Morning News

# Market Overview and Key News (English Translation)

Source: Wall Street CN

## Market Overview

On Friday, Amazon surged nearly 10%, with its strong earnings boosting tech stocks, leading all three major U.S. stock indexes to close higher. After releasing earnings, Apple opened high but moved lower, ending slightly down. Meta fell 2.72%, marking a two-day losing streak and a nearly 12% drop in October. In October, after digesting geopolitical risks, Powell's hawkish remarks, and month-end selling pressure, major U.S. stock indexes all recorded monthly gains, extending their winning streaks to at least six months.

The 10-year U.S. Treasury yield edged down 0.4 basis points, with a weekly gain of 9.23 basis points. The U.S. dollar rose for the third consecutive session, climbing 0.27% intraday. The USD/Offshore RMB advanced 118 pips to reclaim the 7.12 level. Major cryptocurrencies rebounded across the board on Friday: Bitcoin rose 1.80%, testing the $111,000 mark, while Ethereum surged over 3.9% at one point.

Spot gold fluctuated lower by 0.55% to close at $4,002 per ounce, briefly falling below $4,000 intraday on Friday. Crude oil fluctuated and pulled back after hitting intraday highs, affected by the situation in Venezuela.

## Key News

- Speech by Xi Jinping at the Second Session of the 32nd APEC Economic Leaders' Informal Meeting.

- Xi Jinping holds talks with South Korean President Lee Jae-myung.

- Spokesperson of the Ministry of Commerce responds to reporters' questions regarding issues related to Nexperia Semiconductors.

- Ministry of Commerce: Urges Japan to remove relevant Chinese entities from its export control end-user list as soon as possible.

- U.S. government shutdown nears historical record; Trump misjudges Democratic resolve, "critical moment" arrives! Bessent: If inflation falls, the Federal Reserve should cut interest rates.

- First wave of Fed officials speak after October meeting: 3 oppose October rate cut, Waller supports December cut. Rare division emerges within the Fed in six years; "Bond King" Gross shorts U.S. Treasuries!

- Microsoft's earnings report leaks OpenAI's financial data: $11.5 billion net loss in a single quarter. Rare joint dialogue between Microsoft and OpenAI CEOs: OpenAI restructuring, doubts about AI bubble, and computing power demand.

- Berkshire's Q3 operating profit surges 34%; cash reserves hit record high of $381.7 billion. It sells another $6.1 billion in stocks in Q3, suspends share repurchases for 5 consecutive quarters, and sells a total of $184 billion in stocks over three years.

- October new energy vehicle delivery results: Leapmotor surpasses 70,000 deliveries for the first time; Xpeng and NIO set new records; Xiaomi stabilizes deliveries at 40,000.

- OPEC+ agrees to increase oil production by 137,000 barrels per day in December and suspend production hikes in Q1 2025.

- Value investment giants Yang Dong and Chen Guangming successively "close fund subscriptions".

## Market Closing Quotes

### U.S. and European Stock Markets

- S&P 500: Rose 0.26% to 6,840.20 points, with a weekly gain of 0.71% and a monthly gain of 2.27% in October, extending its winning streak to six months.

- Dow Jones Industrial Average: Rose 0.09% to 47,562.87 points, up 2.51% in October, marking a six-month winning streak.

- Nasdaq Composite: Rose 0.61% to 23,724.957 points, surging 4.70% in October and extending gains for seven consecutive months.

- Euro Stoxx 600 Index: Closed down 0.51% to 571.89 points, with a weekly decline of 0.22% and a monthly gain of 2.46% in October.

### A-Share Market

- Shanghai Composite Index: Fell 0.81% to 3,954.79 points.

- Shenzhen Component Index: Dropped 1.14% to 13,378.21 points.

- ChiNext Index: Plunged 2.31% to 3,187.53 points.

### Bond Market

- U.S. 10-year Treasury yield: Fell 0.40 basis points to 4.0930%, with a weekly gain of 9.23 basis points and a monthly decline of 5.73 basis points in October.

- U.S. 2-year Treasury yield: Dropped 1 basis point to 3.5983%, up 11.83 basis points weekly and 1.01 basis points lower in October.

### Commodities

- COMEX Gold Futures: Rose 0.06% to $4,018.50 per ounce, with a monthly gain of 3.76% in October.

- WTI Crude Oil Futures (December): Closed up 0.68% to $60.98 per barrel, down 1.58% in October.

- Brent Crude Oil Futures (December): Rose 0.11% to $65.07 per barrel.

## Translation Notes

1. **Proper Noun Consistency**:

  - Official titles (e.g., "President Xi Jinping", "Federal Reserve") and organization names (e.g., "APEC", "OPEC+") follow standard English translations.

  - Company names (e.g., "Amazon", "Microsoft", "NIO") use their official English titles; Chinese EV brands (Leapmotor, Xpeng) adopt widely recognized transliterations.

  - Stock indexes (e.g., "S&P 500", "Euro Stoxx 600") use international standard abbreviations.

2. **Financial Terminology Accuracy**:

  - "基点" translated as "basis points" (1 basis point = 0.01%).

  - "高开低走" rendered as "opened high but moved lower" (standard financial market expression).

  - "做空" translated as "shorts" (professional investment terminology).

  - "封盘" interpreted as "close fund subscriptions" (accurate for fund industry context).

3. **Data Format Unification**:

  - Currency units (e.g., "$4,002 per ounce", "$60.98 per barrel") follow English numerical formatting rules.

  - Index points (e.g., "6,840.20 points") use commas as thousand separators for readability.

4. **Cultural Context Adaptation**:

  - "老债王" translated as "Bond King" (with quotation marks) to reflect Gross's renowned nickname in global financial markets.

  - "价投大佬" rendered as "value investment giants" to convey professional status in the investment community.

5. **Sentence Structure Optimization**:

  - Long Chinese sentences are split into concise English clauses for natural readability (e.g., breaking down complex market trend descriptions).

  - Passive voice is appropriately used for financial news objectivity (e.g., "data was leaked", "production hikes will be suspended").

# Details of Important News

## Global Heavyweights

### Speech by Xi Jinping at Session II of the 32nd APEC Economic Leaders' Meeting

Xi Jinping, President of the People's Republic of China, delivered a speech at Session II of the 32nd APEC Economic Leaders' Meeting. He pointed out that China has proposed the establishment of a World Artificial Intelligence Cooperation Organization, hoping to actively provide AI public goods to the international community through cooperation on development strategies, governance rules, and technological standards .

### Xi Jinping Holds Talks with South Korean President Yoon Suk-yeol

Xi Jinping held talks with South Korean President Yoon Suk-yeol. He put forward four suggestions for opening up a new prospect of China-South Korea relations, including accelerating the second-phase negotiations of the China-South Korea Free Trade Agreement, tapping into the cooperation potential in emerging fields such as artificial intelligence, biopharmaceuticals, green industries, and the silver economy, and promoting the upgrading of economic and trade cooperation.

### Ministry of Commerce Spokesperson Responds to Questions on Nexperia

A spokesperson for the Ministry of Commerce responded to reporters' questions regarding Nexperia. The Chinese side has addressed relevant reporters' inquiries on issues related to Nexperia. It should be emphasized that the improper intervention of the Dutch government in the internal affairs of enterprises has led to the current chaos in the global industrial and supply chains. As a responsible major country, China fully considers the safety and stability of domestic and international industrial and supply chains, and welcomes enterprises facing practical difficulties to contact the Ministry of Commerce or local commercial authorities in a timely manner. We will comprehensively consider the actual situation of enterprises and grant exemptions for eligible exports.

### Ministry of Commerce: Urges Japan to Remove Relevant Chinese Entities from Export Control End-User List

On October 30, Minister of Commerce Wang Wentao met with Japanese Minister of Economy, Trade and Industry Akira Akazawa in Gyeongju, South Korea, and the two sides exchanged views on China-Japan economic and trade relations and other issues. Wang Wentao stated that at present, unilateralism and protectionism are impacting the international economic and trade order, and the two sides should work together, make good use of mechanisms such as export control dialogues, and jointly maintain the stability and smoothness of industrial and supply chains. The Chinese side urges Japan to promptly remove relevant Chinese entities from the export control end-user list. It is hoped that both sides will jointly uphold the multilateral trading system with the WTO at its core, promote the process of regional economic cooperation, and inject more stability into the world economy.

### U.S. Government Shutdown Nears Historical Record; Trump Miscalculates Democrats' Resolve, "Critical Moment" Arrives!

The U.S. government shutdown is set to reach 32 days, approaching the historical record of 35 days. Meanwhile, as funding for the Supplemental Nutrition Assistance Program (SNAP), which provides food aid to 42 million Americans, expired on November 1, a severe livelihood crisis is rapidly escalating. The Senate plans to hold a new round of voting on November 3, but the two parties remain deadlocked on core issues.

### Janet Yellen: Fed Should Cut Interest Rates If Inflation Falls

U.S. Treasury Secretary Janet Yellen stated that Trump has not imposed a 10% tariff on Canada. When talking about the economic recession, she said, "We are in a period of transition. If inflation falls, the Federal Reserve should cut interest rates. Some economic sectors are in recession. If the Federal Reserve lowers mortgage rates, it can end the real estate recession." Regarding Canada, she said, "We will eventually reconcile with our 'family members' and will see how to renegotiate with Canada."

### First Batch of Fed Officials Speak After October Resolution: 3 Oppose October Rate Cut, Waller Supports December Cut

On Friday, three Federal Reserve officials expressed their opposition to interest rate cuts, indicating that hawks are facing increasing challenges. Current FOMC voter Schmid stated that inflation is still too high; next year's voter Logan said it would be difficult to support a rate cut in December unless there is clear evidence that inflation will fall faster than expected or the labor market will cool down more quickly; next year's voter Harker noted that interest rates are just around the neutral level after the October cut. The market currently expects a 61% chance of another rate cut by the end of the year, down from 92% the day before Powell's speech.

### December Rate Cut in Jeopardy? Rare Division Emerges Within Fed in Six Years; "Veteran Bond King" Gross Shorts U.S. Treasuries!

In last week's Federal Reserve interest rate resolution, two out of 12 FOMC voters cast dissenting votes: Milan advocated for a 50-basis-point rate cut, while Jeff Schmid believed interest rates should remain unchanged. This rare two-way dissent is the first in the past six years. Against the backdrop of increased uncertainty about the Fed's policy path, Gross chose to sell U.S. Treasuries, stating that the expanding deficit and weakening U.S. dollar make him pessimistic about U.S. Treasuries.

Whether the Federal Reserve will cut interest rates in December may depend on "when the U.S. government shutdown ends." The longer the shutdown lasts, the more data will be missing, and the more cautious the Federal Reserve will be in taking action. Morgan Stanley believes that if the government shutdown continues beyond Thanksgiving (late November), a rate cut in December is likely to be suspended. Citigroup holds a more optimistic view, expecting the government to reopen within the next two weeks, allowing the Federal Reserve to obtain multiple employment reports before the December meeting, thereby providing a basis for another 25-basis-point rate cut.

### Microsoft's Earnings Report Leaks OpenAI's Financial Data: A Record Quarterly Loss of $11.5 Billion

Microsoft's earnings report shows that its equity method investment in OpenAI led to a $3.1 billion reduction in quarterly net profit. Based on Microsoft's approximately 27% stake in OpenAI, OpenAI's net loss for the quarter was about $11.5 billion; calculated by pre-tax loss and the actual ownership ratio of 32.5%, the loss may exceed $12 billion. This figure is nearly three times its $4.3 billion revenue in the first half of this year.

### Rare Joint Dialogue Between CEOs of Microsoft and OpenAI: OpenAI's Restructuring, Doubts About AI Bubble, and Computing Power Demand

Regarding OpenAI's restructuring plan, Altman clarified that only the "stateless API" will be exclusively retained on the Azure platform until 2030. Faced with doubts about the $1.4 trillion computing power expenditure, Altman emphasized that revenue will far exceed expectations, with revenue increasing nearly 10 times for every 10-fold increase in computing power. Regarding computing power demand, Nadella believes that the biggest current problem is not excess computing power but power supply; otherwise, there may be a backlog of chips in inventory that cannot be used, but excess computing power will eventually emerge.

### U.S. Data Center Boom: 45GW, $2.5 Trillion Investment—Who's Building and Who's Paying?

According to Barclays Research, the total capacity of data center projects being planned or built in the United States exceeds 45 gigawatts, with an expected total investment of over $2.5 trillion. Hyperscale cloud providers such as OpenAI, Amazon, Meta, Microsoft, and xAI are the main participants. Behind the huge investment is a complex financing structure. In addition to the capital expenditures of tech giants themselves, private equity firms and specialized infrastructure funds play a key role.

### Berkshire Hathaway's Q3 Operating Profit Surges 34%, Cash Reserves Hit Record High of $381.7 Billion

Berkshire Hathaway's third-quarter operating profit soared 34%, with cash reserves surging to a record high of $381.7 billion. In the third quarter, the company sold another $6.1 billion worth of stocks, marking five consecutive quarters without share repurchases and cumulative stock sales of $184 billion over three years.

Berkshire's third-quarter insurance underwriting profit surged by more than 200% to $2.37 billion, becoming the main growth driver. Despite the record-high cash reserves, its stock price significantly underperformed the broader market. The largest stock sales in the third quarter included Apple, American Express, and Bank of America. This is Buffett's last earnings report before stepping down as CEO of Berkshire, highlighting a cautious investment attitude.

### October New Energy Vehicle Delivery Results: Leapmotor Exceeds 70,000 Deliveries for the First Time; Xpeng and NIO Set Records; Xiaomi Stabilizes at 40,000

Leapmotor led the list with over 70,000 deliveries, while Xpeng Motors and NIO both set new single-month delivery records. Xiaomi Auto maintained a stable monthly delivery volume of over 40,000 units. Other automakers also achieved remarkable results: Avita Technology's sales exceeded 10,000 units for eight consecutive months, and Voyah delivered 17,218 vehicles in October.

### OPEC+ Agrees to Increase Oil Production by 137,000 Barrels Per Day in December, Suspend Production Growth in Q1 2026

OPEC+ agreed to suspend oil production growth in the first quarter of 2026 after a slight increase in December. The first quarter is usually a period of weak demand, and delegates stated that the decision to suspend production from January reflects expectations of a seasonal slowdown. OPEC+ hopes that the next meeting will be held in person rather than online.

### Signals from Value Investment Giants? Yang Dong and Chen Guangming Successively "Close Funds to New Subscriptions"

The Ruiyuan Insight Value series of private fund products under Chen Guangming's Ruiyuan Fund have been "closed to new subscriptions" since November. Ningquan Assets, led by renowned fund manager Yang Dong, announced on October 29 that it will suspend accepting initial subscription applications from new investors for all its funds starting from October 30, 2025, while additional subscriptions from existing investors will not be affected. Industry insiders stated that private funds usually "close to new subscriptions" due to the excessively fast pace of capital inflows or increasingly cautious market expectations.

# Domestic Macroeconomics

- China's official manufacturing PMI fell to 49 in October, while the non-manufacturing PMI rose to 50.1, with three key industries maintaining expansion. The PMIs of high-tech manufacturing, equipment manufacturing, and consumer goods industries were 50.5, 50.2, and 50.1 respectively, remaining in the expansion range and significantly higher than the overall manufacturing level. The new orders index was 46%, the same as the previous month and still below the threshold, indicating weak non-manufacturing market demand.

- According to the latest report from Shenwan Hongyuan Securities, both production and demand have declined, and the manufacturing PMI contracted at an accelerated pace in October. Driven by the Mid-Autumn Festival and National Day holidays, the prosperity of the service sector expanded rapidly in October. The business activity indices of industries related to residents' travel (such as railway transportation, air transportation, accommodation, and cultural, sports, and entertainment) were all above 60, indicating a high level of prosperity. The October PMI shows that China's economy is under downward pressure at a low level. After the gradual release of previous pressures in the bond market, attention to fundamentals may increase.

- Guosheng Securities believes that the current economy shows signs of accelerating decline, but it will not hinder the annual "5% growth target." This indicates that although short-term policies will be "stepped up," they will mostly be "supportive rather than proactive," with more focus on laying the foundation for the start of next year and further arranging the "15th Five-Year Plan." Specific arrangements should be closely watched at the Political Bureau meeting and the Central Economic Work Conference to be held in early-to-mid December. In the short term, focus can be placed on the effects of policies such as fourth-quarter policy-based financial instruments, the allocation of remaining quotas, and the resumption of government bond trading.

- Two Ministries: Taxpayers Selling Standard Gold Outside Exchanges Shall Pay VAT in Accordance with Current Regulations. On November 1, the Ministry of Finance and the State Taxation Administration issued an announcement on tax policies related to gold. Member units or customers trading standard gold through the Shanghai Gold Exchange or the Shanghai Futures Exchange shall be exempt from VAT when selling standard gold. However, taxpayers selling standard gold outside exchanges shall pay VAT in accordance with current regulations.

- China International Capital Corporation (CICC) Comments on the "New Rules" for Public Fund Performance Benchmarks: From Style Drift to Alpha Creation, Returning to the Essence of Investment Research. CICC believes that in the past, the public fund industry was dominated by "star effect," "relative assessment," and "scale-oriented" environments. Some equity funds ignored performance benchmarks, pursued short-term gains through style drift to attract capital inflows and achieve scale expansion. However, the implementation of the "new rules" will expose such practices.

- New Breakthrough in China's Nuclear Energy Technology! Expected to Break Dependence on Uranium for Nuclear Power. The 2-megawatt liquid-fuel thorium-based molten salt experimental reactor, led by the Shanghai Institute of Applied Physics of the Chinese Academy of Sciences, recently successfully completed the first conversion of thorium-uranium nuclear fuel. This reactor has become the world's only operating molten salt reactor that has achieved thorium fuel loading, providing key preliminary verification for the technical feasibility of utilizing thorium resources in molten salt reactor nuclear energy systems.

# Domestic Companies

- Vanke: Shenzhen Metro Group Agrees to Provide Up to RMB 22 Billion in Loans. According to Jiemian News, on November 2, Vanke issued an announcement stating that it had signed a loan framework agreement with its major shareholder, Shenzhen Metro Group, on the same day. Pursuant to the agreement, Shenzhen Metro Group agreed to provide Vanke with a total loan principal of up to RMB 22 billion, mainly including: unsecured credit loans already provided by Shenzhen Metro Group to Vanke in accordance with specified agreements before the effective date; and secured loans to be provided by Shenzhen Metro Group to Vanke in accordance with formal agreements and the terms and conditions of the loan framework agreement on or after the effective date.

# Overseas Macroeconomics

- How Big is the Current AI Bubble? UBS: This Bubble is More "Rational" Than the TMT Era, and Three Peak Signals Have Not Appeared Yet. A UBS research report points out that we are in the early stage of a potential bubble, but the three key signals indicating a bubble peak—extreme valuations, long-term overheating catalysts, and short-term peak signals—have not yet appeared. The report emphasizes the strong productivity improvement potential of generative AI and the fact that current government balance sheet risks are higher than those of enterprises, providing a more solid foundation for this round of valuation expansion than the 2000 Internet bubble.

- Main Narrative of Global Assets: Consensus Expectations Loosen but Not Reversed. Financial market volatility has increased, but Guo Lei from GF Securities believes that the foundation of the current main narrative has not been reversed: first, the global pattern of fiscal expansion + monetary easing remains unchanged; second, there has been no unilateral reversal in geopolitics, global trade order, central bank gold purchase trends, etc.; third, the second-order inflection point of AI capital expenditure has not yet appeared.

- "Consumer Confidence Drops to Decades-Low Level"! Goldman Sachs Warns of "Stalled" U.S. Middle-Class Consumption; 25-35 Age Group "Tightens Wallets". Goldman Sachs warns that weak consumption has spread from low-income groups to the middle class, especially consumers aged 25-35. The CEO of Kraft Heinz stated that the company is currently facing "the worst consumer confidence in decades." Stock price performance confirms the deterioration of fundamentals: stock prices of middle-class-oriented companies such as Chipotle and CAVA have plummeted, and the consumer discretionary sector has underperformed the broader market by 500 basis points.

- Yen Hits 8-Month Low; Will Japan Intervene? New Finance Minister Warns: Monitoring with "High Sense of Urgency". The yen has fallen by about 5% in the past month. In response, Japan's new Finance Minister issued the strongest verbal warning since taking office—monitoring the foreign exchange market with "high sense of urgency." As the yen-dollar exchange rate gradually approaches the important psychological threshold of 155, the conditions for intervention are becoming increasingly mature.

- Bitcoin Falls Nearly 5% in October, First Monthly Decline in Six Years. Bitcoin fell nearly 5% in October, ending its winning streak in October since 2018. Affected by Trump's tariff threats, Bitcoin plummeted from a record high of $126,000 to $104,000 in just a few days in mid-October, triggering the largest liquidation event in history. Analysts point out that under the impact of market uncertainty, investors have not returned to Bitcoin on a large scale, and asset volatility remains high.

# Overseas Companies

- Has Amazon's "AI Turning Point" Arrived? The core data center of Project Rainier built by Amazon AWS has been fully put into operation and is currently training Anthropic's Claude large model. The system is deployed with nearly 500,000 Trainium 2 chips (expected to double to 1 million by the end of the year), making it one of the world's largest AI training computers. This means that Amazon's AI infrastructure expansion is shifting from strategic layout to capacity realization. Morgan Stanley expects AWS's revenue growth rate to reach 23% and 25% in the next two years respectively, while Bank of America predicts that Anthropic alone may bring up to $6 billion in incremental revenue to AWS in 2026.

- From "Large-Scale Layoffs" to "Exceeding Expectations": Amazon Was the Most "Reversed" Company Last Week. At the beginning of the week, Amazon was under significant pressure due to laying off 14,000 employees and being accused of "falling behind in AI." However, the company's earnings report released on Thursday became the strongest counterattack: AWS sales increased by 20% year-on-year, a two-year high, and the scale of its self-developed AI chip business reached billions of dollars. This "exceeding expectations" performance not only drove the stock price to a record high but also reversed Amazon's market narrative.

- 36 People Reporting to Jensen Huang at NVIDIA. In addition to three veterans (Jonah Alben, the soul of GPU architecture; Dwight Diercks, a software tycoon; and Bill Dally, Chief Scientist), a new Chinese face has attracted external attention: Wu Xinzhou, Vice President of NVIDIA's automotive business, who is fully responsible for the strategic planning, product layout, and engineering execution of the automotive business.

- Betting on Anthropic Pays Off Big: Google and Amazon Gain Ten-Billion-Dollar Book Profits. It is reported that Alphabet's third-quarter profits included a net gain of $10.7 billion from equity securities, partly from Anthropic, and Amazon's investment in Anthropic contributed $9.5 billion in pre-tax gains. This is due to Anthropic's valuation soaring to $183 billion in the latest financing round, an increase of nearly three times, marking that the generative AI investment boom has begun to show substantial returns in listed companies' earnings reports.

- Ilya Forced to Court by Musk, Exposing Shocking Inside Information About Altman and OpenAI. After firing Altman, the OpenAI board launched a radical "Plan B": it had actively and seriously explored the possibility of merging with its top competitor, Anthropic, which might have made Anthropic's CEO Dario Amodei the top leader of OpenAI.

- Humanity's First "Mechanical Ascension": Musk Boasts Neuralink Outperforms All Humans. Neuralink has been implanted in 12 people, with a total usage time exceeding 2,000 days. Patients have moved from hospital beds to lecture stages, studying calculus, researching neuroscience, and even starting careers. This technology not only restores freedom but also endows "superhuman abilities."

- U.S. Data Centers' Incremental Power Demand: "Off-Grid Solutions" Address "1/4 to 1/3", with Fuel Cells Meeting "25-50%". "Off-grid" power supply solutions have become a key force in solving the AI power consumption dilemma. Goldman Sachs predicts that the scale of this emerging market will reach 20-25 gigawatts by 2030. With advantages such as rapid deployment, cleanliness, and efficiency, fuel cell technology stands out and is expected to occupy a "golden track" of up to 20 gigawatts, becoming a key energy source driving the future of AI.

- U.S. Power Project Pipeline: Solar and Wind Power Concentrated in the Next Two Years; Natural Gas and Energy Storage Plans Surge. Solar and wind power projects are concentrated in commissioning and grid connection in the next two years, with solar power projects in these two years accounting for 94% and 99% of Goldman Sachs' predicted new capacity respectively. Meanwhile, compared with the same period last year, the total capacity of planned natural gas and energy storage projects has surged by 127% and 60% respectively, and most of these new projects are scheduled to be commissioned in 2028-2030.

- Data Centers Impact Consumption? AI Affects U.S. Midterm Election Landscape—Reason: Electricity Prices! Areas with the highest electricity price increases are mostly dominated by Democrats, including Maryland, Delaware, and California, where electricity prices have risen by 29% in the past three years. Republicans are trying to use voters' dissatisfaction with soaring electricity prices to break the Democratic Party's political dominance in some constituencies in the midterm elections, targeting the green energy policies promoted by the Democratic Party.

- Goldman Sachs: Eli Lilly is on the Eve of "the Strongest New Product Cycle in Biopharmaceutical History". Goldman Sachs believes that Eli Lilly's oral weight loss candidate drug orforglipron represents "one of the most important new product cycles in the entire biopharmaceutical coverage." Management revealed that global regulatory submissions are about to begin, and the drug is expected to be launched in the U.S. market for obesity treatment next year.

# Industries/Concepts

1. **Nuclear Fuel** | On November 1, the Chinese Academy of Sciences confirmed that the 2-megawatt liquid-fuel thorium-based molten salt experimental reactor, led by the Shanghai Institute of Applied Physics of the Chinese Academy of Sciences, recently successfully completed the first conversion of thorium-uranium nuclear fuel. This achievement not only fills an international gap by obtaining experimental data for the first time after thorium enters the molten salt reactor for operation but also makes this reactor the world's only operating molten salt reactor that has achieved thorium fuel loading, providing key preliminary verification for the technical feasibility of utilizing thorium resources in molten salt reactor nuclear energy systems.

   - **Commentary**: Dai Zhimin, Director of the Shanghai Institute of Applied Physics, clearly stated the goal: to build and commission a 100-megawatt thorium-based molten salt reactor demonstration project by 2035, accelerate technological upgrading and engineering transformation, and open up a safe and reliable new path for thorium-based energy power generation in China. As a core representative of China's fourth-generation nuclear fission reactor technology, the thorium-based molten salt reactor has outstanding safety features. Unlike most nuclear reactors that operate under high pressure, it works under normal pressure throughout, fundamentally eliminating the risk of high-pressure explosions. China has one of the world's leading thorium resource reserves, and uranium-233 can be generated through thorium-uranium cycle technology, which then releases enormous energy through nuclear fission. Therefore, the thorium-based molten salt reactor has become a preferred direction for China's nuclear energy development that is consistent with its resource endowment.

2. **Humanoid Robots** | According to People's Network, the torch relay of the 15th National Games was launched at Lianhuashan Park in Shenzhen on November 2. The humanoid robot "Kuafu" held a 1.6kg torch and completed the handover between the second and third legs without the need for technical personnel to accompany it, with steady running steps and natural movements. This is the first time in the world that a humanoid robot has participated in and independently completed a torch relay. "Kuafu" was developed by Shenzhen-based company CloudMinds and is equipped with the open-source HarmonyOS operating system.

   - **Commentary**: According to a research report by Dongguan Securities, humanoid robots are moving from science fiction to reality with their strong environmental adaptability and potential versatility, known as disruptive platform products after computers and smartphones, and have become a new high ground for technological competition. According to statistics from GGII and Zhongshang Industry Research Institute, the global humanoid robot market size was approximately RMB 2.562 billion in 2024, and it is expected to grow from about RMB 6.339 billion in 2025 to RMB 64.222 billion in 2030, with a compound annual growth rate of 58.90%.

3. **Artificial Intelligence** | According to Jiemian News, NVIDIA has reached an agreement with South Korea's Ministry of Science and ICT, as well as Samsung Electronics, Hyundai Motor Group, and SK Group, to provide more than 260,000 AI chips to launch South Korea's AI project. South Korea plans to build AI infrastructure using 260,000 of NVIDIA's latest Blackwell GPUs to accelerate the digital transformation of industries such as automotive, manufacturing, semiconductors, and communications.

   - **Commentary**: Shanghai Securities News pointed out that NVIDIA previously expected the total shipments of Blackwell and Rubin GPUs to reach 20 million by the end of 2026, which will jointly bring $500 billion in GPU sales. In contrast, the previous-generation Hopper architecture chips only shipped 4 million units throughout their life cycle. Cinda Securities believes that the capital of North American cloud service leaders has begun to reflect their investment expectations in the AI field. From the perspective of third-quarter reports, investment remains strong, and overseas leaders' enthusiasm for AI investment has not diminished. The performance of high-quality companies in the industrial chain is expected to continue to be realized. Meanwhile, driven by the release of domestic and foreign AI large models, the AI industrial chain is expected to maintain a high boom.

4. **AI Agents** | According to TechWeb, the new Huawei Mate 80 series has started pre-orders at offline stores and is expected to be officially released in November. The Mate 80 may completely change the mobile phone interaction logic: with just one sentence, the AI agent can call cloud services to complete tasks, eliminating the need for cumbersome app downloads. It is equipped with the Kirin 9030 chip and an active cooling design. This is not only a hardware upgrade but also the evolution of mobile phones from tools to assistants.

   - **Commentary**: China Securities Journal pointed out that the iteration of AI phones is accelerating. In the past, intelligence was mostly limited to single-point functions such as voice assistants and photo optimization, but now it has evolved into system-level intelligent collaboration. With the evolution of on-device multimodal models and the emergence of AI agents, AI capabilities are shifting from the cloud to the device side, enabling understanding, generation, and decision-making locally. Future mobile phones will no longer be just containers for apps but will gradually become personal intelligent assistants with perception, memory, learning, and execution capabilities.

5. **Smart Cities** | The National Development and Reform Commission and other departments issued the "Action Plan for Deepening Smart City Development and Promoting Comprehensive Digital Transformation," which proposes that by the end of 2027, significant progress will be made in data empowering urban economic and social development. "Efficient handling of one matter" will cover key urban operation events, "efficient completion of one matter" will cover high-frequency people's livelihood matters, the digital economy will become a new driving force for urban development, and breakthroughs will be made in key areas and links such as intelligent and efficient urban governance, convenient and inclusive services, and urban digital renewal. More than 50 cities with comprehensive digital transformation will be built. Megacities and super-large cities will take the lead in building a new system of intelligent and efficient governance, and deploy a number of advanced, usable, and independently controllable urban large models. By 2035, a number of modern cities with international competitiveness and global influence will emerge.

# Upcoming Important News Today

- China's October RatingDog Manufacturing PMI.

- October Manufacturing PMI of the United States, Eurozone, and the United Kingdom.

- The U.S. Senate's next vote on advancing the appropriations bill to end the government shutdown is expected to start as early as the evening of November 3.

- Hong Kong FinTech Week. The International Financial Leaders' Investment Summit is held in Hong Kong.

- Palantir's earnings report.

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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 conditions, 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.