The oversold rebound last Friday had the market fairly excited, but looking at today, it is still far from a reason to turn optimistic.
The trend remains rather choppy. The Shanghai Composite managed to edge into positive territory, while the ChiNext index still closed lower. Hong Kong stocks fared somewhat better thanks to strength in banks and oil and gas names, with the index finishing up 0.51%.
The Middle East situation is highly uncertain. Trump has repeatedly hinted that the US military could resume strikes on Iran after the November 3 US midterm elections, and has already sent a third carrier strike group along with more than 10,000 sailors and Marines to the Persian Gulf.
Iran has now turned more hardline, knowing that the US will not act at this critical moment in its midterm elections, and has stated it is fully prepared.
Brent crude broke through US$117 per barrel, a seven-month high, and share prices of North American oil majors collectively hit record highs. The outlook for oil and gas exploration and oilfield services is improving. PetroChina (ASX: 00857) touched an intraday high of RMB13.19 per share in the A-share market, the highest since May 2008.
In Hong Kong, PetroChina (00857) and SINOPEC Corp (00386) rose more than 4%, while China Oilfield Services (02883) surged nearly 8%.
Although the Trump administration approved the sale of sanctioned tankers starting last week to allow these vessels to begin legally transporting oil, global shipbroking giant Braemar pointed out that 170 very large crude carriers (VLCCs) are currently under US sanctions, of which only 44 are under 20 years old and meet charterers' requirements, 33 are at least 25 years old, and 92 are between 20 and 24 years old. This easing of sanctions is not expected to add much to the size of the global tanker fleet.
On the other hand, on the 26th local time, Bagheri, deputy secretary of Iran's Supreme National Security Council, said that Saudi Arabia's defense minister, Pakistan's army chief of staff, and Turkey's intelligence chief would visit Iran and hold a joint meeting. The market is speculating that the Strait of Hormuz situation could ease, and the shipping sector strengthened collectively today, with COSCO Shipping Energy (01138) up more than 6%, and Pacific Basin Shipping (02343) and COSCO Shipping Holdings (01919) both up more than 3%.
According to Xinhua News Agency, Brazil's incumbent President Lula completed a comeback in the presidential runoff, defeating challenger Bolsonaro with 51% to 49% of the vote to win an unprecedented fourth term. The market reacted quickly, with Brazil-related stock ETFs in the Japanese market taking a sharp hit first. The reason is simple: Western capital was betting on the pro-US Bolsonaro, and the US may impose various sanctions on Brazil going forward. But for us, this is positive, because Brazil has abundant mineral resources and bilateral trade can be complementary.
Meituan's (03690) overseas delivery brand Keeta announced in May last year: a five-year plan to invest US$1 billion in Brazil; on December 1, 2025, it officially launched in Sao Paulo, and currently has over 10 million downloads, 83,000 registered restaurants, and 430,000 riders. Brazil has already become one of Meituan's most important overseas markets outside China. It is reported that the company plans to raise the equivalent of US$1 billion through offshore RMB bonds, and the stock rose more than 3% today.
Tech stocks continued to be hit. Musk has begun heavily shorting several new North American cloud players (CoreWeave and Nebius), judging that many projects at these new clouds will stall in the future, and SpaceX will firmly not acquire projects from these new cloud vendors. Large model companies are also struggling because competition is too intense. Moonshot AI announced the official launch of Kimi K3.1 Pro, the first model in the K3.1 series and the company's most capable 3-trillion-parameter model to date, supporting a 1-million-token context. Kimi K3.1 Pro shows particularly notable improvements in coding, 3D creation, financial research, and other long-horizon Agent capabilities.
There were also gainers, all supported by strong earnings. For example, "the first scenario insurance AI stock," Baige Online (02672): in the first three quarters, the company's MaaS service revenue was about RMB62.1 million, up about 730.4% year on year; third-quarter MaaS service revenue was about RMB25.6 million, up about 29.33% quarter on quarter. According to China Insights Consultancy data, there are currently more than 100 market participants in the domestic scenario insurance track. In 2025, Baige Online ranked 12th among China's internet insurance intermediaries and 5th among scenario-based internet insurance intermediaries, and ranked first among third-party scenario-based internet insurance intermediaries with a market share of 3.1%. The stock surged nearly 28%.
Meitu Inc (01357): this quarter, paid subscription users increased by about 1.39 million net, a new high for the past four quarters; as of September 2026, paid subscription users reached 19.83 million. Paid subscription users from productivity applications increased 18.3% year on year to 2.39 million, while those from lifestyle scenario applications increased 24.1% year on year to 17.44 million. Paid subscription user growth from international markets continued to outpace the Chinese mainland market, and the stock rose nearly 7%.
Robotics continued to strengthen. A-share humanoid robot leader Unitree Robotics (688836.SH) rose more than 7% again today, directly boosting market sentiment. However, what the market is really digging into is physical AI, and sentiment around it exploded over the weekend, with all kinds of seminars and conferences everywhere.
Hesai-W (02525), mentioned last Friday, rose more than 8% again; the theme is still spreading today. Woan Robotics (06600) released OneModel1.7FrontoStria-RL in May, incorporating world understanding, task planning, action execution, and real deployment feedback into a closed loop. In the same period, the company won Shenzhen's first embodied intelligence data infrastructure project, worth RMB44.95 million, extending its business from robot products to data collection, management, and scenario building. The stock surged more than 14%. Dobot (02432) independently developed the Dobot WAM world action model, with outstanding results in 3D spatial perception evaluation. The market recognizes its "one brain, multiple bodies" architecture, and the stock rose nearly 9%. Even Zhida Technology (02650) was lifted. In July this year, the company globally launched its first "AI energy + robotics" integrated solution for home and public scenarios. At present, Zhida's automatic charging robots have been deployed in multiple scenarios worldwide, and unmanned public charging solutions for Robotaxi, ports, airports, and other autonomous driving scenarios have also been released. The goal is to jointly build 10,000 unmanned public charging stations by 2030. The stock surged more than 12%.
The real estate sector also saw some action today. Goldman Sachs predicts that real estate inventory will fall to 900 million square meters by 2028, home prices will stabilize in 2029, and then first-tier cities will rebound by about 20%. Greentown China (03900) rose nearly 7%; Kaisa International Group (01908) and China Resources Land (01109) rose more than 3%. Evergrande Property Services (06666) announced at the end of September that the liquidators had received proposals from several potential buyers regarding a potential transaction; China Evergrande and CEG, as potential sellers, have signed an exclusivity agreement with a selected bidder, with negotiations running until October 27 this year. Earlier, the market circulated that PAG was in exclusive talks with China Evergrande's liquidators to acquire a majority stake in Evergrande Property Services. PAG said it "declined to comment." The stock rose more than 12% today.
Sector Focus
On October 26, Philippe Msheer Bila, secretary general of the Gas Exporting Countries Forum (GECF), said that the liquefied natural gas (LNG) supply gap from March to September was about 5 million tons. He said, "According to our estimates, from early March to September, about 45 million tons of LNG withdrew from the market, which is a very large amount. But at the same time, about 40 million tons of LNG entered the market. It can be said that the supply gap is about 5 million tons, which reflects the stability of the entire global natural gas market system." With winter approaching, demand for natural gas will become stronger, and given the current unstable situation, this tight supply-demand mismatch is likely to intensify. Main Hong Kong-listed names: Kunlun Energy (00135), China Resources Gas (01193), ENN Energy (02688), and Hong Kong and China Gas (00003).
Stock Spotlight
Fortior Technology (01304): expected sharp revenue growth in the first three quarters; home appliance chipmaker shifting toward high-value-added robotics
In its October 20 earnings forecast, the company estimated first-three-quarter revenue of about RMB840 million, up 50.88% year on year, and net profit attributable to shareholders of about RMB280 million, up 69.69% year on year. The company said revenue growth in industrial and automotive applications was significant, and penetration in traditional product markets continued to rise.
Comment: In the first half, the industrial segment generated revenue of RMB147 million, up 175% year on year, accounting for 26.25% of total revenue. Industrial segment revenue exploded, with AI computing power cooling fans as the core incremental driver, automotive-grade products gradually ramping up, and home appliance business penetration steadily increasing. Profit quality is relatively good, and gross margin continues to rise.
As a leading domestic fabless motor drive control chip company, the company is transforming from small home appliance chips toward higher-value-added industrial, robotics, and automotive-grade upgrades, with gross margin continuing to climb. It focuses on BLDC brushless motor drive plus FOC vector control MCUs, and has specifically launched the FU63xx and FU75xx series robot joint chips, integrating drive, sensing, and CAN communication for humanoid and collaborative robot joints.
The core product, FU75xx, is a dedicated control chip launched by the company for robot joints and dexterous hands. It adopts a RISC-V plus self-developed ME2 second-generation motor engine heterogeneous dual-core architecture; in servo scenarios, FOC computation takes only 5 microseconds, with a current loop bandwidth of 3 kHz, suitable for joint modules, dexterous hands, parallel robots, and industrial servos. It supports multiple encoder protocols and hardware-implements FOC control algorithms, reducing development difficulty for downstream complete-machine manufacturers. It is a domestic substitution target for joint electronic control.
As the "electronic control nerve center" of humanoid robot joints, a multi-joint solution for a single humanoid robot requires a large amount of drive-control chips, making it a core upstream link in the physical AI industry chain. It has launched the SR3511N resolver decoding chip and resolver sensor, completing the joint "perception-control-execution" chain, suitable for high-precision servo joints, and reducing dependence on overseas sensors. At the same time, it is planning to acquire Dutch sensor assets from Sciosense to broaden its physical perception product matrix and adapt to robotics, industrial, and automotive scenarios.
The company also has a second growth driver: automotive-grade BLDC chips ramping up. Automotive-grade products have completed AEC-Q100 certification, and in-vehicle cooling, water pump, and window motor drive chips have begun to be introduced in volume to automakers, hedging against home appliance cyclical fluctuations.
Going forward, there is also a layout in coreless motors (the core of dexterous hands). At the beginning of 2025, it established a joint venture with Sanhua Holding: Sanhua Holding holds 50%, and Fortior Technology holds 36%, focusing on R&D and manufacturing of coreless motors for humanoid robot dexterous hands. It is currently in the sample stage and has not yet entered mass production.
Comments