GMT EIGHT - OPPORTUNITIES IN CHINA

The most urgent bottleneck for AI today: cheap funding is drying up!

Confidence supports financing, and financing supports investment; once confidence weakens, the contraction of capital will in turn hit investment and growth expectations.

2008 Again! One Article to Understand Wall Street's Hottest Trade: AI CDS

As the AI giants frantically burn cash to expand, alarm bells have already sounded in the credit market. CDS spreads for chipmakers such as Broadcom and Nvidia have surged more than 170% within half a year. Although 10 core AI companies, including Google and Amazon, account for only 8% of investment-grade index constituents, they carry 16% of implied credit risk. Chip manufacturers are morphing from technology companies into "concentrated lenders," with CDS trading volume surging more than 1,900% year on year.

AI dip-buying trade fails this time? Tech stock earnings blowups met with harsh punishment as US stock volatility jumps.

Tech stock earnings blowups met with one of the harshest punishments in history: VIX hits a new high since April, Nasdaq plunges, and diversified strategies record their best month since 2020.

Apple fell more than 2% in pre-market trading and is now at $339.3939.

Record numbers of early voters in US midterm elections; Democrats lead by 12 percentage points.

Record numbers of early voters in midterm elections, with Democrats building a larger share of the vote.

NBS Interpretation: Purchasing Managers' Index Declined in October

The PMIs for high-tech manufacturing and equipment manufacturing were 51.3% and 50.6%, respectively, continuing to stay above the critical threshold. Production and operations of enterprises in related industries remained in expansion, and new quality productive forces continued their sound development momentum. The PMIs for the consumer goods industry and high energy-consuming industries were 48.8% and 47.3%, respectively, down 1.9 and 0.7 percentage points from the previous month, indicating a weakening in market activity.

National Bureau of Statistics: In October, the composite PMI output index was 49.7%, down 1.0 percentage point from the previous month.

In October, the manufacturing Purchasing Managers' Index (PMI) was 49.3%, down 0.8 percentage point from the previous month. The non-manufacturing business activity index was 49.7%, down 0.5 percentage point from the previous month.

Amazon.com, Inc. (AMZN.US) Continues to Fund AI Spending: Establishes Hardware-Backed Financing Arrangement of Up to US$80 Billion, Total Spending Commitments Rise to US$883 Billion

Amazon taps US$80 billion supplier lending facility to power AI development.

France's fiscal outlook deteriorates as Fitch revises rating outlook to negative.

Fitch Ratings revised France's credit rating outlook to negative due to deteriorating public finances, including slowing growth, rising borrowing costs, and a widening deficit.

HK Bull/Bear Outstanding Qty Ratio(43:57) | October 31

As of October 31, the latest Hang Seng Index bull/bear street stock ratio is 43:57.

Overnight US stocks | "Black Friday" sweeps across risk assets, Nasdaq posts worst single-day performance since June; Apple Inc. (AAPL.US) market cap overtakes NVIDIA Corporation (NVDA.US) to reclaim the global top spot.

At the close, the Dow Jones Industrial Average fell 572.25 points, or 1.09%, to 51,770.31; the S&P 500 dropped 140.30 points, or 1.82%, to 7,580.09; and the Nasdaq Composite declined 747.73 points, or 2.86%, to 25,437.00.

AI spending spree sparks credit risk concerns! S&P cuts Meta (META.US) rating outlook to "negative," questioning its ability to monetize massive investments.

S&P Global Ratings downgraded Meta's credit rating outlook from "stable" to "negative," citing the company's continued expansion of artificial intelligence (AI) capital expenditures, which has turned free cash flow negative, while uncertainty remains over whether the massive AI investments can generate sufficient returns in the coming years.

Intel Corporation (INTC.US) Plunges 29%, Largest Single-Day Drop Since the 1970s, as Guidance Falls Far Short of Expectations

Intel's stock plunged 29% on Friday, marking its largest single-day drop since the 1970s.

Relatively restrained capital expenditure wins market favor as Apple Inc. (AAPL.US) overtakes NVIDIA Corporation (NVDA.US) to reclaim the world's largest market capitalization.

As concerns on Wall Street continue to mount over the returns on Big Tech's massive artificial intelligence investments, Apple overtook Nvidia on Friday to reclaim its position as the world's most valuable listed company.

Apple AI officially announces integration with Qwen.

On October 31, Apple announced a partnership with Alibaba to integrate Qwen into Apple Intelligence, allowing Chinese users to directly access Qwen's text and image understanding, content generation, and other capabilities within Siri, Writing Tools, and Visual Intelligence. These features will be available for testing starting November 4 with the latest iOS developer beta and will be rolled out to Chinese users with the official release of iOS 27.3 in December.

Reportedly, Alphabet Inc. Class C (GOOGL.US) is in talks with the U.S. Department of Defense on cooperation, planning to provide data security support for the US$185 billion "Golden Dome" missile defense program.

Google, under Alphabet, is in talks with the U.S. Department of Defense to participate in a new data security program, providing technical support for the Trump administration's "Golden Dome" missile defense program, which has a total investment of US$185 billion.

US Stock Market Move | Bambusa Therapeutics (BBTX.US) debuts on the U.S. stock market, shares fall over 8%.

As of press time, the stock fell over 8% to $14.685.

US Stock Market Move | Clinical-stage biotechnology company Aspen Neuroscience (ASPE.US) debuts on the U.S. stock market, with shares falling more than 17% after the opening.

As of press time, the stock fell more than 17% to $12.345.

The tech stock sell-off does not mean the end of the bull market. Wall Street strategists: fundamentals remain strong, and a pullback may be a buying opportunity.

Raymond James strategists believe the recent tech stock sell-off stems mainly from overly high market expectations and short-term cash flow pressure from AI investment, rather than deteriorating fundamentals, and that the pullback may offer investors an opportunity to position on dips.

US Stock Market Move | Crypto-related stocks weaken; Strategy (MSTR.US) falls over 6%.

On Friday, cryptocurrency-related stocks weakened. As of press time, Strategy (MSTR.US) fell over 6%, Coinbase (COIN.US) plunged over 12%, and Circle (CRCL.US) dropped 8%.

US Stock Market Move | Reddit (RDDT.US) Plunges Over 27% After Earnings as Q4 Revenue Outlook Falls Short of Expectations

On Friday, social forum platform Reddit (RDDT.US) opened sharply lower, down over 27% as of press time, with a cumulative decline of over 37% in October.

Risk-aversion sentiment is rising in US equities! JPMorgan: Funds are beginning to rotate into low-volatility stocks, but there has not yet been a large-scale exit from risk assets.

JPMorgan's latest research shows that as macroeconomic uncertainty increases and tech stock volatility intensifies, the months-long US equity rally is facing a test.

FAMEGLOW (03774): Controlling stake changes hands; receives general offer at a discount of approximately 98.06%; trading resumes on November 2.

FAMEGLOW (03774) and the offeror Sun Bloom International Limited jointly announced that on October 23, 2026, the offeror completed the acquisition of approximately 56.93% of the entire issued share capital of the company from Equal Joy Holdings Limited for a cash consideration of approximately HK$350 million, equivalent to HK$0.75 per sale share. The joint offer agent will, for and on behalf of the offeror, jointly make an offer in compliance with the Takeovers Code to acquire all the offer shares at an offer price of HK$0.75 per offer share, representing a discount of approximately 98.06% to the closing price of HK$38.70 per share as quoted on the Stock Exchange on October 23, 2026.

DTXS SILK ROAD (00620): Termination of Acquisition of 50.1% Equity Interest in Topology Digital Technology

DTXS SILK ROAD (00620) announced that, in relation to the share purchase agreement entered into between the Group and the seller for the sale and purchase of a 50.1% equity interest in Shaanxi Topology Digital Technology Co., Ltd., given that the seller failed to fulfill its obligations under the share purchase agreement to complete a specific capital and equity restructuring, resulting in the unsatisfaction of the conditions precedent under the share purchase agreement, the share purchase agreement was terminated on October 30, 2026. Accordingly, the acquisition will not be completed. The board confirms that the Group has not paid and will not pay any consideration under the share purchase agreement.

US Stock Market Move | AI cloud service providers continue to decline; Nebius (NBIS.US) falls over 7%.

On Friday, AI cloud service providers continued to decline, with Nebius (NBIS.US) and CoreWeave (CRWV.US) falling more than 7%.

AI giants spark an unprecedented wave of financing! Tech bonds down 9% this year; BofA strategist: the time to buy the dip may have arrived.

Bank of America strategist Michael Hartnett believes that as tech giants borrow heavily to build AI infrastructure, U.S. tech corporate bonds have faced sustained selling pressure, pushing yields up to attractive levels, and investors may now have a chance to buy the dip.

Jiangsu Lopal Tech. Group (02465): In the first three quarters, the average selling price of lithium iron phosphate cathode materials increased by 50.10% year on year.

Jiangsu Lopal Tech. Group (02465) announced that in the first three quarters of 2026, the average selling price of the company's main product, automotive environmentally friendly fine chemicals, increased by 8.80% year on year; the average selling price of lithium iron phosphate cathode materials increased by 50.10% year on year.

Jiangsu Lopal Tech. Group (02465) reported a net profit attributable to shareholders of RMB506 million for the first three quarters.

Lopal Tech (02465) announced that for the first three quarters of 2026, operating revenue was RMB12.275 billion, up 110.72% year on year; net profit attributable to shareholders of the listed company was RMB506 million, compared with a loss of RMB110 million in the same period last year; basic earnings per share were RMB0.70.

US Stock Market Move | Optical communications sector broadly declines; Marvell Technology, Inc. (MRVL.US) falls over 20% cumulatively over two days.

On Friday, the U.S. stock market's optical communications sector broadly declined, with Marvell Technology, Inc. (MRVL.US) falling 7% and down more than 20% cumulatively over two days.

IB SETTLEMENT (00147) plans to acquire the entire equity interest in Quantum Compute Solutions Limited for HK$563 million.

IB SETTLEMENT (00147) announced that on 30 October 2026 (after trading hours), the Company entered into a share purchase agreement with the seller Brainwave Innovations Limited and the seller's guarantor, pursuant to which the Company conditionally agreed to acquire, and the seller conditionally agreed to sell, the sale shares (the entire equity interest in the target company Quantum Compute Solutions Limited) for a consideration of HK$563 million.

TOPNC (07688) submits application to the CSRC for H-share full circulation filing

TOPNC (07688) announces that on October 30, 2026, the Company submitted a filing application to the CSRC for the implementation of H-share full circulation. Subject to the completion of all relevant regulatory procedures (including the CSRC's filing notice and the Stock Exchange's approval) and compliance with all applicable laws, regulations and rules, the 37,808,900 Domestic Shares will be converted into H Shares, and the Company will apply to the Stock Exchange for approval for the listing of and permission to deal in such H Shares on the Main Board of the Stock Exchange.

US midterm elections unlikely to resolve fiscal predicament! Debt exceeds US$40 trillion, Wall Street worries US Treasury market may remain under pressure.

As the US midterm elections approach, investors are closely watching possible changes in control of Congress, but Wall Street generally believes that whether Republicans retain control of Congress or Democrats win a majority, the deteriorating US fiscal situation will be difficult to fundamentally improve.

US Stock Market Move | Pharmaceutical stocks extend gains; Astrazeneca PLC Sponsored ADR (AZN.US) rises over 6% after earnings.

On Friday, US pharmaceutical stocks continued to rise, with Eli Lilly (LLY.US) up over 4% and AstraZeneca (AZN.US) gapping higher at the open.

Beijing Chunlizhengda Medical Instruments (01858) reported a net profit attributable to shareholders of approximately RMB189 million for the first three quarters, a year-on-year decrease of 1.55%.

Chunlizhengda Medical Instruments (01858) announced its results for the first three quarters of 2026, with operating revenue of approximately RMB626 million, a year-on-year decrease of 17.14%; net profit attributable to shareholders of the listed company of approximately RMB189 million, a year-on-year decrease of 1.55%; and basic earnings per share of RMB0.49.

SINGASIA HLDG (08293) Announces Annual Results: Profit Attributable to Shareholders of S$9.5054 million, Turning from Loss to Profit Year-on-Year

SINGASIA HLDG (08293) announced its annual results for the year ended July 31, 2026. The Group recorded revenue of S$11.949 million, down 2.29% year-on-year; profit attributable to owners of the Company for the year was S$9.5054 million, turning from loss to profit year-on-year; basic earnings per share were 4.42 Singapore cents.

BUTONG GROUP (06090) enters into a memorandum of understanding for the proposed acquisition of a 51% equity interest in Huizhou Longde Technology

BUTONG GROUP (06090) announces that on October 30, 2026 (after trading hours), the Company entered into a non-legally binding memorandum of understanding with an independent third party (the seller, who is the controlling shareholder of the target company) in respect of the proposed acquisition of approximately 51% equity interest in Huizhou Longde Technology Co., Ltd. (the target company, a company established in China principally engaged in the research and development, production and sale of micro special motors). Pursuant to the terms of the memorandum of understanding, the Company has the right to conduct due diligence with the full cooperation of the seller, and the seller has also granted the Company an exclusivity period of four months from the date of the memorandum of understanding.

TIANYU SEMI (02658) repurchased approximately 28,700 shares on October 30 for approximately HK$1.2991 million.

TIANYU SEMI (02658) announced that on October 30, 2026, it repurchased approximately 28,700 shares for approximately HK$1.2991 million.

CHINA GAS HOLD (00384) subsidiary China Gas Investment's net profit for the first three quarters was RMB1.045 billion.

China Gas Holdings (00384) announced that its wholly-owned subsidiary, China Gas Investment Limited (China Gas Investment), recorded revenue of RMB15.551 billion and net profit of RMB1.045 billion for the nine months ended September 30, 2026.

US Stock Market Move | Memory concept stocks fell collectively, with SanDisk (SNDK.US) down more than 9% in early trading.

US memory concept stocks fell collectively, with SanDisk (SNDK.US) down more than 9% in early trading, SK Hynix (SKHY.US) down nearly 6%, and Micron Technology (MU.US) down more than 3%.

QILU EXPRESSWAY (01576) achieved a net profit of RMB303 million in the first nine months, a year-on-year decrease of 12.60%.

QILU EXPRESSWAY (01576) announced that for the first nine months of 2026, the Group achieved revenue of RMB1.732 billion, a year-on-year decrease of 2.35%, mainly due to a decline in toll revenue; of which toll revenue was RMB1.252 billion, a year-on-year decrease of 4.61%, mainly due to traffic diversion and interception by surrounding road networks; net profit was RMB303 million, a year-on-year decrease of 12.60%, mainly due to the decline in toll revenue and the decrease in investment income from matured investment projects.

US Stock Market Move | Q4 guidance far below market expectations, Intel Corporation (INTC.US) falls over 28% after earnings.

On Friday, US semiconductor stocks fell collectively, with Intel Corporation (INTC.US) dropping over 28%.

US Stock Market Move | AI capex spree spooks market: Amazon.com, Inc. (AMZN.US) opens sharply lower, down about 5%

On Friday, Amazon (AMZN.US) opened sharply lower, down about 5% as of press time, falling more than 18% from its August high, with a market capitalization of $2.52 trillion.

FIRST PACIFIC (00142) subsidiary Indofood's attributable profit for the first three quarters was IDR7,865.768 billion, down 0.2% year-on-year.

FIRST PACIFIC (00142) announced that its subsidiary PT Indofood Sukses Makmur Tbk (Indofood) recorded net sales of IDR101,489.953 billion for the nine months ended September 30, 2026, up 11.55% year-on-year; profit attributable to equity holders of the parent was IDR7,865.768 billion, down 0.2% year-on-year; basic earnings per share were IDR896.

Indian stock market leads Asia as "low AI exposure" safe-haven appeal rises

Indian stocks closed higher on Friday, with the benchmark index posting its best monthly performance since July, as the local market became a safe haven amid the global tech selloff.

The "AI dollar era" has arrived, and Deutsche Bank warns that the dollar's safe-haven status may not be secure.

The dollar's trajectory has become highly tied to the AI trade and U.S. equity performance, and its traditional safe-haven function is being reshaped by the AI cycle.

Geopolitical conflicts ignite a refining surge: five oil giants rake in US$56.3 billion in a single quarter.

Conflicts in the Persian Gulf and Russia have roiled energy markets and driven refining results to record highs, earning oil giants more than US$50 billion in windfall profits.

China Minsheng Banking Corp., Ltd. (01988) reported a net profit attributable to shareholders of RMB24.323 billion for the first three quarters, down 14.78% year on year.

China Minsheng Banking Corp., Ltd. (01988) released its results for the first three quarters of 2026, with operating income of RMB110.554 billion, up 1.88% year on year; net profit attributable to shareholders of the bank was RMB24.323 billion, down 14.78% year on year; basic earnings per share were RMB0.48.

Shenzhen Kinwong Electronic (03228): First Financial Report After "A+H" Listing Released, Second Growth Curve Drives Q3 Earnings Explosion

Recently, Kinwong Electronic delivered a third-quarter 2026 performance that far exceeded expectations, marking the rapid conversion of its years of strategic investment into operating results.

Global equity funds extend their inflow streak! Six consecutive weeks of inflows, but investors slow their pace as AI trades cool

In the week ended October 28, global equity funds attracted substantial inflows, though the pace of inflows slowed.

Shenwan Hongyuan Group (06806) will distribute an interim dividend of HK$0.583871 per 10 shares on December 21.

Shenwan Hongyuan Group (06806) announced that it will distribute an interim dividend of HK$0.583871 per 10 shares for the six months ended June 30, 2026, on December 21, 2026.

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