Morning News

# Market Overview  

Source: Wall Street CN  

Fed officials took a hawkish stance, leading the three major U.S. stock indexes to post their largest one-month declines. The Nasdaq Composite dropped over 2%, while the S&P 500 and Dow Jones Industrial Average both fell more than 1%. Disney, which reported underwhelming quarterly revenue, plummeted nearly 8% to lead losses among Dow components. Tesla slid 6.6%, heading the decline of tech giants. Chip stocks and AI concept stocks suffered a broad sell-off: the semiconductor index fell nearly 4%, NVIDIA dropped 3.6%, AMD declined over 4%, Palantir sank more than 6%, and Oracle fell over 4%. In contrast, Cisco, which delivered strong earnings, closed up 4.6%. The U.S.-listed Chinese stocks index fell over 1%, marking a third consecutive decline; after releasing earnings, Bilibili dropped nearly 5% and JD.com fell close to 2%.  

Investors grew skeptical about the Fed’s potential rate cut in December, causing U.S. Treasury prices to decline. The 10-year U.S. Treasury yield moved away from its two-week low. The U.S. Dollar Index fell to a two-week low; offshore RMB rose over 200 pips intraday, breaking above the 7.10 level to hit a two-week high. Cryptocurrencies entered a bear market: Bitcoin fell below the $100,000 mark, dropping nearly 6% intraday to below $98,000, while Ethereum once plummeted over 10%.  

Crude oil rebounded from the three-week low hit by Wednesday’s sharp decline, rising over 1% intraday. Gold, after hitting a three-week high consecutively during the session, reversed course and fell, with an intraday drop of over 1% at one point.  

During the Asian trading session, both A-shares and Hong Kong stocks rose. The Shanghai Composite Index continued to refresh its 10-year high, and the Hang Seng Index stood above the 27,000-point mark. Lithium battery-related stocks surged collectively, photovoltaic stocks staged a strong rebound, and precious metal stocks gained momentum.  

# Key News  

- China’s new social financing in October reached 810 billion yuan, with new RMB loans amounting to 220 billion yuan. The "scissors gap" between M2 and M1 widened.  

- The U.S. House of Representatives passed a temporary funding bill, ending the U.S. government shutdown and initiating a "lengthy restart." Kevin Hassett, former top economic advisor to Trump, stated that only half of the October jobs report would be available (without unemployment data), and estimated that the government shutdown caused 60,000 job losses.  

- Fed officials struck a hawkish tone ahead of the release of key economic data:  

 - 2024 voting member Mary Daly emphasized the need for caution;  

 - 2025 voting member Raphael Bostic advocated for maintaining the current policy stance;  

 - 2025 voting member Neel Kashkari opposed the rate cut at the end of last month, noting that December’s action would depend on data;  

 - 2026 voting member Susan Collins said it was too early to determine whether to cut rates in December.  

- Concerned about the "weaponization" of U.S. dollar swaps, European officials are reportedly exploring preparations for a "worst-case scenario" by establishing their own U.S. dollar reserve pool.  

- Tencent’s Q3 net profit increased by 19% year-on-year. AI-driven cloud services drove double-digit growth in enterprise services revenue, and the company stepped up investment in promoting its "Yuanbao" AI product. During the earnings call, Tencent stated that:  

 - Actual capital expenditure for the full year 2025 would be lower than guidance;  

 - GPU reserves were sufficient for internal use;  

 - WeChat would eventually launch an AI agent.  

- JD.com’s Q3 revenue rose 15% year-on-year, while adjusted EBITDA fell 83%. Revenue from new businesses more than tripled, and marketing expenses increased by 110%. During the earnings call, JD.com noted that its food delivery business had entered a phase of rational expansion and planned to build a trillion-yuan intelligent ecosystem within three years.  

- SMIC’s Q3 revenue grew 9.9% year-on-year, net profit surged 43.1%, and capital expenditure increased 26% quarter-on-quarter. The company expects Q4 revenue to remain flat or grow by 2% quarter-on-quarter.  

- Bilibili’s Q3 revenue rose 5% year-on-year to 7.69 billion yuan, with adjusted net profit increasing by 233% year-on-year.  

- Alibaba’s "Tongyi Qianwen" made a comprehensive shift to enter the C-end market, positioning itself against ChatGPT. The Qianwen APP has become a new entry point for its ecosystem.  

- Highlights from Baidu World Congress:  

 - Baidu unveiled the Kunlun Chip Super Node for the first time, with single-card performance improved by 95%;  

 - Two new Kunlun Chip models were released;  

 - The company’s autonomous driving technology has crossed a critical threshold.  

- In a in-depth interview, Microsoft CEO Satya Nadella stated that:  

 - A significant portion of Azure’s profits come from supporting services;  

 - Model developers may fall into the "winner’s curse," but the value of the platform will not disappear.  

- Is the AI business model collapsing? A well-known blogger conducted an in-depth investigation into OpenAI’s "financial black hole," revealing that:  

 - Its cash burn rate is three times the publicly reported data;  

 - Revenue is overstated and cannot cover costs.  

- A Tesla AI executive said 2026 would be the "toughest year" for employees. Elon Musk made a major shift: reports indicate Tesla is developing support for Apple CarPlay to boost vehicle sales. Separately, it was reported that Musk’s xAI is raising $15 billion and will complete its Series E financing next month, which Musk denied.  

- Michael Burry, the famous short-seller, quietly shut down his fund and refuted rumors that he had shorted NVIDIA and Palantir with $900 million, clarifying that the total position only amounted to $9.2 million.  

- Report: Apple and Tencent reached an agreement on in-app payment for mini-program games, with Apple to collect a 15% commission.  

# Market Closing Quotes  

## U.S. & European Stocks  

- S&P 500 Index: Fell 1.66% to close at 6,737.49 points.  

- Dow Jones Industrial Average: Fell 1.65% to close at 47,457.22 points.  

- Nasdaq Composite Index: Fell 2.29% to close at 22,870.355 points.  

- Euro Stoxx 600 Index: Fell 0.61% to close at 580.67 points.  

## A-Shares  

- Shanghai Composite Index: Rose 0.73% to close at 4,029.50 points.  

- Shenzhen Component Index: Rose 1.78% to close at 13,476.52 points.  

- ChiNext Index: Rose 2.55% to close at 3,201.75 points.  

## Bond Market  

By the end of the bond trading session:  

- The yield on the 10-year U.S. Treasury note was approximately 4.12%, up about 5 basis points intraday.  

- The yield on the 2-year U.S. Treasury note was around 3.59%, up roughly 2 basis points intraday.  

## Commodities  

- WTI Crude Oil Futures (December contract): Rose 0.34% to close at $58.69 per barrel.  

- Brent Crude Oil Futures (January contract): Rose 0.48% to close at $63.01 per barrel.  

- COMEX Gold Futures (December contract): Fell 0.45% to close at $4,194.5 per ounce.

# Detailed Key News  

## Global Highlights  

### China's October Financial Data: New Social Financing at 810 Billion Yuan, M2-M1 "Scissors Gap" Widens  

In October, China's new social financing reached 810 billion yuan, with new RMB loans standing at 220 billion yuan. By the end of October, the "scissors gap" between M2 (broad money supply) and M1 (narrow money supply) was 2.0 percentage points, expanding from 1.2 percentage points in the previous month.  

*Financial News*, a publication supervised by the People's Bank of China (PBOC), stated that the scale of social financing maintained rapid growth, with monetary policy and fiscal policy working in synergy. However, it also noted that the accelerated and increased issuance of government bonds has partially substituted for loans in the short term.  

### U.S. House Passes Temporary Funding Bill, Ending Government Shutdown and Initiating "Lengthy Restart"  

The U.S. House of Representatives voted to pass a temporary federal government funding bill, marking a decisive step toward ending the longest government shutdown in U.S. history. After the shutdown, the government faces a prolonged restart process, and it may take several days or even more than a week to resume normal operations.  

The Congressional Budget Office (CBO) estimated that the six-week shutdown would reduce GDP in the fourth quarter by 1.5 percentage points, resulting in a net loss of approximately $11 billion.  

### Kevin Hassett (Trump’s Former Top Economic Advisor): Only Half of October’s Jobs Report Will Be Available; Government Shutdown Estimated to Cost 60,000 Jobs  

Kevin Hassett, Director of the White House National Economic Council, said: "The household survey was not conducted in October, so we will only get half of the jobs report. We will have partial data on employment positions, but no unemployment rate data—this is only for this month. The Council of Economic Advisers estimates that the U.S. government shutdown has led to 60,000 job losses. The CPI data is consistent with calls for the Federal Reserve to continue interest rate cuts."  

### Fed Officials Strike Hawkish Tone Ahead of Key Economic Data Release  

- **Mary Daly** (2024 FOMC Voting Member, President of the St. Louis Fed): Given that inflation remains above the target level, Fed officials should proceed with caution.  

- **Raphael Bostic** (2025 FOMC Voting Member, President of the Cleveland Fed): The Fed should keep interest rates unchanged to continue curbing inflation.  

- **Neel Kashkari** (2025 FOMC Voting Member, President of the Minneapolis Fed): He did not support the interest rate cut at the end of last month and has not yet decided whether to cut rates in December, stating that the decision will depend on economic data.  

- **Susan Collins** (2027 FOMC Voting Member, President of the San Francisco Fed): It is too early to determine whether to cut interest rates in December.  

### Fearing "Weaponization" of Dollar Swaps, European Officials Reportedly Exploring Preparations for "Worst-Case Scenario": Building a Dollar Reserve Pool  

European financial stability officials are discussing the establishment of a dollar reserve pool to reduce reliance on the Federal Reserve’s funding support mechanisms—especially after Jerome Powell steps down in May next year. Although non-U.S. central banks hold hundreds of billions of U.S. dollars, their strength cannot match that of the Fed, and they face logistical and political obstacles.  

Europe is drawing on Asian experiences such as the "Chiang Mai Initiative" and considering alternative solutions like strengthening bank inspections to prepare for the "worst-case scenario."  

### Tencent’s Q3 Net Profit Rises 19% YoY; AI Cloud Drives Double-Digit Growth in Enterprise Services Revenue; Increased Investment in "Yuanbao" Promotion  

**Earnings Call Highlights**:  

- Actual capital expenditure for the full year 2025 will be lower than guidance.  

- GPU reserves are sufficient for internal use.  

- WeChat will eventually launch an AI agent.  

Tencent Holdings’ Q3 financial report showed that its R&D expenditure reached a record high of 22.82 billion yuan in the quarter. Capital expenditure was 12.983 billion yuan, down approximately 32.05% quarter-on-quarter and 24.06% year-on-year. Enterprise services revenue achieved double-digit year-on-year growth in Q3, driven by revenue growth from cloud services—including growth fueled by increased demand for AI-related services from enterprise clients. Sales and marketing expenses rose 22% year-on-year to 11.5 billion yuan, primarily used to promote AI-native applications and games.  

During the earnings call, Tencent executives stated that the company’s current GPU reserves are sufficient for internal use, with priority given to internal needs. Without restrictions on AI chip supply, the company’s cloud revenue would have grown faster. Regarding reports that Tencent has reached an agreement with Apple on in-app payments for mini-program games, Tencent responded: "There may be an official announcement at some point."  

### JD.com’s Q3 Revenue Rises 15% YoY; Adjusted EBITDA Falls 83%; New Business Revenue More Than Triples; Marketing Expenses Up 110%  

**Earnings Call Highlights**:  

- The food delivery business has entered a phase of rational expansion.  

- Plans to build a trillion-yuan intelligent ecosystem within three years.  

JD.com’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in Q3 was 2.5 billion yuan, far below the market forecast of 3.41 billion yuan. The adjusted operating profit margin was only 0.1%, a significant contraction from 5% in the same period last year. Operating expenses rose 35% year-on-year, growing significantly faster than revenue—becoming the main factor pressuring profit margins.  

Revenue from new businesses in Q3 was 15.592 billion yuan, up 213.9% year-on-year. These new businesses mainly include JD Food Delivery, JD Property Development, Jingxi, and overseas operations.  

During the earnings call, JD.com stated that as a long-term strategy, its food delivery business has achieved double-digit GMV growth, with investment narrowing quarter-on-quarter and significant improvements in UE (Unit Economics). It has now entered a phase of rational expansion. The food delivery business has driven daily active users (DAU) and user conversion on the JD.com APP, with annual active users exceeding 700 million. Daily necessities and groceries categories achieved double-digit growth for four consecutive quarters, and the number of users placing orders during the "Double 11" shopping festival increased by 40%. JD.com will continue to invest in AI over the next three years to build a complete system covering all scenarios such as retail and logistics, and create a trillion-yuan intelligent ecosystem.  

### SMIC’s Q3 Revenue Rises 9.9% YoY; Net Profit Surges 43.1%; Capital Expenditure Up 26% QoQ; Expects Q4 Revenue to Be Flat or Up 2% QoQ  

The latest financial report showed that SMIC’s capacity utilization rate climbed to 95.8% in Q3, approaching full production. SMIC’s management provided Q4 guidance: revenue is expected to be flat or increase by 2% quarter-on-quarter, with a gross profit margin of 18%-20%. This means that with capacity utilization already as high as 95.8%, the company expects Q4 revenue growth to slow significantly, and the midpoint of the gross profit margin (19%) will decline by approximately 6 percentage points compared to Q3’s 25.5%.  

### Bilibili’s Q3 Revenue Rises 5% YoY to 7.69 Billion Yuan; Adjusted Net Profit Surges 233% YoY  

Bilibili (B Station) delivered outstanding Q3 results: revenue reached 7.69 billion yuan, up 5% year-on-year; net profit was 469 million yuan, turning a loss into a profit. More notably, adjusted net profit soared 233% year-on-year to 786 million yuan, showing a significant improvement in profitability.  

User activity and stickiness continued to rise: daily active users (DAU) reached 117 million, and average daily usage time increased to 112 minutes. Among revenue segments, the advertising business became the core driver with a 23% growth rate, while game business revenue fell 17% year-on-year.  

### Alibaba’s "Tongyi Qianwen" Shifts Focus to C-End Market, Targeting ChatGPT  

Alibaba is preparing to revamp its flagship AI application "Tongyi" and rename it "Qwen," fully aligning with the ChatGPT model. The new version will introduce agent-based AI functions and deeply integrate with platforms such as Taobao, aiming to create an all-in-one intelligent assistant. This revamp marks Alibaba’s shift from B-end to C-end monetization and accelerates its global layout, demonstrating its strategic ambition to take AI as the core driver of growth.  

Alibaba’s full-scale shift to the C-end: The Qwen APP becomes a new entry point for its ecosystem. This move indicates that Alibaba’s large model focus has officially shifted from the B-end (via cloud services) and developers (via open source) to the C-end mass market. Tongyi Qianwen will no longer be merely a function embedded in applications such as DingTalk and Taobao, but an independent, fully functional super APP—better aligning with user habits and helping build brand awareness.  

### Baidu World Congress Highlights: Kunlun Chip Super Node Debuts; Single-Card Performance Improves by 95%; Two New Kunlun Chips Released; Autonomous Driving Technology Crosses Critical Threshold  

Baidu’s Kunlun Chip Super Node made its public debut and has been deployed on a large scale within Baidu. This self-developed technology can improve single-card performance by 95% and single-instance inference performance by up to 8 times. Baidu announced an upgrade roadmap for its self-developed chips and computing infrastructure, planning to launch two new generations of Kunlun chips and two super node solutions within the next two years.  

Data released at the conference showed that Baidu’s Apollo Go has provided over 17 million global mobility services, with 250,000 fully autonomous orders per week—ranking first in the world. Robin Li stated that autonomous driving technology has crossed the critical threshold.  

### In-Depth Interview with Microsoft CEO: Azure’s Profits Largely Come from Supporting Services; Model Developers May Fall into "Winner’s Curse"; Platform Value Will Not Disappear  

Satya Nadella said that Azure/AI workloads require not only AI accelerators but also extensive supporting services. In fact, a large part of Microsoft’s profit margin comes from these supporting services. The goal is to build Azure into the ultimate platform for long-tail workloads—which is the essence of large-scale cloud business.  

Nadella emphasized that Microsoft will reduce total cost of ownership through closed-loop optimization of its own models and custom chips. He believes that there will always be a sufficiently powerful open-source model available, as long as one has supporting data resources and infrastructure.  

Microsoft Builds First "AI Super Factory": Integrates Hundreds of Thousands of GPUs to Create an Interplanetary-Scale Computing Network  

Microsoft officially launched its first "AI Super Factory," integrating data centers in Atlanta, Wisconsin, and other locations into a unified computing system to build an interplanetary-scale distributed network. This architecture successfully integrates hundreds of thousands of Blackwell GPUs and adopts a liquid-cooled high-density design. Through a dedicated fiber-optic network, it enables computing collaboration, compressing complex AI training tasks from months to weeks—marking the official entry of AI infrastructure into a new era of networked collaboration.  

### Is the AI Business Model Collapsing? Well-Known Blogger Exposes OpenAI’s "Financial Black Hole": Cash Burn Rate Is Three Times Public Data; Revenue Overstated and Unable to Cover Costs  

Famous tech blogger Ed Zitron cited internal documents to reveal that OpenAI has a huge "financial black hole": its actual inference costs may be three times the publicly reported data, while revenue inferred from Microsoft’s profit-sharing is far lower than official claims—making it impossible for revenue to cover the huge expenses. If the data is true, not only will OpenAI’s business model face questions about sustainability, but the profit prospects of the entire generative AI industry will also be completely subverted.  

### Tesla AI Executive: 2026 Will Be the "Toughest Year" for Employees  

According to reports, Ashok Elluswamy, Tesla’s Vice President of AI Software, said in a meeting last month: "If you work in Tesla’s AI team, next year will be the toughest year of your life." The nearly two-hour company-wide meeting was positioned as a "mobilization order," during which leaders at all levels of the AI department communicated specific goals to employees—goals that will determine whether Elon Musk’s new compensation plan this month can be fulfilled.  

Musk’s Major Shift: Tesla Reportedly Developing Support for Apple CarPlay to Boost Vehicle Sales  

Report: Musk’s xAI Raising $15 Billion, to Complete Series E Financing Next Month; Musk Denies  

According to media reports, xAI, an AI company owned by Musk, has raised $15 billion from investors. This financing adds $5 billion to the $10 billion reported in September, valuing the startup at $200 billion. Musk denied the report.  

### Michael Burry (Famous Short-Seller) Quietly Shuts Down Fund, Refutes Rumors of $900 Million Short Position on NVIDIA and Palantir: Actual Investment Only $9.2 Million  

Michael Burry personally refuted rumors that he had taken a $912 million short position on NVIDIA and Palantir, clarifying that the actual investment was only $9.2 million—a 100-fold difference. Burry pointed out that the media mistakenly took the notional exposure disclosed to the SEC as the fund size. More notably, he simultaneously deregistered his fund Scion Asset Management and announced that a new project would be launched on November 25.  

### Report: Apple and Tencent Reach Agreement on Mini-Program Game Payments; Apple to Collect 15% Commission  

Apple and Tencent reached a revenue-sharing agreement, under which Apple will receive a 15% revenue share from WeChat mini-games and in-app purchases—lower than the previous 30% standard. This breakthrough not only opens a new revenue stream for Apple in China’s mini-game market but also eases Tencent’s payment pressure, potentially establishing a new profit model for Chinese software transactions.  

## Domestic Macroeconomics  

### Wu Qing Visits Financial Regulators in France and Brazil, Holds Talks with Representatives of International Institutional Investors  

From November 10 to 13, 2025 (local time), Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), visited Paris (France) and Rio de Janeiro (Brazil). He held bilateral talks with Marie-Anne Barbat-Layani (Chairwoman of the French Financial Markets Authority, AMF) and Otto Lobo (Acting Chairman of the Brazilian Securities Commission, CVM) and Marina Copola (Commissioner of CVM) respectively. They exchanged views on topics such as regulatory developments in the securities markets of France, the EU, and Brazil, and further deepening and expanding pragmatic bilateral cooperation in the capital market.  

### PBOC-Supervised Media: Accelerated/Larger Government Bond Issuance Partially Substitutes for Loans in the Short Term  

*Financial News*, supervised by the People’s Bank of China, stated that the scale of social financing maintains rapid growth, with monetary policy and fiscal policy working in synergy. However, it also noted that the accelerated and increased issuance of government bonds has partially substituted for loans in the short term.  

"Currently, the economy faces challenges of insufficient demand. Increasing the scale of government bond issuance can support the implementation of major projects and national strategies, help expand demand, and underpin economic growth. At the same time, many government bonds are used to replace debts of financing platforms and clear arrears owed to enterprises—essentially a process where the government sector appropriately increases leverage to help enterprises and residents stabilize leverage. This helps business entities ease funding pressure, reduce debt burdens, and lay the foundation for the medium- and long-term sustainable development of the economy."  

### What to Do as the Property Market’s "Golden September and Silver October" Fades?  

Faced with the lackluster performance of the traditional sales peak season, experts suggest a multi-pronged approach:  

- **Policy Side**: Further lower commercial loan interest rates to 2%, align second-home loan rates with first-home rates, optimize cross-regional mutual recognition policies for provident funds, and continue to ease purchase restrictions.  

- **Product Side**: Accelerate the supply of "high-quality housing" to drive demand with high-quality residential properties.  

- **Fundamental Solution**: Restore homebuyers’ confidence—stabilize housing price expectations by increasing residents’ income, optimizing monetary policy, and releasing positive market signals.  

## Domestic Companies/Industries  

### Humanoid Robots: Ambitious Goals vs. Grim Reality? Industry Predicts 100,000 Units Sold Next Year, Institutions Only See 12,000  

Morgan Stanley warned that market expectations for humanoid robots in the short term are overly optimistic. Real large-scale commercialization faces three major constraints: application scenarios, hardware costs, and software intelligence. In the short term, compared to the much-anticipated "general humanoid robots," special robots (such as wheeled or quadruped robots) that can create clear value in specific tasks and core component suppliers may be more worthy of attention.  

### Lithium Battery Stocks Surge; CATL and Canadian Solar Secure Major Orders; Domestic and Overseas Energy Storage Demand Enters a Resonant Phase  

The lithium battery sector saw a strong surge, with over 20 stocks hitting their daily upward limits. CATL rose more than 7%, driven by two major pieces of good news:  

1. Haibo Sichuang signed a 10-year strategic agreement with CATL, with battery cell procurement of no less than 200GWh in the next three years.  

2. Canadian Solar secured a 1.86GWh energy storage order in Canada.  

Guotai Haitong believes that the large-scale procurement agreement between Haibo Sichuang and CATL demonstrates confidence in the high growth of energy storage in the future. Coupled with the landing of Canadian Solar’s overseas order, this marks that domestic and overseas energy storage demand is entering a resonant phase.  

# Translated Text  

## Burberry’s Q2 Turns Profitable Driven by China Market Recovery, Achieves First Quarterly Sales Growth in Two Years  

Boosted by the recovery of the Chinese market, Burberry swung to a profit in Q2 and recorded its first quarterly sales growth in two years. The company’s comparable store sales in the second fiscal quarter rose 2% year-on-year, ending a seven-quarter consecutive decline. Sales in regions including China increased by 3% in the past three months. Burberry posted a profit of £19 million in the first half of the year, indicating that its strategy—backed by the CEO—of returning to classic outerwear and streamlining costs is taking effect, which has boosted market confidence.  

## Overseas Macroeconomics  

### Is It Getting Harder to "Leverage" AI? Bond Issuance for CoreWeave-Related Data Centers Meets Market Apathy  

Signs of a cooling trend have emerged in the AI infrastructure financing boom. Applied Digital’s $2.35 billion bond issuance for data center construction faced a lukewarm market response, with subscription falling short of expectations. Unlike previous popular transactions supported by Google, this bond made investors cautious due to the speculative-grade credit rating of its major tenant, CoreWeave, leading to a significant rise in financing costs.  

### Is AI Leverage Undervalued? "Financial Leasing" Supports $40 Billion of the $2 Trillion Capital Expenditure!  

Morgan Stanley predicts that among the $2 trillion in AI capital expenditure over the next three years, as much as $40 billion will be realized through financial leasing, and tech giants have already locked in $38.8 billion in future leasing commitments. This trend poses a core challenge for investors: due to differences in accounting treatment between financial leasing and operating leasing, the free cash flow and leverage ratios in various companies’ financial reports are no longer directly comparable.  

### Gold Rebounds Fiercely! Citi Calls for $6,000, but Faces Pressure in 2026  

Citi believes that under a bull market scenario, the price of gold will rise to $6,000 by 2027. Its core logic lies in the huge mismatch between global wealth and the tiny physical gold market. The report estimates that a mere 1.5% increase in global household wealth allocation to gold would consume 18 years of mineral supply, and this imbalance can only be resolved by a sharp surge in prices. Meanwhile, U.S. investors, rather than central banks, are the main drivers of this round of growth—their ETF inflows have contributed to most of the global increments.  

## Overseas Companies  

### GPT-5.1 Debuts Suddenly; Altman Listens to Feedback, and the "Human Touch" Long-Awaited by the Internet Is Back  

OpenAI’s GPT-5.1 "full suite" was suddenly launched, with the "king bomb" combination of Instant and Thinking going online simultaneously. This time, the model has achieved dual upgrades in emotional intelligence and IQ—it is not only smarter but also more "human-like" in conversations.  

### The Ultimate Solution to the "Energy Bottleneck"? Musk, Bezos, and Google Are All Eyeing "Space Data Centers"  

A Google paper points out that the sun’s output power is as high as 3.86 × 10^26 watts, more than 100 trillion times the total electricity generation of humanity. At some point in the future, the best way to power artificial intelligence may well be to utilize this enormous energy source more directly. Although sending data centers into orbit faces severe challenges such as cost, heat dissipation, and reliability, with the exponential growth of AI computing power demand, this move may eventually become a necessary option.  

### "The Best-Selling Drug on Earth"? Citi: Inclusion in Medical Insurance Changes Everything; Eli Lilly’s Oral GLP-1 Sales Next Year Will Be Twice Higher Than Market Forecasts  

Citi raised Eli Lilly’s target price to $1,500. Analysts believe that as U.S. medical insurance opens up to obesity treatment, the market penetration rate of Eli Lilly’s new oral GLP-1 drug, Orforglipron, will experience a "vigorous" surge far exceeding market expectations. Citi raised its sales forecast for Orforglipron in 2026 from $500 million to $1.8 billion, approximately three times the consensus market expectation. In the longer term, the drug’s peak sales forecast is even as high as over $40 billion.  

## Industries/Concepts  

### 1. 6G  

According to CCTV News, it was learned from the Ministry of Industry and Information Technology that China has organized and carried out 6G technology trials for four consecutive years. Currently, the first phase of 6G technology trials has been completed, and more than 300 key technology reserves have been formed.  

**Commentary**: Dongguan Securities believes that as the 6G standard-setting work progresses gradually, the industry’s consensus on 6G standards is deepening. In this process, decisions on the system architecture that determine the long-term development direction of 6G are expected to be finalized in a relatively short period. Looking ahead, the communications industry will be in a period of overlapping technological iteration and policy dividends in 2025. New productive forces such as AI, quantum communications, and low-altitude economy will continue to release growth momentum. Cellular IoT modules will recover from inventory adjustments, and the construction of communications facilities such as base stations, optical cable lines, and data centers is expected to advance continuously, bringing new demand for components, equipment, and service operations.  

### 2. Memory  

Public data shows that on November 13, the prices of memory chips DDR5 16G, DDR4 16Gb, and DDR3 4Gb rose by 0.66%, 0.18%, and 1.05% respectively.  

**Commentary**: Research institutions believe that the current memory market is experiencing a significant price increase cycle. The core driving factors come from two aspects: first, in the AI era, demand for multi-modal applications and enterprise-level memory has shown explosive growth; second, major memory original manufacturers have prioritized capacity allocation to high-margin products such as HBM, leading to structural supply shortages in the traditional memory field. Affected by this, the supply-demand relationship in the industry has remained tight since the beginning of 2025 and intensified after the third quarter, driving the prices of products such as NANDFlash, DDR4, and DDR5 to rise rapidly. If AI demand remains strong and the supply side fails to expand effectively, the tight supply-demand pattern in the memory market may continue in 2026, and the industry is expected to maintain high prosperity.  

### 3. GPU  

It was learned from the official website of the China Securities Regulatory Commission (CSRC) that the CSRC has approved the registration application of Muxi Integrated Circuits (Shanghai) Co., Ltd. (referred to as "Muxi IC") for its initial public offering (IPO) and listing on the Science and Technology Innovation Board (STAR Market). The company plans to raise 3.904 billion yuan to invest in projects including "R&D and Industrialization of New High-Performance General-Purpose GPUs," "R&D and Industrialization of Next-Generation AI Inference GPUs," and "R&D of High-Performance GPU Technologies for Cutting-Edge Fields and Emerging Application Scenarios."  

**Commentary**: Public information shows that Muxi IC is committed to the independent R&D of full-stack high-performance GPU chips and computing platforms, and continuously provides basic computing power bases for national AI public computing platforms, operators’ intelligent computing platforms, commercial intelligent computing centers, etc. Its main products include the Xisi N-series GPUs for intelligent computing inference, the Xiyun C-series GPUs for integrated training-inference and general computing, and the Xicai G-series GPUs (under development) for graphics rendering. Minsheng Securities believes that as leading domestic GPU companies, Muxi IC and Moore Threads continue to break the monopoly of overseas computing power and accelerate their breakthroughs. It remains optimistic about the rapid development of domestic computing power chips and also pays close attention to their driving effect on the supply chain and partners.  

### 4. Tencent  

According to U.S. media citing informed sources, Tencent has reached an agreement with Apple, under which the iPhone manufacturer will handle payments and take a 15% cut from in-app purchases in WeChat mini-games. The resolution of this issue has opened up a new revenue stream for Apple and reduced pressure on Tencent. Apple had previously been demanding that Tencent close loopholes used by app developers to redirect users to external payment systems, thereby evading Apple’s typical 30% commission.  

**Commentary**: Tencent’s newly released Q3 financial report shows that the company achieved total revenue of 192.87 billion yuan in the quarter, a year-on-year increase of 15%; net profit reached 63.13 billion yuan, a year-on-year increase of 19%. Among them, revenue from the three core business segments—value-added services, marketing services, and fintech and business services—all achieved double-digit year-on-year growth. Tencent’s investment in the AI field continued to increase, with R&D expenditure reaching a record high of 22.82 billion yuan in the quarter. Tencent’s game revenue in the domestic market was 42.8 billion yuan, a year-on-year increase of 15%. Notably, Tencent’s game revenue in the international market exceeded 20 billion yuan for the first time in this quarter, reaching 20.8 billion yuan, a year-on-year surge of 43%.  

### 5. Magnetoelectric Storage  

On November 19, the Data Storage Professional Committee of the China Electronics Standardization Association will hold the 2025 Data Storage Industry Conference themed "Unite for a New Storage Ecosystem, Co-build an AI Future" in Guangzhou. The conference will release a series of forward-looking and practical industrial achievements and conduct in-depth discussions on key topics such as cross-field collaboration and technology integration paths. With its advantages of high speed, low power consumption, and non-volatility, magnetoelectric storage technology is expected to become a highlight direction of the conference.  

**Commentary**: Securities Times points out that with the rapid development and application of the digital economy and AI technology, the global data volume has exploded exponentially, and data has become a national strategic resource and core production factor, emerging as a new engine driving economic growth. Facing the global data storage industry’s market space of over 2.6 trillion yuan, enhancing China’s industrial competitiveness and building advanced data storage capabilities for the development of the digital economy have become important issues. Magnetoelectric storage technology is expected to become a market focus. At the 2025 Huawei Connect Conference, Huawei updated the R&D progress of new magnetoelectric storage technology, which aims to break through the storage bottleneck in AI computing and improve overall system efficiency.  

### 6. Artificial Intelligence (AI)  

According to China Securities Journal, Alibaba has secretly launched the "Qwen" project, building a personal AI assistant of the same name—the Qwen APP—based on its most advanced Qwen model. The APP fully targets ChatGPT and joins the top global competition in AI applications. Alibaba’s core management regards this as the "future battle of the AI era" and hopes to win the competition by leveraging the open-source technology advantages of Qwen. This new move means that Alibaba’s focus on large models has officially shifted from the B-end (via cloud services) and developers (via open source) to the C-end mass market. Tongyi Qianwen will no longer be merely a function embedded in applications such as DingTalk and Taobao, but an independent, fully functional super APP. This is more in line with users’ habits and better for building brand awareness.  

**Commentary**: The report points out that this is another important layout of Alibaba’s AI strategy after announcing a 380 billion yuan investment in AI infrastructure at the beginning of the year. Previously, Alibaba focused its efforts on the B-end AI market, providing model API services to various industries through Alibaba Cloud. Based on Qwen’s excellent performance and international influence, Alibaba’s management believes that the time to launch the C-end battle for Qwen is ripe. With Qwen fully expanding into the C-end and relying on Alibaba’s strength, the Qwen APP may become a new, high-frequency super entry point within one or two years, diverting traffic to Alibaba’s entire ecosystem (e-commerce, local life, culture and entertainment, etc.). In the AI chain of "computing power-model-application," the new wave of large-model upgrades is expected to drive a comprehensive new round of AI innovation.  

### 7. Cross-Border Payment  

According to China Securities Journal, on November 13, the Hong Kong Monetary Authority (HKMA) announced the launch of Ensemble, which has officially entered the pilot phase. This milestone marks an important step for Hong Kong in using tokenized deposits and digital assets for real transactions in a controlled pilot environment. Ensemble will operate continuously in 2026, laying a solid foundation for the next phase of innovation. Cross-bank settlement of tokenized deposit transactions will first be carried out through the Hong Kong Dollar Real-Time Gross Settlement (RTGS) system. The pilot environment will be gradually upgraded and optimized to support 24/7 settlement using tokenized central bank currency, promoting the sustainable development of Hong Kong’s broader tokenized ecosystem.  

**Commentary**: The report points out that the Ensemble project is a support program for real transactions of tokenized deposits and digital assets launched by the HKMA, aiming to improve the efficiency and transparency of financial transactions through tokenization technology. Through this project, Hong Kong is building a new generation of financial infrastructure centered on tokenization, which will have a profound impact on the global financial pattern, especially in terms of RMB internationalization and the restructuring of the global payment system.  

## Today’s Key News Preview  

- China releases October’s industrial value-added above designated size, total retail sales of consumer goods, real estate development investment, fixed asset investment, and 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.  

- Hong Kong, China’s Q3 GDP.  

- Eurozone’s Q3 GDP.  

- France’s October CPI.  

- Raphael Bostic (President of the Atlanta Fed), Jeffrey Schmid (President of the Kansas City Fed), and Lorie Logan (President of the Dallas Fed) deliver speeches.  

- Huawei holds an operating system conference.  

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