Morning News

Source: Wall Street News

**Market Overview**

Investors almost regard the Federal Reserve's interest rate cut this week as a "done deal". Technology stocks are strong, the S&P 500 stands above 6,600 points, and the Nasdaq closes at a record high for the sixth consecutive trading day. Tesla has three consecutive gains, rising more than 7% intraday and recovering its losses for the year. Google rises nearly 4.5%, joining the $3 trillion market capitalization club. Coreweave rises more than 7.6%.

According to Xinhua News Agency, China and the United States have reached a basic framework of consensus on properly resolving the TikTok issue. The Nasdaq Golden Dragon China Index closes up 0.87%, approaching the high in January 2022.

U.S. Treasury bond yields decline, with the 10-year yield falling 3.45 basis points. The U.S. dollar index drops 0.35%, breaking through the support level of 97. Cryptocurrencies generally decline. Bitcoin rises sharply and then turns down, falling as much as 2% from the daily high. Solana once falls 5%.

The weak U.S. dollar boosts gold to rise more than 1.2% at one point, approaching $3,700 and reaching a new high again. Coking coal in the night session closes up nearly 5.7%, and coke also rises more than 4.6%.

During the Asian session, the ChiNext rises 1.5%, the AH shares of "Ning Wang" rise sharply to a new high, the Hang Seng Tech Index rises nearly 1%, Pop Mart falls more than 6% against the trend, and "double coke" rises sharply.

**Top News**

China and the United States have reached a basic framework of consensus on properly resolving the TikTok issue. Li Chenggang: China will never seek to reach any agreement at the expense of its principle position, corporate interests and international fairness and justice.

China releases economic data for August, showing the characteristics of "slow industry, weak investment and light consumption", and the expectation of a new round of policy easing heats up. August housing prices in 70 cities: The month-on-month decline in first-tier second-hand housing prices is 1%, the same as last month, and the year-on-year decline in new housing prices in all tiers has narrowed.

From 0:01 on the 16th Eastern Time, the United States reduces the import tariff on Japanese cars to 15%.

Trump proposes: No longer require companies to release financial reports quarterly, but change it to semi-annually.

Michigan tax officials: There is no evidence that Fed Governor Cook's main residence violates tax policies.

The State Administration for Market Regulation conducts further antitrust investigations into Nvidia, involving violations of the restrictive conditions for the acquisition of Mellanox.

Musk spends $1 billion to increase his stake, and Tesla rises 7.5% intraday on Monday, erasing the year-to-date decline. Hedge fund tycoon: The merger of Tesla and xAI may be inevitable. Musk's fastest AI model is here, and xAI releases Grok 4 Fast.

Google's parent company Alphabet rises 4.8% at one point, entering the $3 trillion market capitalization club.

Pre-sale tracking of Apple's new phones: The iPhone 17 Pro Max is the most popular, the Air is the worst, and the demand in the Chinese market is strong. Xiaomi confronts Apple head-on, skipping the 16 series and directly promoting the 17 series. Lei Jun: Fully benchmark the iPhone!

The "pre-prepared food war" escalates! Luo Yonghao asks five consecutive questions, and Xibei urgently revises the apology letter.

**Market Closing Report**

European and American stocks: The S&P 500 rises 0.47% to 6,615.28 points. The Dow Jones rises 0.11% to 45,883.45 points. The Nasdaq rises 0.94% to 22,348.749 points. The European STOXX 600 Index closes up 0.42% to 557.16 points.

A-shares: The Shanghai Composite Index reports 3,860.50 points, down 0.26%; the Shenzhen Component Index reports 13,005.77 points, up 0.63%; the ChiNext Index reports 3,066.18 points, up 1.52%.

Bond market: The yield on the 10-year U.S. Treasury bond falls 2.87 basis points to 4.0356%. The yield on the two-year U.S. Treasury bond falls 2.10 basis points to 3.5347%.

Commodities: COMEX gold futures rise 0.93% to $3,720.70 per ounce. WTI October crude oil futures close up 0.97% to $63.30 per barrel. Brent November crude oil futures close up 0.67% to $67.44 per barrel.

# Detailed Top News

## Global Highlights

China and the United States have reached a basic framework consensus on properly resolving the TikTok issue. According to Xinhua News Agency, Vice Minister of Commerce Li Chenggang stated that over the past two days, China and the United States have conducted candid, in-depth, and constructive communications on TikTok and other economic and trade issues of mutual concern. The two sides have reached a basic framework consensus on properly resolving the TikTok issue through cooperation, reducing investment barriers, and promoting relevant economic and trade cooperation. Wang Jingtao, Vice Minister of the Cyberspace Administration of China, said that China and the United States have reached a basic consensus on resolving the TikTok issue by means of entrusting the operation of TikTok's U.S. user data and content security business, and authorizing the use of intellectual property rights such as algorithms.

Li Chenggang: China will never seek to reach any agreement at the expense of its principled stance, corporate interests, and international fairness and justice. According to CCTV News, Li Chenggang, China's International Trade Negotiator and Vice Minister of Commerce, said that regarding the TikTok issue, China has always opposed the politicization, instrumentalization, and weaponization of science and technology as well as economic and trade issues. China will never seek to reach any agreement at the expense of its principled stance, corporate interests, and international fairness and justice. China and the United States have reached a basic framework consensus on properly resolving TikTok-related issues through cooperation.

The Spokesperson of the Ministry of Commerce responded to a reporter's question regarding the U.S. request for relevant parties to impose additional tariffs on China on the grounds of importing Russian oil.

A reporter asked: Recently, the U.S. has requested the Group of Seven (G7) and NATO to impose tariffs of 50% to 100% on China on the grounds that China purchases Russian oil, in order to push China to play a role in ending the Russia-Ukraine conflict. What is the Ministry of Commerce's response?

Answer: China has always opposed the adoption of economic and trade restrictive measures against China on the so-called "Russia-related" grounds. The U.S. attempt this time to coerce relevant parties into imposing "secondary tariffs" on China on the grounds of purchasing Russian oil is a typical act of unilateral bullying and economic coercion. It seriously violates the consensus reached in the phone calls between the heads of state of China and the United States and may cause a severe impact on global trade and the stability of industrial and supply chains. China firmly opposes this. If any party harms China's interests, China will take all necessary measures to safeguard its legitimate rights and interests.

China has released its economic data for August, showing the characteristics of "sluggish industry, weak investment, and weak consumption", and expectations for a new round of policy easing have heated up.

In August, the year-on-year growth rate of total retail sales of consumer goods slowed to 3.4%, and the growth rate of retail sales of home appliances and audio-visual equipment slowed to 14.3%. The retail sales of furniture, home appliances and audio-visual equipment, cultural and office supplies, and communication equipment of enterprises above the designated size increased by 18.6%, 14.3%, 14.2%, and 7.3% respectively, compared with the previous values of 20.6%, 28.7%, 13.8%, and 14.9%. Retail sales of gold, silver, and jewelry increased by 16.8% year-on-year, with the previous value being 8.2%; retail sales of automobiles increased by 0.8% year-on-year, compared with the previous value of -1.5%; and retail sales of petroleum and related products decreased by 8% year-on-year, with the previous value being -8.3%.

In August, the added value of industries above the designated size increased by 5.2% year-on-year, and the equipment manufacturing industry and high-tech manufacturing industry maintained a good growth momentum. Among the 41 major industrial sectors, 31 sectors saw a year-on-year increase in added value. The manufacturing of railway, ship, aerospace, and other transportation equipment, as well as the manufacturing of computers, communications, and other electronic equipment, showed rapid growth. The output of 3D printing equipment, new energy vehicles, and industrial robots increased by 40.4%, 22.7%, and 14.4% year-on-year respectively.

From January to August, national fixed asset investment increased by 0.5%, and manufacturing investment increased by 5.1%. Among them, private fixed asset investment decreased by 2.3% year-on-year. On a month-on-month basis, fixed asset investment (excluding rural households) decreased by 0.20% in August.

From January to August, real estate development investment decreased by 12.9% year-on-year, and the sales area of newly built commercial housing decreased by 4.7% year-on-year. From January to August, the sales area of newly built commercial housing was 573.04 million square meters, a year-on-year decrease of 4.7%, which was 0.7 percentage points wider than that from January to July; among which, the sales area of residential housing decreased by 4.7%. The sales volume of newly built commercial housing was 5.5015 trillion yuan, a decrease of 7.3%; among which, the sales volume of residential housing decreased by 7.0%.

Housing prices in 70 cities in August: The month-on-month decline in second-hand housing prices in first-tier cities was 1%, the same as the previous month, and the year-on-year decline in new housing prices in all tiers narrowed to some extent. In August, the month-on-month decline in second-hand housing prices in cities of all tiers was basically the same as the previous month, and the year-on-year decline in first-tier cities was 3.5%.

The Taocuan team of Minsheng Macro believes that the August economic data shows the characteristics of "sluggish industry, weak investment, and weak consumption", and expectations for a new round of policy easing have heated up. In the fourth quarter, fiscal and monetary policies will work in coordination, focusing on "stabilizing investment" and "promoting consumption". The negative growth of manufacturing investment is in urgent need of a breakthrough, and policy-based financial tools are about to be implemented. The subsidy effect of "trade-in" has weakened, and the layout of incremental consumption policies is imminent. Specific actions such as promoting the reasonable growth of wages, reducing consumption restrictions, and cultivating new growth points in service consumption will be accelerated.

The United States has lowered import tariffs on Japanese cars. Starting from 00:01 Eastern Time on the 16th, the U.S. import tariff on Japanese cars was lowered to 15%.

Trump proposed: Companies should no longer be required to release quarterly financial reports, but instead release them semi-annually. In terms of procedures, changing the quarterly financial report system does not require the support of the U.S. Congress; it only needs to obtain a majority vote at the SEC. Currently, Republicans hold a 3-1 advantage at the SEC, with one seat vacant. Sarah Bianchi, Chief Strategist for International Political Affairs and Public Policy at Evercore ISI, said the process may take 6 to 12 months. However, many people on Wall Street are more skeptical about whether this reform will happen.

Wall Street questions Trump's proposal: Can the SEC approve the change from quarterly reports to semi-annual reports? Will uncertainty increase? Will it further stimulate stock market volatility? Some predict that there is a 60% chance that the SEC will advance Trump's proposal, while others say it is unlikely to advance in the near term. There are also those who believe that it is unlikely to abolish quarterly reports, as this is required by the Securities Exchange Act of 1934. Market observers are worried that reducing the frequency of financial report disclosures by listed companies will weaken the effectiveness of accountability and increase stock market volatility. Investment institutions warn that a longer reporting interval will increase uncertainty. Some believe that the lack of transparency will make investment more difficult, but it will allow enterprises to focus on long-term business development.

Michigan tax officials in the United States: There is no evidence that Federal Reserve Governor Cook's primary residence violates tax policies.

The State Administration for Market Regulation has launched a further antitrust investigation into NVIDIA, involving violations of the restrictive conditions for the acquisition of Mellanox. The State Administration for Market Regulation has decided to conduct a further antitrust investigation into NVIDIA Corporation, accusing the company of violating the Anti-Monopoly Law and the restrictive conditions set when it previously acquired Mellanox. The State Administration for Market Regulation had already initiated a case investigation against NVIDIA on December 9 last year.

A concrete show of support with real money: Musk spent $1 billion to increase his stake, and Tesla erased its year-to-date losses. According to documents disclosed on Monday, Musk purchased approximately 2.57 million Tesla shares last week at a price of $371 to $396 per share. This increase in holdings is regarded as an important step for Musk to achieve his 20% shareholding target, ensuring the company's competitiveness in its transformation to the fields of artificial intelligence and robotics. Tesla rose by 7.5% at one point on Monday and closed up 3.6%, rebounding by 85% from its yearly low in April.

Will Tesla and xAI merge? Hedge fund tycoon: It feels inevitable. The positive statement from Anthony Scaramucci, founder of SkyBridge Capital, has further boosted expectations that Tesla and xAI may merge. Gene Munster, a well-known technology analyst and co-founder of Deepwater Asset Management, analyzed that the combination of the two may help Tesla achieve the ambitious goal of a market value of $8.5 trillion.

Musk's fastest AI model is here. xAI has released Grok 4 Fast, with a generation speed of up to 75 tokens per second, 10 times faster than the standard version. In tests by netizens, Grok 4 Fast solved a classic LeetCode problem in less than 2 seconds. Not only in Python, but also when asked to write a linked list in C language, Grok 4 Fast completed the task in 8 seconds.

Alphabet, Google's parent company, rose by 4.8% at one point, entering the $3 trillion market value club. On Monday, the stock price of Alphabet, Google's parent company, rose by 4.8% at one point to $252.41, with a market value exceeding the important threshold of $3 trillion. Since its low in April, the company's stock price has soared by more than 70%. Alphabet's recent upward momentum comes from its outstanding financial reports and the long-awaited antitrust ruling.

The slogan of "overthrowing Google" is loud, and its financing valuation is high, but the commercialization of "AI search" company Perplexity is "progressing poorly". While Perplexity has a valuation of $20 billion, its advertising and e-commerce businesses are advancing slowly, and advertisers and merchants are generally disappointed. The company's advertising revenue last year was only $20,000, and it accepted less than 0.5% of the thousands of advertiser applications. Its e-commerce functions are also incomplete, lacking basic functions such as a shopping cart. More notably, Taz Patel, the executive in charge of the advertising business, resigned last month.

Pre-sale tracking of Apple's new phones: The iPhone 17 Pro Max is the most popular, while the Air is the least popular, with strong demand in the Chinese market. Research by Citi shows that the high-end trend of Apple's product line continues. The iPhone 17 Pro Max has the longest delivery time, followed by the Pro model. Compared with the same period last year, the initial demand for the iPhone 17 shows obvious regional differentiation. The delivery waiting time in China and India is longer, while the waiting time in the U.S. and UK markets has shortened.

Xiaomi competes head-on with Apple, skipping the 16 series and directly launching the 17 series. Lei Jun: Fully benchmarking the iPhone! Lu Weibing said that Xiaomi's three models in the 17 series have clear positioning: Xiaomi 17 is positioned as "the strongest standard flagship in history, with comprehensive upgrades and more value without price increase"; Xiaomi 17 Pro is "the most exquisite small-sized technological imaging flagship"; and Xiaomi 17 Pro Max is "the most powerful peak technological imaging flagship in history". Some netizens commented that since Xiaomi dares to directly launch the 17 series, the upgrades must be sufficient to match the "17" label.

The "pre-prepared food war" escalates! Luo Yonghao raised five consecutive questions, and Xibei urgently revised its apology letter. Xibei issued a new apology, promising to change some core dishes from pre-processed to on-site made in stores, saying that "customers may be tough on us a thousand times, but we treat customers like first love". Luo Yonghao quickly retorted, asking "what have customers done to be tough on you" and raised five consecutive questions. It is worth mentioning that shortly after the apology letter was issued, it was withdrawn and re-released, with the word "tough" in the sentence "customers may be tough on us a thousand times" enclosed in quotation marks.

## Domestic Macro

Qiushi Magazine published an important article by General Secretary Xi Jinping titled "Promoting the Construction of a Unified National Market in Depth". According to Xinhua News Agency, the article points out that the basic requirement for promoting the construction of a unified national market in depth is "five unifications and one opening-up". The "five unifications" refer to unifying the basic systems of the market, unifying market infrastructure, unifying the standards of government behavior, unifying market supervision and law enforcement, and unifying the factor resource market. The "one opening-up" means continuously expanding opening-up, realizing the connection between domestic and foreign opening-up, and refraining from closed operation.

The State Administration of Foreign Exchange: Facilitating foreign individuals' foreign exchange settlement and payment for domestic housing purchases, and allowing foreign-invested enterprises to reinvest foreign exchange profits obtained under FDI in China. The State Administration of Foreign Exchange stated that foreign individuals, on the premise of meeting the housing purchase qualification requirements of the competent real estate departments and local authorities, can first go through the formalities of foreign exchange settlement and payment for housing purchases at banks with the housing purchase contract or agreement before obtaining the housing purchase registration certificate from the competent real estate department, and then submit the housing purchase registration certificate to the bank later. The facilitation of foreign exchange settlement and payment for domestic housing purchases does not change the policy on foreign individuals' housing purchases in China.

Has there been a shift in deposits? Wang Jian, Chief Analyst of the Banking Industry at Guosen Securities, believes that the increment of personal time deposits is still the highest among all types, but the increment amount has also decreased. Some incremental funds have been used for investment, resulting in a significant increase in the increment of non-bank financial deposits. Therefore, the phenomenon of personal deposits being converted into time deposits has alleviated to some extent. The proportion of personal new wealth used for financial investment has increased, but the stock of deposits has not yet started to shift.

## Domestic Companies

JPMorgan lowered Pop Mart's rating: After the sharp rise, the valuation has reached perfect expectations, and the risk-reward ratio has deteriorated. JPMorgan lowered Pop Mart's rating to "Neutral" and cut its target price from HK$400 to HK$300. The main reason is that after the stock price soared by 209% this year, the valuation has reached "perfect expectations", and the short-term risk-reward ratio is no longer favorable. The currently realized positive catalysts have basically been priced in, and the visibility of remaining catalysts (such as animations and Labubu 4.0) is low. It is recommended to wait for the catalyst window from Q4 2025 to Q1 2026 before evaluating the entry timing.

Citi significantly raised Shenghong's target price to 447 yuan: The AI-PCB super cycle is accelerating, and the supply-demand shortage will last until after 2026. Citi stated that benefited from the trend of rack cableless design and the promotion of CoWoP technology, the AI-PCB super cycle is accelerating, and it is expected that the supply-demand shortage will last until after 2026. Shenghong Technology, relying on its proven mass production capacity of AI-PCBs and a capacity expansion speed far exceeding that of its peers, will become a key beneficiary of this super cycle. Citi raised Shenghong Technology's target price by 148% to 447 yuan, representing a 35% upside potential from the current stock price.

Regarding the "60-day payment term", BYD and other automobile companies made collective statements! After the China Association of Automobile Manufacturers released the "Initiative on Payment Standards for Suppliers of Automobile Whole Vehicle Enterprises", more than a dozen mainstream automobile companies including SAIC, BYD, Changan, Xiaomi, and Li Auto responded positively, promising to strictly implement the principle of "60-day payment term" and standardize key processes such as account checking, acceptance, and contracts. The Ministry of Industry and Information Technology stated that this will enhance the resilience of the industrial chain, protect the rights and interests of suppliers, and promote the healthy development of the automobile industry. Traditional automobile companies have demonstrated mature implementation systems, while new energy automobile companies have emphasized coordinated win-win cooperation and joint construction of a sustainable ecosystem.

# Overseas Macroeconomics

A 25-basis-point interest rate cut is a "done deal", while a 50-basis-point cut is "very difficult" – the market "wants more" from the Federal Reserve. Investors have already priced in a series of interest rate cuts extending into 2026. Analysts believe that Federal Reserve Chair Jerome Powell and other officials may send signals suggesting that investors are being overly aggressive, which could trigger a repricing of asset prices. Powell's speech and the Federal Reserve officials' interest rate forecast "dot plot" are the key focuses of this policy decision.

As slowing employment coincides with tariff-induced inflation, the Federal Reserve may see its first "three-way split" since 2019. Investors generally expect the Federal Reserve to cut interest rates by 25 basis points this week, but there may be a "three-way split" in the Fed's internal voting – with opinions supporting an interest rate cut, a larger-than-expected rate cut, and maintaining interest rates unchanged emerging simultaneously. Analysts argue that the possibility of a three-way split "signals that the committee is currently under unique pressure".

The "hottest term" on Wall Street: Run it hot! Betting on "dual fiscal and monetary easing". The core logic of the "Run it hot" strategy is that tax cuts and interest rate cuts will jointly "heat up" the economy, thereby triggering a new wave of growth. However, driven by this strategy, traders seem to turn a blind eye to the weak employment report and the economic risks of tariffs. Analysts warn that investors may be "misinterpreting" the current economic situation.

US Congressional Budget Office (CBO): Tariffs push inflation above expectations, but deficits are expected to see a major reversal in the long run. Phillip Swagel, Director of the US Congressional Budget Office, stated that Trump's tariff policies have pushed up inflation – not by a large margin, but enough to be noticeable. However, in the long run, these tariffs will inject funds into the federal finances over the next decade, reducing the US budget deficit by $4 trillion, which will be a major reversal in terms of deficits.

Abandoning aggressive law enforcement: The US SEC Chair says the agency will notify companies of technical violations before "breaking down the door". The top US financial regulator is undergoing a major shift. The new SEC Chair Atkins, appointed by Trump, stated that for companies' technical violations, the SEC will first provide notification and an opportunity to correct, rather than directly taking coercive measures by "breaking down the door". Especially in the cryptocurrency field, Atkins holds a clearly supportive stance and plans to formulate rules for tokenized assets, forming a sharp contrast with the tough stance of his predecessor.

# Overseas Companies

OpenAI Board Chair: We are indeed in an "AI bubble"; there will definitely be huge winners, and many people will suffer heavy losses. Bret Taylor believes that the two assertions – "AI will transform the economy" and "many people will lose money" – can be correct at the same time. For example, in the late 1990s, although countless companies collapsed during the burst of the Internet bubble, in the long run, "those people in 1999 (in their judgment on the future of the Internet) were correct to some extent".

Goldman Sachs significantly raises Oracle's target price but maintains a "Neutral" rating: Massive capital expenditures pose significant pressure on short-term profits. Goldman Sachs raised its growth forecast for Oracle's IaaS business, but at the same time stated that the massive capital expenditures will delay the achievement of cash flow break-even until fiscal year 29, and there is still no clear visibility on whether this can be converted into revenue growth.

CoreWeave secures a $6.3 billion order from NVIDIA, with its stock price surging over 7%. According to the terms of the agreement, NVIDIA is obligated to purchase CoreWeave's remaining unsold computing capacity by April 2032. CoreWeave stated that it will disclose a complete copy of the agreement when releasing its third-quarter financial report.

Kicking off the "golden age of nuclear energy": The US and UK sign multiple agreements, with US nuclear energy companies making a major foray into the UK. The US and UK signed a series of nuclear energy cooperation agreements, and a number of US nuclear energy companies will carry out construction projects in the UK. Companies such as X-energy plan to build up to 12 small modular reactors in the UK, with a total installed capacity of 6 gigawatts. These agreements are expected to be formally signed during Trump's state visit to the UK this week. UK Prime Minister Starmer stated that these important commitments will lead the UK "towards a golden age of nuclear energy".

Novo Nordisk "focuses on volume": High-dose semaglutide trial shows 19% weight loss effect, but still lags behind Eli Lilly's competing product. After Novo Nordisk tripled the dose of semaglutide in clinical trials, patients achieved an average weight loss of 19%, exceeding the 16% weight loss with the standard dose. Although the effect has improved, it still lags behind Eli Lilly's tirzepatide (22.5% weight loss). The high-dose regimen may provide patients with a more cost-effective option, but it is accompanied by a higher incidence of side effects.

# Industries/Concepts

1. Huawei Industry Chain | According to China Securities Journal, on September 19, 2025, the Huawei CANN Comprehensive Open Source and Openness Thematic Conference will be held. The industry believes that opening up the CANN architecture through open source is an important step in changing the pattern of AI chips. Many Chinese AI developers choose NVIDIA GPUs because its CUDA platform has become the industry's default development environment over the years. Huawei's open-source CANN platform aims to break NVIDIA's monopoly on the development ecosystem and provide an alternative platform for building applications on domestic AI chips.

  - Comment: Analysts believe that Huawei's open-source Ascend CANN architecture marks an important turning point for China's AI industry. Developers can freely combine computing power modules like building blocks, breaking technical monopolies while opening up new paths for the coordinated development of domestic AI basic software. This innovative practice of promoting collaboration through open source and breaking barriers through ecosystems may become the key to solving the "choke point" dilemma faced by domestic AI.

2. Liquid Cooling | According to IT Home, NVIDIA is promoting upstream suppliers to develop a type of water-cooled heat dissipation component called MLCP (Microchannel Water-Cooled Plate) to cope with the increasing heat generation of AI GPU chips with generational upgrades. MLCP can reduce the size of etched water channels on chips or packages to the micron level; at the same time, vapor chambers, water-cooled plates, IHS package lids, and chip dies will also be highly integrated to further improve heat dissipation efficiency.

  - Comment: Analysts believe that the computing power and chip heat dissipation industry chain is shifting from "technological breakthroughs" to "large-scale applications". As the computing power of AI chips increases, their power consumption grows exponentially, making heat dissipation technology a necessity rather than an option. The computing power demand for AI large model training doubles every 3-4 months; the deepening of China's "Eastern Data and Western Computing" project requires the PUE (Power Usage Effectiveness) of newly built data centers to be ≤1.25, driving demand for heat dissipation components; the refrigeration system accounts for more than 20% of the total energy consumption of data centers, making it the largest source of energy consumption besides IT equipment itself. Micron-level water-cooled component technology is an advanced and efficient heat dissipation solution, which has revolutionary advantages compared with traditional air cooling and conventional liquid cooling, especially in handling high-power, small-size heat sources.

3. Fisheries | According to the Ministry of Commerce, on September 15, the WTO General Council held a special meeting on the Agreement on Fisheries Subsidies. The total number of members that have ratified the Agreement has met the legal requirement, and the Agreement has officially entered into force. Members that have ratified the Agreement will officially launch various compliance work. The Agreement requires the elimination of subsidies for illegal, unreported, and unregulated (IUU) fishing, subsidies for overfished fish stocks, and subsidies for unregulated high-seas fishing. It also incorporates fishery management elements such as fishery law enforcement, resource sustainability assessment, policy transparency, and international cooperation.

  - Comment: The implementation of the Agreement will promote WTO members to scientifically and rationally plan fishery subsidies, improve fishery management capabilities and fishery stock restoration capabilities, enhance global fishery resources, promote the sustainable development of the global ocean, and safeguard biodiversity, fishermen's livelihoods, and food security.

4. Medical Devices | On September 15, the General Office of the Shanghai Municipal People's Government issued the Action Plan for Promoting the Whole-Industry-Chain Development of the High-End Medical Device Industry in Shanghai. The Plan proposes that by 2027, more than 500 new first-time approvals for Class III medical device registration certificates in China will be obtained, more than 100 new medical device products will be approved in overseas markets, and enterprises with an annual output value of over 10 billion yuan will be cultivated. Key efforts will be made to develop products such as high-end medical imaging equipment, high-end implantable and interventional devices, high-end surgical systems, high-end AI medical devices, and future new innovative devices.

  - Comment: CITIC Securities believes that on the one hand, this Plan further clarifies the support of commercial health insurance for innovative medical devices and accelerates the approval of innovative medical devices, which is expected to facilitate the commercialization and implementation of innovative products by innovative medical device enterprises in the future; on the other hand, a number of policies clearly stipulate that high-value innovative medical devices and innovative medical service items should be grouped independently in the DRG/DIP reform, have their payment standards increased, and not be restricted by the number of high-multiplier cases. The direction of improving the payment side of the medical device industry is clear, and the commercialization path for innovative devices is smoother, so the medical device industry is expected to benefit significantly.

5. Autonomous Driving | On September 15, Hesai Technology announced that it has further deepened cooperation with a leading US-headquartered Robotaxi company and signed a lidar order worth over $40 million. Hesai will serve as its sole lidar supplier to provide long-range and short-range lidar products, and the delivery of the order is planned to be completed by the end of 2026.

  - Comment: Dongguan Securities believes that as a core sensor of high-level intelligent driving systems, lidar initially accounted for a relatively large proportion of the total vehicle cost. In the past few years, the cost per lidar has dropped from tens of thousands of yuan to 2,000-3,000 yuan now. The price reduction has also led to an increase in the shipment volume of relevant vehicle manufacturers. The scale effect has become significantly prominent, and the sales gross profit margin of major relevant vehicle manufacturers has gradually bottomed out and rebounded. Chinese manufacturers have taken the lead in terms of scale, cost, and mass production rhythm, and the industry is entering a golden period of "rising both in volume and price". With the decline in costs, the installation volume and penetration rate are expected to continue to increase. In addition, the gradual increase in NOA (Navigation on Autopilot) penetration rate, the rise in Robotaxi penetration rate, the mandatory installation of AEB (Automatic Emergency Braking), and the gradual improvement of autonomous driving policies and commercial supporting facilities will all be conducive to the growth of future demand for lidar, and the shipment volume is expected to further increase.

6. Xiaomi Industry Chain | On September 15, Lu Weibing, President of Xiaomi Group, announced that the new Xiaomi 17 series will be released this month, one month earlier than the previous generation, and "it will be the most significant leap in the history of Xiaomi's smartphone digital series". The Xiaomi 17 series includes three products: Xiaomi 17, Xiaomi 17 Pro, and Xiaomi 17 Pro Max, which will be the first in the world to feature the 5th-generation Snapdragon 8 Ultimate mobile platform.

  - Comment: Research institutions believe that September marks the traditional peak season for consumer electronics. The consumer electronics industry is witnessing a dense release of new products, the industrial chain has entered a peak mass production period, and the operating rate of the industry chain will increase rapidly. Recently, Huawei released the new Mate XTs Ultimate Master triple-fold smartphone, and Apple's iPhone 17 series sales have exceeded expectations. Data shows that in the first half of 2025, the global market sales of high-end smartphones (priced over $600) increased by 8% year-on-year. The trend of AI innovation in the industry is clear, and the implementation of end-side AI is expected to accelerate the replacement cycle of terminals such as smartphones and drive the upgrade of hardware. The domestic supply chain has strong R&D capabilities and a strong engineer dividend, and leading consumer electronics companies are expected to benefit significantly from the wave of AI terminal innovation.

# Today's News Preview

- Vice Premier He Lifeng will lead a delegation to Spain from September 14 to 17 to hold talks with the US side.

- US retail sales for August.

- US industrial production and manufacturing production for August.

- US NAHB Housing Market Index for September.

- 2025 Tencent Global Digital Ecosystem Conference.

- Nebius releases financial report.

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