**Market Overview**
Despite weekend expectations for Monday policy support, Hong Kong stocks saw limited substantial developments, leading to consolidation throughout the trading session with the Hang Seng Index closing down 0.76%. Following the Federal Reserve's interest rate cut, markets anticipated China would follow suit, but latest updates show China's September 1-year and 5-year LPR rates remained unchanged for the fourth consecutive month.
The prevailing view suggests that with macroeconomic stability and positive momentum in the first half of the year, there's limited necessity for countercyclical adjustments through LPR guidance in the near term. As People's Bank of China Governor Pan Gongsheng stated: China's monetary policy maintains independence while balancing internal and external factors. This signals China operates on its own rhythm, independent of Federal Reserve actions, highlighting the resilience of China's economy and the autonomous nature of its monetary policy - a demonstration of confidence.
Regarding the State Council Information Office press conference, markets expected new stimulus policies, but none materialized. Pan Gongsheng clarified that today's press conference focused on introducing financial sector developments during the 14th Five-Year Plan period, primarily reviewing achievements from a medium to long-term perspective, without involving short-term policy adjustments. Details regarding the 15th Five-Year Plan and future financial reforms will be communicated following central government deployment.
With many expectations unmet, sectors that bet on LPR cuts, particularly real estate, showed lackluster performance. Consumer stimulus expectations were similarly disappointed. Some disappointed funds shifted toward gold, with New York gold prices surging Friday. On September 22, gold ETF China (518850) rose 1.2%, Gold Stock ETF (159562) gained 1.06%, while Shandong Gold (01787) and Zhaojin Mining (01818) jumped over 6%.
Despite the absence of direct positive catalysts, signals remain clear. China Securities Regulatory Commission Chairman Wu Qing announced that A-share technology sectors now represent over 25% of total market capitalization, with tech companies among the top 50 by market value increasing from 18 at the end of the 13th Five-Year Plan to 24 currently. This indicates technology stocks have become the market's primary theme.
**OpenAI Hardware Strategy Ignites Market Interest**
The most explosive news today came from reports that OpenAI is rapidly advancing its consumer hardware strategy at unprecedented speed. OpenAI's planned products include smart speakers without displays, while considering development of glasses, digital voice recorders, and wearable pins, with initial device launches scheduled for late 2026 or early 2027.
Multiple media sources report OpenAI has signed agreements with Luxshare Precision (002475.SZ) to jointly develop consumer devices, while negotiating component supply with GoerTek (002241.SZ). Reports also suggest OpenAI is discussing component supply arrangements with Lens Technology (06613) and AAC Technologies (02018). All mentioned stocks experienced significant rallies.
From OpenAI's hardware entry perspective, while the concept appears promising, execution remains challenging as no breakthrough products have emerged yet. Take AI glasses as an example - numerous companies are attempting development, but sales figures tell the real story. Therefore, caution is advised, especially considering many of these companies overlap with Apple's supply chain, making Apple-related plays potentially more reliable.
**Apple Supply Chain Momentum**
The Information reported that Apple is increasing iPhone 17 standard model production due to unexpectedly strong demand. Following a robust weekend pre-order surge, Apple has instructed two suppliers to increase iPhone 17 daily production by at least 30%. High correlation Apple supply chain player Hi-P International (01415) surged over 11% today, while other beneficiaries including Truly Opto-electronics (01478) and Sunny Optical (02382) gained over 10% and 6% respectively. Contract manufacturers Foxconn Industrial Internet (02038) and BYD Electronic (00285) also benefited. FIT HON TENG (06088), mentioned last Friday, rode the Apple supply chain theme for another near 18% surge. Multiple concept exposure proves advantageous.
**Medical Sector Developments**
The National Healthcare Security Administration released the 11th batch procurement documents, optimizing price differential control anchors, no longer simply selecting lowest bids. Quarter of drug anchors increased 34% compared to lowest prices, with maximum increases exceeding 170%. Innovation drug catalysts continue, with WuXi AppTec (02268) announcing a subscription agreement signed September 3 with WuXi Biologics for issuing 24.13 million new shares, representing approximately 1.96% of issued share capital. Post-completion, WuXi Biologics' shareholding will increase from 48.81% to 50.74%. Major shareholder continued investment represents strongest support, driving WuXi AppTec (02268) up over 8%.
Infrastructure provider XtalPi (02228) showed strong drug discovery business growth, increasing 615.2% from 60.9 million yuan in the six months ended June 30, 2024, to 435 million yuan in the six months ended June 30, 2025. The group established major collaboration with DoveTree Medicines LLC and affiliates, achieving first-phase milestones and receiving initial payment of $51 million, gaining over 8% today.
Monday afternoon brought news that US pharmaceutical giant Pfizer is nearing a $7.3 billion acquisition of weight-loss drug developer Metsera, signaling Pfizer's return to the weight management market. Ascletis (01672) announced ASC47 combined with semaglutide showed up to 56.2% relative weight loss improvement compared to semaglutide monotherapy in obese subjects, rising over 7% today.
**Notable Corporate Developments**
Warren Buffett's Berkshire Hathaway has completely exited its BYD investment, with holdings reduced to zero. Buffett initially purchased 225 million BYD shares in 2008, holding for 14 years with market value increasing over 38 times - a perfect investment. Complete exit eliminates concerns about potential selling pressure during rallies.
**Sector Focus: HarmonyOS Ecosystem**
At Huawei Connect 2025, Huawei Technologies announced HarmonyOS 5 terminal devices exceeded 17 million units and officially launched the "Tiangong Plan," investing 1 billion yuan in resources to comprehensively support HarmonyOS AI ecosystem innovation, partnering with developers to advance the HarmonyOS AI era.
AI agents are becoming crucial directions for HarmonyOS ecosystem evolution. Through the Tiangong Plan, Huawei will support developers in building more AI meta-services, intent frameworks, and intelligent agents. Huawei aims to accelerate incubation of over 10,000 AI-native meta-services, 1,000+ intent frameworks/MCPs, and 5,000+ intelligent agents, creating powerful scale effects and driving HarmonyOS ecosystem toward AI and intelligent evolution.
Key beneficiaries include: CHINASOFT INT'L (00354), UBTECH ROBOTICS (09880), and VSTECS (00856).
**Individual Stock Spotlight: BYD ELECTRONIC (00285)**
**New Battery Product Launch with Positive EV Industry Chain Outlook**
On September 18, BYD ELECTRONIC globally launched next-generation energy storage product "Haoran." BYD joined large-capacity energy storage system solution providers with multiple global firsts, featuring 14.5MWh single-unit capacity and 233 kWh/cubic meter energy density. BYD announced the second-generation Qin PLUS model launch event scheduled for September 25 at 7:00 PM, featuring both DM-i and EV variants.
**Analysis**: "Haoran" seamlessly integrates with BYD's proprietary GC Flux PCS integrated machine and GC Master EMS systems, forming next-generation grid-forming energy storage systems. The company serves as a core subsidiary of BYD Group.
**Automotive Electronics**: Intelligence upgrades with smart driving and smart cockpits participating in "Eyes of Heaven" intelligent driving systems across multiple models. Proprietary "Yunchen" intelligent suspension systems have entered mass production.
Third-quarter traditional consumer electronics peak season arrival sees major terminals densely launching AI phones and AR glasses, driving industry demand growth.
**AI Business**: Through close collaboration with NVIDIA, the company achieved significant progress in liquid cooling technology, mastering immersion cooling and planning corresponding server product launches. The company develops AMR robots based on NVIDIA platforms, advancing intelligent manufacturing.
**Consumer Electronics**: Acquired portions of Jabil's business, deepening cooperation with major clients like Apple. Layout includes foldable screens, AI glasses, and other emerging consumer electronics. iPhone and other autumn new products officially launched September 19, with iPhone 17's high cost-effectiveness potentially driving above-expected sales.
BYD's improving global competitiveness brings positive impact to subsidiary BYD ELECTRONIC. New BYD models show strong market response, with Haishi 06 EV+DM-i sales growing rapidly, Fangchengbao brand positioning changes, and Titanium series models demonstrating strong sales performance. Premium and overseas strategies show significant results, with Qin L EV technology trickling down and overseas sales growing substantially year-over-year.
BYD ELECTRONIC holds advantages in EV components, benefiting from overall industry positive trends. Future prospects remain bright with continued development in automotive intelligence, AI, and consumer electronics. Management shareholding increases demonstrate confidence in company prospects, with profitability expected to improve in the second half.
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