【Market Overview】 Indexes opening higher in the current environment often signal risks, typically leading to gap-filling—a pattern seen in both mainland and Hong Kong markets today. The Hang Seng Index opened higher but retreated, closing with a marginal 0.02% gain. The U.S. Bureau of Labor Statistics announced it would not release October’s non-farm payroll report due to data collection disruptions during the government shutdown, though September’s data will be published Thursday. However, this data holds limited relevance for December’s outlook.
Overnight, the Fed’s October meeting minutes revealed "significant divisions" among policymakers during the rate-cut decision. Expectations for further cuts are dwindling, compounded by ongoing geopolitical tensions, leaving the market sluggish. Meanwhile, China’s November Loan Prime Rate (LPR) remained unchanged at 3.5% for 5-year and 3% for 1-year terms, marking six months of stability—signaling no near-term policy easing, a headwind for market momentum.
Japan’s stock rebound anticipates a stimulus package exceeding ¥13.9 trillion, with some lawmakers pushing for ¥25 trillion in additional spending.
【Sector Highlights】 *Property Rally on Unverified Stimulus Rumors* Unconfirmed reports of new measures to revive China’s property market lifted developers: Sunac China (01918) surged over 6%, while China Vanke (02202) rose nearly 4% after its chairman pledged collaboration with Shenzhen Metro to mitigate risks. China Resources Land (01109) and China Overseas Land (00688) gained over 2%. Related sectors also rallied: Beike-W (02423, property services) jumped 5%, and cement producers like Conch Cement (00914) and CNBM (03323) climbed over 2%.
*NVIDIA’s Earnings Boost Supply Chain* NVIDIA’s record Q3 revenue of $57 billion (+62% YoY) and 75% gross margin fueled optimism. Its Blackwell chips’ demand exceeded expectations, with plans to adopt 12-inch silicon carbide substrates by 2027. SICC (02631), a global leader in substrates, rose over 5%, while Innoscience (02577, partnering on 800V HVDC tech) spiked 4%. Suppliers like FIT Hon Teng (06088) and Time Interconnect (01729) gained over 3%.
*Brokerage M&A Momentum* China Cinda (01359) surged 6% after its subsidiary, Cinda Securities, announced a binding agreement for a merger with China International Capital Corporation (CICC) and Dongxing Securities via share swap. The deal aims to expand CICC’s capital base and operational scale, mirroring past successful integrations. Other financials saw muted gains.
*Banking and Consumer Stocks* Banks, led by Bank of China (03988), advanced on dividend appeal, with mid-term payouts brought forward. Minsheng Bank (01988) and PSBC (01658) rose 3.56% and 2.7%, respectively. Consumer stocks like China Tourism Group Duty Free (01880) and sportswear brands Li Ning (02331) and Anta (02020) gained over 3%, possibly on Japan-alternative trade. CATL (03750) fell 5% due to lock-up expiry, pressuring lithium battery stocks.
【Sector Focus: PCB Materials Demand Surge】 AI-driven demand for high-end PCBs has tightened supply for copper-clad laminates (CCLs), with producers like Kingboard Laminates (01888) and Kingboard Holdings (00148) raising prices amid cost pressures and robust demand. Utilization rates remain high, though prices remain below 2021 peaks.
【Stock Spotlight: Hansoh Pharma (03692)】 Hansoh’s ADC drug HS-20110 licensed to Roche underscores its R&D prowess. H1 2025 revenue hit RMB 7.43 billion (+14.3% YoY), with innovation drugs contributing 82.7%—ahead of peers. Its EGFR inhibitor Ameile (approved in the UK) saw sales CAGR of 214% since 2020. Pipeline highlights include 40+ candidates in 70+ trials, with three global Phase III studies underway for ADCs and a TYK2 inhibitor.
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