GMT EIGHT - OPPORTUNITIES IN CHINA

Sinolink: How should we view the recent divergence between Chinese and U.S. tech stocks?

Behind the divergence between Chinese and U.S. tech stocks: valuation convergence under the suppression of fundamental expectations.

ST HLDGS (08305) Enters into Procurement Cooperation Agreement with Letian Investment to Jointly Build a Supply Chain Business Operations Platform

ST HLDGS (08305) Announces Entering into a Procurement Cooperation Agreement with Letian Investment to Jointly Build a Supply Chain Business Operations Platform ST HLDGS (08305) issued an announcement that the Company has entered into a procurement cooperation agreement on September 28, 2026 with an independent third-party cooperator, Letian Investment Holding (Guangdong) Group Co., Ltd. (Letian Investment). The two parties intend to establish a long-term industrial cooperation relationship and jointly build a supply chain business operations platform.

Policy package stabilizes expectations; institutions: the foundation for the market's medium- to long-term uptrend remains unchanged.

In the two trading days following the National Day holiday, the A-share market experienced a significant correction, drawing widespread market attention. Whether market confidence remains solid has become a key focus for all parties. In response, at the symposium on capital markets and financial conditions convened by the China Securities Regulatory Commission on October 10, attending market experts gave an affirmative answer: China's macroeconomy is stable and improving, industrial structural transformation continues to deepen, the capital market is operating generally steadily, and the functions of the multi-tiered market are being effectively brought into play. Although it faces some risks and challenges, the momentum of high-quality development will not change, and there is full confidence in economic performance and the capital market.

PRODUCTIVE TECH (00650) Secures Orders for 29 New Equipment Units, Including Single-Wafer Cleaning Equipment and Furnace LPCVD Equipment

PRODUCTIVE TECH (00650) has announced that, as its various semiconductor equipment platforms continue to be delivered to customers and pass verification, the Company has accumulated extensive mass-production experience and gained industry recognition, thereby putting the Company in a favorable position to secure larger-volume formal orders. Since the date of the announcement, the Company has obtained orders for a total of 29 new equipment units, of which 14 are new orders for semiconductor equipment, including single-wafer cleaning equipment and furnace LPCVD equipment. These equipment systems are mainly used in customers' high-end specialty process semiconductor and third-generation semiconductor production lines. The applications covering front-end and back-end wafer processes, in descending order by number of units, are as follows:

HANSOH PHARMA(03692): Almonertinib Marketing Authorization Application Resubmitted to the EU and Confirmed for Acceptance by the European Medicines Agency

HANSOH PHARMA (03692) announced that on September 29, 2026, the Group resubmitted a Marketing Authorization Application (MAA) to the European Medicines Agency (EMA) for its innovative drug almonertinib in the European Union, and on October 7, 2026, the EMA confirmed acceptance of the new MAA and officially initiated the centralized review procedure, with the indications being: (i) first-line treatment of adult patients with advanced non-small cell lung cancer (NSCLC) harboring epidermal growth factor receptor (EGFR) exon 19 deletion or exon 21 (L858R) substitution mutations, and (ii) treatment of adult patients with advanced NSCLC positive for the EGFR T790M mutation.

Muyuan Foods Group (02714) September commercial pig sales revenue approximately RMB 8.52 billion, down 6.01% year-on-year.

Muyuan Foods Group (02714) announced that in September 2026, the company sold approximately 6.42 million commercial pigs, up 15.24% year-on-year; the average selling price of commercial pigs was approximately RMB 10.36 per kilogram, down 19.57% year-on-year; and commercial pig sales revenue was approximately RMB 8.52 billion, down 6.01% year-on-year.

EDDING GENOR (06998): IND for Phase II clinical trial of GB268 for colorectal cancer approved by the National Medical Products Administration

EDDING GENOR (06998) announced that the IND application for the Phase II clinical trial of GB268, the Company's highly differentiated and innovative PD-1/CTLA-4/VEGF trispecific antibody, in combination with chemotherapy for first-line treatment of locally advanced or metastatic colorectal adenocarcinoma that is not amenable to radical surgical resection or local therapy, was approved by the National Medical Products Administration (NMPA) of China on October 9, 2026. This progress marks the preliminary regulatory recognition of the clinical development plan for GB268 and lays a solid foundation for the Company's subsequent advancement of this clinical trial.

China Securities Co.,Ltd.: Domestic tendering in the Q3 medical equipment industry continued to improve; recommend continued attention to policy developments.

Pharmaceutical, medical device, and services industry 2026Q3 outlook

LDROBOT (01236) and Huazhong University of Science and Technology Officially Sign Cooperation Agreement on Embodied Siasun Robot&Automation Flexible 3D Tactile Sensing to Carry Out Technology R&D and Scenario Validation of Flexible 3D Tactile Sensor Devices and Array Systems

LDROBOT (01236) announced that the Company recently officially signed a cooperation agreement with Huazhong University of Science and Technology on embodied Siasun Robot&Automation flexible 3D tactile sensing. The Company is committed to continuously advancing its technological layout in new sensors, deep AI integration, and spatial interaction models through its comprehensive perception solutions and the technological and industrial accumulation of complete intelligent Siasun Robot&Automation units, driving the evolution of Siasun Robot&Automation from simple environmental perception to deep scene understanding. This cooperation is an important practice by the Company to solidify the strategic foundation of "physical AI perception infrastructure," and also marks a key step by the Company in improving its multimodal perception technology system.

China Securities Co.,Ltd.: Why has the A-share market performed below expectations after the holiday?

Defense first, wait for a turnaround.

DELTON (01989) issues a positive profit alert, expecting net profit attributable to shareholders for the first three quarters of RMB 1.45 billion to RMB 1.5 billion, a year-on-year increase of 100.33% to 107.23%.

Guanghe Technology (01989) has issued an announcement, expecting a positive net profit for the period from January 1, 2026 to September 30, 2026, representing a year-on-year increase. Net profit attributable to shareholders of the listed company is expected to be RMB 1.45 billion to RMB 1.5 billion, up 100.33% to 107.23% compared with the same period last year; net profit after deducting non-recurring gains and losses is expected to be RMB 1.42 billion to RMB 1.47 billion, up 101.84% to 108.94% compared with the same period last year.

CITIC SEC: Q3 US stock earnings may continue high growth; Hong Kong stock fundamental expectations have entered a bottoming phase.

Return to fundamentals.

How to cope with high interest rates? CITIC SEC: Allocate to booming sectors and varieties with supply cleared.

Use booming sectors and supply clearance to cope with high interest rates, and closely track the inflection point of the AI investment cycle.

Within one month, its share price rose more than 40%. Why has Joinn Laboratories' (06127) H-shares embarked on a more resilient independent market trend?

Why would the same financial report data elicit different market reactions to Joinn Laboratories?

China Securities Co.,Ltd.: Why have securities firms recently engaged in intensive share buybacks or increased holdings?

Securities firms engage in intensive buybacks and increased holdings, while cancellation-type buybacks enhance shareholder returns.

Deutsche Bank: The "fifth round of tech stock rebound" in US equities since late July has peaked; prepare for an "inverted V reversal"

The rotation in tech stocks has gone quite far, and the risk-reward is no longer attractive in the near term.

The U.S. stock market bull run of "only one trade left"

Goldman Sachs' head of hedge funds warns that the current U.S. stock rally is "basically just one big trade"AI. The index keeps hitting new highs, but market breadth continues to deteriorate, with about one-sixth of S&P 500 constituents down more than 50% from their peaks. Combined with persistently rising interest rates, the bulls' only line of defense left is whether Nvidia and Micron can deliver on expectations in the upcoming earnings season. Although Goldman Sachs maintains its bullish stance, it is no longer confident about the next 5% of upside for U.S. stocks.

Copper prices approach historic highs! UBS continues to be bullish: "Still the most bullish"

Electrification, data center construction, and persistent supply constraints will continue to support the long-term constructive outlook for copper.

Zheshang: What are the latest guidelines for new quality productive forces?

When observing subsequent policies, close attention should be paid to corporate R&D incentives, validation and promotion of new technology applications, long-term capital supply, and the development of institutional frameworks for green transformation.

Guosen: High dividends solidify allocation value; profit recovery opens upside for banks.

Pay attention to changes in policy expectations. If the trend of recovery in banking sector performance becomes further established, then on the basis of retaining high-dividend core holdings, increase allocation to stocks with high earnings elasticity.

Next week, U.S. stock earnings season is here.

The market not only needs companies to continue delivering strong earnings results, but also needs inflation data to provide more certainty for the monetary policy outlook. If corporate earnings beat expectations and inflationary pressures do not intensify further, U.S. stocks may be poised to extend their rally; otherwise, risk assets will come under pressure.

CAAM: Discard the irrational innovation model that emphasizes form over safety, and move safety assessment to the forefront of the entire product innovation process.

The China Association of Automobile Manufacturers has issued an initiative to the entire industry to comprehensively enhance the safety level of China's automobile products.

JP Morgan: Chinese brokers' institutional business resilience offsets retail slowdown; top pick CICC (03908)

A-share and H-share IPO issuance continued to rebound in September, and the IPO pipeline remains ample.

China Merchants Strategy October Industry Allocation: Focus on Performance Boom Catalysts and Balanced Allocation in Domestic Demand Directions

Focus on electronics (semiconductors), power equipment (batteries, grid equipment), non-ferrous metals (industrial metals, precious metals), pharmaceuticals and biotechnology, agriculture, forestry, animal husbandry and fishery, and banking, among others.

Nomura warns: US stock indices are "severely distorted," ten stocks account for 70% of the S&P's gains, beware of a new shock from diesel.

The S&P 500 has been nearly flat over the past two months, yet 85% of its constituent stocks have fallen into a technical correction. The index's "calm" is merely an illusion created by an extremely concentrated market structure.

National Development and Reform Commission: Promote the early commencement of construction of major engineering projects specified in the 15th Five-Year Plan, the implementation plan for the construction of the "Six Networks," and other related initiatives.

On October 10, Zheng Shanjie, Director of the National Development and Reform Commission, chaired a symposium with private enterprises.

CSRC Holds Symposium: Develop and Strengthen Patient Capital, Promote Greater Dividend and Buyback Efforts, Optimize the Issuance and Listing System

On October 10, Wu Qing, Secretary of the Party Committee and Chairman of the China Securities Regulatory Commission (CSRC), held a symposium in Beijing to engage in in-depth discussions with heads of certain listed companies and experts from securities and fund institutions, and to fully solicit opinions and suggestions on the current capital market and financial situation.

Lifting of restricted share lock-up may create a valuation trough, and GPIXEL (03277) with accelerating earnings growth may present a good layout opportunity.

When the stock price continues to weaken as the lifting of restricted shares approaches, could this become a "golden pit" investment opportunity?

Falls with the trend but won't rise with it! Silver is in trouble.

The demand logic from AI and solar continues to materialize, yet prices are falling against the trendthe macro forces of a stronger dollar and rising real interest rates have completely overwhelmed the fundamentals. Speculative funds sold $1.6 billion in a single week, the highest this year, while CTA net shorts reversed by $2.6 billion to the year's highest level. However, Goldman Sachs analysts believe that extreme short positioning itself is building up reversal momentum, with asymmetry becoming prominent. Once the macro headwinds ease, a retaliatory rebound could easily be triggered: after a similar washout last time, silver rose 15% within six weeks.

ASML component prices raised across the board by 10%, Samsung and SK Hynix accept the price increase, cost pressure in semiconductor equipment spreads.

ASML Rarely Raises Prices Across the Board by 10% for Samsung and SK Hynix Components. Driven by the AI expansion boom, equipment supply and demand are severely imbalanced, and giants such as Applied Materials are following suit. Wafer fabs no longer have the bargaining advantage.

Subsidiary's profit forecast surges 190-fold, heating up investment sentimenthas DONGYUE GROUP (00189) finally reached a turning point?

DONGYUE GROUP, which has almost erased its gains for the year, may once again be at a juncture where it needs to choose a new direction?

The 10-year U.S. Treasury yield is approaching 5.4%, and the AI halo cannot hide the "hollowed-out" concerns of the S&P 500.

Behind the S&P 500's record high, only 30% of its constituents are trading above their 50-day moving average the worst market breadth on record for a new high since 1990. The Russell 2000 has fallen for five straight weeks, and junk bond yields have surged to 15%. Societe Generale warns that if U.S. Treasury yields rise to 6% and oil prices reach $150, the S&P 500 could fall more than 20% next year. In addition, a top-performing fund manager has completely liquidated AI holdings and rotated into energy, saying bluntly that once financing dries up, it's "game over."

Before the midterm elections, Trump urgently moves to suppress diesel prices and turns to Russia to "save the day," but analysts pour cold water on the idea: a drop in the bucket.

U.S. President Donald Trump said on Friday that Russia has agreed to supply diesel to the United States and global markets in a bid to lower fuel prices ahead of the midterm elections, though analysts said the volume of these imports is likely to be small and unlikely to significantly improve U.S. diesel supply.

Apple iPhone Duo orders increased by 30%, total order volume for the iPhone 18 Pro series remains unchanged.

On October 10, the reporter learned from Apple's supply chain that Apple has made structural adjustments to its mobile phone new product order volumes for the fall of 2026: it increased orders for the iPhone Duo by 30%, but the total volume still did not exceed 10 million units, and cut orders for the iPhone 18 Pro by 10%15%, while increasing orders for the iPhone 18 Pro Max by 10%15%. The total order volume for the iPhone 18 Pro series remained unchanged. "This means sales are shifting toward higher-value products, so it is overall positive for the performance of Apple supply chain companies," an Apple supply chain source told the reporter.

After the regulatory storm, what will Ctrip (09961) rely on for its "second growth spurt"?

Step out of the comfort zone of easy profits and go back to fighting for territory.

Deleveraging in the Era of Large Asset Management: Ultra-Long U.S. Treasury Futures Hit by Seven Consecutive Days of Selling, Technical Selling Pressure Emerges

Asset managers are selling long-duration U.S. Treasury futures contracts, indicating that passive selling is occurring as cash yields hover near multi-year highs.

One year after listing, ZHIDA TECH (02650) enters 2.0: globalization and "AI energy + Siasun Robot&Automation" open up new growth space.

During its first year after listing, ZHIDA TECH completed a "AI energy + Siasun Robot&Automation" 2.0 strategic upgrade, achieving 10,000-unit-scale production capacity, accelerating globalization, and expanding its industrial ecosystem, realizing a positive cycle between business and capital.

YUNJI Technology (02670) Releases Holiday Data: AI Voice Call Volume Up 110% Year-over-Year, Service Subscription Business Model Accelerates

Within 13 days, the robot service agents completed a cumulative 19.785 million service sessions and traveled 1.689 million kilometers, equivalent to circling the Earth about 42 times; AI voice calls reached 2.026 million, up 110.37% year-over-year and up 56.55% from the pre-holiday period.

Ministry of Human Resources and Social Security: Will study and introduce a document on promoting employment through the development of the service industry, and expand the total employment in the service industry.

On October 10, Li Zhong, spokesperson and vice minister of the Ministry of Human Resources and Social Security, said at a press conference held by the State Council Information Office that the government will deeply implement the action to stabilize jobs, expand capacity, and improve quality, focus on stabilizing the employment scale in labor-intensive industries, continuously expand total employment in the service sector, and tap new employment potential in cultivating and strengthening emerging industries and future industries. It will work with relevant departments to study and issue a document on promoting employment through service sector development, so as to better leverage the service sector's role as the main channel for absorbing employment.

Yesterday, ETF funds saw an overall net inflow of 27.234 billion yuan.

On October 9, 2026, ETFs recorded an overall net inflow of RMB 27.234 billion, with equity ETFs seeing a net inflow of RMB 22.782 billion and broad-based ETFs a net inflow of RMB 17.694 billion. The top 3 ETFs by net inflow that day were: Yinhua Rili with a net inflow of RMB 3.862 billion, China AMC SSE STAR 50 Component ETF with a net inflow of RMB 3.672 billion, and E Fund ChiNext ETF with a net inflow of RMB 2.146 billion.

Domestic flight fuel surcharges raised starting today.

Starting today, fuel surcharges on domestic flight tickets will be increased. The adjusted standards are: for adult passengers, 50 yuan per flight segment on routes of 800 kilometers or less, and 90 yuan per flight segment on routes over 800 kilometers, representing increases of 10 yuan and 20 yuan respectively compared with the previous standards. Infant passengers are exempt; children, revolutionary disabled soldiers, and people's police disabled in the line of duty are charged half of the actual applicable standard. For domestic tickets sold previously, if changes are made today or later, no additional fuel surcharge difference will be collected under the new standards.

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.

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.

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.

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.

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