Morning News

# Market Overview, Key News and Market Closing Quotes

Source: Wall Street News

## Market Overview

Although the Federal Reserve cut interest rates by 25 basis points as scheduled and announced the end of QT (Quantitative Tightening), Federal Reserve Chair Jerome Powell's hawkish remarks on the prospect of a December rate cut caused the market's probability of a December rate cut to plummet from 95% to 65%. U.S. stocks, U.S. bonds, gold, and digital currencies fell sharply intraday, while the U.S. dollar rallied. Finally, supported by NVIDIA, the Nasdaq closed higher, while the Dow Jones Industrial Average closed lower.

NVIDIA hit a new all-time high, closing up nearly 3% with a market value exceeding $5 trillion. After the quarterly earnings report, Meta plummeted more than 8%, Alphabet rose over 6%, and Microsoft fell more than 3%.

U.S. Treasury yields surged across the board, with both the 2-year and 10-year yields rising more than 10 basis points. The U.S. dollar rose over 0.5%, briefly reclaiming the 99 level. Bitcoin and Ethereum both fell more than 3% at one point.

Spot gold had rebounded to $4,000 earlier on Wednesday, but after Powell's speech, it dropped 2.5% from the intraday high and turned lower for the day. Silver performed relatively well, with its gain narrowing to 1.1%. Crude oil rebounded.

During the Asian session, A-shares soared. The Shanghai Composite Index stood above 4,000 points, the Beijing Stock Exchange 50 Index surged more than 8%, the photovoltaic industry chain exploded, and Shanghai copper hit a record high.

## Key News

Xi Jinping will hold a meeting with U.S. President Donald Trump.

At its October meeting, the Federal Reserve announced a further 25-basis-point interest rate cut and the end of balance sheet reduction in December, with two committee members dissenting from the interest rate decision. Powell stated: "A further rate cut in December is not a foregone conclusion; there are significant differences within the committee, the job market is still cooling, and there is short-term upward pressure on inflation." The "New Fed Wire Service" reported: "The Federal Reserve continues to strive to prevent the recent slowdown in employment from worsening, and the lack of economic data has made the future direction of interest rates uncertain."

South Korea and the United States finalized a trade agreement: South Korea committed to $350 billion in investment in the United States in exchange for a 15% tariff on automobiles and tariff preferences for the semiconductor industry. After the suspension of U.S.-Canada trade negotiations, Trump and Carney met for the first time.

The Bank of Canada cut interest rates by 25 basis points as scheduled again, stating that the current interest rate is appropriate and sharply lowering its economic growth forecast.

Meta's one-time tax expense caused its quarterly profit to plummet 83%. It expects a significant increase in capital expenditures next year, which may exceed $80-85 billion or even higher, leading to a post-market plunge of more than 8%.

Alphabet, Google's parent company, delivered Q3 results that comprehensively exceeded expectations, with outstanding cloud performance. It raised its capital expenditure to a maximum of $93 billion, soaring more than 7% in after-hours trading.

Microsoft's revenue surged nearly 20% last quarter, but Azure cloud growth was not impressive enough, and AI spending significantly exceeded expectations, falling 5% at one point in after-hours trading.

Kweichow Moutai's revenue and profit for the first three quarters increased by more than 6% year-on-year, with a growth of 0.48% in the third quarter.

China Merchants Bank, the "King of Retail Banking," released its third quarterly report, showing steady growth in net profit, with double-digit growth in Golden Sunflower and private banking customers.

Driven by strong demand for AI servers, Hon Hai Precision Industry's Q3 net profit soared 62% and revenue increased by 42.81%.

Advanced Micro-Fabrication Equipment Inc. China's Q3 net profit increased by 27.5% year-on-year, and revenue grew by 50.62%, with thin-film equipment becoming a new growth engine.

Tianfu Communication's Q3 revenue increased by 74.37% year-on-year, with a net profit of 566 million yuan, a month-on-month increase of 0.71%.

Driven by AI computing power demand, Eoptolink Technology's Q3 net profit reached 2.385 billion yuan, a month-on-month increase of 0.63%, and revenue grew by 152.53% year-on-year.

U.S. payment giants test stablecoin settlement! Western Union announced the launch of USDPT next year, while VISA supports existing stablecoins.

## Market Closing Quotes

### European and American Stock Markets

- S&P 500: Slightly fell to 6,890.59 points.

- Dow Jones Industrial Average: Fell 0.16% to 47,632.00 points.

- Nasdaq Composite Index: Rose 0.55% to 23,958.473 points.

- European STOXX 600 Index: Closed down 0.10% to 575.19 points.

### A-Shares

- Shanghai Composite Index: Rose 0.7% to 4,016.33 points.

- Shenzhen Component Index: Rose 1.95% to 13,691.38 points.

- ChiNext Index: Rose 2.93% to 3,324.27 points.

### Bond Market

- U.S. 10-year benchmark Treasury yield: Rose 10.01 basis points to 4.0757%.

- U.S. 2-year Treasury yield: Rose 10.82 basis points to 3.5980%.

### Commodities

- COMEX Gold Futures: Fell 0.63% to $3,957.90 per ounce.

- WTI Crude Oil: Rose 0.28%.

- Brent Crude Oil: Rose 0.56%.

### Key Terms Explanation

# Detailed News and Headlines

## Global Heavyweight News

Xi Jinping will hold a meeting with US President Trump. A foreign ministry spokesperson announced on October 29: As agreed by China and the United States, President Xi Jinping will hold a meeting with US President Trump in Busan, South Korea on October 30 local time to exchange views on China-US relations and issues of common concern to both sides.

Regarding the meeting between the Chinese and US heads of state, "summit meetings between leaders are of irreplaceable importance to China-US relations". According to The Paper, this will be the first face-to-face meeting between Chinese and US leaders since Trump returned to the White House. Wei Zongyou, a professor at the Center for American Studies of Fudan University, told The Paper that "the history and experience of China-US relations in recent years have repeatedly proved that meetings between leaders are of irreplaceable importance for stabilizing and developing China-US relations. The more challenges China-US relations face, the more it is necessary to strengthen the strategic guidance of leaders over bilateral relations, prevent misunderstandings and misjudgments, and avoid sharp fluctuations in bilateral relations."

The Federal Reserve announced at its October meeting that it will continue to cut interest rates by 25 basis points and end balance sheet reduction in December, with two committee members opposing the interest rate decision. Powell: A further rate cut in December is not a certainty, the committee has significant differences, the job market is still cooling, and there is short-term upward pressure on inflation.

After three and a half years of balance sheet reduction, the Federal Reserve will end the process and replace maturing MBS holdings with short-term Treasury bonds starting in December. Trump's "handpicked" governor Milan advocated a 50-basis-point rate cut as before, while another committee member Schmidt supported keeping rates unchanged. The resolution statement added that recent indicators of the labor market are consistent with the trend before the government shutdown, stating that downside risks to employment have increased "in recent months".

Powell stated that there is still short-term upward pressure on inflation, employment faces downside risks, and the current situation is quite challenging; the committee still has significant differences on whether to cut interest rates again in December, and a rate cut is not a certainty. Some members of the FOMC believe that it is time to pause; higher tariffs are pushing up prices of certain commodity categories, leading to an increase in overall inflation.

The "New Fed Wire Service": The Federal Reserve continues to strive to prevent the recent slowdown in employment from worsening, and the lack of economic data has made the future direction of interest rates uncertain.

Powell turned unexpectedly hawkish, triggering intraday plunges in US stocks, US bonds, gold, and Bitcoin, while the US dollar rose. After the Federal Reserve announced the interest rate decision, major assets had little short-term volatility. After the start of Powell's press conference, he stated that a further rate cut by the Federal Reserve in December is not a certainty, leading to intraday short-term plunges in US stocks, Bitcoin, gold, and US bonds. Both the S&P 500 and Nasdaq 100 turned negative. Subsequently, US stocks and cryptocurrencies recovered some losses, with the Nasdaq 100 showing little change compared to immediately after the release of the FOMC statement, but US bonds and gold remained weak.

Who will be the next Federal Reserve Chairman? Trump "mentions again" Bezos—"a joke" or "a foreshadowing"? "He can calm the market, I can't. I sometimes roil the market," Trump mentioned again on Tuesday that he is "considering" nominating Treasury Secretary Bezos as the next Federal Reserve Chairman. However, Trump's remarks were full of contradictions. He immediately added that Bezos likes his position as Treasury Secretary and said "we are not really considering him", confusing the outside world.

South Korea and the US finalize trade agreement: South Korea promises $350 billion in investment in the US in exchange for 15% tariffs on automobiles and tariff preferences for the semiconductor industry. According to the details of the agreement, South Korea will invest $350 billion in the US, of which $200 billion will be cash investment, similar to Japan's arrangement, with an annual investment cap of $20 billion. The US will continue to maintain a 15% overall tariff level. The two sides agreed to set tariffs on auto parts at 15%. In the semiconductor field, South Korea stated that the mutually agreed tariff level will not put South Korea at a disadvantage. In addition, South Korea has obtained most-favored-nation status in terms of pharmaceutical tariffs.

First meeting between Trump and Trudeau after the suspension of US-Canada trade negotiations. Canadian Prime Minister Trudeau stated that he had a "very good" conversation with US President Trump in South Korea on the 29th local time. This is the first face-to-face meeting between the leaders of the US and Canada since Trump suspended trade negotiations with Canada on the 23rd.

Bank of Canada cuts interest rates by 25 basis points as scheduled again, says current interest rates are appropriate and sharply lowers economic growth expectations. The Bank of Canada cut its benchmark overnight interest rate by 25 basis points for the second consecutive meeting, bringing the rate to 2.25% after this cut, the lowest level since July 2022. The Bank of Canada stated that the damage caused by US tariffs is still ongoing, but said that as long as the economy is roughly in line with expectations, the current interest rate level is appropriate.

Meta's quarterly profit plummets 83% due to one-time tax charges; capital expenditure is expected to surge next year, with after-hours stock falling over 8%. Net profit in the third quarter plummeted to $2.71 billion from $15.69 billion in the same period last year, a drop of 83%. The culprit was a one-time non-cash tax expense of $15.93 billion brought about by the US tax reform bill. Excluding this impact, EPS was $7.25 and net profit was $18.64 billion. Capital expenditure in 2026 may exceed $80-85 billion or even higher.

Alphabet, Google's parent company, posts Q3 results that comprehensively exceed expectations, with a bright cloud business; raises capital expenditure to up to $93 billion, with after-hours stock rising over 7%. Alphabet's third-quarter revenue, profit, and full-year capital expenditure guidance all exceeded expectations, with revenue breaking through $100 billion for the first time and multiple core businesses achieving double-digit growth. Strong AI demand has driven the acceleration of the cloud business, with a backlog of orders reaching $155 billion. The company significantly raised its full-year capital expenditure to $91-93 billion to increase investment in AI and infrastructure construction, and its stock price rose by more than 7% in after-hours trading at one point.

Microsoft's revenue surged nearly 20% last quarter, but Azure cloud growth was not impressive enough, AI spending exceeded expectations significantly, with after-hours stock falling 5% at one point. Microsoft's third-quarter revenue increased by 18% year-on-year, the same as the 18-month high growth rate set in the second quarter. EPS growth slowed to 13% but was still stronger than analysts' expectations; revenue from Azure and other cloud services grew by 39%, the same as the 2.5-year high growth rate set in the second quarter, but still lower than the optimistic expectations of some buyers; capital expenditure in the third quarter hit a new high again, 60% higher than the previous record quarter-on-quarter and more than 74% higher year-on-year; investment in OpenAI affected the third-quarter net profit by nearly $3.1 billion.

Kweichow Moutai's first three quarters' revenue and profit increase by over 6% year-on-year, with Q3 growth of 0.48%. Moutai's revenue in the first three quarters was 128.454 billion yuan, a year-on-year increase of 6.36%, and net profit was 64.627 billion yuan, a year-on-year increase of 6.25%. Revenue in the third quarter was 39.064 billion yuan, a year-on-year increase of 0.56%; net profit was 19.224 billion yuan, a year-on-year increase of 0.48%. In terms of product structure, the revenue from Moutai liquor was 110.513 billion yuan, still the absolute main contributor to revenue.

China Merchants Bank, the "King of Retail", releases Q3 report: net profit grows steadily, with double-digit growth in Golden Sunflower and private banking clients. Wealth management fees and commission income increased by 18.76% year-on-year.

Strong demand for AI servers drives Foxconn Industrial Internet's Q3 net profit to surge 62% and revenue to increase 42.81%. Foxconn Industrial Internet achieved a net profit attributable to shareholders of listed companies of 10.37 billion yuan in Q3, a year-on-year increase of 62.04%; operating income reached 243.17 billion yuan, a year-on-year increase of 42.81%. The growth was mainly driven by the surge in demand for core products such as AI servers and high-speed switches. Revenue from the cloud computing business increased by more than 65% year-on-year in the first three quarters, of which revenue from GPU AI servers increased by more than 300% year-on-year and more than 5 times year-on-year in Q3 alone.

AMEC's Q3 net profit increases by 27.5% year-on-year, revenue by 50.62%, with thin-film equipment becoming a new engine. AMEC's Q3 revenue increased by 50.62% year-on-year and net profit by 27.5% year-on-year. The performance growth was mainly driven by the steady growth of the core etching equipment business and the explosive growth of thin-film equipment revenue. In the first three quarters of 2025, revenue from thin-film equipment such as LPCVD and ALD was 403 million yuan, a year-on-year increase of approximately 1332.69%.

Tianfu Communications' Q3 revenue increases by 74.37% year-on-year, net profit reaches 566 million yuan, a quarter-on-quarter increase of 0.71%. Tianfu Communications' Q3 net profit was 566 million yuan, a year-on-year increase of 75.68% and a quarter-on-quarter increase of 0.71%; revenue was 1.463 billion yuan, a year-on-year increase of 74.37%. The company stated that the performance growth was "mainly benefited from the development of artificial intelligence and the increase in computing power demand, as well as the continuous and stable growth in demand for high-speed optical device products driven by the construction of global data centers".

Driven by AI computing power demand, Eoptolink's Q3 net profit reaches 2.385 billion yuan, a quarter-on-quarter increase of 0.63%, and revenue increases by 152.53% year-on-year. Eoptolink, an optical communication module manufacturer, achieved an operating income of 6.068 billion yuan in Q3, a year-on-year increase of 152.53%; net profit attributable to shareholders of listed companies reached 2.385 billion yuan, a quarter-on-quarter increase of 0.63% and a year-on-year increase of 205.38%. The performance growth was mainly due to the significant increase in sales revenue compared with the same period last year, benefiting from the development of AI computing power investment during the reporting period.

US payment giants test stablecoin settlement! Western Union announces the launch of USDPT next year, while Visa supports existing stablecoins. Western Union announced that its upcoming stablecoin settlement system will consist of two parts: the US Dollar Payment Token (USDPT) and a digital asset network, and the entire system will be built based on the Solana blockchain. Visa stated that the newly added stablecoin support covers two currencies, which can be exchanged for more than 25 traditional fiat currencies. Global consumer spending on Visa's stablecoin-related consumer card services surged four times year-on-year in the fourth quarter, with monthly transaction volume exceeding an annualized scale of $2.5 billion.

Wall Street's view on Chinese Internet: There are "unique investment opportunities"; embrace AI and games, avoid e-commerce. Bank of America Merrill Lynch believes that Chinese Internet giants are in the "best position" in terms of AI application and commercialization. Despite rising more than 50% since the beginning of the year, the valuation of the sector is still at a "not demanding level". Analysts strongly recommend embracing AI applications and online games, while remaining cautious about e-commerce platforms, especially those affected by competition from instant retail (quick commerce). Tencent is currently the top pick in the sector.

Chip inflation spreads; Morgan Stanley predicts that "backend packaging and testing factories" will raise prices in 2026, the first time since the pandemic. Morgan Stanley warned that strong demand for AI semiconductors is severely squeezing packaging and testing capacity, forcing backend manufacturers to have stronger bargaining power. Affected by three major factors, the price of advanced packaging will rise by 5-10% in 2026, the first price upward cycle since the chip shortage during the COVID-19 pandemic. Leading manufacturers in Taiwan, China, ASE and KYEC will lead this price increase.

## Domestic Macroeconomics

Central Huijin maintains firm holdings! The newly disclosed 2025 Q3 fund reports show that Central Huijin firmly held multiple broad-based ETFs amid the market rise, with its positions remaining unchanged. Schroder Investment Management stated that against the backdrop of the continued global interest rate cut cycle, equity assets are worthy of attention, and it maintains an optimistic view on the A-share market, especially favoring the cyclical and technology sectors.

Public funds' Q3 reports: significantly increase positions in technology growth; Foxconn Industrial Internet and Cambricon newly enter the top 20 heavyweight holdings of public funds. Industrial Securities stated that the 2025 Q3 reports of public funds show that their pricing power in active equity has stabilized at the bottom, and they have significantly increased positions in the technology growth sector in terms of allocation, driving the position in the electronic industry to exceed the historical experience ceiling (25.52%). Funds reduced positions in sectors such as consumption, finance, and real estate. Specifically for individual stocks, technology stocks such as Foxconn Industrial Internet and Cambricon newly entered the top 20 heavyweight holdings of public funds, while heavyweight consumer and financial stocks (such as Kweichow Moutai and China Merchants Bank) were reduced. The concentration of individual stocks and industries increased simultaneously.

Hurun Rich List newly released! Zhong Shanshan is the "King of Richest", Lei Jun is the "King of Growth", and Wu Yajun is the "Only Female Top Richest". The 2025 Hurun Rich List shows that the group of high-net-worth entrepreneurs in China has expanded significantly, with 1,434 people on the list, a year-on-year increase of 31%, and the total wealth has increased by 42% to nearly 30 trillion yuan. Zhong Shanshan, 71-year-old founder of Nongfu Spring, became China's richest man for the fourth time with 530 billion yuan. Lei Jun, founder of Xiaomi, became the "King of Growth" with the explosion of the automotive business, with his wealth increasing by 196 billion yuan; in terms of geographical distribution, Shanghai surpassed Beijing for the first time to become the city with the most concentrated listed entrepreneurs. Emerging industries such as new energy vehicles, AI computing power, and biomedicine have become the main drivers of wealth growth.

Zhao Changpeng ranks 13th with 190 billion yuan in wealth; Zhao Changpeng responds that "dividing by 100 is about right", and social media comments that "Binance's profit may exceed Alibaba's"! Regarding the wealth ranking on the Hurun Rich List, Zhao Changpeng himself immediately denied it, saying: "Nonsense, dividing by 100 is about right". Contrary to Zhao Changpeng's response, some social media analyses estimate based on Binance's latest BNB burning data that its quarterly profit may reach $6.4 billion, which may have exceeded Alibaba's. However, Binance may have revised the rules for BNB burning in its whitepaper. And Zhao Changpeng's wealth remains a mystery.

## Domestic Companies/Industries

US AI companies begin to favor "Made in China" large models. It was revealed that the mysterious high-speed model of Windsurf, a leading US AI programming product, is actually GLM from China's Zhipu AI. In addition, Vercel, an AI Agent company valued at $9.3 billion, also announced a cooperation with Zhipu AI to provide GLM-4.6 API services, praising its excellent performance. US AI companies have successively chosen Chinese large models mainly because they "have sufficient performance, large capacity, and are cheap".

Doubao's monthly active users (MAU) surpass DeepSeek for the first time to top the list; Jimeng, Keling, Zhipu AI, and Kimi collectively decline; "AI + Medical" emerges suddenly. The polarization in the AI application market intensified in the third quarter of 2025. Doubao's MAU increased by 22.2% to 159 million, surpassing DeepSeek for the first time to become the double champion; DeepSeek's MAU fell by 14%, falling into an "isolated island dilemma". The "Four AI Powerhouses" such as Kimi, Zhipu Qingyan, and MiniMax collectively declined, and were forced to charge or transform due to cost pressure. "AI + Medical" applications such as Ant Group's AQ emerged suddenly, with MAU reaching 4.64 million.

How did Sungrow Power震撼 the entire industry by itself? Sungrow Power's revenue in the first three quarters of 2025 was 66.4 billion yuan (up 33%), net profit was 11.9 billion yuan (up 56%), and quarterly profit was 4.15 billion yuan. Overseas energy storage business received a surge in orders, with a high gross profit margin of 34%, operating cash flow soared by more than 1100% to 9.9 billion yuan, and liabilities were reduced by 5.2 billion yuan. The company has laid out new businesses such as AI data center power supplies, demonstrating the resilience of a leading enterprise to navigate the cycle.

Chinese automakers achieve their best month in Europe, with market share surpassing South Korean automakers for the first time. Driven by the strong growth of pure electric and plug-in hybrid models, the sales share of Chinese automakers in the European passenger car market climbed to a record 7.4% in September. Brands such as BYD and MG performed particularly prominently in the UK market. Chinese brands' share in the plug-in hybrid market reached 20%, surpassing South Korean brands for the first time in the 18 Western European countries market.

At a critical moment, Zong Fuli makes a rare public appearance; multiple sources confirm that she no longer holds a position in Wahaha. Zong Fuli, who resigned as Chairman of Wahaha Group, is now the President of Hongsheng Group. From reports in early September that companies under the Hongsheng system required distributors to sell "Waxiaozong" (Little Zong of Wahaha) to media reports in late October that they would continue to operate the "Wahaha" brand due to distributor pressure, the Wahaha brand has experienced a round of market tests. This not only affects the market expectations of distributors and consumers for Wahaha, but also disturbs Wahaha's supply side.

## Overseas Macroeconomics

US Congressional Budget Office (CBO) estimates: The US government shutdown has caused $18 billion in economic losses. Of the $18 billion, an estimated $7-14 billion will be irrecoverable, depending on the final duration of the shutdown. Once the shutdown enters its sixth week, the CBO estimates that the US economy will suffer $28 billion in losses. If the shutdown lasts eight weeks, the loss will soar to $39 billion.

Historical gold bull markets: A 10% correction is not uncommon, but how do bull markets end? Bank of America points out that in all major gold bull markets since 1970, monthly corrections of more than 10% are not uncommon. After these corrections, gold prices often resume their upward trend and continue to rise. The end of previous gold bull markets was not due to technical overbought conditions or short-term fluctuations, but rather fundamental changes in the core driving factors behind them.

Bezos "advises" Japanese government to "intervene less"; Bank of Japan's interest rate hike is imminent? US Treasury Secretary Bezos rarely urged the Japanese government to give the central bank policy space, at a time when Sanae Takaichi is pressuring the central bank to maintain low interest rates. Although Japan's Finance Minister tried to downplay Bezos' "verbal intervention", the market has interpreted this as external support for the Bank of Japan's interest rate hike, and the yen strengthened in response. This Thursday, the Bank of Japan will announce its latest interest rate decision.

ECB accelerates digital euro plan, which may be officially launched in 2029. It is reported that ECB officials may decide at a meeting to be held in Florence this week to accelerate the digital euro project, with the goal of officially launching it in 2029 to strengthen Europe's strategic autonomy in the payment system. Despite divisions in the legislative process, under the threat from US payment giants and US dollar stablecoins, the sense of urgency for the euro zone to promote digital currency is rising sharply.

## Overseas Companies

Goldman Sachs interprets Huang Renxun's GTC speech: $500 billion revenue expectation exceeds market expectations, with room for further upward revision. Huang Renxun stated in his speech that the company has visibility into achieving cumulative data center revenue of $500 billion from 2025 to 2026. This revenue expectation is 12% higher than Wall Street's consensus expectation of $447 billion and 10% higher than Goldman Sachs' own expectation of $453 billion. Goldman Sachs believes that this guidance is an incremental positive for Nvidia's stock price and stated that its own forecast still has room for further upward revision.

Completes "profitability restructuring", OpenAI "paves the way" for IPO; is the peak of AI coming? Sam Altman, CEO of OpenAI, mentioned in a public live broadcast that IPO is a possible option "considering our capital needs". OpenAI expects to spend $115 billion by 2029, while its revenue this year is expected to be only $13 billion, resulting in a huge funding gap. OpenAI and Microsoft have "amicably parted ways" and officially transformed into a Public Benefit Corporation (PBC), which has paved the way for a future IPO.

Trump's policies impact the electric vehicle business; General Motors lays off 1,700 employees and places 5,500 on unpaid leave. The employees on unpaid leave include 3,400 workers who started taking leave at Factory Zero, Detroit's electric vehicle factory, earlier this summer. The factory will recall another 1,200 people in January next year, and the remaining employees will be on unpaid leave indefinitely. General Motors confirmed that it will lay off approximately 1,700 employees in two US states, Michigan and Ohio; it stated that it will suspend production at battery factories in Ohio and Tennessee starting in January next year.

Boeing's Q3 loss per share of $7.47 far exceeds expectations; 777X project delayed again with a $4.9 billion impairment. Boeing's revenue this quarter was $23.27 billion, higher than expected, and cash flow turned positive beyond expectations, benefiting from increased deliveries. Boeing delivered 160 aircraft in Q3, a new high since 2018. However, the 777X project continues to drag down performance. The 777X project has accumulated impairment of nearly $16 billion so far, delayed by seven years from the original schedule, and is expected to enter operation in 2027.

## Industries/Concepts

1. Technology Consumption | On October 29, the general offices of 5 ministries including the Ministry of Commerce issued a notice on printing and distributing the "Action Plan for Improving Urban Commercial Quality", which mentioned strengthening the empowerment of emerging technologies. Strengthen the integrated application of technologies such as artificial intelligence, the Internet of Things, cloud computing, blockchain, and extended reality in the urban commercial system. On the operation side, improve the functions of the urban business district big data platform, expand the monitoring scope and frequency of passenger flow and turnover of key pedestrian streets (business districts) nationwide, conduct in-depth analysis and judgment of consumption characteristics and trends, and improve smart services such as land use planning, investment promotion, logistics management, and safety guarantees. On the consumption side, improve new smart business models such as intelligent guidance, precision marketing, online shopping, and immersive experience, and promote a number of "artificial intelligence + consumption" scenarios.

Comment: China Galaxy Securities believes that the integration of AI and the consumer industry has become the main line of current technological development, and every technological progress has profoundly changed consumption patterns and product forms. The simultaneous development of the upstream, midstream, and downstream of the technology industry is expected to exceed expectations in promoting the transformation of China's economic development drivers from old to new, and technology consumption will be one of the important directions for the development and application of new quality productive forces.

2. Humanoid Robots | According to the WeChat official account of China Optics Valley, on October 28, "Kuafu", China's first robot equipped with the open-source HarmonyOS, made its debut in the smart exhibition hall of the HarmonyOS Ecosystem (Wuhan) Innovation Center. Developed based on open-source HarmonyOS, "Kuafu" has broken foreign technological monopolies and is accelerating the construction of a fully independent and controllable robot ecosystem.

Comment: Shanghai Securities believes that the emergence of artificial intelligence companies has promoted the development of general robot large models, helping humanoid robots achieve embodied intelligence, and the humanoid robot industry chain has entered a stage of "a hundred flowers blooming and a hundred schools of thought contending". At present, the entry of humanoid robots into industrial scenarios is a relatively certain application trend at home and abroad, and the commercialization of humanoid robots is expected to be realized.

3. 6G | According to China Securities Journal, after Nokia announced that Nvidia will subscribe for the company's shares, on October 28 US Eastern Time, Nvidia CEO Huang Renxun delivered a keynote speech at the Nvidia GTC DC Conference, focusing on technological breakthroughs in 6G, AI, quantum computing, and robot fields. He also announced that he will invest $1 billion in Nokia to develop an AI platform for 6G communication technology. The two sides jointly launched the Aerial RAN Computer (ARC) to support 6G. The cooperation between the two sides indicates the further integration of AI and communications.

Comment: Reports point out that the in-depth integration of 6G and AI is reshaping the underlying logic of communication technology and promoting society towards the era of "Internet of Everything". Nvidia's investment highlights an increasingly clear trend: in the AI competition, the importance of the network is keeping pace with computing power itself. As AI participants seek to move data more quickly inside and outside chip clusters, the demand for connection solutions is growing. Nvidia's large-scale entry into the 6G industry will greatly benefit companies related to Nokia's 6G industrial chain.

4. Silver Economy | On October 29, 5 ministries including the National Health Commission and the Ministry of Civil Affairs jointly issued the "Notice on Carrying out the Action to Promote the Integration of Medical and Elderly Care Services", deciding to carry out a 3-year action to promote the integration of medical and elderly care services. The "Notice" proposes that by the end of 2027, the policies for the integration of medical and elderly care services will be continuously improved, the service system will be more sound, the service supply will be effectively increased, the service capacity will be significantly enhanced, medical and elderly care resources will be further co-built and shared, and the health and elderly care service needs of the elderly will be better met. The "Notice" deploys 25 specific tasks in 7 aspects, including improving the layout of service resources, improving the service system for the integration of medical and elderly care, supporting the expansion of functions for the integration of medical and elderly care, deepening medical and elderly care cooperation within medical consortia, etc.; developing home and community services, strengthening the health management of the elderly, improving the quality and effectiveness of family doctor contracts, providing community-embedded services, etc.; expanding service supply, deepening the effective connection of services between medical and elderly care institutions, deepening the integration of traditional Chinese medicine into medical and elderly care services, popularizing mental health knowledge, increasing medical insurance support, strengthening information support, etc.

Comment: China Securities Journal points out that due to the accelerated arrival of an aging society and the improvement of the middle class's awareness of elderly care, China's elderly care industry has maintained continuous growth in recent years. It is predicted that by 2025, the number of elderly people aged 60 and above in China will exceed 300 million, accounting for more than 21% of the total population. The scale of the elderly care market is expected to further grow to 16.1 trillion yuan in 2025, with an annual growth rate of more than 15%. By 2029, the market scale is expected to exceed 19.5 trillion yuan. The silver economy has become one of the most certain sunrise industries. In terms of service models, home-based elderly care and community-based elderly care will become the mainstream. With the development of technology, smart elderly care will become an important trend.

5. High-Voltage Fast Charging | According to IT Home, recently, the standard L.1004 "Universal Fast Charging Solution for Mobile Terminals", led by the China Academy of Information and Communications Technology and jointly compiled by Huawei, OPPO, and vivo, was reviewed and officially released as an international standard by the ITU-T Study Group 5 (ITU-T SG5) of the International Telecommunication Union's Telecommunication Standardization Sector. This is the first global universal fast charging standard formulated by ITU. In the "Best Practices of the Solution" part of the standard, China's independently innovated fast charging solution is recommended as the only global case.

Comment: China Securities Journal states that high-voltage fast charging technology has become a new trend in the evolution of future energy supplement technology by increasing voltage and current, significantly shortening charging time and improving charging efficiency. With the continuous increase in the sales and ownership of electric vehicles, the scale of the high-voltage fast charging market will further expand.

## Today's News Preview

Xi Jinping will hold a meeting with US President Trump.

The Bank of Japan announces its interest rate decision, and Governor Kazuo Ueda holds a press conference.

The European Central Bank announces its interest rate decision, and President Christine Lagarde holds a press conference.

Dallas Fed President Lorie Logan delivers a speech.

Eurozone Q3 GDP and September unemployment rate.

Germany's October CPI.

Apple, Amazon, and Eli Lilly release financial reports.

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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 and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are in line with their specific circumstances. Investment based on this article is at the user's own risk.