GMT EIGHT - OPPORTUNITIES IN CHINA

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.

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.

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.

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