Morning News

# Market Overview

Source: Wall Street CN

Ahead of NVIDIA's crucial earnings report, U.S. stocks fell again. The three major U.S. stock indices hit a one-month low for two consecutive days, with the Dow Jones Industrial Average (DJIA) and the Nasdaq Composite Index dropping more than 1%. The S&P 500 extended its losing streak to four days, marking its longest losing streak in nearly three months. The semiconductor index plummeted over 2% and also posted a four-day losing streak. NVIDIA closed down nearly 3%, falling to a nearly one-month low; Amazon dropped more than 4%, leading the decline among the "Magnificent Seven" tech giants. The China Concept Stock Index closed up 0.4%, reversing a five-day losing streak. After releasing its earnings report, Baidu rose nearly 2.7%, while PDD fell more than 7%.

U.S. Treasuries all rose, but they retreated from intraday highs, and the upward momentum diminished at one point. The U.S. Dollar Index halted its two-day winning streak; the Japanese Yen hit a new low in over nine months. Cryptocurrencies, which had suffered heavy losses for days, rebounded. Bitcoin, after falling below the $90,000 mark intraday, rose nearly 5% at one point and reclaimed the $93,000 level. Ethereum, after dropping below $3,000 intraday, rebounded more than 7% at one point.

Gold fell below $4,000 intraday for the first time in over a week, with futures gold dropping nearly 2% at one point before turning higher later. Crude oil rebounded to a one-week high, with U.S. oil rising nearly 2% intraday.

During the Asian trading session, China's A-shares and Hong Kong stocks opened lower and moved lower. The ChiNext Index fell more than 1%, while AI application stocks bucked the trend and strengthened. The Hang Seng Tech Index and the Hang Seng Index both dropped over 1%, and new energy vehicle concept stocks declined.

# Key News

1. Li Qiang met with Russian President Vladimir Putin.

2. The number of initial jobless claims in the U.S. for the week ending October 18 stood at 232,000. This was the first official report released since the U.S. government shutdown led to the continuous suspension of official reports. The "small non-farm" ADP weekly employment data showed that in the four weeks ending November 1, the number of private-sector jobs in the U.S. decreased by an average of 2,500 per week.

3. Saudi Crown Prince made his first visit to the U.S. in seven years and gave a "grand gift" to the Trump camp, confirming that Saudi Arabia will increase its investment in the U.S. to $1 trillion. The U.S. Secretary of State stated that Saudi Arabia will be granted permits for chip exports; Trump said before the meeting that he will approve the sale of F-35 fighter jets to Saudi Arabia.

4. Trump claimed to have selected a candidate for the Federal Reserve Chair. The U.S. Treasury Secretary said the candidate list has been narrowed down to five people, including current Fed Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House Economic Adviser Kevin Hassett, and BlackRock executive Rick Rieder.

5. The White House is reviewing new regulations: it plans to impose taxes on U.S. citizens' overseas cryptocurrency assets.

6. A U.S. Treasury Department report showed that overseas investors held $9.25 trillion in U.S. Treasuries in September, approaching the all-time high. Japan's holdings of U.S. Treasuries increased for nine consecutive months, hitting a new high in over three years, while the UK's holdings fell for the first time in nine months.

7. Xiaomi's adjusted net profit in Q3 surged 80.9% year-on-year to a record high. Its innovative businesses such as electric vehicles and AI achieved quarterly operating profits for the first time. During the earnings call, Xiaomi stated that its automotive business will complete the full-year delivery target ahead of schedule this week, and its gross profit margin is expected to decline slightly next year. The mobile phone business may raise prices to cope with rising storage costs.

8. PDD's Q3 revenue growth slowed to 9%, with net profit increasing 17% year-on-year. The management warned that financial fluctuations will continue. During the earnings call, PDD reaffirmed its "long-term value" strategy, cautioned that the profit of this quarter is not indicative, and noted that future performance may fluctuate repeatedly.

9. Baidu's Q3 revenue reached 31.17 billion yuan. The revenue growth rate of its AI business exceeded 50%, and the global service volume of Apollo Go (Radish Run) increased 212% year-on-year.

10. Google's most powerful AI model has been launched: Gemini 3 Pro achieved the highest score in the history of model rankings. It is claimed to be the best model for contextual programming and intelligent agent coding, and was launched on the search engine, App, and developer platform simultaneously on its release day.

11. Microsoft, NVIDIA, and Anthropic have established a strategic partnership. Microsoft will invest $5 billion, NVIDIA will invest $10 billion, and Anthropic has committed to purchasing $30 billion worth of Azure computing power. It is reported that Anthropic's valuation will reach $350 billion after the agreement.

# Market Closing Quotes

## U.S. and European Stock Markets

- S&P 500: Fell 0.83% to close at 6,617.32 points.

- Dow Jones Industrial Average (DJIA): Fell 1.07% to close at 46,091.74 points.

- Nasdaq Composite Index: Fell 1.21% to close at 22,432.845 points.

- European STOXX 600 Index: Fell 1.76% to close at 561.62 points.

## China's A-Shares

- Shanghai Composite Index: Fell 0.81% to close at 3,939.81 points.

- Shenzhen Component Index: Fell 0.92% to close at 13,080.49 points.

- ChiNext Index: Fell 1.16% to close at 3,069.22 points.

## Bond Market

By the end of the bond market session, the yield on the U.S. 10-year benchmark Treasury note was approximately 4.11%, down about 3 basis points intraday; the yield on the U.S. 2-year Treasury note was approximately 3.57%, down about 4 basis points intraday.

## Commodities

- WTI Crude Oil Futures (December contract): Closed up 1.39% at $60.74 per barrel.

- Brent Crude Oil Futures (January contract): Closed up 1.07% at $64.89 per barrel.

- COMEX Gold Futures (December contract): Closed down 0.2% at $4,066.5 per ounce.

- LME Aluminum Futures: Closed down 1.2% at $2,780 per ton.

# Detailed Key News

## Global Highlights

1. Li Qiang met with Russian President Vladimir Putin. Li Qiang pointed out that China's determination and stance on developing mutually beneficial cooperation with Russia have always been consistent, and China is willing to further enhance the resilience of cooperation with Russia to consolidate and maintain the steady development momentum of bilateral cooperation. The two sides should jointly organize the new China-Russia National Theme Year, make good use of people-benefiting policies such as visa exemption that represent "mutual efforts" between the two countries, promote deeper mutual understanding and closer bonds between the two peoples, and lay a solid foundation of people-to-people friendship for bilateral relations.

2. A debate over robots has just erupted between China and the United States. The CEO of "Unitree Robotics (U.S.)" personally stepped forward to criticize, while Lingqi Wanyi released an "unedited video". A robot video labeled "no acceleration, no remote control" unexpectedly triggered a "debate over authenticity" across the Pacific Ocean. Behind the anxiety of Silicon Valley tycoons lies the fact that a highly disruptive "Android moment" for robots is quietly taking shape in China.

3. The number of initial jobless claims in the U.S. for the week ending October 18 stood at 232,000. This was the first official report released since the U.S. government shutdown led to the continuous suspension of official reports. The "small non-farm" ADP weekly employment data showed that in the four weeks ending November 1, the number of private-sector jobs in the U.S. decreased by an average of 2,500 per week.

4. In the week ending October 18, the total number of initial jobless claims in the U.S. reached 232,000. This marked the first time since the government shutdown earlier this month that the outside world has been able to gain insight into this key high-frequency indicator of the labor market. The number of continuing jobless claims stood at 1.957 million, a slight increase from 1.947 million in the previous week.

5. The Saudi Crown Prince made his first visit to the U.S. in seven years and gave a "grand gift" to the Trump camp, confirming that Saudi Arabia will increase its investment in the U.S. to $1 trillion. $1 trillion is equivalent to Saudi Arabia's total annual GDP. When asked whether Saudi Arabia could fulfill its investment commitment under the current oil price level, Crown Prince Mohammed stated that Saudi Arabia is not fabricating facts to please the U.S., and these are real opportunities. He cited AI chips as an example, noting that Saudi Arabia has a huge demand for computing power. The White House said the investment agreement includes nearly $142 billion in U.S. defense equipment sales; Saudi enterprises will also purchase $14.2 billion worth of manufacturing equipment from U.S. companies, and Boeing will export $4.8 billion worth of 737-8 airliners; companies such as Google and Oracle will invest $80 billion in cutting-edge technologies in both countries. The U.S. Secretary of State stated that a permit for chip exports to Saudi Arabia may be announced on Tuesday.

6. "Major Policy Shift"! Foreign media: Ahead of the Saudi Crown Prince's visit to the U.S., Trump said he will approve the sale of F-35 fighter jets to Saudi Arabia. According to Huanqiu.com, U.S. President Trump stated on the 17th local time that he will approve the sale of F-35 stealth fighter jets to Saudi Arabia. Saudi Crown Prince and Prime Minister Mohammed bin Salman is scheduled to visit the U.S. on the 18th, and Trump will receive him. This arms sale will mark a "major policy shift", which may change the military balance in the Middle East and test Washington's definition of maintaining Israel's "qualitative military edge".

7. Trump claimed to have selected a candidate for the Federal Reserve Chair. On Tuesday local time, U.S. President Trump stated that he believes he has selected a candidate for the next Federal Reserve Chair, and also claimed that someone is preventing him from dismissing the current Federal Reserve Chair Powell. Bescent said he has narrowed down the candidate list to the following individuals: current Federal Reserve Governors Christopher Waller and Michelle Bowman, former Federal Reserve Governor Kevin Warsh, Director of the White House National Economic Council Kevin Hassett, and BlackRock executive Rick Rieder.

8. The White House is reviewing new regulations: it plans to impose taxes on U.S. citizens' overseas cryptocurrency assets. The Trump administration is reviewing a new regulatory proposal aimed at taxing Americans' overseas cryptocurrency assets. The proposal suggests that the U.S. join the Crypto-Asset Reporting Framework (CARF) created by the OECD to combat tax evasion through automatic information sharing. The Trump administration previously believed that this move could prevent U.S. taxpayers from transferring assets overseas and promote the development of the domestic cryptocurrency industry. If approved, the framework is planned to be implemented globally in 2027.

9. In just six weeks, the cryptocurrency market has "lost" $1.2 trillion in value. This round of sell-off started due to concerns about overvalued tech stocks and the direction of U.S. interest rate policies. According to data provider CoinGecko, the total market value of more than 18,000 digital currencies has dropped by 25% during this period. Small-cap tokens with higher risks have suffered the heaviest losses. Analysts warned that under the current depressed sentiment, Bitcoin may drop to $75,000 soon.

10. The cryptocurrency market is in "extreme panic", and the market is preparing for Bitcoin to fall to "$80,000". Options market data shows that traders' demand for protection against downward movements at levels such as $90,000, $85,000, and $80,000 has surged significantly. The scale of put options expiring at the end of November has exceeded $740 million. The cryptocurrency market is filled with investors who have suffered too heavy losses to continue buying, but are unwilling to cut their losses.

11. Has the Bitcoin sell-off triggered market panic and pushed the market into a "self-reinforcing" downward spiral? On the one hand, the Bitcoin sell-off has impacted global risk appetite, leading to the sell-off of risky assets such as stocks; on the other hand, it may trigger leveraged investors to be forced to sell other holdings to make up for margin calls, forming a negative cycle of "decline - sell-off - further decline".

12. As the cryptocurrency market is mired in a bear market, the wave of "altcoin" ETF listings has arrived. The Solana ETF has been listed, and the DOGE coin ETF will follow. VanEck launched a fee-free Solana ETF this week to join the competition, while Grayscale and Bitwise's spot Dogecoin ETFs are expected to be launched next week. This wave of issuances benefits from the U.S. SEC's relaxation of listing standards in September and is reshaping the cryptocurrency asset investment landscape through fee wars and staking returns.

13. U.S. Treasury Department report: Overseas investors' holdings of U.S. Treasuries in September were close to the all-time high; Japan's holdings of U.S. Treasuries hit a new high in over three years, while the UK's holdings fell for the first time in nine months. As of August, the total value of U.S. Treasuries held by countries and regions outside the U.S. reached $9.26 trillion, setting a new record for three consecutive months, and slightly fell to $9.25 trillion in September. Among the top ten overseas "creditors" of the U.S., Japan, which ranks first, increased its holdings by $8.9 billion month-on-month in September, marking nine consecutive months of increase; Canada's holdings increased by $32.1 billion, the largest increase in September; the UK, which ranks second in holdings, reduced its holdings by $39.3 billion after eight consecutive months of increase; China's holdings slightly fell by $500 million in September.

14. Xiaomi's adjusted net profit in Q3 surged 80.9% year-on-year to a record high. Its innovative businesses such as electric vehicles and AI achieved quarterly operating profits for the first time. During the earnings call: Xiaomi's automotive business will complete the full-year delivery target ahead of schedule this week; the gross profit margin is expected to decline slightly next year; the mobile phone business may raise prices to cope with rising storage costs.

According to the financial report, Xiaomi's automotive business achieved revenue of 28.3 billion yuan in Q3, a year-on-year increase of 197.9%, and the delivery volume reached 108,800 units, an increase of 33.8% compared with Q2, setting a record high. More importantly, Xiaomi's intelligent electric vehicle and AI-related innovative business segment achieved an operating profit of 700 million yuan, marking the transition of Xiaomi's automotive business from a loss to a profit. In addition, the gross profit margin of the automotive business also increased to 25.5%.

Lu Weibing stated that the automotive industry is expected to face significant challenges in 2026. With the halving of the purchase tax subsidy, competition in the automotive industry will further intensify. Overall, Xiaomi's automotive gross profit margin may decline slightly next year. However, in the short term, it is expected to remain at a "good level" in the fourth quarter of this year. Lin Shiwei stated that the company will still take delivery as the top priority in the short term.

15. PDD's Q3 revenue growth slowed to 9%, with net profit increasing 17% year-on-year. The management warned that financial fluctuations will continue. During the earnings call: It reaffirmed "long-term value", warned that this quarter's profit is not indicative, and noted that future performance may fluctuate repeatedly.

PDD's Q3 revenue reached 108.28 billion yuan, a year-on-year increase of 9%, marking the first time the company's revenue growth rate has dropped to a single-digit range in recent years. The net profit attributable to shareholders was 29.33 billion yuan, a year-on-year increase of 17%, and the non-GAAP net profit was 31.38 billion yuan, a year-on-year increase of 14%. Liu Jun, Vice President of Finance, warned that "as we increase support for merchants and investment in the ecosystem, financial results may continue to fluctuate quarter by quarter". PDD's stock price fell by more than 7%.

Regarding the slowdown in Q3 revenue growth, PDD stated that it will sacrifice short-term profits to invest in the platform ecosystem, aiming to strengthen its "long-term value". The profit of this quarter cannot be used as a guide for future performance, and performance in the next few quarters may fluctuate repeatedly.

16. Baidu's Q3 revenue reached 31.17 billion yuan. The revenue growth rate of its AI business exceeded 50%, and the global service volume of Apollo Go (Radish Run) increased 212% year-on-year. According to Baidu's financial report for the third quarter of 2025, the total revenue in Q3 was 31.2 billion yuan, and the core revenue was 24.7 billion yuan. The highlight of the performance was the first disclosure of AI business revenue of approximately 10 billion yuan, a year-on-year increase of over 50%, among which AI-native marketing services surged by 262%. The global service volume of Apollo Go increased by 212% year-on-year, with a cumulative number of autonomous driving orders exceeding 17 million.

17. Google's most powerful AI model is here! Gemini 3 was launched on search engines, Apps, and developer platforms simultaneously on its release day. Gemini 3 topped the global AI model LMArena ranking with a historic high score of 1,501 points. Google called it the best model for "vibe coding" and intelligent agent coding, with a "great leap" in reasoning ability. It is regarded as "the world's best multi-modal understanding model" and Google's most secure model. In addition to the preview version of Gemini 3 Pro, Google also released the enhanced reasoning mode "Deep Think". At the same time, Google launched the agent-first development platform "Google Antigravity", which utilizes Gemini 3's advanced reasoning, tool usage, and intelligent agent coding capabilities, and integrates the Gemini 2.5 Computer Use model and the image editing model "Nano Banana".

18. Microsoft, NVIDIA, and Anthropic have established a strategic partnership. Microsoft will invest $5 billion, and NVIDIA will invest $10 billion. Microsoft announced the establishment of a new strategic partnership with NVIDIA and AI startup Anthropic. Anthropic has committed to purchasing $30 billion worth of Azure computing power. Microsoft will invest $5 billion in Anthropic, while NVIDIA will invest $10 billion in the startup. Anthropic's valuation will reach $350 billion after the latest investment commitments from Microsoft and NVIDIA.

19. It is a foregone conclusion that NVIDIA's earnings will exceed expectations this Thursday. What the market is most concerned about is the ramp-up speed of Blackwell's production capacity. JPMorgan predicts that NVIDIA's Q3 financial report revenue may reach $55 billion (the market expectation), and the Q4 guidance may reach $63 billion - $64 billion. Currently, the constraint on growth is not demand but supply chain capacity. The shipment volume of Blackwell racks in Q3 increased by 50% month-on-month to approximately 10,000 units. JPMorgan believes that supply chain capacity will remain a key factor limiting NVIDIA's revenue growth, and this situation will continue until 2026.

20. Google CEO warned: No company will be spared when the AI bubble bursts. The Google CEO warned that the current AI boom contains "irrational" elements, and no company will be completely spared once the bubble bursts. Although AI is regarded as the most profound technology and is expected to bring long-term value, the current soaring valuations and huge investments have evoked memories of the Internet bubble. Google has resilience due to its "full-stack" technology, but it still faces challenges such as soaring energy demand, delayed climate goals, and employment impacts.

## Domestic Macroeconomics

1. UBS is optimistic that China's stock market will continue to rise next year, with strategies focusing on "going global", "anti-involution", and "correction of global AI stocks" as the main risk. UBS predicts that China's stock market will continue its upward trend in 2026, with the MSCI China Index targeting 100 points, representing an upward potential of approximately 14%. However, the driving force will shift from valuation to profit growth. The strategy will mainly focus on "going global" enterprises that have shown strong resilience and pay attention to profit recovery opportunities brought by "anti-involution" policies. At the same time, the bank warned that a correction in global AI stocks will pose a major risk to the market, but the relatively low valuation of Chinese tech stocks may provide a certain safety cushion.

2. Bank of America Asian Fund Manager Survey: Investors are returning to China! The latest survey by Bank of America shows that investor sentiment in the Asia-Pacific region has significantly improved. The Chinese market has regained attention, with approximately 50% of investors increasing their allocations or seeking entry opportunities. AI/semiconductors have become the most concerned sector with 64% of respondents favoring them, and the anti-involution concept ranks second with 24% attention.

## Domestic Companies

1. After Huang Renxun's visit to Taiwan, Morgan Stanley raised its expectation for TSMC's CoWoS production capacity: it needs to expand by more than 20% by 2026 to keep up with the growth of 3nm production capacity. Morgan Stanley raised its expectation for TSMC's CoWoS production capacity, predicting that the monthly production capacity will reach 120,000 - 130,000 wafers by the end of 2026, an increase of more than 20% compared with the previous estimate. This move aims to match the newly added 3nm front-end wafer production capacity to meet the huge demand for AI chips (such as NVIDIA's Rubin platform). The production capacity expansion will benefit CoWoS equipment and design service suppliers.

2. TSMC is making huge profits amid the boom in AI infrastructure! UBS: Each GW brings $1 billion - $2 billion in revenue! Under the global wave of AI server investment, TSMC, as a core foundry, has significantly benefited. A UBS research report pointed out that each 1GW of server construction can bring $1 billion - $2 billion in revenue to TSMC, equivalent to 1.0% - 1.5% of its annual sales. The demand for different AI platforms varies significantly: the revenue per GW of NVIDIA's GPU solution is approximately $1.1 billion - $1.9 billion; Broadcom's ASIC solution has increased to $1.895 billion due to efficiency advantages; AMD has the lowest demand due to chiplet design. The 26GW cooperation announced by OpenAI is expected to bring TSMC potential revenue of $34.4 billion and operating profit of approximately $14.6 billion.

3. There is another large-scale acquisition in the memory chip sector. Pura Semiconductor acquired a 31% stake in Noah Changtian, indirectly taking control of SHM. Pura Semiconductor acquired a 31% stake in Noah Changtian for 144 million yuan, realizing indirect control of memory chip enterprise SHM. Through this acquisition, Pura Semiconductor will integrate SHM's core technologies in the field of 2D NAND memory chips to expand into the industrial control and intelligent terminal markets and strengthen its domestic layout in the memory chip field.

4. Prices have soared, with some products rising by 102% in a month. Many mobile phone manufacturers have suspended purchases, and some have less than three weeks of inventory! Analysts said that "low-end phones may suffer more losses as production increases". Is the price increase caused by AI? The global memory chip prices have risen sharply since the second half of 2025, causing a significant impact on the consumer electronics industry represented by smartphones. Many mobile phone manufacturers have suspended memory chip purchases in this quarter. The inventory of manufacturers such as Xiaomi, OPPO, and vivo is generally less than two months, and the DRAM inventory of some manufacturers is less than three weeks.

# English Translation of the Text  

## Apple’s iPhone 17 Booms: October Sales in China Surge 37%, Market Share Hits New High Since 2022  

Apple’s new-generation iPhone 17 series drove its October sales in China to surge 37% year-on-year, with its market share climbing to 25%—a new high since 2022. This strongly supports the company’s senior management’s expectation of a recovery in growth for the Chinese market. The new models account for over 80% of total sales and are expected to amplify revenue growth through their high average selling price. Although Apple has driven a recovery in the overall market, it still faces intense competition from Huawei, which is set to launch a new flagship model soon.  

## Ant Group Enters the Race for AI Super Entry Points: All-Modal General AI Assistant "Lingguang" Officially Launches, Enabling App Creation in 30 Seconds  

Ant Group has launched "Lingguang," an all-modal general AI assistant that can generate editable, interactive, and shareable mini-apps via natural language on mobile devices in just 30 seconds—marking the first time fully code-generated multi-modal content has been achieved. Initially, Lingguang offers three core features: *Lingguang Conversation*, *Lingguang Flash App*, and *Lingguang Vision*, supporting multi-modal outputs including 3D content, audio-video, charts, animations, and maps. It has been simultaneously released on Android and Apple app stores.  

- *Lingguang Conversation* generates visualized content with structured thinking;  

- *Lingguang Flash App* transforms AI assistants from simple dialogue tools into app-generation platforms, enabling the creation of personalized AI apps with backend capabilities in seconds via a single sentence;  

- *Lingguang Vision* is equipped with an AGI camera to analyze video streams in real time and support multi-modal creation.  

Analysts note that the integration of the "Flash App" concept with Alipay’s ecosystem is Ant Group’s key strategy for positioning itself in AI entry points.  

## Pop Mart Still Gains Wall Street Giants’ Support After a 36% Plunge: Labubu 4.0 to Launch Next Year, Value Not Fully Unlocked  

After a 36% correction in its stock price, Pop Mart still received a reaffirmed "Buy" rating from Citi, which set a target price implying a 91.8% upside. Citi pointed out that the value of Pop Mart’s core IP, Labubu, has not yet been fully unlocked: its 4.0 version is confirmed to launch in 2026, and Sony Pictures has acquired the film adaptation rights to this IP. Meanwhile, a diversified IP matrix (including SKULLPANDA) and progress in overseas expansion together form the driving forces for growth.  

## BOSS Zhipin’s Q3 Revenue Rises 13.2% YoY, Net Profit Jumps 67.2% YoY  

BOSS Zhipin (a Chinese online recruitment platform) reported a 13.2% year-on-year increase in revenue and a 67.2% year-on-year surge in net profit for the third quarter.  

## Overseas Macroeconomics  

### JPMorgan Traders: "Liquidity Pressure" Is the Main Cause of November’s U.S. Stock Plunge  

JPMorgan argues that despite market noise surrounding AI narratives, tight liquidity is the core driver of the stock market decline. Leveraged funds’ limited ability to access cash has intensified pressure to close positions. Currently, the market has reached an index level where further declines could trigger "mechanical" sell-offs, pushing the market down another notch. In the current environment, it will be crucial to closely monitor technical support levels and trigger points.  

### "Over-Investment" Emerges for the First Time in 20 Years! BofA Fund Manager Survey: AI Bubble Becomes the Market’s Top "Tail Risk"  

Market sentiment oscillates between optimism and caution. A Bank of America (BofA) survey shows that fund managers are optimistic about a soft economic landing, boosting equity allocations, but cash levels have dropped to 3.7%—triggering a "sell signal." The AI bubble and "long positions on the Magnificent Seven" are seen as major risks; a net 20% of respondents believe enterprises are over-investing, the first such occurrence in 20 years. Current market valuations are excessively high, lacking new catalysts, and risky assets face downward correction pressure.  

### Fears of Fiscal Stimulus Intensify: Japan Faces "Triple Kill" of Stocks, Bonds, and Currency; Long-Term Bond Yields Hit New Highs  

Japan’s bond market suffered a sell-off amid concerns that Prime Minister Sanae Takaichi’s government will implement large-scale fiscal expansion. The 40-year bond yield soared to its highest level since 2007, while 20-year and 30-year yields rose by at least 4 basis points each. The yen fell below the key psychological level of 155, and the Nikkei 225 Index closed down 3.2%. The market expects the stimulus scale to exceed expectations, with some within the ruling party even pressuring for a 25 trillion yen supplementary budget.  

### Kazuo Ueda Tells Sanae Takaichi: Bank of Japan Will Continue Prudent Interest Rate Hikes  

Bank of Japan (BoJ) Governor Kazuo Ueda clearly signaled further interest rate hikes, stating that the mechanism of synchronized price and wage increases is being restored and that the BoJ is "gradually adjusting the degree of monetary easing." Japan’s financial markets have experienced severe volatility, with the yen hitting new lows; investors are closely watching how the government and central bank will respond to exchange rate pressures and economic stimulus plans.  

### India’s Gold Imports Surge 200% in October  

Driven by festive demand, India’s gold imports in October soared nearly 200% year-on-year from $4.92 billion in the same period last year, hitting a record high. This is expected to widen the country’s merchandise trade deficit to a record $41.7 billion. Rating agency ICRA Research warned that India’s current account deficit as a percentage of GDP may widen to 2.4%-2.5% in the third quarter of the current fiscal year.  

## Overseas Companies  

### "Overnight, Everyone Is Selling NVIDIA"  

Funds managed by billionaire Peter Thiel, Bridgewater Associates, and SoftBank have all reduced their holdings in NVIDIA. Rising U.S. public debt, geopolitical tensions, and central bank interventions have collectively increased systemic risks, prompting top investors to adopt a more cautious stance on high-valued tech stocks. Nevertheless, the market still holds optimistic expectations for NVIDIA’s earnings report, which is set to be released on Wednesday.  

### Amazon Issues $15 Billion in Bonds Amid Sensitive Period, Hitting Markets; "Big Four Tech Firms" Issue Over $8 Billion in Bonds in Two Months—BofA Calls "Shorting Cloud Giants’ Bonds the Best Trade Next Year"  

Amazon launched its first U.S. dollar bond issuance in three years on Monday, raising $15 billion—$3 billion more than initially estimated. In the past two months alone, the "Big Four" tech giants (Amazon, Apple, Microsoft, Google) have issued over $8 billion in bonds combined. Bank of America has warned that the loose financial environment supporting the current AI boom is approaching a turning point; as global central banks slow their rate-cutting pace, cracks in the credit market have begun to emerge. Shorting the bonds of these cloud service giants could become the "best trade of 2026."  

### Fixing Siri’s "Spaghetti Code" Is Apple’s New CEO’s Top Priority  

Tim Cook may step down as Apple’s CEO as early as 2026, and his successor will face Apple’s lag in the AI race head-on. The new version of Siri with AI features, originally planned for release in 2025, has been delayed until 2026 or later due to "spaghetti code" (disorganized, overly complex code). According to media reports citing Apple insiders, some developers in Apple’s AI department believe it is necessary to "rebuild these features from scratch."  

### Meta Wins Key Antitrust Lawsuit; Judge Rules No Social Media Monopoly Exists  

Judge Boasberg emphasized in his ruling that the U.S. Federal Trade Commission (FTC) must prove Meta currently holds monopoly power, not just that it held such power in the past. After the ruling, Meta’s stock price rose, narrowing its earlier losses. A Meta spokesperson stated that the result "acknowledges that Meta faces intense competition."  

### "I’m Panicked—What’s Happening?" Cloudflare Outage Triggers Global Internet Chaos  

Cloudflare suffered a global network outage on Tuesday, rendering numerous websites (including X, ChatGPT, DoorDash, and IKEA) inaccessible. Over 2.1 million users reported issues in total. The company stated that the problem stemmed from an abnormal expansion of threat traffic profiles; it was resolved after less than four hours of repairs. Analysts noted that the incident once again highlights the global internet’s high reliance on a small number of infrastructure providers.  

### Blue Owl’s Stock Plummets to 2023 Levels After "Redemption Restrictions"  

Alternative asset management giant Blue Owl Capital saw its stock price plunge 6% to a new yearly low after suspending redemptions for its $1.8 billion off-exchange fund. The company plans to merge the off-exchange fund with a listed entity, but investors will face a 20% paper loss. Since the start of this year, concerns over asset quality, manager selection, and declining profit potential after rate cuts have caused the stock price of Blue Owl’s listed fund OBDC to fall by approximately 22% year-to-date.  

## Industries/Concepts  

### 1. Industry 4.0  

On November 18, the General Office of the Ministry of Industry and Information Technology (MIIT) issued the *Guidelines for the Construction of High-Standard Digital Parks*. The document emphasizes building benchmarks for enterprises’ digital transformation:  

- Focus on the leading industries of parks, guide enterprises in digital transformation based on the general evaluation index system for manufacturing digitalization, and establish platforms such as manufacturing digital transformation promotion centers;  

- Deepen the full-chain application of next-generation information technology to enhance enterprises’ total factor productivity;  

- Actively explore the application of "AI + Manufacturing," support enterprises in gradient-based smart factory construction, promote large-scale deployment of smart manufacturing equipment (such as industrial robots), and drive a leap in enterprises’ production intelligence.  

**Commentary**: Analysts believe AI can cover all links in the manufacturing process, improving the operational efficiency of each link and tapping into data generated by individual links to empower overall forecasting, production, and management—enabling refined management. MIIT data shows that after intelligent transformation, the R&D cycle of manufacturing has shortened by approximately 20.7%, production efficiency has increased by about 34.8%, defect rates have decreased by around 27.4%, and carbon emissions have fallen by roughly 21.2%. Additionally, AI has enabled manufacturing to shift from a product-centric model to a user-centric one and from rigid production to flexible production; meeting consumers’ personalized needs has become a new service model for manufacturing. According to Bizwit data, the market size of AI applications in China’s manufacturing industry has grown by over 40% annually since 2019 and will reach 14.1 billion yuan by 2025.  

### 2. AIGC  

On November 18, Ant Group released "Lingguang," an all-modal general AI assistant that can generate editable, interactive, and shareable mini-apps via natural language on mobile devices in 30 seconds—achieving fully code-generated multi-modal content for the first time. Initially, it offers three features (*Lingguang Conversation*, *Lingguang Flash App*, *Lingguang Vision*), supporting multi-modal outputs (3D, audio-video, charts, animations, maps) and available on both Android and Apple app stores.  

**Commentary**: Analysts note that major domestic tech firms are accelerating the implementation of AI applications:  

- Alibaba is advancing its "Qianwen" project, building the Qianwen APP to compete with ChatGPT;  

- Tencent announced that WeChat will launch AI agents to assist users in completing various tasks;  

- ByteDance has officially released the Doubao programming model, with in-depth optimization for Agentic capabilities.  

As leading platforms integrate agent capabilities into core consumer scenarios, the AI application sector is shifting from demonstration to practical implementation. The continuous launch of domestic models and rising computing power demand are jointly driving the industry’s transition from model-driven to application deepening. Institutions believe that e-commerce, marketing, and content-related scenarios are expected to realize value first, and there is still room for further improvement in the industrial chain.  

### 3. Nuclear Power  

On November 18, the first concrete was successfully poured for the nuclear island of Unit 1 at CGN Zhaoyuan Nuclear Power Plant—the first "Hualong One" nuclear power plant in China to adopt cooling towers. This marks the full launch of the construction of the Zhaoyuan Nuclear Power Base in Shandong Province. Unlike previous "Hualong One" projects, this newly started project uses a natural draft cooling tower with elevated water collection, which is used for circulating cooling of the conventional island system. With this technology, the direct cooling source of the nuclear power plant is switched from seawater to air, significantly reducing water consumption.  

**Commentary**: Analysts believe that the "Hualong One" nuclear power project with cooling towers breaks location restrictions. Traditional nuclear power plants are typically built near the coast to directly draw and discharge seawater; with the adoption of cooling tower-based secondary circulation, coastal areas can be freed up, and nuclear power plants can be built further inland—setting a precedent for future nuclear power construction.  

### 4. Huawei Computing Power  

On November 18, Huawei officially announced that it will host the "2025 AI Container Application Implementation and Development Forum" in Shanghai on November 21. With the theme "AI Containers Drive the Future, Leading a New Paradigm for Computing Power Resource Utilization," the forum will officially release and open-source the innovative AI container technology "Flex:ai" to improve the efficiency of computing power resource utilization.  

It is understood that Huawei’s upcoming Flex:ai will target the core technology of Run:ai (an Israeli company acquired by NVIDIA in late 2024). It aims to achieve unified resource management and utilization of computing power from NVIDIA, Huawei Ascend, and other third parties through software innovation. It is reported that this technology can significantly increase the utilization rate of computing power resources (such as GPUs and NPUs) from the industry average of 30%-40% to 70%, greatly unlocking the potential of computing power hardware.  

**Commentary**: Huatai Securities believes that Huawei will launch four Ascend-series chips (950PR, 950DT, 960, and 970) in the next three years. Huawei’s 950 and 960 super-node solutions support 8,192 and 15,488 interconnected cards, respectively; the 950 super-node adopts a UB-mesh interconnection method, which effectively reduces static latency and increases network uptime. It is recommended to focus on domestic computing power and its supporting industrial chain.  

### 5. Mass Consumption  

On November 18, 12 departments including the Beijing Branch of the People’s Bank of China issued the *Implementation Plan for Financial Support to Boost and Expand Consumption in Beijing*. The plan proposes strengthening support for commodity consumption credit:  

- Encourage financial institutions to meet consumer financial needs in areas such as home appliance trade-ins, green smart home renovations, and electronic products;  

- Participate in merchant-led consumption promotion activities through various forms, and offer benefits such as consumer loans and credit card installment fee discounts to reduce costs for consumers.  

**Commentary**: CITIC Securities believes that due to the still weak current macro environment, the self-recovery of consumption prosperity is expected to take time. In the short term, whether the consumer industry will see overall beta opportunities depends on the possibility of fiscal stimulus policies. Based on current industrial observations, it is recommended to focus on opportunities from wealth effect transmission and operational inflection points driven by supply-side optimization in 2026.  

## Today’s Key News Preview  

- Eurozone and UK October CPI data release;  

- Federal Reserve releases monetary policy meeting minutes;  

- Speeches by New York Fed President John Williams, Richmond Fed President Thomas Barkin, and Dallas Fed President Lorie Logan;  

- Japan’s Ministry of Finance auctions 800 billion yen of 20-year government bonds;  

- NVIDIA releases earnings report;  

- Release of U.S. EIA crude oil inventory changes for the previous week.  

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