GMT EIGHT - OPPORTUNITIES IN CHINA

Trump Refuses to Give Up, Sets Up Investigative Committee to Restart Process of Removing Governor Cook, Fed Independence Faces Another Stress Test

The White House issued a presidential memorandum on October 7, announcing the formation of an investigative committee and scheduling a closed-door White House hearing to determine whether there is "just cause" to remove Federal Reserve Governor Lisa Cook from office. The hearing is set for November 5 local time, two days after the congressional election voting ends.

Citi: Bessent May 'Wield the Knife' on Long-Bond Issuance Next Month, 20-Year Treasury Issuance Could Be Scrapped Outright

Citi said in a research report that U.S. Treasury Secretary Scott Bessent is likely to reduce the auction issuance size of long-term Treasuries, and may even scrap 20-year Treasury issuance outright.

Deutsche Bank: AI bubble burst could become the biggest systemic risk to markets next year; U.S. Treasuries may see an influx of safe-haven funds.

George Saravelos, Global Head of FX Research at Deutsche Bank, said that since the start of this year, pessimistic sentiment toward the bond market among global investors has already spread excessively, while the market may be underestimating the possibility of a large-scale influx of funds into the bond market after a major risk emerges in the artificial intelligence industry.

Overnight US stocks | Trump says Russia has agreed to supply diesel to ease fuel price pressure. The three major indices closed higher this week. Moderna (MRNA.US) rose over 14%.

At the close, the Dow Jones Industrial Average rose 423.31 points, or 0.83%, to 51,654.95; the S&P 500 Index gained 46.15 points, or 0.59%, to 7,811.51; and the Nasdaq Composite Index added 172.83 points, or 0.64%, to 27,366.17.

High energy prices exacerbate inflation concerns; U.S. Treasury yields rise again, with the 10-year climbing to 5.25%.

Persistently high energy prices have exacerbated market concerns over the inflation outlook and reinforced investor expectations for further Federal Reserve rate hikes. After the sharp volatility earlier this week, U.S. Treasury yields are once again approaching recent highs.

Risks Lurk Behind the S&P 500's Record High! Most Constituent Stocks Show Weak Performance as High Oil Prices and Rising U.S. Treasury Yields Deepen Market Divergence

Persistently high oil prices and borrowing costs are hitting the bond, credit, and small- and mid-cap equity markets, while the strength of large-cap tech stocks masks growing divergence within U.S. equities.

Anthropic's AI system submitted a false homicide tip to the Philadelphia police

The Philadelphia Police Department said in a statement on Friday that an AI system from Anthropic submitted a false homicide tip to Philadelphia police. The tip was submitted in July through the department's online reporting channel for cold-case murders, disguised as coming from an ordinary member of the public who had information about a case. The tip was automatically flagged by the system, and police did not conduct any investigation based on it. Police said Anthropic only discovered the problem on September 28 and did not notify the Philadelphia Police Department until this Wednesday. In the statement, police criticized the two-month delay in discovering the incident and notifying the city as unacceptable. In Pennsylvania, submitting a false report to police is illegal.

US Stock Market Move | U.S. clinical-stage biopharmaceutical company Retension Pharmaceuticals (RTSN.US) debuted on the U.S. stock market, with its share price falling more than 10% after the opening bell.

As of press time, the stock fell more than 10%, trading at $10.77.

US Stock Market Move | Included in the Nasdaq 100 Index, Moderna (MRNA.US) rises 7%.

Moderna (MRNA.US) rose as much as 10% intraday, hitting a new high since December 2022. As of press time, the gain has narrowed to 7%, at $210.95.

INKEVERSE (03700) subsidiary intends to sell a 40% equity stake in Guangzhou Kuaichuang Network Technology Co., Ltd. for RMB 80 million.

INKEVERSE (03700) announced that on October 9, 2026 (after trading hours), the parties entered into an equity transfer agreement, pursuant to which the seller, INKEVERSE (Hainan) Technology Co., Ltd. (an indirectly wholly-owned subsidiary of the Company), has conditionally agreed to sell, and the buyer, Guangzhou 1846 Technology Co., Ltd. (a connected person of the Company at the subsidiary level), has agreed to purchase the sale shares, for a consideration of RMB 80 million.

US Stock Market Move | Pony.ai (PONY.US) rises over 5%; seventh-generation Robotaxi to be introduced in London, UK.

On Friday, Pony.ai (PONY.US) rose over 5% to $6.07.

VOBILE GROUP (03738) subsidiary plans to acquire all equity in Anqing International for HK$75 million.

VOBILE GROUP (03738) announced that on October 9, 2026, the buyer (Vobile Investment Holdings Limited, a direct wholly-owned subsidiary of the Company) intends to acquire from the seller, Ms. Li Ye, the entire issued share capital of the target company. The consideration of HK$75 million will be settled by the Company at completion by allotting and issuing to the seller a total of 20,547,900 consideration shares at an issue price of HK$3.65 per consideration share, credited as fully paid (free from any encumbrances).

QINGLING MOTORS (01122) intends to acquire all approximately 30.43% equity interest in Isuzu Engines held by Qingling Group.

QINGLING MOTORS (01122) announced that on March 20, 2026, the Company, Qingling Group, Isuzu, and Isuzu Engines entered into a targeted capital reduction agreement, pursuant to which Isuzu will reduce its equity interest in Isuzu Engines by an amount of US$3,955,970.

US Stock Market Move | SpaceX spectrum deal boosts demand for communications tower leasing. Crown Castle Inc. (CCI.US) surges over 11%.

On Friday, Crown Castle Inc. (CCI.US) surged over 11%, trading at $76.63.

GEEKPLUS-W (02590) makes a strategic equity investment in Shenyi, positioning itself in embodied model technology reserves and industrial deployment.

According to forecasts by the Gaogong Robot Industry Research Institute (GGII), by 2035, China's industrial embodied intelligence market is expected to reach 164.41 billion yuan, with a compound annual growth rate of 42.3%.

Inflation and high interest rates continue to weigh on sentiment, U.S. consumer confidence falls to lowest level since May in October.

Preliminary survey data released by the University of Michigan on Friday showed that U.S. consumer confidence deteriorated further in October, with consumers' assessment of current economic conditions falling to a record low.

A-share Evening Hotspots | Top-level document on developing new quality productive forces released! Covers artificial intelligence, digital economy, Siasun Robot&Automation, etc.

The Central Committee of the Communist Party of China and the State Council issued the "Opinions on Developing New Quality Productive Forces." The Opinions deploy 19 key measures, covering five aspects including vigorously advancing scientific and technological innovation, solidly promoting institutional and mechanism innovation, and deepening innovation in the talent work mechanism.

US Stock Market Move | Medicare Advantage plan ratings improve significantly, Humana (HUM.US) surges nearly 12%.

On Friday, Humana (HUM.US) shares surged nearly 18% in early trading, and as of press time, they were up nearly 12%, at $432.80.

US Stock Market Move | Apple Inc. (AAPL.US) falls over 2% as surging memory chip costs and product price hikes dampen demand; reportedly cuts component orders for iPhone 18 Pro series

As of press time, the stock fell over 2% to $333.12.

US Stock Market Move | Tesla, Inc. (TSLA.US) rose more than 2%, with 150 new Cybercab registrations added in a single day.

On Friday, Tesla, Inc. (TSLA.US) rose more than 2%, reaching $384.48.

BOAN BIOTECH (06955) Enters into a Promotion Cooperation Agreement with Nanjing Luye

BOAN BIOTECH (06955) announced that on October 9, 2026, the Company entered into a promotion cooperation agreement with Nanjing Luye, a subsidiary of Luye Pharma (the controlling shareholder of the Company), pursuant to which Nanjing Luye will provide promotion and marketing services for the Company's designated products for a term commencing on October 9, 2026 and ending on September 30, 2027.

Morgan Stanley is bullish on the AI semiconductor rally: TSMC offers strong certainty, while ACM Research and Silicon Motion have over 50% upside to their price targets.

Among investable US equities, TSMC (TSM.US) is viewed by Morgan Stanley as the beneficiary with the highest certainty, forming, together with ACM Research (ACMR.US) and Silicon Motion (SIMO.US), a core beneficiary portfolio for AI computing power expansion.

US Stock Market Move | Popular Chinese concept stocks rose broadly, with KINGSOFT CLOUD (KC.US) and Li Auto, Inc. Sponsored ADR Class A (LI.US) gaining more than 7%.

On Friday, the Nasdaq Golden Dragon China Index rose 2.47%, with popular Chinese concept stocks broadly higher, as KINGSOFT CLOUD (KC.US) and Li Auto, Inc. Sponsored ADR Class A (LI.US) gained more than 7%.

US Stock Market Move | Optical communication concept stocks broadly rise; Lumentum (LITE.US) gains over 8%.

On Friday, optical communication concept stocks rose broadly, with Applied Optoelectronics (AAOI.US) surging over 10%, Coherent (COHR.US) gaining over 9%, and Lumentum (LITE.US) rising over 8%.

GEEKPLUS-W (02590) intends to invest RMB 50 million to subscribe for 20% of the enlarged registered capital of Beijing Shenyi.

GEEKPLUS-W (02590) announced that on October 9, 2026, Beijing Geekplus (a wholly-owned subsidiary of the Company) entered into an investment agreement with Beijing Shenyi, Mr. Liu Kai, Mr. Huang Kangyao, and Tianjin Huizhi Shenyi. Pursuant to the investment agreement, Beijing Geekplus has conditionally agreed to subscribe for 20% of the enlarged registered capital of Beijing Shenyi for a consideration of RMB 50 million.

The Dow opened up 0.05%, the Nasdaq rose 0.55%, and the S&P 500 gained 0.27%. Among star tech stocks, Tesla rose 1.97%, Apple fell 2.56%, and Netflix dropped 1.48%. The Nasdaq Golden Dragon China Index rose 1.32%, with Li Auto up 5.05% and Bilibili up 3.37%.

As the U.S. stock bull market approaches its fourth anniversary, how much longer can the S&P 500's "AI dependence" hold up?

Beneath the surface, questions are mounting over what could end this U.S. stock rally that began on October 12, 2022, and has now gained 117%.

CIRC (01763): China Isotope & Radiation Corporation's HTA 50mg Urea 13C Breath Test Kit Obtains Drug Registration Certificate

China Isotope & Radiation Corporation (01763) announced that recently, the 50mg Urea 13C Powder Breath Test Kit (the Product), independently developed by Shenzhen CNNC Headway Biotechnology Co., Ltd. (CNNC Headway), a subsidiary of China Isotope & Radiation Corporation, obtained a drug registration certificate issued by the National Medical Products Administration. The Product is used for diagnosing Helicobacter pylori infection and is the first approved generic drug of the same variety in China since the implementation of the new drug registration regulations in 2017.

Shenzhen Kinwong Electronic (03228) expects Q3 net profit attributable to shareholders to increase by 205.46% to 264.74% year-on-year.

Kinwong Electronic (03228) has announced that the Group expects its net profit for the three months ended September 30, 2026 to increase compared with the three months ended September 30, 2025. Specifically: (i) revenue for the period is expected to be RMB 6.12 billion to RMB 6.98 billion, representing a year-on-year increase of 53.48% to 75.05% and a quarter-on-quarter increase of 29.67% to 47.90%; (ii) net profit attributable to owners of the parent company for the period is expected to be RMB 912 million to RMB 1.089 billion, representing a year-on-year increase of 205.46% to 264.74% and a quarter-on-quarter increase of 147.20% to 195.18%.

Hoping OCP will drive a rally? Morgan Stanley warns: the architecture battle may be settled, and short-term catalysts for the optical communications industry have already been priced in.

The annual OCP Global Summit is about to kick off. As the most influential "bellwether" conference in the data center and AI networking space, this year's OCP is burdened with exceptionally high expectations.

A-share Announcement Highlights | Shenzhen Kinwong Electronic (603228.SH): Q3 net profit expected to increase 205%-265% year-on-year.

Kinwong Electronic announced that it expects net profit attributable to shareholders of the listed company for the third quarter of 2026 to be RMB 912 million1.089 billion, up 205.46%264.74% year-on-year.

US bank stocks face a major third-quarter earnings test: equity trading props up results, while AOCI unrealized losses and fading buybacks become hidden concerns.

Several major Wall Street banks will kick off the third-quarter earnings season next week.

Is a new round of the "European debt crisis" brewing? French government bond spreads hit a record highwill the "PIIGS" script play out again in France?

Since the creation of the euro, bond investors have demanded the highest compensation for holding French bonds, higher than for holding Italian bonds. Due to concerns about France's budget deficit and debt-to-GDP ratio, the spread between the two countries' benchmark 10-year government bond yields hit a record high of 30 basis points on Friday.

Hong Kong Securities and Futures Commission: 17 tokenized retail products have been launched, with assets under management reaching US$1.3 billion.

She mentioned that the Hong Kong Securities and Futures Commission has formulated a tokenized product policy since 2023, and has so far launched 17 tokenized retail products, with total assets under management reaching US$1.3 billion, a 78% increase over the past 12 months.

China Longyuan Power Group Corporation (00916) completed a cumulative power generation of 56.2504 million MWh in the first nine months, a year-on-year decrease of 0.52%.

China Longyuan Power Group Corporation (00916) announced that in September 2026, the company completed power generation of 5.6666 million MWh on a consolidated basis, representing a year-on-year increase of 7.08% compared with the same period in 2025. This month, wind power generation increased by 3.20% year on year, and solar power generation increased by 20.21% year on year.

MNSO (09896) Mainland China 26Q3 total GMV increased 25%-30% year over year; proprietary IP YOYO achieved GMV of over RMB 1 billion in the first nine months.

MINISO (09896) announced that for the three months ended September 30, 2026 (26Q3), total GMV in Mainland China increased 25%-30% year over year, further accelerating compared with the first half of 2026, primarily driven by high-single-digit same-store sales growth.

John Lee: Upgrading the dedicated task force services to help mainland enterprises expand overseas; advancing investment agreements to expand the global trade and economic network.

John Lee stated that the SAR government established a dedicated task force for mainland enterprises expanding overseas in October last year. Over the past year, it has assisted more than 340 mainland enterprises in completing matters such as listing and financing on the Hong Kong Stock Exchange, alignment with overseas standards, industry certification, and compliance arrangements.

Preview of US Stock Market | All three major stock index futures rise together; Goldman Sachs raises its expectations for Federal Reserve rate hikes; the three major U.S. telecom operators plunge in premarket trading.

On Friday, October 9th, before the U.S. stock market opened, all three major U.S. stock index futures rose together.

CHINA JINMAO (00817) will distribute an interim dividend of HK$0.03 per share on October 30.

CHINA JINMAO (00817) announced that it will distribute an interim dividend of HK$0.03 per share for the six months ended June 30, 2026, on October 30, 2026.

Midland: Hong Kong's first-hand private residential transactions for four-bedroom or larger units have already surpassed last year's full-year total, hitting a 5-year high.

Midland Realty analyst Cen Songqian pointed out that this year, driven by active upgrading activity and a booming luxury property market, first-hand transactions for large units have performed outstandingly.

STAR SHINE HLDG (01440): Proposed Share Subdivision and Change in Board Lot Size

STAR SHINE HLDG (01440) announced that the Board has proposed to subdivide each of the existing issued and unissued shares of HK$0.01 each in the share capital of the Company into 4 subdivided shares of HK$0.0025 each. The Board further proposed that, conditional upon the Share Subdivision becoming effective, the board lot size for trading of the Subdivided Shares on the Stock Exchange will be changed from 2,500 Shares to 500 Subdivided Shares.

KPMG: AI brings structural opportunities, while multiple real-world risks constrain the sustainability of the cycle.

KPMG releases the "2026 Global Semiconductor Industry Outlook."

Delta Air Lines, Inc. (DAL.US) earnings reveal the airline industry's "energy devouring profits"! Q3 revenue hits a record high, but high oil prices weigh on profit outlook.

Delta Air Lines' adjusted fuel expenses in the third quarter increased by 62% year-over-year, and its adjusted operating margin fell from 11.1% to 9.4%. Therefore, this earnings and future outlook report card reflects the operational resilience of this aviation giant under high oil prices, yet it has not yet signaled a re-expansion of profit margins.

C STRATEGIC TEC (01725) September revenue approximately RMB 58.61 million

China Strategic Technology Group (01725) announced that, based on the company's preliminary accounting, the group's unaudited revenue for September 2026 was approximately RMB 58.61 million.

The Ministry of Commerce issued the implementation rules for the 2027 import tariff quotas for sugar, wool, and wool tops.

The total 2027 sugar import tariff quota is 1.945 million tons, of which 70% is the state trading tariff quota; the total wool import tariff quota is 287,000 tons, and the total wool tops import tariff quota is 80,000 tons.

HK TECH VENTURE (01137): Hong Kong e-commerce average daily order gross merchandise value in September was HK$25.5 million, up 18.1% year-on-year.

HK TECH VENTURE (01137) announced that in September 2026, the Group continued to carry out its weekend "15% off promotion" and "weekday limited offers". These promotional activities were also timed to align with seasonal consumer demand ahead of the Mid-Autumn Festival, including mooncake gift boxes and other festive products, thereby driving up the average order value for the month.

Joint Statement of the Second Meeting of the China-EU Trade and Investment Consultation Mechanism

Ministry of Commerce Announcement: On October 8-9, 2026, Chinese Minister of Commerce Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic held the second meeting of the China-EU Trade and Investment Consultation Mechanism (hereinafter referred to as the Mechanism) in Beijing.

ZHONGLIANG HLDG (02772) cumulative contracted sales for the first 9 months amounted to approximately RMB 4.56 billion, a year-on-year decrease of 50.76%.

ZHONGLIANG HLDG (02772) announced that from January to September 2026, the group's cumulative contracted sales (including contracted sales of joint ventures and associates) amounted to approximately RMB 4.56 billion, a year-on-year decrease of 50.76%; the cumulative contracted sales area was approximately 455,000 square meters, and the average contracted selling price was approximately RMB 10,000 per square meter.

DATANG POWER (00991) plans to inject RMB 628 million in capital into Datang Nuclear Power Company.

Datang Power (00991) announced that on October 9, 2026, the Company entered into a capital increase agreement with Datang Group and Datang Nuclear Power Company, pursuant to which the Company and Datang Group agreed to increase the registered capital of Datang Nuclear Power Company in cash. Among them, based on their respective shareholding ratios in Datang Nuclear Power Company, the Company agreed to inject RMB 628 million into Datang Nuclear Power Company, and Datang Group agreed to inject RMB 942 million into Datang Nuclear Power Company. Upon completion of this capital increase, the Company's cumulative capital contribution to Datang Nuclear Power Company will be RMB 2.514 billion, with its total shareholding ratio remaining at 40%; Datang Group's cumulative capital contribution to Datang Nuclear Power Company will be RMB 3.771 billion, with its total shareholding ratio remaining at 60%.

The CSRC issues the Measures for the Operation and Management of Publicly Offered Securities Investment Funds (Draft for Comment).

The CSRC issues the Measures for the Operation and Management of Publicly Offered Securities Investment Funds (Draft for Comment) and solicits public comments.

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The central bank announced that, based on the demand of primary dealers in open market operations, the volume of 7-day reverse repo operations on October 10, 2026 was zero.

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PBOC announcement: The 7-day reverse repo operation volume on October 10 was zero.

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Shenzhen's "Film+" pilot gains momentum, box office ranks third among cities nationwide during double holiday

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Domestic flight fuel surcharges raised starting today.

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Wireless Media has established Guanshanhai Culture Media Company in Hebei.

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