risk

As bureaucratic institutions, monetary authorities are extremely insignificant in the face of the rolling pressure to roll over existing debt in the era of low interest rates, the irresistible trend of technological development, and the intensifying populism. Overall, there is a need to reassess the stability of US and European markets as the global interest rate benchmark, and this is precisely the core meaning of "the US and Europe are replacing emerging markets as the source of financial risk."

Shenwan Hongyuan Group: El NioWhen Will the Macro Impact Peak?

In terms of scope, this round of El Nio is likely to affect the growth of vegetables, rice, and other crops in China, as well as the global supply of soybeans, palm oil, copper, and other commodities. The macroeconomic impact of El Nio may show significant seasonal differences, potentially concentrated in the winter of 2026 and the summer of 2027.

"High School Student Protests" Expand into "Nationwide Riots"! France "Shrouded in Smoke" on Saturday, Repercussions Spread Across Europe

A student protest in France, triggered by a dispute over education funding, quickly escalated into nationwide riots on Saturday, fueled by "Yellow Vest" groups and labor unions.

Guosen: Market stabilization requires three opportunities.

Guosen Securities released a research report stating that A-shares have continued to adjust since late September, with the decline even accelerating this week. The Shanghai Composite Index briefly fell below 3700, hitting a new low for the year, and the ChiNext Index also hit a new low for the year.

Musk reflects on DOGE: "Within the government" the deficit cannot be solved; only AI and Siasun Robot&Automation can save America.

Musk admitted frankly that the willingness to cut spending has no market among senior government officials: "If you try to solve the deficit problem and stop wasteful spending, you will make a lot of enemies."

Two departments: Support the establishment of sports lottery sales outlets in cinemas.

On October 16, the China Film Administration and the General Administration of Sport issued a notice on launching the "Follow Movies to Sports" initiative to promote two-way empowerment between film and sports.

Guosen: Tech chips clearing out, how far along are we?

Guosen Securities released a research report stating that tech selling pressure is disrupting market trends. Relative to the peak, leveraged funds, equity-biased public funds, short-term foreign capital, and insurance capital have cleared out about 10-20% of their positions, while private equity, long-term foreign capital, and fixed income+ have cleared out about 30-40% of their positions.

Bank of America and Citi Take Action to Restrict AI Agents

Recently, multiple banks have expressed concerns to regulators that these intelligent agents may transfer idle cash in pursuit of higher returns, thereby leading to deposit outflows from banks.

Shenwan Hongyuan Group: Signals of the late stage of short-term adjustment have emerged

Signals of the late stage of short-term adjustment have emerged, and it is the right time for policies to stabilize capital market expectations to take effect. The policy focus is more toward growth, which is more conducive to a rapid short-term stabilization.

Title context: South Korea's largest biopharmaceutical M&A deal is about to closewhy is Samsung Biologics betting on the peptide CDMO track? Text: South Korea's largest biopharmaceutical M&A deal is about to closewhy is Samsung Biologics betting on the peptide CDMO track?

Samsung Biologics of South Korea announced the preliminary interim results of its tender offer for Swiss peptide CDMO company Polypeptide Group.

IMF warns that Japan may need to raise interest rates faster, adding further pressure to global bond markets?

The International Monetary Fund has rarely endorsed the normalization of Japan's monetary policy and warned that if inflation exceeds expectations, the Bank of Japan may need to accelerate the pace of interest rate hikes.

Net profit grew by more than 195 timeswhere is the valuation support for Ganfeng Lithium Group (01772) as it keeps hitting new lows?

Why can't an explosive third-quarter report a positive stock price reaction?

AI Financing Costs Climb: Anthropic Plans to Offer Blackstone Over 10% Yield

Anthropic is advancing its largest-ever chip financing at a cost of capital far above market benchmarks, reflecting the increasingly high capital costs behind the AI infrastructure arms race.

Just next week! Meta (META.US) earnings take the lead, massive AI investment faces a "confidence test"

The clamor that "AI is short on money" is growing louder, dragging down a host of U.S. tech stocks and even hitting the share prices of energy companies. And next week, the sustainability of massive AI investment is about to face a major confidence testthe release of earnings reports from the giants.

AI Helps Savers Earn More, but Banks Are Rattled: Citi, BofA, and JPMorgan Collectively Guard Against AI Agents

Citigroup, Bank of America, and JPMorgan Chase have successively announced restrictions on AI agents' access to customer accounts. Behind this collective defensive posture lies the banking industry's deep anxiety that trillions of dollars in low-cost deposits could be "swept away" by AI.

The most dangerous divergence in US stocks: ordinary stocks have already plummetedhow much longer can AI giants hold up?

Rising US Treasury yields and oil prices have driven a sharp jump in the financial conditions index, causing market breadth to deteriorate sharply beneath the surface calm of the indices. Market divergence is intensifying, and whether ordinary stocks will catch up or the indices will converge downward has become the core uncertainty.

New York Fed Warning: Service Sector Input and Selling Price Growth Rise Together, Price Pressures Significant

New York Fed survey shows that in October, service sector input and selling prices rose rapidly, the business activity index fell to its lowest since March, firms turned pessimistic about the outlook, and pressure for inflation and rate hikes intensified.

AI company proactively seeks regulation! Anthropic submits draft AI regulation bill to the US government, proposes setting a "lethal red line"

Anthropic submits draft AI regulation bill to US lawmakers, proposing to halt the release of models with imminent risks and requiring mandatory testing and independent review, setting up a confrontation with the Trump administration's laissez-faire approach.

A national data group may be officially inaugurated in the coming days.

Refining margins soar, Exxon Mobil Corporation (XOM.US) Q3 downstream business profit set to hit record high.

Exxon Mobil said that rising refining margins in Q3 will boost profit by about $4.5 billion, with part of the increase offset by falling oil prices and losses from derivative timing effects.

Boeing Company (BA.US) Max 10 certification expected to be officially announced next week, adding another bargaining chip for debt relief.

Boeing 737 Max 10 completes key type certification meeting, with approval expected as early as next week. As the largest variant benchmarked against Airbus, the aircraft will help airlines replace aging 757s and become a cash cow for Boeing's debt reduction.

KANGQIAO SER (02205): Deepening Service Quality, Turning Reputation into Long-Term Compound Returns

Kangqiao Service has deepened its presence in three major sectorsresidential, commercial management, and urban servicesbuilding three product lines: "Yue Life," "Yue Commercial Management," and "Yue City Services." Rather than applying a one-size-fits-all standard, it tailors solutions to different business formats and customer groups.

Foreign holdings of U.S. Treasuries rebounded from a trough in August, with U.K. holdings topping $1 trillion for the first time.

Foreign holdings of U.S. Treasuries rose by more than $83 billion in August, led by increases from Canada and Belgium; Japan and China's holdings continued to fall to multi-year lows, while U.K. holdings topped $1 trillion for the first time.

Analysts rave about the "flying Tesla": engineering prowess stuns the world, but commercial value may be limited.

Tesla unveiled its next-generation Roadster sports car in Texas and demonstrated its flying capability;

HK Bull/Bear Outstanding Qty Ratio(46:54) | October 17

As of October 17, the latest Hang Seng Index bull/bear street position ratio is 46:54.

U.S. fiscal deficit for fiscal year 2026 approaches $2 trillion; interest costs exceed $1 trillion for the first time; debt burden may hit a record high.

Data released by the U.S. Treasury Department on Friday showed that the U.S. federal government's fiscal deficit for fiscal year 2026 widened to nearly $2 trillion, remaining at this elevated level for the fourth consecutive year.

Overnight US stocks | The three major indices fell, while Apple Inc. (AAPL.US) rose against the trend. The Philadelphia Semiconductor Index fell more than 11% this week.

At the close, the Dow Jones Industrial Average fell 175.99 points, or 0.34%, to 52,001.70; the S&P 500 Index dropped 84.64 points, or 1.09%, to 7,659.42; and the Nasdaq Composite Index declined 572.99 points, or 2.14%, to 26,140.03.

Philadelphia Semiconductor Index Suffers Longest Losing Streak Since 2008; Jensen Huang Responds Calmly: Short-Term Fluctuations Will Not Change the Long-Term Growth Prospects of AI

Amid the recent sustained sell-off in AI-related stocks, Nvidia CEO Jensen Huang remains confident in the long-term growth prospects of the AI industry.

US Stock Market Move | Biotech company City Therapeutics (CTY.US) debuts on the U.S. stock market, rising nearly 24% after the open.

As of press time, the stock is up nearly 24%, at $22.315.

US Stock Market Move | Selloff Continues as Nasdaq 100 Plunges 1.3%, Most Star Tech Stocks Fall

On Friday, the selloff continued, with the Nasdaq 100 plunging 1.3% and most star tech stocks falling.

AI data center construction demand remains strong; Morgan Stanley is bullish on the outlook for Ethernet and optical communications, favoring Lumentum (LITE.US) and Coherent (COHR.US) amid the stock pullback.

Morgan Stanley noted in its latest research report that although the expansion of artificial intelligence (AI) data centers still faces multiple challenges such as power supply, network connectivity, and infrastructure efficiency, the demand for computing power from hyperscale cloud providers remains strong.

QINGLING MOTORS (01122) Signs Capital Reduction Agreement to Fully Control Qingling Mould

QINGLING MOTORS (01122) announced that on October 16, 2026 (after trading hours), the Company, Qingling Group, and Qingling Mould entered into a capital reduction agreement, pursuant to which Qingling Group intends to reduce its approximately 49.4% equity interest in Qingling Mould, with a capital reduction consideration of approximately RMB 202 million, whereby the registered capital of Qingling Mould will be reduced from approximately RMB 309 million to approximately RMB 156 million, with a corresponding reduction in registered capital of approximately RMB 153 million. Upon completion of the capital reduction, the Company's shareholding ratio in Qingling Mould will increase from approximately 50.6% to 100%, and Qingling Mould will remain a subsidiary of the Company, with its financial results continuing to be consolidated into the Group's consolidated financial statements.

STRONG PETRO (00852) subsidiary intends to sell all equity in Nantong Runde Petrochemical for US$12.5 million

STRONG PETRO (00852) announced that on 16 October 2026 (after trading hours), Team Energy, an indirect wholly-owned subsidiary of the Company, entered into a sale and purchase agreement with Yantai Jincheng, an independent third party, pursuant to which Team Energy has agreed to sell and Yantai Jincheng has agreed to acquire the entire equity interest in the target company, Nantong Runde Petrochemical Co., Ltd., at a consideration of US$12.5 million (equivalent to approximately HK$97.5 million).

GOGOX (02246): Proposed disposal of the entire equity interest in GGEx Holdings Limited; proposed change of Chinese name to "GOGO Technology"

GOGOX (02246) announced that on 16 October 2026, the Company proposed to sell the entire issued share capital of the target company GGEx Holdings Limited to the buyer Crestpoint Investment Limited for a consideration of RMB1.00. Upon completion, the Company will no longer hold any issued share capital of the target company, and the target company will cease to be a subsidiary of the Company. Accordingly, the financial results of the target group will no longer be consolidated into the consolidated financial statements of the Group.

Shandong Gold Mining (01787) plans to jointly contribute capital with its controlling shareholder to establish a Hong Kong treasury company, further strengthening the centralized management of the company's overseas funds.

Shandong Gold Mining (01787) announced that on October 16, 2026, the board of directors approved the establishment of a Hong Kong treasury company jointly funded by Mining Hong Kong, a wholly-owned subsidiary of the company, and Yacheng Company, a wholly-owned subsidiary of Gold Group Company, the controlling shareholder of the company. The Hong Kong treasury company is a proposed newly established company in Hong Kong, mainly engaged in the centralized operation and management of overseas funds.

US Stock Market Move | May Face Removal from MSCI Global Index; Major Bitcoin Holder Strategy (MSTR.US) Drops Over 4%

On Friday, major Bitcoin holder Strategy (MSTR.US) fell over 4% in early trading, now at $145.06.

EMPEROR INT'L (00163) subsidiary intends to sell land in Sai Kung, New Territories, Hong Kong for HK$161.8 million.

EMPEROR INT'L (00163) announced that on 16 October 2026, the vendor (Diamond Faith Limited, an indirectly wholly-owned subsidiary of the Company) intends to sell the land to the purchaser (Ming Wang Limited) at a consideration of HK$161.8 million (with reference to the valuation of the land as at 30 September 2026 of HK$161.8 million). The land refers to Lot No. 581 in Demarcation District No. 210, Sai Kung, New Territories, Hong Kong.

Traders Maintain Expectations That the Fed Will Hold Rates Steady in October; U.S. Stocks Diverge; Nasdaq 100 Expected to Fall More Than 3.5% This Week

U.S. stocks diverged in early trading on Friday. Fed Chair Warsh's latest remarks reinforced market expectations that the Fed will hold rates steady in October, providing some support for U.S. stocks.

US Stock Market Move | First foldable phone iPhone Duo sells out instantly at launch; Apple Inc. (AAPL.US) rises over 1% in early trading.

On Friday, Apple (AAPL.US) rose over 1% in early trading, up 27% year-to-date, now at $344.78.

MOBVOI (02438) grants a loan of RMB 12 million.

MOBVOI (02438) announces that on October 16, 2026, Mobvoi Information Technology (a wholly-owned subsidiary of the Company) entered into a loan agreement with the borrower Dr. Li Zhifei, pursuant to which Mobvoi Information Technology agreed to provide a loan with a principal amount of RMB 12 million to the borrower. The loan term is 12 months from the date of loan drawdown.

US Stock Market Move | Memory sector falls broadly; SK Hynix (SKHY.US) drops over 5%.

On Friday, the memory sector fell broadly.

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New York silver futures break through $57/oz, down 0.71% intraday.

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WTI crude oil broke through $99 per barrel, down 0.22% intraday.

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New York futures gold breaks through $4,180/oz, flat on the day.

7 m ago

The probability of the Fed keeping interest rates unchanged in October is 83.9%.

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European natural gas prices opened up 2%.

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