Morning News

Source: Wall Street News

# Market Overview

Investors showed a certain degree of caution ahead of the Federal Reserve (Fed) meeting. On Friday, U.S. stock indices ended mixed: the Nasdaq closed up 0.44% supported by large-cap tech stocks, the S&P 500 edged down slightly, and the Dow Jones Industrial Average fell by approximately 0.6%.

Tesla rose about 7.4%, marking its largest daily gain in nearly three months, with a two-day increase of close to 14%. Circle dropped around 6.3% as its major rival Tether launched a new stablecoin. Gemini soared by over 60% at one point on its first day of listing and closed up 14%. Shares of vaccine manufacturers plummeted sharply.

U.S. Treasury yields moved higher on Friday, with the 10-year Treasury yield rising by 4.57 basis points. The U.S. dollar fluctuated above the 97 level during the day and recorded its largest weekly decline in about a month for the whole week.

Cryptocurrencies moved upward across the board. Bitcoin rose roughly 2%, climbing for three consecutive days; Ethereum broke out of its nearly two-week consolidation range, surging by more than 6.2% at one point; Solana gained 6.3%.

Gold advanced 0.27%. After hitting a new high of $3,674 last week, it pulled back and entered a consolidation phase. Crude oil first fell and then rose, rebounding by as much as 3.65% from the daily low, but the gain narrowed significantly afterward.

In early trading of the Asian market on Monday, both U.S. WTI crude oil and Brent crude oil edged up 0.2%, while spot gold and U.S. stock index futures saw little fluctuation.

# Key News

- China and the U.S. held talks on relevant economic and trade issues in Spain. People's Daily "Zhong Sheng" commentary: Focus on the overall situation of China-U.S. economic and trade relations and adhere to the principle of equality and mutual benefit. The Ministry of Commerce of China launched an anti-discrimination investigation against the U.S. relevant measures in the integrated circuit sector targeting China.

- The "Central Bank Super Week" is here: The Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan and other major central banks will announce their interest rate decisions.

- The U.S. government is once again facing a "shutdown". The Democratic Party has put forward conditions, stating that if the conditions are not met, the government will "shut down by the end of September".

- The Federal Reserve is about to restart the "interest rate cut cycle". Goldman Sachs stated that the dual easing of fiscal and monetary policies, the new Fed chairperson, and AI-driven stimulus will all push up assets and inflation next year. Bank of America's Hartnett said that the weak U.S. dollar cycle has begun, and the era of "buying everything except the U.S. dollar" is approaching.

- The "third-generation leader of the U.S. MAGA movement" was assassinated: The assassin turned out to be a "far-right activist", and behind this incident lies the hidden battle over "who will succeed Trump".

- The U.S. and the UK signed a "breakthrough" technology agreement this week, covering AI and quantum computing. The cryptocurrency industry is lobbying for the inclusion of "blockchain" in the agreement.

- Elon Musk "connected" to a right-wing rally in London, claiming that "it's either fight back or die" and urging to "dissolve the UK Parliament and hold a new general election".

- A national standard draft requiring that "restaurants must clearly indicate the use of pre-prepared dishes" has been approved! Luo Yonghao's live broadcast "went viral": It was the first time he encountered over 90% of people supporting him, and he plans to try Laoxiangji (a Chinese restaurant chain)! Xi Bei's Jia Guolong said: "I am now trapped in a cycle of proving my innocence."

- Pre-sales for the iPhone 17 started, and Apple's official website crashed due to heavy traffic! Netizens commented: "Can't get one at all—wasn't it said to be ugly?" Xiaomi's president stated: "It's very impressive; it's a major upgrade (literally meaning 'the toothpaste tube has been squeezed dry', a metaphor for significant product improvement)."

- OpenAI and Microsoft reached a "spin-off agreement": Microsoft's "revenue share" will be reduced to 8%.

- A milestone week for "tokenized securities": The SEC and Nasdaq gave "official recognition", BlackRock achieved a "major breakthrough", and the first listed company took the initiative to "tokenize its stocks".

- Automobile steady growth plan: Standardize the competitive order, accelerate the market access of L3 autonomous driving, and make breakthroughs in technologies such as automotive chips and solid-state batteries.

# Market Closing Quotes

## European and U.S. Stock Markets

- S&P 500: Fell 0.05% to close at 6,584.29 points, with a cumulative weekly gain of 1.59%.

- Dow Jones Industrial Average: Dropped 0.59% to close at 45,834.22 points, posting a cumulative weekly increase of 0.95%.

- Nasdaq Composite: Rose 0.44% to close at 22,141.10 points, achieving a cumulative weekly gain of 2.03%.

- Europe's STOXX 600 Index: Closed down 0.09% at 554.84 points, with a cumulative weekly rise of 1.03%.

## A-Share Market (China)

- Shanghai Composite Index: Closed at 3,870.60 points, down 0.12%.

- Shenzhen Component Index: Ended at 12,924.13 points, falling 0.43%.

- ChiNext Index: Closed at 3,020.42 points, dropping 1.09%.

## Bond Market

- U.S. 10-year Treasury Yield: Rose 3.80 basis points to 4.0586%, with a cumulative weekly decline of 1.56 basis points.

- U.S. 2-year Treasury Yield: Increased 1.41 basis points to 3.5556%, posting a cumulative weekly gain of 4.44 basis points.

## Commodities

- COMEX Gold Futures: Rose 0.19% to close at $3,680.50 per ounce, with a cumulative weekly gain of 0.74%.

- WTI Crude Oil Futures (October contract): Closed up 0.51% at $62.69 per barrel, achieving a cumulative weekly increase of 1.32%.

- Brent Crude Oil Futures (November contract): Closed up 0.93% at $66.99 per barrel, with a cumulative weekly rise of 2.27%.

# Details of Key News

## Global Highlights

- China and the U.S. held talks on relevant economic and trade issues in Spain. On September 14 (local time), China and the U.S. held talks on relevant economic and trade issues in Madrid, Spain.

- People's Daily "Zhong Sheng" Commentary: Focus on the overall situation of China-U.S. economic and trade relations and adhere to the principle of equality and mutual benefit. The two sides will discuss issues such as U.S. unilateral tariff measures, abuse of export controls, and TikTok. Regarding the TikTok issue, China will adhere to principles and firmly safeguard the legitimate and legal rights and interests of Chinese-funded enterprises. Specific business arrangements involving Chinese enterprises must comply with Chinese laws and regulations.

- China's Ministry of Commerce launches anti-discrimination investigation into U.S. measures related to the integrated circuit sector against China. Preliminary evidence and information obtained by the Ministry of Commerce show that the U.S. measures related to the integrated circuit sector against China fall into the category of "discriminatory prohibitions, restrictions or other similar measures against the People's Republic of China in terms of trade" as stipulated in Article 7 of the Foreign Trade Law of the People's Republic of China. This investigation started on September 13, 2025, with a usual duration of 3 months, which may be appropriately extended under special circumstances.

- "Central Bank Super Week" is here, and traders will have to "work around the clock" for these 36 hours. The global financial market is about to embrace the "Central Bank Super Week", during which major central banks including the Federal Reserve (Fed) and the Bank of Canada will announce their interest rate decisions. The market generally expects the Fed to cut interest rates by 25 basis points for the first time to cope with the weak labor market and respond to the White House's call for interest rate cuts. Other central banks, such as the Bank of England and the Bank of Japan, are likely to keep interest rates unchanged.

- The U.S. government faces another "shutdown" as Democrats set conditions, warning of a "shutdown by the end of September" if demands are not met. Due to the Democrats' request to include an extension of subsidies under the Affordable Care Act in the government funding bill, the U.S. government is once again facing a "shutdown" crisis. If the subsidies expire, the health insurance premiums of about 22.4 million Americans will rise sharply, triggering a political backlash. Although Republicans are under pressure from the mid-term elections and some lawmakers tend to compromise, hardliners within the party insist on cutting spending, making it difficult for the two parties to reach an agreement.

- "U.S. stocks that soared 32% in 5 months" meet "the Fed that resumes interest rate cuts" – what will happen this week? Record-high U.S. stocks are facing a turning point as the Fed is about to restart interest rate cuts, with the market caught in a game between expectations of easing and concerns about economic slowdown. At the same time, the trillion-dollar continuous capital inflow brought by ETFs is reshaping market logic as a powerful structural force, which may weaken the impact of traditional monetary policies. The final trend of the market this week will depend on the complex interaction between policy signals, economic fundamentals, and this "autopilot-style" capital flow.

- The Fed is about to restart the "interest rate cut cycle"; Goldman Sachs: Dual easing of fiscal and monetary policies, new Fed chair, and AI stimulus will all push up assets and inflation next year. Goldman Sachs warned that the interest rate cut cycle that the Fed is about to launch will be relatively simple this year but may face a complex situation in 2026. Faced with loose financial conditions, active fiscal stimulus, and tail risks of AI technology, the dovish new Fed chair increases the possibility of the economy re-accelerating next year, which will support physical assets and inflation premiums.

- Bank of America's Hartnett: Weak U.S. dollar cycle begins, and the era of "buy everything except the U.S. dollar" is here. Michael Hartnett, a strategist at Bank of America, believes that the "All But Bonds" (ABB) trading that has dominated the market in the past will end, and will be replaced by a new paradigm of "All But Dollars" (ABD). This shift stems from the peak of U.S. nominal GDP growth, which will weaken the U.S. dollar, bring back the bond bull market, and benefit interest rate-sensitive assets and international markets.

- Does "peak trading volume" equal "peak market trend"? GF Securities believes that by reviewing data since 2010, "volume peak" often means the peak of the second derivative of the trend. After the end of the accelerated upward phase, the upward trend is likely to continue, but the slope will slow down. For the current market trend, if there are new catalysts in the future, the trading volume of the index may further increase. For the main market trend, it is important to judge the strength of the trend so as not to chase after overheating, not to sell during corrections, and to stop losses in a timely manner when the trend ends.

- The "third-generation leader of the U.S. MAGA movement" was assassinated: Was the assassin actually a "far-right activist"? Behind it is the hidden battle over "who will succeed Trump". After the suspect Tyler Robinson was arrested, his political orientation triggered controversy – he was not a "radical leftist" as claimed by Trump, but may be related to the far-right "Groyper" movement. This organization, led by Fuentes, has long had ideological conflicts with the mainstream conservatives represented by Kirk. Analysts pointed out that this case reveals deep rifts within the U.S. right wing, reflecting the intensifying power struggle over "who will inherit Trumpism", which may reshape the political pattern of the U.S. right wing.

- The U.S. and the UK signed a "breakthrough" technology agreement this week, covering AI and quantum computing; the cryptocurrency industry lobbies for "blockchain" to be included. The U.S. and the UK will sign a "breakthrough" technology agreement this week, with the core content focusing on cooperation in artificial intelligence and quantum computing. During the signing of the agreement, U.S. technology giants such as NVIDIA and OpenAI are expected to announce investments of billions of dollars. At the same time, a coalition composed of more than a dozen industry associations is putting pressure on the UK government, calling for the inclusion of blockchain technology in the agreement to prevent the UK from falling behind competitors in the digital asset field.

- Elon Musk "connected" to a right-wing rally in London, claiming "either fight back or die" and advocating for "dissolving the UK Parliament and holding a new general election". Musk rarely intervened in British politics via video link, publicly calling for the dissolution of Parliament and the immediate holding of a general election at a right-wing rally in London. He warned the audience that "it's either fight back or die" and claimed that "violence is coming". Musk clearly expressed his dissatisfaction with the current UK government and his call for immediate action. He believes that waiting for the next scheduled election cycle is too long to solve the urgent problems he perceives.

- "Restaurants must clearly indicate the use of pre-prepared dishes" – the relevant draft national standard has been approved! According to a report by China Business News, the draft of the National Food Safety Standard for Pre-prepared Dishes, led by the National Health Commission, has quietly passed expert review and will soon be open to the public for comments.

- Luo Yonghao's statement: I am not opposed to pre-prepared dishes! The official has clearly defined the "definition and scope of pre-prepared dishes". Since pre-prepared dishes are legal, restaurants certainly have the right to use them, but consumers have the right to know whether restaurants use pre-prepared dishes. Luo Yonghao's live broadcast "went viral": It was the first time I encountered over 90% of people supporting me, and I plan to try Laoxiangji (a Chinese restaurant chain)! Luo Yonghao said, "The reason why the five of us ordered 15 dishes is that the portion of each dish is too small, and we really can't get enough to eat." He said he is not opposed to pre-prepared dishes and hopes to promote the transparency of pre-prepared dishes and safeguard consumers' right to know.

- Jia Guolong of Xi Bei Restaurant: I am now trapped in a cycle of proving my innocence. From the current situation, both sides have chosen to confront each other head-on and insist on fighting to the end. Jia Guolong said that even if the business fails, he must fight the lawsuit against Luo Yonghao. However, the final outcome remains unknown.

- Pre-sales for the iPhone 17 started, and Apple's official website crashed due to heavy traffic! Netizens commented: "Can't get one at all – wasn't it said to be ugly?" Xiaomi's president: "It's very impressive; it's a major upgrade (literally meaning 'the toothpaste tube has been squeezed dry')." Lu Weibing, General Manager of Xiaomi Brand, posted that this is the year with the biggest changes for the iPhone. He believes that the standard version of the iPhone 17 is very powerful, "it's a major upgrade", the iPhone Air is amazing and may activate the mobile phone market, and the new design of the iPhone Pro is controversial but highly recognizable.

- OpenAI and Microsoft reached a "spin-off agreement": Microsoft's "revenue share" reduced to 8%. According to media reports, OpenAI has informed some shareholders that the proportion of revenue it shares with Microsoft will drop significantly from nearly 20% this year to about 8% by 2030. This means that by 2030, OpenAI will be able to retain an additional $50 billion or more in revenue for itself.

- A milestone week for "tokenized securities": SEC and Nasdaq gave "official recognition", BlackRock made a "major breakthrough", and the first listed company took the initiative to "tokenize its stocks". Mark Wilson, a Goldman Sachs trader, commented that although there is still a lot of regulatory work to be done, the possibility of "U.S. capital markets going on-chain" is becoming increasingly clear.

## Domestic Macroeconomics

- China's new social financing in August reached 2.57 trillion yuan, with new loans of 590 billion yuan; the M2-M1 gap hit a four-year low.

- China's social financing scale increment in August was 2.57 trillion yuan, and the stock of social financing was 240 trillion yuan. RMB loans increased by 590 billion yuan, and RMB deposits increased by 2.06 trillion yuan. The new loan interest rate for enterprises in August remained at a historical low. In the first eight months, RMB deposits increased by 20.5 trillion yuan. The M2-M1 gap narrowed by 0.4 percentage points from the previous month.

- Market analysis believes that factors such as the recovery of industry prosperity, sustained resilience of exports, peak summer consumption season, and real estate support policies have provided support for credit growth in August.

- The "deposit shift" accelerated in August. The recovery of the stock market further drove the shift of deposits, and there was a seesaw effect between non-bank deposits and household deposits. Non-bank deposits increased by 1.18 trillion yuan in August, an increase of 550 billion yuan year-on-year. The M2-M1 gap in August was -2.8% (compared with 3.2% in July).

## Domestic Companies/Industries

- Alibaba's plan for "integrated e-commerce ecosystem": "profit margin improvement" of food delivery and flash sales, Gaode's "in-store strategy", and organizational reform. JPMorgan believes that Alibaba is building an "integrated e-commerce ecosystem" and will improve the profitability of food delivery and flash sales through four major drivers: optimization of user structure, adjustment of order structure, improvement of fulfillment efficiency, and enhancement of monetization capabilities. It has launched the "Taobao Premier Membership System" to achieve cross-business synergy, and Gaode Maps has entered the local service market by virtue of its advantage of 170 million daily active users. In terms of organizational reform, the number of partners has been reduced by nearly half, and the younger management has improved execution. JPMorgan maintains an "Overweight" rating, believing that streamlined operations and a clear strategy will bring sustainable growth.

- The wholesale price of Feitian Moutai dropped to 1,770 yuan per bottle. According to data from "Today's Liquor Price", on September 14, the wholesale reference price of 2025 Feitian Moutai (53% alcohol content/500ml) in loose bottles was 1,770 yuan per bottle, a decrease of 10 yuan from the previous day, hitting a new low since its launch; it has dropped by 20.27% compared with 2,220 yuan per bottle when the platform was launched. The price of original cases was 1,790 yuan per bottle, the same as the previous day, but this price also hit a new low since its launch, with a decline of more than 20% compared with 2,255 yuan per bottle when the platform was launched.

- Goldman Sachs raised VeriSilicon's target price: Existing AI orders provide support for accelerated growth in the future, and revenue expectations are raised. On the 11th, VeriSilicon announced the acquisition of CoreLink Technology, a RISC-V IP supplier, to fill the gap in CPU IP and build a more complete heterogeneous computing IP platform. Goldman Sachs raised VeriSilicon's target price to 220 yuan and also raised its net profit forecasts from 2027 to 2030, with the maximum increase reaching 7%. Although the company's short-term profits are under pressure due to increased R&D investment, its long-term growth prospects are still promising.

- Games: The next "innovative drugs". Kaiyuan Securities believes that the game and innovative drug industries are similar in terms of R&D investment, reliance on blockbuster products, and cash flow structure, and both show characteristics such as "high investment, high risk, long cycle, high flexibility, and strong regulation". Currently, the game industry is undergoing major marginal changes: the industry is shifting from "one-off copycat products" to "long-cycle projects", and the duration of industry cash flow is increasing; AI is reforming the business operation model and content of games, and the ROE of game investment may increase significantly. With the release of the new product cycle, the short-term prosperity will improve.

- Automobile steady growth plan: Standardize the competitive order, accelerate L3 access, and make breakthroughs in technologies such as automotive chips and solid-state batteries. Eight ministries and commissions jointly issued the automobile steady growth plan, focusing on four key areas: standardizing the industrial competitive order to solve the problems of disorderly competition and supplier payment cycles; promoting the development of intelligent connected vehicles and conditionally approving the production access of L3-level models; accelerating breakthroughs in key technologies such as automotive chips, operating systems, artificial intelligence, and solid-state batteries; and increasing efforts to promote automobile consumption, supporting trade-in and the promotion of new energy vehicles.

## Overseas Macroeconomics

- Bessent was "deeply impressed" after the interview; BlackRock executives moved up in the "race for Fed chair". According to people familiar with the Treasury Secretary's thinking, Bessent particularly appreciates Rieder's ability to evaluate the economy using a forward-looking framework rather than relying on lagging data. This intuitive analysis method is similar to the impression Bessent had after talking with Fed Governor Waller earlier. Rieder previously stated that he advocates a 50-basis-point interest rate cut, emphasizing the Fed's independence while suggesting more innovation.

- The impact of Trump's "tariff war" is far less than the "theoretical level"; the key reason is "exemptions". Citigroup stated that the U.S. effective tariff rate is only about 9%-10%, far lower than the theoretical rate of about 18%. This means that the negative impact of tariffs on inflation and corporate profits is currently significantly overstated. The core reason behind this is policy-based "exemptions", rather than re-export trade as generally believed by the market.

- Fitch downgraded France's rating, expecting the debt-to-GDP ratio to exceed 120% by 2027. Fitch Ratings downgraded France's sovereign credit rating from AA- to A+, one level lower than the UK and on par with Belgium. It is expected that the debt-to-GDP ratio will continue to rise, increasing from 113.2% in 2024 to 121% in 2027. Fitch believes that France's rising public debt has weakened its ability to cope with new shocks, and political instability has further increased the difficulty of fiscal consolidation, making it difficult for the fiscal deficit to fall to 3% of GDP before 2029.

# Overseas Companies

Tesla's stock price surged, rising nearly 14% in two days! The most direct positive driver comes from Robotaxi: Nevada confirmed it will issue a test license to Tesla this week. Additionally, Tesla's Model Y L in China has become a new growth driver, with the earliest deliveries scheduled for November; recently, there was positive news that Tesla launched revolutionary energy storage products, the Megapack 3 and Megablock systems; there was also positive news regarding Musk's "trillion-dollar compensation package". Tesla's chairman stated that only Musk can lead the company's AI and robotics transformation over the next decade. The compensation package takes into account the possibility of him taking on other leadership roles such as Chief Product Officer and includes a process for identifying a successor.

A new trend in U.S. IPOs: Allocating sufficient quotas for retail investors to subscribe to new shares—Gemini allocates up to 30%—to maximize financing scale and avoid sharp first-day surges. The U.S. IPO market is undergoing a transformation, with companies significantly increasing the share allocation ratio for retail investors. Gemini reserved nearly 30% of its shares for retail investors, and Klarna allocated over 10%, far exceeding the traditional 6% ratio. Underwriters aim to control the first-day gain within a reasonable 15%. This year, IPOs such as Circle and Figma saw sharp surges on their first day of listing, causing issuers to miss out on substantial gains—for instance, Figma lost approximately $3 billion.

UBS Semiconductor Forum: The CPO trend is "particularly clear" this year; Broadcom stated that "power consumption will be fully optimized by 2028 to replace copper connections". After the UBS Semiconductor Forum, UBS pointed out that CPO technology is becoming a key path for upgrading AI infrastructure. Broadcom predicts that CPO energy consumption will drop below 10 pJ/bit by 2028 and further to 5 pJ/bit by 2029, meeting the conditions for large-scale deployment. Ayar Labs emphasized that CPO can significantly reduce the power consumption of racks in AI data centers; Lumentum, on the other hand, demonstrated leading progress in high-power lasers and 3.2T optical interfaces.

Blockchain prediction markets are booming: Polymarket's valuation may have reached $10 billion, and Kalshi's valuation has doubled to $5 billion. Polymarket, a blockchain prediction market platform, is seeking to re-enter the U.S. market, with its latest funding round potentially valuing it at up to $10 billion—nearly a 10-fold surge from its $1 billion valuation in June this year. Meanwhile, its major competitor Kalshi is about to complete a new round of financing, and its post-investment valuation is expected to reach $5 billion, which is also more than double its $2 billion valuation three months ago.

The first "AI reshapes traffic" case: The parent company of *Rolling Stone* magazine sues Google, claiming that "AI Overviews have caused a one-third drop in related revenue". Penske Media has filed an antitrust lawsuit against Google, accusing its "AI Overviews" feature of illegally using content, stealing website traffic, and harming advertising revenue by providing summaries. Penske stated that since the launch of the AI feature, its website revenue has dropped by more than one-third. Google, in response, refuted the allegations as "unfounded" and insisted that the AI feature can bring more "high-quality" clicks to publishers.

# Industries/Concepts

## 1. AI Glasses

On June 25, the AI glasses concept continued to gain momentum. Zhilifang and Haoshanghao hit their daily price limits, while Xiechuang Data, Zhongke Lanxun, and Rockchip saw intraday gains of 5.30%, 5.93%, and 4.97% respectively. In terms of news, Xiaomi officially announced via Weibo that the "next-generation personal smart device" to be released at 7 p.m. on the 26th is the Xiaomi AI Glasses. Prior to this, Rokid Glasses, the world's first mass-produced consumer-grade AI+AR glasses, officially entered mass production on June 24. The product has received 250,000 pre-order orders worldwide and achieved breakthroughs in the localization of the entire industrial chain.

**Comments**: Guotou Securities stated that from the product perspective, relying on its lightweight design, affordable price, empowerment by large AI models, and the preliminary maturity of required technologies, AI glasses are expected to quickly iterate into products that reach popularization levels. From the demand side, their functions—similar to those of highly penetrated products such as all-in-one machines and Bluetooth headsets—are suitable for high-frequency scenarios like work and entertainment, creating an inherent demand for existing user groups with rigid needs. From the channel perspective, the existing dense network of optical stores not only provides a solid offline channel foundation but also enables low-cost offline experience and marketing-driven customer acquisition. Therefore, AI glasses are expected to achieve rapid popularization, become the next-generation computing terminals, and have broad development prospects. China Thailand Securities noted that AI glasses are in a stage of rapid growth. With more manufacturers entering the market to accelerate development, a diverse product matrix, and a wide price range, the progress of model integration and AI function upgrades is promising. In the future, as models are upgraded and integrated and users' functional needs expand, the multi-modal demand for AI glasses is expected to grow rapidly, gradually making them versatile AI assistants applicable to multiple scenarios.

## 2. Stablecoins

On June 25, the popularity of stablecoin-related concept stocks in both A-share and H-share markets remained high. By the close of trading, in the H-share market, OSL Group rose by over 16.07%; in the A-share market, Hengsheng Electronics, New国都, Jingbei Fang, Sifang Jingchuang, and Hailian Jinhui recorded intraday gains of 7.34%, 14.42%, 10.03%, 1.11%, and 9.98% respectively. In terms of news, Guotai Junan International Holdings Limited, a subsidiary of Guotai Haitong Group, officially obtained approval from the Hong Kong Securities and Futures Commission on the 24th to upgrade its existing securities trading license to provide virtual asset trading services and offer advice based on the provision of such services. After this license upgrade, customers will be able to directly trade virtual assets such as cryptocurrencies and stablecoins on the Guotai Junan International platform. Additionally, recently, the People's Bank of China and the Hong Kong Monetary Authority jointly launched the "Cross-Border Payment Connect", which connects the mainland's online interbank payment and settlement system with Hong Kong's "FPS" system and was officially launched on June 22.

**Comments**: China Thailand Securities pointed out that the emergence of stablecoins has filled the gap of a lack of connection channels between the traditional financial system and the crypto asset ecosystem, endowing digital assets with stronger trading stability and cross-border payment capabilities. The core significance of stablecoins lies not in replacing fiat currencies, but in providing a digital and efficient way for their cross-border circulation. While improving payment efficiency, they also bring a series of in-depth challenges such as the blurring of sovereign currency boundaries and the redistribution of capital channels. The emergence of stablecoins may reshape global capital flows. HSBC Jintrust Fund stated that with the introduction of stablecoin regulations in Hong Kong (China) and the United States, regulatory clarity and certainty have significantly improved. The development of the stablecoin industry is expected to accelerate further, and leading and compliant stablecoin issuers are expected to benefit continuously.

## 3. Brain-Computer Interface (BCI)

On June 25, according to a report by Shanghai Securities News, the Medical Electronic Instrument Sub-Technical Committee of the National Medical Device Standardization Technical Committee publicly solicited opinions on the project proposal for the national standard of medical devices titled "General Technical Specifications for Non-Invasive Medical Devices Using Brain-Computer Interface Technology". This document specifies the performance indicators and test methods for the acquisition, decoding, external control devices, wearable mechanics of human-contact components, and human-machine interaction usability of non-invasive medical devices using BCI technology. This document applies to non-invasive medical devices that adopt BCI technology.

**Comments**: Founder Securities stated that BCI is expected to become the core technology for the next generation of human-machine interaction, completely changing the way humans interact with machines. In the short term, the application of BCI technology will be mainly concentrated in the field of medical rehabilitation; in the medium term, output-type BCI technology will expand to fields such as education, entertainment, military, and industry; in the long run, BCI will shift toward function improvement and enhancement, realizing brain-computer integrated intelligence.

## 4. Drones

According to a report by China Securities Journal, trade data shows that since the tightening of export restrictions in 2024, the prices of drone components shipped from China to the United States have risen to three times the original price or even higher in some cases. In September 2024, China introduced regulations requiring an export licensing system for dual-use (military and civilian) products. These products include engines, motors, laser equipment that can be used for missile targeting, and equipment that emits electromagnetic waves to interfere with drones.

**Comments**: The industry believes that China has formed a mature industrial chain in the drone field and ranks among the world's top in terms of competitiveness. Relying on the military industry system featuring a small core and large-scale collaboration, cost-competitive advantages, diversified product iterations, and scale advantages, China has successfully established a positive cycle model for the industrial chain. With the world's most complete drone industrial chain, policy support, and domestic demand dividends, China is expected to achieve a leap from a "component supplier" to a "technical standard setter" within 3-5 years. As China's drone industry continues to make breakthroughs in three aspects—technological independence, market diversification, and compliance management—it will take a proactive position in the restructuring of the global industrial chain.

## 5. Solid-State Batteries

vivo officially released its X Fold5 foldable smartphone today, which is the first in the industry to adopt the fourth-generation silicon anode technology. Its energy density reaches up to 866 Wh/L, representing a 13% increase compared to the previous generation at room temperature and a 20% increase in low-temperature environments. In addition, the vivo X Fold5 is also the first in the industry to use the second-generation semi-solid-state battery technology, enabling normal battery power supply at -30°C. It is reported that vivo has collaborated with Amperex Technology Limited (ATL) and adopted a double-layer electrode structure in the X Fold5, increasing the overall silicon content in the anode to 12%—approximately 2.5 times that of the previous generation.

**Comments**: Silicon anode batteries have a theoretical specific capacity of up to 4200 mAh/g, which is more than 10 times that of traditional graphite anodes. Moreover, their lithium intercalation and deintercalation potential is relatively low, which can prevent lithium plating on the surface during charging and improve the safety and performance of the battery. The fourth-generation chemical vapor deposition (CVD) silicon-carbon technology further reduces the volume expansion rate of silicon through porous carbon and CVD deposition processes, enhances cycle performance and energy density, and has become the future mainstream direction for silicon-based anode materials. Currently, silicon anode technology has been used in small-batch trials in 3C electronic products and is gradually penetrating into the fields of power batteries and high-end passenger vehicles. As technology continues to mature and costs decrease, the market space for silicon anode materials will further expand.

# Preview of Today's Key News

- China and the United States hold talks in Spain.

- Release of China's August data including total retail sales of consumer goods, value-added of industrial enterprises above designated size, urban fixed asset investment, national real estate development investment, and monthly report on residential sales prices in 70 large and medium-sized cities.

- The State Council Information Office holds a press conference on the operation of the national economy.

- China implements a visa-free policy for Russian citizens holding ordinary passports from September 15, 2025, to September 14, 2026.

- Cambricon's weight in the STAR 50 Index will be reduced from 15% to 10%.

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