GMT EIGHT - OPPORTUNITIES IN CHINA

US Treasury selloff pushes yields to multi-decade highs Citadel: Economic growth and AI investment intensify competition for capital

Citadel Securities believes that the recent selloff in US Treasuries, which has pushed yields to multi-decade highs, is driven not primarily by market fears of further worsening inflation, but by sustained strong US economic growth, as well as competition for capital intensified by artificial intelligence (AI) investment and government deficits.

French Fiscal and Political Uncertainty Hits the Financial Industry! Credit Risk Indicators for the Three Major Banks Climb, and the Cost of Insurance Against Bond Defaults Rises Markedly

As market concerns over France's fiscal position and political situation spread to the credit market, credit risk indicators for bonds issued by major French banks have risen markedly.

QINGLING MOTORS (01122): Enters into Xinjiang Lixin Energy commercial vehicle repurchase agreement, maximum repurchase price not exceeding RMB 12.636 million

QINGLING MOTORS (01122) announced that on October 5, 2026, the Company, the finance leasing company, the dealer, and the co-debtor entered into a repurchase agreement.

European sovereign bonds sound the alarm, yet stock markets remain resilient! France-Germany spread posts largest weekly widening in over 30 years; Deutsche Bank warns the divergence may not last.

European sovereign bond markets came under notable pressure last week, yet European equity and corporate credit markets showed little reaction, creating a rare divergence across asset classes.

US Stock Market Move | Discussing joining the Terafab project, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rose about 1.4% to a record high.

On Monday, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) rose during intraday trading. As of press time, it was up about 1.4%, at $479, with a market capitalization of about $2.49 trillion, hitting a record high.

CF PHARMTECH (02652) has received voluntary extension of the lock-up period on shares held by core management by six months.

CF PHARMTECH (02652) announced that recently, the Company received voluntary undertakings from Dr. Liang Wenqing, co-founder, Chairman, executive Director and Chief Executive Officer of the Company, and Dr. Li Li, co-founder, executive Director and Chief Scientific Officer of the Company, based on their confidence in the Group's long-term development prospects and long-term value. Pursuant to the undertakings, the core management has voluntarily undertaken to further extend the lock-up period on the shares of the Company directly or indirectly beneficially owned by them by six months after the expiry of the original lock-up period. The extended lock-up period is from October 8, 2026 to April 7, 2027 (both dates inclusive).

US Stock Market Move | SpaceX (SPCX.US) extends gains by 5%, rising over 12% in two trading days.

On Monday, SpaceX (SPCX.US) extended the previous trading day's gains, rising over 5% as of press time, with a two-day gain of more than 12% and a market capitalization of $2.2 trillion.

As Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR hits a record high, Morgan Stanley is bullish on Lam Research (LRCX.US) as a big winner in the GAA era.

As TSMC accelerates the advancement of all-around gate (GAA) nodes such as 2nm, Lam Research will become one of the main beneficiaries.

PAN ASIA DATA H (01561) enters into a supplementary memorandum of understanding with Power Circles and the investor; trading resumes on October 6.

PAN ASIA DATA H (01561) announced that on September 9, 2026, the Company entered into a memorandum of understanding with Power Circles in respect of the proposed restructuring of the Group, which will include, among other things, a share consolidation, a subscription, a debt restructuring through a creditor scheme, a change in board lot size, and termination of the share option scheme. Subsequently, the Company, Power Circles and the investor entered into a supplementary memorandum of understanding dated October 5, 2026 to amend the terms of the memorandum of understanding, including the subscription shares, the subscription price, the identity of the investor and the payment terms of the loan.

US Stock Market Move | Bolsonaro's election performance beats poll expectations, Brazilian concept stocks rally collectively.

On Monday, Brazilian concept stocks rallied collectively after the U.S. stock market opened, with financial platform XP Inc (XP.US) surging over 30% and digital bank Nu Holdings (NU.US) rising more than 13%.

U.S. services activity grows at fastest pace in more than five years! September PMI rises to 58.8, inflation pressures heat up again amid strong demand.

U.S. services activity accelerated sharply in September, with the services PMI business activity index rising to 58.8 from 56.5 in August, marking the fourth consecutive monthly increase and the sixth straight month in expansion territory, the fastest pace of expansion since July 2021.

US Stock Market Move | To be acquired by C.H. Robinson for approximately $5.8 billion, RXO Inc (RXO.US) surges 24%.

On Monday, trucking brokerage RXO Inc (RXO.US) opened sharply higher, rising about 24% as of press time, with gains exceeding 40% in October.

Morgan Stanley: AI Memory Shortage to Persist for Years, Three Paths to Break the Deadlock, Structural Opportunities in Storage and Heterogeneous Computing

Morgan Stanley released a semiconductor industry research report stating that the DRAM memory shortage will persist throughout this AI industry cycle, and AI computing power expansion will not wait for new wafer fabs to be built and put into production.

US Stock Market Move | Morgan Stanley and other investment banks rebut Toshiba's expansion panic. Western Digital Corporation (WDC.US) and Seagate (STX.US) rebound sharply.

On Monday, Western Digital (WDC.US) rose more than 7% in early trading, while Seagate Technology (STX.US) gained over 5%.

US Stock Market Move | Pneumococcal vaccine meets late-stage clinical trial goal, Vaxcyte (PCVX.US) opens more than 50% higher.

On Monday, Vaxcyte (PCVX.US) gapped up more than 50% at the open, and as of press time, it was up about 53% with a market capitalization of $12.8 billion.

Guolian Minsheng Securities: Continues to be bullish on this storage super cycle.

Guolian Minsheng Securities released a research report stating that it continues to be bullish on this storage super cycle, with strong AI demand, strengthened supply constraints, long-term agreements locking in profits, and improved shareholder returns jointly driving the upward shift in the profit center.

Morgan Stanley: U.S. data center power gap reaches 34%; leading chipmakers temporarily immune, midstream and downstream segments under pressure.

However, the report emphasizes that Nvidia and Broadcom, leveraging their global footprint, higher computing output per unit of power, and clear upstream and downstream visibility, will see their 2027 performance guidance temporarily shielded from power constraints, while midstream and downstream segments such as ASICs, memory, optical modules, and analog devices will face greater demand volatility risks.

US Stock Market Move | RXO (RXO.US) rose nearly 23% in premarket trading on being acquired by C.H. Robinson (CHRW.US) for $5.8 billion.

C.H. Robinson (CHRW.US) has agreed to acquire truckload brokerage company RXO (RXO.US) for approximately $5.8 billion, a move aimed at strengthening the combined company's logistics business.

PACIFIC LEGEND (08547): Zhelai Technology and Shiyi Enter into a Warehouse Services Agreement for Warehouse Services

PACIFIC LEGEND (08547) announced that on September 1, 2025, Zhelai Technology (as lessee) and Shiyi (as lessor) entered into a warehouse services agreement for warehouse services.

U.S. Treasury yields rose, with the 10-year Treasury yield last up 2.34 basis points at 5.3%.

Preview of US Stock Market | The three major stock index futures are mixed, the dollar index is approaching its year-to-date high, and Schneider Electric plans to acquire PTC (PTC.US) for $22.6 billion.

The three major U.S. stock index futures are mixed.

HKMA holds Cargox Solutions Day to promote regional trade data connectivity

On October 5, the Hong Kong Monetary Authority successfully held Cargox Solutions Day, bringing together key stakeholders from the freight logistics and trade data ecosystem to exchange insights.

CICC: Export growth remains elevated; PPI growth may reach a new high for the year.

CICC released a research report estimating that domestic demand growth may improve slightly in September, while export growth remains elevated. Among these, on the consumption front, durable goods consumption remains under pressure, while offline consumption activities have rebounded somewhat.

Crowded trades! Bank of America warns: "Buy AI, sell consumer" is getting harder to generate excess returns.

Active fund positioning has already fully reflected the "consumption to capital expenditure" theme, and it is becoming increasingly difficult to generate excess returns by buying AI capital expenditure beneficiaries and selling white-collar consumption themes.

HKMA: Bank of Baraka obtains Hong Kong restricted banking licence, number of licences rises to 17.

On October 5, the Hong Kong Monetary Authority announced that the Monetary Authority has granted a restricted banking licence to Bank of Baraka Co., Ltd. (Bank of Baraka) under the Banking Ordinance.

CSPC PHARMA (01093): 8 latest clinical trial advances will be presented at the 2026 European Society for Medical Oncology (ESMO) Annual Congress

CSPC PHARMA (01093) announced that the Group will present 8 latest clinical trial advances at the European Society for Medical Oncology (ESMO) Annual Congress to be held in Madrid, Spain, from October 23 to October 27, 2026, of which 2 were selected as Late-breaking Abstracts (LBA). The 8 clinical advances selected will be presented in the form of 1 preferred oral presentation, 3 rapid oral presentations, 3 posters, and 1 e-poster, covering tumor types including breast cancer, lung cancer, gastric cancer, liver cancer, colon cancer, pancreatic cancer, and perivascular epithelioid cell tumor, fully demonstrating the Group's R&D strength and clinical research capabilities in the field of oncology treatment.

ART GROUP HOLD (00565) subsidiary intends to sell the entire equity interest in Xuansheng International

ART GROUP HOLD (00565) announced that on October 5, 2026, the seller (Right Lane International Limited, a direct wholly-owned subsidiary of the Company) intends to sell to the buyer Chen Wenlan the entire issued share capital of the target company (Xuansheng International Limited) for a consideration of HK$1.

MAOYAN ENT (01896) intends to repurchase the company's shares.

MAOYAN ENT (01896) announced that the Board has resolved, subject to market conditions, to exercise the share repurchase mandate to repurchase shares on the open market from time to time, from the date of this announcement until the date of the Company's next annual general meeting to be held in 2027. The Company intends to use funds of not more than approximately HK$250 million to repurchase shares under the proposed share repurchase plan. The Company will fund the repurchases out of its existing available cash reserves and free cash flow.

2026 Nobel Prize in Physiology or Medicine announced: Three pioneers of optogenetics win the award.

Karl Deisseroth, Peter Hegemann, and Georg Nagel have been awarded the Nobel Prize in Physiology or Medicine.

SIHUAN PHARM (00460): New specification of skin booster injection (trade name: Dongyan) approved for marketing by the National Medical Products Administration

SIHUAN PHARM (00460) announced that five new specifications of the injectable sodium hyaluronate composite solution (skin booster injection or the product, trade name: Dongyan), independently developed by Meiyan Space Biotechnology (Jilin) Co., Ltd. (Meiyan Space), a subsidiary of the Group, have officially been approved for marketing by the National Medical Products Administration of China. The approval of these new specifications represents an important post-launch milestone for the product, further consolidating the Group's product portfolio and competitiveness in the light medical aesthetics skin booster segment.

Eurozone August PPI YoY 8.2%, expected 7.9%, previous 5.8%. Eurozone August PPI MoM 1.9%, expected 1.9%, previous 1.6%.

Bonnie Chan: Strong IPO demand in the technology and AI sectors; will continue reforming the market to maintain competitiveness.

HKEX (00388) Chief Executive Officer Bonnie Chan, speaking at the Global Youth Power Summit, said that investors are currently paying a great deal of attention to sectors such as technology and AI, and that IPO demand in these sectors is very strong. She also noted that the share of technology stocks in HKEX's average daily turnover has grown from about 20% a few years ago to about 43% at present, in line with global investment trends.

The IPO review status of 11 companies, including Shenghuabo and Hualong Securities, has been changed to "Suspended (Financial Report Update)" on the Shanghai Stock Exchange.

The official website of the Shanghai Stock Exchange shows that on September 30, the IPO review status of 11 companies, including Xiahe Technology, Kangbaijia, Elite, Wotian Technology, Xinmai Machinery, Shenghuabo, Loong Air, Jinlianjie, Renben Co., Ltd., PowerChina New Energy, and Hualong Securities, was updated to "Suspended (Financial Report Update)."

US Stock Market Move | Qualcomm (QCOM.US) rises over 4% in pre-market trading, reaches multi-year patent licensing agreement with Huawei.

Huawei and Qualcomm (QCOM.US) announced on Monday that they have reached a multi-year, broad patent licensing agreement.

Cushman & Wakefield: Hong Kong full-year property price growth expected at around 7%; residential rents poised to rise 5% to 7%

Cushman & Wakefield expects Hong Kong's property market to be mainly in a correction phase in the short term, with full-year residential property prices fluctuating within a narrow range of around 7% (growth), similar to the increase seen in the first eight months of this year.

Hong Kong stocks close: Hang Seng Index up 0.28%, Hang Seng Tech Index up 0.62%

Zhipu rose 6.15%, Lenovo Group rose 4.14%, Iluvatar CoreX rose 3.84%, Hua Hong Semiconductor rose 3.79%, BeiGene rose 2.64%, New Oriental-S rose 1.62%, and China Molybdenum rose 1.61%.

DBS CIO: NVIDIA Corporation (NVDA.US) has a forward P/E of only 17 times, AI tech stocks are far from bubble territory.

NVIDIA Corporation (NVDA.US)'s P/E ratio, along with its projected 70% earnings growth next year, indicates that AI-driven tech stocks are far from entering bubble territory.

Nvidia partner Hon Hai Precision reported better-than-expected quarterly revenue, indicating that global AI infrastructure spending remains elevated. Hon Hai's revenue for the three months ended September reached NT$3.03 trillion ($95.4 billion), up 47% year over year and above the analyst average estimate of NT$2.83 trillion. Hon Hai's strong sales growth follows Micron Technology's optimistic earnings outlook last week, further suggesting that capital expenditure in the AI sector continues to grow. Meanwhile, executives such as OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei have recently called for slowing the development of emerging AI technologies to ensure they remain under human control. As Nvidia's server assembly partner, Hon Hai has benefited over the past two years from global cloud computing infrastructure buildout. As investor concerns over overcapacity, rising debt levels, and regulatory setbacks intensify, Hon Hai's sales performance is also seen as an important gauge of the AI industry's health. The company's shares have risen about 10% so far this year.

Hong Kong Land Registry: 6,438 building sale and purchase agreements were registered in September, with a total value of HK$53.5 billion.

On October 5, the Hong Kong Land Registry released statistics for September 2026.

Cui Dongshu: Chinese independent brands' share in Russia reached 54.2% in 2026.

In 2026, the share of Chinese independent brands in Russia reached a relatively high level of 54.2%, with good sales volume and profitability.

China Railway: On October 5, railways nationwide are expected to handle 21.05 million passenger trips.

China Railway stated that on October 4, railways nationwide handled 20.32 million passenger trips, with transport operations safe, stable, and orderly.

HK Stock Market Move | DUIBA (01753) rises nearly 12%, AI short drama business shows strong growth momentum, talent capital supports AI-driven high-growth strategy.

DUIBA (01753) rose nearly 12%, up 11.9% as of press time, at HK$0.47, with a turnover of HK$3.2494 million.

Midland Property Price Index Continues to Fluctuate in a Narrow Range, Down 0.25% Week-on-Week; Confidence Index Retreat Reflects Pressure on Secondary Market

Midland Realty analyst Cen Songqian pointed out that the "Midland Property Price Index" was last reported at 148.73 points, down 0.25% week-on-week, having fluctuated between 148 and 150 points for 14 consecutive weeks, continuing to move within a narrow range.

30-year Japanese government bond yield hits a record high! Sanae Takaichi speaks out to reassure the market: will "control" bond issuance.

Amid a deteriorating fiscal position in Japan that has already driven bond yields higher, Japanese Prime Minister Sanae Takaichi pledged on Monday to "control" bond issuance and to act swiftly if market turbulence emerges.

Citi: Passenger traffic in the first three days of the National Day Golden Week is in line with expectations; consumption patterns are relatively rational; more bullish on Atour Lifestyle Holdings Ltd. Sponsored ADR (ATAT.US) and HWORLD-S (01179)

The bank gave Atour a target price of US$49 with a "Buy" rating; Huazhu's Hong Kong shares have a target price of HK$47, and Huazhu's (HTHT.US) US shares have a target price of US$59, both rated "Buy."

Hui Ching-yu: Hong Kong plans to introduce a preferential tax regime to attract high-value-added industries, with concessionary tax rates as low as 8.25%.

The package of preferential policies includes various policy tools, such as land grants, subsidies, or tax concessions. The proposed preferential tax regime is one of them, with the goal of attracting enterprises engaged in key industries such as advanced manufacturing, innovation and technology research and development, headquarters activities, logistics and supply chain management, and finance.

European political and fiscal risks heighten concerns; the euro falls to a 17-month low.

As investor concerns over political and fiscal risks in Europe intensified, the euro fell to its lowest level since May 2025. During Asian trading hours, the euro at one point dropped 0.8%, touching 1.1161 U.S. dollars per euro.

HK Stock Market Move | FOURSEMI (03625) Surges Over 20% in Afternoon Session; Company Deepens Focus on Smart Audio Chip Track, Continuously Empowering AI Terminal Industry Upgrade

FOURSEMI (03625) surged over 20% in the afternoon session. As of press time, it was up 19.07% at HK$57.75, with a turnover of HK$3.6988 million.

HK Stock Market Move | AGILE GROUP (03383) surges over 10%, nearing finalization of over US$5.18 billion offshore debt restructuring plan.

AGILE GROUP (03383) surged over 10%. As of press time, it rose 10.57% to HK$0.136, with a turnover of HK$643,300.

CFLP: China's bulk commodity price index rose 4.1% month-on-month in September.

The China Bulk Commodity Price Index (CBPI) for September 2026, jointly surveyed by the Bulk Commodity Circulation Branch of the China Federation of Logistics & Purchasing (CFLP) and Shanghai SteelUnion and other units, and released by the CFLP, stood at 137.6 points, up 4.1% month-on-month and up 22.9% year-on-year.

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10 m ago

FTSE China A50 Index Futures closed up 0.42% in continuous night trading, at 13,874 points.

12 m ago

According to the Financial Times, Bank of America, Citigroup and Morgan Stanley have begun distributing a $60 billion debt financing to other banks to support Anthropic's lease of Google (GOOG.O) AI chips, in what is the largest chip financing transaction to date. About $42 billion of it is a senior secured loan backed by Broadcom (AVGO.O), which launched syndication on Monday; another $18 billion of subordinated debt not guaranteed by Broadcom is expected to be launched later, with Blackstone having committed to fund about $9 billion of it. The proceeds will be used for Anthropic's 2027 chip orders, with lease payments to begin after the chips are delivered. Broadcom may also receive up to $42 billion in convertible notes from Anthropic to pay the related lease costs. The $60 billion financing is seen as an important transaction testing market demand for AI debt.

15 m ago

Yemen's Houthi armed group warns international airlines to stop operating routes through Saudi airspace.

16 m ago

Wall Street banks lead the finalization of a $60 billion chip financing deal for Broadcom and Anthropic.

18 m ago

Strong explosions were heard in Riyadh, the capital of Saudi Arabia.

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