Morning News

# Market Overview

Source: Wall Street CN

Renewed trade concerns and a pullback in tech stocks weighed on the U.S. stock market. Among the three major U.S. stock indices, only the Dow Jones Industrial Average closed higher. After Federal Reserve Chair Jerome Powell's remarks, the S&P 500, which had fallen more than 1% at the opening, turned positive, and the Nasdaq, which had dropped over 2% initially, nearly erased its losses at one point. However, the S&P 500 slipped back into negative territory in late trading, while the Nasdaq's decline widened. The semiconductor index closed down more than 2%, with NVIDIA falling over 4% and Broadcom dropping 3.5%. The U.S.-listed Chinese stocks index declined nearly 2%, with NIO plunging over 5% and Alibaba falling more than 2%. Following the release of better-than-expected Q3 earnings, luxury giant LVMH's U.S.-listed shares closed up nearly 9%.

The rally in U.S. Treasury prices lost steam. The 10-year U.S. Treasury yield fell below 4.0% intraday for the first time in nearly a month, but later erased the decline. The U.S. Dollar Index turned lower after approaching a two-month high; the offshore Chinese yuan fell over 100 pips intraday, approaching 7.15; cryptocurrencies pulled back, with Bitcoin dropping more than 5% intraday and Ethereum plunging over 9% at one point.

Gold hit record highs for two consecutive days, with spot gold rising nearly 2% at one point; silver futures continued to set a new closing high but turned lower after gaining more than 4% intraday; New York copper fell over 4% intraday. The International Energy Agency (IEA) raised its forecast for a global oil market surplus, pushing crude oil down to a five-month low, with U.S. oil falling 3% intraday.

During the Asian trading session, both A-shares and Hong Kong stocks declined. The ChiNext Index dropped nearly 4%, semiconductor and chip stocks fell across the board, the Hang Seng Tech Index plummeted over 3% to extend its losing streak to seven days, Shanghai gold and silver futures rose sharply before pulling back, and government bonds rebounded.

# Key News

- A spokesperson for China's Ministry of Commerce responded to reporters' questions regarding the implementation of U.S. Section 301 investigation restrictive measures on China's shipbuilding and other industries: China expresses strong dissatisfaction and firm opposition to this; China announced that it will take countermeasures against five U.S.-related subsidiaries of South Korea's Hanwha Ocean Co., Ltd.; CCTV Yuyuan Tan Tian (a news program): Since May, the Ministry of Commerce has stated four times: "If they want to fight, we will accompany them to the end; if they want to talk, the door is always open."

- Li Qiang presided over a symposium with experts and entrepreneurs on the economic situation, emphasizing the need to make sustained efforts to expand domestic demand, strengthen the domestic circulation, and continuously create new growth drivers for expanding domestic demand.

- Federal Reserve Chair Jerome Powell opened the door to Fed interest rate cuts: The outlook has not changed much since the September meeting, downside risks to employment are significant, the Fed may be close to stopping balance sheet reduction, there are signs of tight liquidity, and the Fed will act cautiously to avoid a "taper tantrum" similar to that in 2019; the "New Fed Wire" (a media outlet known for its accurate Fed coverage) stated: The Fed remains on track for further interest rate cuts.

- Federal Reserve Governor Michelle Bowman: She expects two more interest rate cuts before the end of the year and a new stress test proposal will be released soon.

- European Central Bank (ECB) President Christine Lagarde: She will never say that the ECB has completed interest rate cuts.

- The "whale" (a large investor) that accurately shorted the crypto market last week made a new move: It denied being a "Trump insider" and increased its short position to $340 million.

- Oracle's "Analyst Day" on October 16 attracted the attention of the entire market; Oracle Cloud announced that it will deploy 50,000 AMD chips to accelerate its efforts to reduce reliance on NVIDIA.

- Report: Broadcom will launch a new network chip to challenge NVIDIA's dominant position. Broadcom denied that its $10 billion customer is OpenAI.

- LVMH, the world's largest luxury goods group, saw an unexpected rebound in Q3 sales. Its organic revenue reversed the downward trend and increased by 1% instead of falling, with a 2% growth in Asia including China. LVMH's U.S.-listed shares surged nearly 9%.

- Zhu Jiusheng, former President and CEO of Vanke, was placed under criminal compulsory measures. He resigned in January this year.

# Market Closing Quotes

## U.S. and European Stock Markets

- S&P 500: Fell 0.16% to close at 6,644.31 points.

- Dow Jones Industrial Average: Rose 0.44% to close at 46,270.46 points.

- Nasdaq Composite: Fell 0.76% to close at 22,521.701 points.

- European STOXX 600 Index: Fell 0.37% to close at 564.54 points.

## A-shares (Chinese Mainland Stock Market)

- Shanghai Composite Index: Fell 0.62% to close at 3,865.23 points.

- Shenzhen Component Index: Fell 2.54% to close at 12,895.11 points.

- ChiNext Index: Fell 3.99% to close at 2,955.98 points.

## Bond Market

By the end of the bond market session, the yield on the 10-year U.S. Treasury note, a benchmark, stood at approximately 4.03%, unchanged from last Friday (the previous trading day); the yield on the 2-year U.S. Treasury note was around 3.48%, down about 2 basis points intraday.

## Commodities

- WTI Crude Oil Futures (November contract): Closed down 1.33% at $58.70 per barrel.

- Brent Crude Oil Futures (December contract): Closed down 1.47% at $62.39 per barrel.

- COMEX Gold Futures (December contract): Closed up 0.74% at $4,163.4 per ounce.

- COMEX Silver Futures (December contract): Closed up 0.38% at $50.622 per ounce.

- COMEX Copper Futures (December contract): Closed down 2.35% at $5.023 per pound.

# Details of Key News

## Global Highlights

- CCTV Yuyuan Tan Tian: China's Ministry of Commerce released multiple pieces of information on Tuesday, with one statement attracting attention. Since May this year, the Ministry of Commerce has made four statements: "If they want to fight, we will accompany them to the end; if they want to talk, the door is always open."

- A spokesperson for the Ministry of Commerce responded to reporters' questions regarding the implementation of U.S. Section 301 investigation restrictive measures on China's shipbuilding and other industries. China expresses strong dissatisfaction and firm opposition to this, and on October 10, announced that it will impose a special port dues on ships involving U.S. elements such as being flagged in the U.S., built in the U.S., or owned, invested in, or operated by U.S. companies.

- China has decided to take countermeasures and impose countermeasures against five U.S.-related subsidiaries of South Korea's Hanwha Ocean Co., Ltd. According to the Press Office of the Ministry of Commerce, on October 14 (U.S. Eastern Time), the U.S. began implementing the final measures of the Section 301 investigation against China's maritime, logistics, and shipbuilding sectors. This act seriously violates international law and the basic norms of international relations, and severely damages the legitimate rights and interests of Chinese enterprises. The relevant subsidiaries of Hanwha Ocean Co., Ltd. in the U.S. assisted and supported the U.S. government in conducting the Section 301 investigation and taking measures against China's maritime, logistics, and shipbuilding industries. China expresses strong dissatisfaction and firm opposition to this.

- The nature of Nexperia's actions is extremely abhorrent! Global Times Editorial: The Netherlands should not underestimate China's determination and capability to safeguard its legitimate rights and interests. The Dutch government, citing "economic security," imposed an operational freeze on Nexperia (a subsidiary of Chinese company Wingtech Technology) and suspended Chinese control over it. Wingtech Technology strongly protested this discriminatory intervention, and China's Ministry of Foreign Affairs also clearly opposed the overgeneralization of the concept of national security. The incident highlights the increased risks faced by Chinese enterprises' overseas assets amid geopolitical struggles.

- Li Qiang presided over a symposium with experts and entrepreneurs on the economic situation. Li Qiang emphasized the need to intensify and improve the implementation of counter-cyclical adjustments, make full use of policy resources, and remove blockages and bottlenecks through reform measures. Efforts should be made to continuously expand domestic demand, strengthen the domestic circulation, and constantly create new growth drivers for expanding domestic demand. Multiple measures should be taken to create a first-class industrial ecosystem, comprehensively address disorderly and irrational competition in the industry, and focus on building an innovation ecosystem.

- Federal Reserve Chair Jerome Powell opened the door to Fed interest rate cuts: The outlook has not changed much since the September meeting, downside risks to employment are significant, and the Fed may be close to stopping balance sheet reduction.

- Powell stated that data before the government shutdown indicated that economic growth may be slightly more robust than expected, and "the downside risks to employment seem to have increased"; hiring has slowed down, and employment may decline further; reserves remain sufficient, and the level required to stop balance sheet reduction may be reached in the next few months; there are signs of tightening liquidity, and the Fed will act cautiously to avoid a "taper tantrum" similar to that in 2019; other indicators cannot replace official data; he warned that if the Fed cannot pay interest on reserves, it will lose control of interest rates, causing greater damage to the market. When asked about the rise in gold prices, he declined to comment on asset prices.

- "The New Fed Wire": Powell keeps the Fed on track for further interest rate cuts.

- Federal Reserve Governor Michelle Bowman: She expects two more interest rate cuts before the end of the year, and a new stress test proposal will be released soon. Federal Reserve Governor Michelle Bowman anticipates two additional interest rate cuts by the end of the year, and currently, the greater risks lie in the employment sector. The Federal Reserve is advancing a proposal for gradual reform of the stress test process. The central bank has committed to disclosing specific stress test models to banks in advance to balance the annual changes in capital adequacy ratios.

- European Central Bank (ECB) President Christine Lagarde: She will never say that the ECB has completed interest rate cuts. Investors and analysts generally believe that after eight interest rate cuts within a year, which lowered the ECB's deposit rate to 2%, the interest rate cutting cycle may have ended. In her latest statement, Lagarde said that it is still too early to announce the end of the interest rate cutting cycle, and the ECB is prepared to respond in case of emergencies, because even if the current situation is sound, circumstances may still change.

- The "whale" (a large investor) that accurately shorted the crypto market last week made a new move: It denied being a "Trump insider" and increased its short position to $340 million! The mysterious trader "whale" took swift and decisive new actions. After depositing $40 million in principal on Monday, the address used 10x leverage to establish a Bitcoin short position with a notional value of approximately $340 million. Data shows that the average entry price of this position was $116,009. Up to now, this transaction has recorded over $700,000 in unrealized profits.

- The first new high in the crypto market after the massive liquidation: Binance Coin (BNB) hit a new all-time high. Against the backdrop of the crypto market experiencing an "epic liquidation" of $19 billion over the weekend, BNB quickly recovered its losses and hit a new all-time high of nearly $1,370 on Monday. According to reports, China Renaissance is planning to raise approximately $600 million to establish a public investment vehicle focused on accumulating BNB, and the family office of Binance co-founder Changpeng Zhao also plans to participate in the investment. The number of monthly active addresses on BNB Chain reached a record 59 million.

- Oracle's "Analyst Day" on October 16 attracted the attention of the entire market. The unprecedented growth in RPO (Remaining Performance Obligations) in the first fiscal quarter has created extremely high expectations. During this "Analyst Day," investors' focus shifted to the capital expenditures and profit margin impacts required behind the success driven by AI. In addition, analysts have concerns about the feasibility of delivering large-scale AI contracts signed by Oracle with OpenAI, NVIDIA, and other companies.

- Oracle Cloud announced that it will deploy 50,000 AMD chips to accelerate its efforts to reduce reliance on NVIDIA. Oracle data centers will start deploying 50,000 of AMD's upcoming MI450 AI chips from the third quarter of 2026. The MI450 is AMD's first AI chip that can be assembled into a rack-level system, allowing 72 chips to work together to support the training and deployment of the most advanced AI algorithms.

- Report: Broadcom will launch a new network chip to challenge NVIDIA's dominant position. Shortly after reaching a major cooperation agreement with OpenAI, Broadcom released the Thor Ultra network chip, which enables data centers to deploy far more chips than ever before, providing underlying network support for AI applications such as ChatGPT. The launch of the new chip will strengthen Broadcom's dominant position in AI data center network communications and bring it into direct competition with NVIDIA.

- The $1 billion customer is not OpenAI—does Broadcom have another major customer? According to reports, the president of Broadcom's Semiconductor Solutions Group officially clarified that OpenAI is not the mysterious $1 billion customer announced in its Q3 earnings report in September. Although Broadcom has indeed reached a cooperation with OpenAI to jointly build a customized AI accelerator (the project is expected to be completed in 2029), this is not the $1 billion order rumored earlier. With OpenAI ruled out, market speculation about the identity of Broadcom's mysterious $1 billion customer has restarted.

- Walmart partnered with OpenAI to provide shopping services on the ChatGPT platform. Users only need to click the "buy" button in ChatGPT to directly purchase Walmart's products. These products cover clothing, entertainment, packaged food, and other products from Walmart and its subsidiary Sam's Club.

- LVMH, the world's largest luxury goods group, saw an unexpected rebound in Q3 global sales. Its organic revenue reversed the downward trend and increased by 1% instead of falling, with revenue growth in both major markets. Organic revenue in the U.S. increased by 3%, compared with analysts' expectation of 1.9% growth; organic revenue in Asia (excluding Japan) including China increased by 2%, against analysts' expectation of a 3.6% decline. Among the main businesses in Q3, only the fashion and leather goods segment saw a 2% decline in organic revenue. The selective retailing business (including Sephora) achieved a 7% surge in organic revenue. After the earnings report was released, LVMH's U.S.-listed shares reversed losses to gain during intraday trading and closed up 8.8%.

- Zhu Jiusheng, former President and CEO of Vanke, was placed under criminal compulsory measures. He resigned in January this year. According to National Business Daily, Zhu Jiusheng worked at the Shenzhen Branch of China Construction Bank Co., Ltd. from 1993 to 2012, and later joined Vanke. In external communications, Zhu Jiusheng always appeared gentle, but within the company, he was mostly described as "resolute and decisive" in evaluations.

## Domestic Macroeconomics

- People's Bank of China (PBOC): Will continue to adhere to the decisive role of the market in the formation of the exchange rate and strengthen expectation management. According to Financial News, a person in charge of the Monetary Policy Department of the PBOC stated in an interview that looking ahead, China's macroeconomic fundamentals are solid, the international balance of payments is expected to maintain autonomous balance, and there is a solid foundation for the stability of the RMB exchange rate in the medium and long term. However, the exchange rate is affected by multiple factors. We will continue to adhere to the decisive role of the market in the exchange rate formation, maintain exchange rate flexibility, strengthen expectation management, guard against the risk of exchange rate overshooting, and keep the RMB exchange rate basically stable at a reasonable and balanced level.

## Overseas Macroeconomics

- "Trump's Banker": Helped Trump's sons earn over $500 million. Investment banker Kyle Wool collaborated with Trump's two sons through his company Dominari Holdings, with the core model being to use the Trump family's influence to drive up stock prices. Wool previously worked at major banks such as Morgan Stanley, later moved his company's headquarters to Trump Tower, and spent years cultivating relationships with the Trump family. He arranged for Donald Jr. to invest in a drone company, earning $4.4 million in profits.

- A replica of Trump's crypto dinner? Trump's allies are aggressively selling sponsorships for the "Basin AI Conference"—paying allows participation in VIP receptions and dinners. Whether it is the noisy crypto dinner in August or this seemingly professional AI summit to be held on October 21, the core logic seems unchanged: within a framework closely tied to the Trump brand, money is being used to buy access to the center of power.

- Bank of America Fund Manager Survey: U.S. stock allocation turned overweight for the first time in 8 months, and over half believe there is a bubble in AI. The Bank of America survey shows that approximately 54% of participants believe that tech stock valuations are too high, a proportion that has increased significantly from last month. Despite concerns about a bubble in AI stocks, U.S. stock allocation rose against the trend. Fund managers' exposure to U.S. stocks rose to the highest level in 8 months, returning to the level before concerns about tariffs emerged.

- Gold has central bank support, while silver does not—Goldman Sachs: A slight decline in investment capital will also lead to a sharp correction in silver prices. Goldman Sachs believes that as Fed interest rate cuts attract capital inflows, the medium-term trend of silver is still expected to rise further, but in the short term, it faces far greater volatility and downside risks than gold. The silver market has poor liquidity and its scale is only one-ninth of the gold market, which amplifies price fluctuations. Moreover, silver is the only commodity that lacks the support of structural purchases by central banks, and any temporary decline in investment inflows may trigger a disproportionate price correction.

- IEA Monthly Report: A record oil surplus may occur next year. The latest monthly report from the International Energy Agency (IEA) shows that global oil supply will exceed demand by nearly 4 million barrels per day next year, with the annual surplus reaching an unprecedented level. At the same time, the IEA slightly lowered its forecast for this year's consumption growth and raised its supply forecasts for non-OPEC countries for this year and next.

# Overseas Companies

OpenAI shows no sign of slowing down: $1 trillion in orders plus an additional $350-500 billion! "If you owe the bank $100, that's your problem. If you owe Broadcom $500 billion, that's Broadcom's problem. If you owe hundreds of billions of dollars to every major tech company, that's their problem. They will definitely find a solution! Or you will. The money problem will solve itself."

OpenAI has once again demonstrated its "stock market Midas touch" by collaborating with Broadcom on AI chip design and with Arm on CPU design, triggering a sharp surge in their stock prices. OpenAI's partnership with Broadcom drove the latter's stock price up by 11%, and it was reported that OpenAI is in talks with Arm to design CPUs for AI servers, which once again pushed Arm's stock price up by over 11%. This not only highlights OpenAI's ambition in the chip sector but also underscores the key role played by SoftBank, its major shareholder, behind the scenes. This series of in-depth collaborations signals the formation of an "AI alliance," but it also comes with enormous capital challenges.

Google is investing $15 billion to build a data center in southern India, creating its largest AI hub outside the United States. Alphabet, Google's parent company, announced on Tuesday that it will invest $15 billion over the next five years to construct an artificial intelligence data center hub in Visakhapatnam, a port city in India's Andhra Pradesh state. This will be the company's largest data center facility outside the U.S. Equipped with a new energy system and fiber-optic network, the project will become part of Google's global AI center network.

Intel unveiled its new GPU "Crescent Island," with customer testing set to begin next year. On Tuesday, Intel launched the all-new GPU "Crescent Island," which focuses on high energy efficiency and low cost for AI inference. It is equipped with 160GB of LPDDR5X memory and adopts the next-generation Xe3P microarchitecture. The card will enter customer testing in the second half of 2026 and is part of Intel's strategy to build an open AI system architecture.

LVMH's Q3 revenue saw an unexpected 1% growth, with Sephora delivering outstanding performance and its ADRs surging by 8%. In the third quarter, LVMH achieved a 1% organic revenue growth to €18.28 billion, ending two consecutive quarters of decline. Its fashion and leather goods business dropped by 2% but performed better than expected, while its selective retailing segment (including Sephora) posted strong growth of 7%. The Chinese market recorded a 2% growth, reversing the 9% decline in the first half of the year. After the earnings report was released, LVMH's ADRs soared by over 8%, driving up the entire luxury goods sector. Kering Group's ADRs rose by 5.67%, and Richemont Group's ADRs also increased by 4%.

JPMorgan Chase's Q3 profit exceeded expectations, with investment banking revenue surging by 16% and trading business hitting a record high. Both JPMorgan Chase's Q3 revenue and profit surpassed expectations, and it slightly raised its full-year net interest income forecast from approximately $95.5 billion in July to around $95.8 billion. Among its businesses, the investment banking sector achieved a full recovery, with fee income reaching $2.6 billion, a year-on-year jump of 16%, and ranking first globally in investment banking fees. Its trading business hit an all-time high, with revenue of $8.9 billion, a year-on-year surge of 25%, setting a Q3 historical record.

Goldman Sachs' Q3 revenue reached a record high for the same period in history, with its investment banking business recovering strongly and assets under management hitting $3.45 trillion. Goldman Sachs' Q3 net revenue stood at $15.18 billion, the highest ever for the same quarter in the company's history and the third-highest quarterly revenue on record. Its net profit increased by 37% year-on-year. Driven by the M&A boom, the revenue of its investment banking business soared by 42%, significantly exceeding market expectations. The total scale of assets under management rose to $3.45 trillion, continuing to hit a record high.

Citigroup delivered a strong Q3 performance, with all five business segments achieving record revenues and shareholder returns reaching $6.1 billion. Citigroup's Q3 net income was $22.1 billion, a year-on-year increase of 9%, and its earnings per share stood at $1.86. Notably, all five business segments thrived: Services, Markets, Banking, Wealth Management, and U.S. Consumer Banking all set Q3 revenue records, demonstrating remarkable results from its business transformation. Its shareholder returns were unprecedented, with approximately $6.1 billion returned to shareholders in a single quarter.

Johnson & Johnson's Q3 performance exceeded expectations, and it plans to spin off its orthopedics business to cope with Trump's pressure on drug prices. The company's Q3 revenue increased by 6.8% year-on-year to $23.99 billion, surpassing market expectations, and it raised its full-year revenue forecast in the earnings report. Johnson & Johnson plans to separate its orthopedics business from the rest of the company within 18 to 24 months to address the pressure brought by tariffs.

AI fuels demand for memory chips: Samsung's profit hits the largest since 2022, and its stock price reaches a new high. Benefiting from the surging demand for memory chips driven by AI development, Samsung Electronics' Q3 operating profit reached 1.21 trillion won, far exceeding the expected 970 billion won and marking the highest quarterly profit since 2022. Meanwhile, Samsung has made progress in the HBM (High Bandwidth Memory) chip sector, having secured orders from AMD and currently seeking final approval from NVIDIA in an effort to catch up with its competitor SK Hynix. On Tuesday, the company's stock price rose by over 3% at one point, hitting a new high.

# Industries/Concepts

## 1. Nuclear Fusion

According to a report by Phoenix TV, the Southwest Institute of Physics under the China National Nuclear Corporation (CNNC) has made significant progress in the key technology of magnetic confinement nuclear fusion energy extraction. The research team independently designed and built an engineering-scale thermal research bench using liquid metal and helium as working fluids for fusion energy extraction research, which has been fully put into operation. This marks that China has established an internationally leading research system for liquid metal and helium-cooled technologies covering all operating conditions of fusion reactors, laying a key experimental foundation for the future engineering application of fusion reactors.

**Commentary**: Analysts believe that the full completion of the energy extraction thermal experimental bench is an important manifestation of China's independent capabilities in key equipment and technologies for nuclear fusion. This achievement has significantly enhanced China's engineering verification capabilities and technical reserves in the fields of liquid blankets and helium-cooled systems, demonstrating that China has systematically mastered the core technologies of design, manufacturing, and integration of helium-cooled systems, including main fans and high-efficiency heat exchangers. This progress will strongly support the subsequent construction of China's fusion experimental reactors, promote the smooth implementation of the ITER (International Thermonuclear Experimental Reactor) program, and lay a solid engineering and technical foundation for humanity to ultimately realize the dream of fusion energy.

## 2. Commercial Aerospace

According to a report by China National Radio, recently, the international standard project ISO/NP14620-5 *Space Systems - Safety Requirements - Part 5: Manned Spacecraft*, proposed under the organization of the National Manned Spaceflight Standardization Technical Committee, has been officially registered and initiated by the International Organization for Standardization (ISO). This is China's first successfully initiated international standard in the field of manned spaceflight and also the first breakthrough in international rule-making in this field. It provides a "Chinese solution" for promoting the safety of manned spaceflights and will further enhance China's international discourse power and influence in the field of manned spaceflight.

**Commentary**: Analysts believe that the manned spaceflight market is in a critical transition period from "experimental exploration" to "large-scale operation". With continuous technological breakthroughs, declining costs, and optimized policy environments, it will witness explosive growth in the next decade. In particular, the rise of commercial aerospace enterprises is reshaping the global aerospace industry pattern. China has formed a coordinated development pattern of "national team + private enterprises": China Aerospace Science and Technology Corporation (CASC) and China Aerospace Science and Industry Corporation (CASIC) lead the research and development of core launch vehicles and manned spacecraft, while private enterprises such as i-Space and LandSpace focus on reusable power systems and commercial payload integration. It is expected that the global manned spaceflight market scale will exceed RMB 200 billion by 2025 and is expected to reach the RMB 500 billion level by 2030, with a compound annual growth rate (CAGR) maintained between 25% and 30%.

## 3. SSD

According to the latest survey by TrendForce, the application of AI Inference is rapidly driving up the demand for real-time access and high-speed processing of massive data, prompting suppliers of Hard Disk Drives (HDDs) and Solid-State Drives (SSDs) to actively expand the supply of large-capacity storage products. Due to the huge supply gap in the HDD market, NAND Flash manufacturers are encouraged to accelerate technological transformation and invest in the production of ultra-large-capacity Nearline SSDs (such as 122TB and even 245TB), alleviating the previous uncertainty about future demand.

**Commentary**: Analysts stated that the construction of AI infrastructure and the development of products such as smartphones and smart glasses have driven demand in the memory market, resulting in a shortage of some products. China's memory industry, relying on technological breakthroughs and product iterations, is entering the supply chain systems of leading domestic and overseas brands of smartphones, personal computers, and servers. The industrialization and marketization process of domestic memory products have entered a new stage.

## 4. Robotics

On October 14, Lin Jian, Spokesperson of China's Ministry of Foreign Affairs, stated that the *2025 World Robotics Report* previously released by the International Federation of Robotics (IFR) shows that the stock of in-service industrial robots in China exceeded 2 million units in 2024, ranking first in the world. At the same time, Chinese robots are showing broad application prospects in fields such as automobiles, electronics, metal machinery, home services, and medical education, gradually moving from laboratories to factory production lines and the homes of people around the world.

**Commentary**: Huaxin Securities believes that during the "14th Five-Year Plan" period, the Ministry of Science and Technology has continued to strengthen the research on key core technologies and the application of achievements, leading the development of new-quality productive forces through scientific and technological innovation. In terms of humanoid robots, breakthroughs have been made in overall machine technology, and progress has been achieved in key technologies such as multi-modal perception and brain-cerebellum models, promoting in-depth integration with embodied intelligence. This is accelerating the application of humanoid robots in scenarios such as automobile manufacturing, logistics handling, and power inspection, laying a solid foundation for the development of the future trillion-level industry. Currently, there is no leader in China's robotics industry yet, and the industry still needs policy guidance. Future attention can be paid to potential policy catalysts.

## 5. Computing Power

Recently, the Shanghai Municipal Commission of Economy and Informatization issued the *Shanghai Action Plan for the High-Quality Development of the Intelligent Terminal Industry (2026-2027)*. The plan proposes to expand the scale of intelligent computing power terminals: accelerate the deployment of edge intelligent computing all-in-one terminals, develop inference all-in-one products that support the lightweight of large models, create plug-and-play AI edge solutions, and accelerate the empowerment of AI in various industries. It also aims to build an industrial cluster of intelligent computing server terminals, enhance the optimization capabilities of 10,000-card cluster systems, gather high-quality domestic enterprises engaged in intelligent computing server integration, achieve a scale of over RMB 10 billion, and drive the large-scale application of core components such as independent GPUs and interconnection modules.

**Commentary**: Zheshang Securities stated that in 2025, domestic computing power will rise. On the demand side, large enterprises will continue to maintain a high growth trend in capital expenditures, and a consensus on the localization of computing power will gradually take shape. On the supply side, breakthroughs have been made in advanced manufacturing processes, Cambricon and Moore Threads have achieved revenue growth, and Huawei has announced its Ascend product plan for the next three years. A domestically independent and controllable computing power industry chain may be gradually taking shape.

# Preview of Today's Key News

- China's CPI and PPI for September

- France's CPI for September

- Goldman Sachs predicts: The U.S. government may end the shutdown on October 15

- The Federal Reserve releases the Beige Book on Economic Conditions

- Speeches by Federal Reserve Governor Milan and Atlanta Fed President Bostic

- Speech by ECB President Lagarde

- 2025 IMF and World Bank Annual Meetings (Autumn)

- Earnings releases by ASML, Bank of America, and Morgan Stanley

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# Risk Warning and Disclaimer

The market is risky, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are in line with their specific circumstances. Any investment made based on this article shall be at the investor's own risk.