A-share Pre-market Briefing | Four departments issue a document! Promoting the innovative development of gas turbines; Google falls 12.34%

Pre-market Briefing 1. Nasdaq falls 1.38%, Google drops 12.34%, market cap evaporates by US$479 billion Type: Market Sentiment impact: Negative The three major US stock indices closed lower collectively, with the Nasdaq down 1.38%, the Dow down 0.25%, and the S&P 500 down 0.3%. Google parent Alphabet reported third-quarter revenue of US$127.58 billion, up 25% year-on-year, below the market expectation of US$127.91 billion; adjusted earnings per share were US$2.67, below the expected US$2.97; the stock closed down 12.34%, with market cap evaporating by US$479 billion. Storage, optical communications, and cloud services sectors fell in tandem: SanDisk and Micron Technology dropped about 5%, Marvell plunged 13%, and CoreWeave fell nearly 5%. International oil prices retreated, with December-delivery WTI crude futures down 0.8% to settle at US$102 per barrel; spot gold fell 1.13% to US$4,021.23 per ounce. 2. US September core PCE rises 3.1% year-on-year; ECB keeps three key interest rates unchanged Type: Macro Sentiment impact: Neutral Data from the US Department of Commerce showed that the September US personal consumption expenditures price index rose 3.6% year-on-year, and the core personal consumption expenditures price index, excluding food and energy, rose 3.1% year-on-year and 0.3% month-on-month. Affected by the Middle East geopolitical conflict pushing up international oil prices, higher energy prices drove an overall inflation rebound in September. Core PCE is an inflation indicator the Federal Reserve focuses on when setting monetary policy. On the same day, the European Central Bank kept the deposit facility rate, main refinancing rate, and marginal lending rate unchanged at 2.50%, 2.65%, and 2.90%, in line with market expectations. 3. National Energy Administration and other departments issue document: build an independent and controllable full industrial chain system for gas turbines by 2030 Type: Industry Sentiment impact: Positive The National Energy Administration and other departments issued guiding opinions on promoting the innovative development of gas turbines. The opinions specify that by 2030, China's independent innovation capability in gas turbines will be significantly enhanced, with the ability to develop and manufacture complete units and key components, and an independent and controllable full industrial chain system of "R&Dmanufacturingvalidationmaintenance" will be built, basically meeting domestic development needs for gas turbines used in distributed energy and offshore oil and gas platforms, and compressors for long-distance oil and gas pipelines. Supporting policies include supporting gas power projects to adopt independently developed gas turbines, promoting relatively stable natural gas supply prices for pilot projects, studying fault-tolerance mechanisms for grid connection and operation of first-of-its-kind projects, and encouraging local governments to improve implementation plans for gas power capacity electricity pricing. 4. Several companies disclose third-quarter reports; Shengyi Technology net profit up 238% year-on-year Type: Industry Sentiment impact: Neutral Third-quarter reports are entering a disclosure period. Shengyi Technology's Q3 net profit rose 238% year-on-year and 61% quarter-on-quarter; Puya Semiconductor (Shanghai) Co., Ltd.'s Q3 net profit rose 3,876% year-on-year and 26% quarter-on-quarter; Shengyi Electronics' third-quarter net profit rose 37.10% year-on-year and 20% quarter-on-quarter. Some companies saw quarter-on-quarter declines: Shenzhen Longsys Electronics' third-quarter net profit rose 437% year-on-year but fell 44% quarter-on-quarter; Eoptolink Technology Inc.'s Q3 net profit rose 61% year-on-year but fell 19% quarter-on-quarter; Victory Giant Technology's third-quarter net profit fell 52% year-on-year and 66% quarter-on-quarter. In the same period, BYD Company Limited's third-quarter net profit rose 28.1% year-on-year, while net profit for the first three quarters fell 4.2%. Investment Calendar October 30: Bank of Japan monetary policy meeting Institutional Views 1. CITIC SEC: The macro environment may be relatively subdued in 2027; asset allocation should prioritize defense before going on the offensive 2. Huafu Research: The rate decision was held unchanged as expected but internal divisions emerged; the marginal hawkishness released this time weakened 3. Sinolink: Oil prices and rate-hike uncertainty are short-term constraints on gold, but its long-term allocation value remains relatively certain Positive/Negative Outlook 1. Federal Reserve December rate meeting Type: Policy focus Guotai Haitong: The Federal Reserve is marginally more optimistic about the US economy, changing its economic description from "expanding at a moderate pace" to "expanding at a strong pace"; rate hikes may continue within the year 2. Physical AI data industry chain Type: Institutional hot comment Huayuan Research: Leading manufacturers continue to increase investment; model training demand for real physical-world data is expected to continue growing; focus on the data and simulation industry chain 3. Liquid cooling industry volume inflection point Type: Market hot discussion Zhongtai: Nvidia Rubin shifts to full liquid cooling; AI rack power consumption continues to rise; Nvidia, Google, and domestic super nodes jointly drive demand expansion Announcement Briefs Positive announcements 1. Wuliangye Yibin: Controlling shareholder Yibin Wuliangye Yibin Group cumulatively increased its holdings by 36,949,691 shares, with an increase amount of RMB2.714 billion 2. Aluminum Corporation Of China: Controlling shareholder Chinalco Group and persons acting in concert cumulatively increased holdings by 154,868,602 shares, with an increase amount of approximately RMB1.255 billion 3. Verisilicon Microelectronics (Shanghai) Co., Ltd.: Plans to repurchase shares, with total funds of RMB25 million to RMB30 million Negative announcements 1. Sunwoda Electronic: Terminates the issuance of H shares and listing on the Main Board of the Hong Kong Stock Exchange 2. Anhui Truchum Advanced Materials and Technology: Controlling subsidiary Dingli Technology plans to apply for delisting from the National Equities Exchange and Quotations 3. Guangdong QW SOLAR Technology: Risk warning that the company's shares may be delisted Overseas Markets The three major US stock indices closed lower collectively, with the Nasdaq down 1.38%, the Dow down 0.25%, and the S&P 500 down 0.3%. Google's third-quarter revenue and earnings per share both fell short of market expectations; rising AI investment combined with slowing search advertising growth led the stock to close down 12.34%, with market cap evaporating by US$479 billion. Storage, optical communications, and cloud services sectors fell in tandem: SanDisk and Micron Technology dropped about 5%, and Marvell fell 13%. The Livermore China Concept Stock Leaders Index closed down 0.45%, and 21Vianet fell 9.57%.