US October CPI inflation once again overshot expectations, with markets now betting that a Federal Reserve rate hike in December is a done deal. Although the pace of gasoline price increases slowed, persistently rising food, housing, and services prices pushed US October CPI above forecasts. Stubborn inflation not only complicates the Fed's efforts to bring down prices, but also leaves the Trump administration continuing to face cost-of-living pressures after its midterm election setbacks.
Data released Tuesday by the US Department of Labor showed October CPI rose 0.4% month-on-month, down from 0.6% in September but above the 0.3% widely expected by economists. Excluding volatile food and energy prices, October core CPI rose 0.3% month-on-month, unchanged from the prior month and also above the market expectation of 0.2%. The CPI report further reinforced hawkish policy expectations. Economists believe that unless US stocks see a sharp selloff or credit spreads widen notably, the Fed may find it difficult to avoid tightening monetary policy again in December. Analysts noted that financial markets have essentially fully priced in a 25-basis-point rate hike in December and have begun to price in a small probability of a larger 50-basis-point increase. Fed Governor Waller warned that even if CPI improves, he would lean toward supporting a 25-basis-point hike in December. But if core CPI continues to hold at 0.3% or higher, the Fed should consider more forceful action, including a one-time 50-basis-point hike.
Market Outlook
Overnight US stocks closed lower, with the Dow Jones Industrial Average falling 157.86 points to 52,231.89, a drop of 0.3%; the S&P 500 losing 29.01 points to 7,520.93, down 0.38%; and the Nasdaq Composite shedding 187.27 points to 25,065.87, down 0.74%. The "Magnificent Seven" tech giants were mixed: Amazon rose 1.48%, Tesla gained 0.46%, and Meta was flat; Alphabet Class A fell 0.27%, Apple dropped 0.62%, Microsoft slid 2.20%, and Nvidia tumbled 5.47%. Chip stocks diverged, with the memory sector showing weakness. Among individual names, Broadcom rose 3.91% and TSMC gained 2.02%, while SK Hynix fell 3.51% and SanDisk dropped 2.99%. Chinese concept stocks pulled back broadly, with the Nasdaq Golden Dragon China Index down 1.21% at 5,696.50, as e-commerce and internet platform shares weakened collectively. The Hang Seng Index ADR declined, implied to close at 24,285.63, down 271.41 points or 1.11% from the Hong Kong close. On the New York Mercantile Exchange, the front-month WTI crude oil futures contract fell US$0.56 to US$86.29 per barrel, down 0.64%. The front-month COMEX gold futures contract fell US$75.70, or 1.84%, to US$4,038.80 per ounce.
Key Developments to Watch
Z.AI (02513): plans to repurchase up to HK$4 billion of H shares. On November 10, Z.AI announced that it intends to implement a share repurchase plan under the general mandate to buy back H shares granted by the annual shareholders' meeting on June 22, 2026, with an expected maximum aggregate repurchase amount of HK$4 billion and the total number of H shares repurchased not exceeding 1% of the company's total issued shares as of the date of the announcement.
CTF SERVICES (00659) plans to sell 100% equity in Wanjue, 25% equity in Jingzhu, and 25% equity in Yue Zhao. CTF SERVICES announced that on November 10, 2026, Seller A, an indirectly wholly-owned subsidiary of the company, as seller, and Buyer A, as buyer, entered into a Wanjue share transfer agreement. Seller A conditionally agreed to sell, and Buyer A conditionally agreed to purchase, 100% equity in Wanjue for a cash consideration of RMB 542 million. Wanjue is primarily engaged in investment holding and indirectly holds approximately 38.5% effective equity in Huishen (Yantian) Expressway Huizhou Co., Ltd., which mainly operates the Shenzhen-Huizhou Expressway (Huizhou section) in China.
CGN Power (01816): Cangnan Unit 4 begins full-scale construction. CGN Power announced that Cangnan Unit 4 of CGN Cangnan Second Nuclear Power Co., Ltd., a subsidiary of the company, poured first concrete for its nuclear island on November 10, 2026, marking the start of full-scale construction and entry into the civil construction phase. Cangnan Unit 4 adopts Hualong One nuclear power technology, with a single-unit installed capacity of 1,215 MW.
Lenovo launches its first hybrid token mother factory. On November 10, Lenovo Group unveiled the "Wanquan Hybrid Token Factory" brand in Zhangjiakou, Hebei, with its first mother factory officially landing at the Beijing-Tianjin-Hebei computing hub node there. According to Yao Zhenyu, Vice President of Lenovo Group and General Manager of Global Infrastructure and Intelligent Cloud, the "hybrid" nature of the hybrid token factory is reflected in three aspects: a hybrid deployment of private and public token pools, a hybrid selection of open-source weight models and closed-source commercial models, and a hybrid mix of heterogeneous chip computing power. Its core scheduling mechanism is intelligent model routing, where the system assigns complex tasks to large-parameter models and simple interactions to smaller models based on the request scenario, thereby improving overall token production efficiency.
CDB Financial Leasing (01606) plans to purchase IT computer equipment for RMB 3.674 billion. The IT computer equipment under this product procurement agreement is mainly used for tasks requiring high-performance computing, such as large-scale data processing and cloud computing.
Hua Hong Semiconductor (01347): remains the controlling shareholder of Wuxi Hua Hong Semiconductor Phase III and will continue to be responsible for the daily operations of the Wuxi Phase III project. An investor asked Hua Hong Semiconductor about recent business registration changes at Wuxi Hua Hong Semiconductor Phase III Co., Ltd., where registered capital increased from RMB 6.68 million to US$4.17 billion. CIG (06166): production lines at its Vietnam manufacturing base have passed customer audit and certification, successfully bringing production capacity overseas. An investor asked CIG about the progress of its Vietnam production base and when high-speed optical module production is expected to begin. On November 10, the company replied that the relevant production lines at the Vietnam base have passed customer audit and certification and have successfully achieved overseas production capacity. An investor also asked when the company's Mexico plant will begin producing high-speed optical module products. On November 10, the company replied that in the first half of 2026, CIG US actively promoted the expansion of supply chains and production capacity in Mexico and the United States in line with the company's business strategy. Trial production of broadband products in Mexico was completed in the first half of 2026, and mass delivery can begin once customer certification is completed. The cleanroom factory required for optical module production has completed planning and design, with construction expected to be completed and production to begin in early 2027. All major business progress of the company is subject to announcements published in designated information disclosure media, and investors are advised to invest rationally and pay attention to investment risks.
SHANGHAI FUDAN (01385) releases GREVO, an intelligent development platform for programmable logic devices. Shanghai Fudan Microelectronics officially released GREVO, an end-to-end full-process natural-language, requirement-driven development agent for programmable logic chips. The platform takes natural language requirements as input, focuses on real engineering implementation goals, and connects original manufacturer technical expertise, user engineering assets, R&D toolchains, and FAE technical service support, enabling complex development tasks to be output as reviewable, verifiable, and continuously iterable engineering results.
Qingdao Port (06198) plans to participate in a competitive bid to acquire 70% equity in Qingdao Port Dongjiakou Ore Terminal. The target company owns four large ore berths with a throughput capacity of more than 100 million tonnes and supporting core strategic resources including about 2.4 million square meters of specialized storage yards. It is the main operating entity for bulk dry bulk cargo business in the Dongjiakou port area of Qingdao Port.
New share grey market: XINHEHUA (02206) closed up 23% in grey market trading, earning HK$467 per lot. XINHEHUA (02206) will list in Hong Kong on Wednesday, November 11. In today's grey market close, grey market trading showed a quote of HK$49.54, up 23.23% from the offer price of HK$40.2; with 50 shares per lot and excluding fees, each lot earned HK$467. XINHEHUA (02206) announced allotment results. The company globally offered 6.5173 million H shares, with Hong Kong public offering accounting for 10% and international offering accounting for 90%. The final offer price was HK$40.2 per share, raising HK$262 million in the global offering. The board lot size is 50 shares. The Hong Kong public offering was oversubscribed 2,190.99 times, while the international offering was oversubscribed 1.25 times.
Stock Spotlight
DRINDA (02865): industrialization of space computing accelerates as the company continues to advance its commercial aerospace layout. On November 9, the 2026 Space Cloud Industry Ecosystem Conference released the fully domestic space computing network "Nebula Constellation Plan," integrating multiple types of satellites into an intelligent space-based information service system and moving space computing from concept to implementation. Overseas, the Starmind space computing constellation jointly developed by SpaceX and Nvidia is expected to begin launches in the third quarter of 2027, with a long-term planned computing scale of 1 TW; at the same time, Starlink V4 will be equipped with 10 Tbps inter-satellite laser links to provide high-speed transmission support for the space computing network. Notably, XingShu TianSuan, indirectly controlled by DRINDA, is leading the construction of the "XingShu Plan" thousand-satellite computing constellation. Its team originates from a full organizational unit of the Eighth Academy of China Aerospace Science and Technology Corporation, has experience in developing nearly 100 commercial satellites, and has a satellite platform self-development rate of about 70%. It has built a full-chain industrial closed loop covering "space energy + complete satellite manufacturing + constellation operations and data services."
Comments