Market Overview - The S&P 500 index fell by 1.17% to 6771.55 points, the Nasdaq Composite dropped by 2.04% to 23348.64 points, and the Dow Jones Industrial Average decreased by 0.53% to 47085.24 points, indicating a market adjustment amid concerns over high valuations [1] Company Performance - Palantir, a leading AI application stock, saw its shares decline by 7.94% despite reporting earnings that exceeded expectations and raising its performance guidance. The stock has quadrupled in value over the past year, becoming a symbol of the "AI bubble" [2] - Nvidia's stock fell by 3.96%, while other major tech stocks like Apple and Microsoft experienced mixed results, with Apple rising by 0.37% and Microsoft dropping by 0.52% [7] Investor Sentiment - Investor confidence was further shaken by Michael Burry's disclosure of purchasing put options on Palantir and Nvidia, which raised concerns among retail investors [5] - The retail investor preference index compiled by Goldman Sachs dropped by 3.6%, approximately three times the decline of the S&P 500 index, reflecting a challenging day for day traders [5] Market Predictions - BTIG's chief market technician, Jonathan Krinsky, indicated that the S&P 500 has not tested the 50-day moving average since April, currently around 6654 points, and suggested potential declines to the 6400-6500 point range due to extreme market divergences [5] - Goldman Sachs and Morgan Stanley executives expressed concerns about a potential market pullback of 10% to 20% over the next 12 to 24 months, with Morgan Stanley's CEO suggesting that a 10%-15% correction would be welcome if not driven by macroeconomic factors [5] Broader Market Trends - Similar to the U.S. stock market, commodities, including oil and gold, experienced declines, with Bitcoin dropping nearly 6% and Ethereum falling over 10% in the cryptocurrency market [6] - The Nasdaq China Golden Dragon Index fell by 2.05%, with notable declines in Chinese stocks such as Alibaba down 2.02% and JD.com down 2.93% [8]

Market Overview - US stock markets experienced a decline, with major indices such as the Nasdaq down 2.04%, S&P 500 down 1.17%, and Dow Jones down 0.53% [2] - Large tech stocks faced significant losses, including Intel down over 6%, Tesla down over 5%, and Nvidia down over 3% [2] - The cryptocurrency market saw Bitcoin drop below $100,000, with a minimum price of $99,600, reflecting a 6.5% decline [2] Economic Indicators - Wall Street executives expressed concerns about a potential major correction in the US stock market, with estimates of a 10% to 20% decline [1] - The US government is facing an extended shutdown, with the current situation expected to surpass the previous record of 35 days [1] Commodity Market - Gold prices fell sharply, with spot gold down 1.67% to $3,934.06 per ounce, and COMEX gold down 1.71% to $3,945.30 per ounce [2] - Silver and copper also experienced declines, with silver down 1.72% to $47.11 per ounce [2] - International oil prices saw slight decreases, with WTI crude oil down 0.8% to $60.56 per barrel [2] Agricultural Sector - The US soybean export volume is projected to decrease significantly, with a forecasted export of approximately 4.96 million tons for 2025, a substantial drop from the previous year [4] - Exports to China have notably declined, with only 593,000 tons exported in the first eight months of 2025, down nearly 80% from 2.68 million tons in the same period of 2024 [4] Precious Metals Market - Analysts suggest that gold and silver prices are currently in a consolidation phase after a significant drop from historical highs, driven by profit-taking and reduced expectations for interest rate cuts by the Federal Reserve [5][6] - The recent tax policy changes regarding gold transactions are expected to impact market dynamics, potentially leading to increased selling pressure from companies holding large amounts of physical gold [7][8] - The new tax regulations aim to guide gold trading towards more regulated markets, enhancing transparency and efficiency [8]

Market Overview - On November 4, global financial markets experienced significant declines, with major U.S. indices all closing lower: Dow Jones down 0.53%, S&P 500 down 1.17%, and Nasdaq down 2.04%, losing nearly 500 points [1] - The Toronto 300 index fell by 1.64%, while Brazil's IBOVESPA and Mexico's MXX saw minor declines of 0.08% and 0.18% respectively [2] Technology Sector - Major technology stocks faced widespread losses, with Intel dropping over 6%, Tesla down more than 5% (losing approximately $80.2 billion in market value), and Nvidia falling over 3% (losing about $199 billion in market value) [2] - Other tech giants like Google and Amazon also saw declines, while Apple experienced a slight increase [2] Chinese Stocks - The Nasdaq Golden Dragon China Index fell by 2.05%, with several Chinese stocks like Xiaoma Zhixing down nearly 10% and Futu Holdings down over 7% [2] Global Indices - The FTSE A50 futures index dropped by 0.24%, while European indices also fell: Euro Stoxx 50 down 0.27%, CAC 40 down 0.52%, and DAX 30 down 0.6% [3] - In Asia, the Seoul Composite Index fell sharply by 2.4%, and the Nikkei 225 dropped by 1.7% [3] Commodities - International precious metals futures saw declines, with COMEX gold futures down 1.81% to $3941.30 per ounce and silver down 2.40% to $46.90 per ounce [4] - Oil prices also fell slightly, with WTI crude oil futures down 0.8% to $60.56 per barrel and Brent crude down 0.69% to $64.44 per barrel [4] Cryptocurrency Market - The cryptocurrency market faced a significant downturn, with Bitcoin dropping over 7% and briefly falling below $100,000, while Ethereum saw a 14% decline [5] - Over 469,000 traders were liquidated in the past 24 hours, with total liquidations amounting to $2.025 billion [6] Economic Concerns - The U.S. government shutdown has reached 35 days, impacting various sectors including aviation, food assistance, and healthcare [6] - Analysts express concerns over the high valuations in the tech sector, particularly following a significant drop in AI-related stocks like Palantir, despite the company reporting record revenues [7] - Warnings have been issued regarding potential risks in the market, including high government debt, overvalued stock prices, and excessive private debt [7]

Core Viewpoint - The U.S. stock market experienced a collective decline, with major indices falling significantly, indicating a bearish trend in the market [1] Group 1: Market Performance - The Nasdaq Composite Index dropped by 2.04% [1] - The S&P 500 Index fell by 1.17% [1] - The Dow Jones Industrial Average decreased by 0.53% [1] Group 2: Technology Sector - Major technology stocks saw widespread declines, with Intel falling over 6% [1] - Tesla experienced a drop of more than 5% [1] - Nvidia's stock decreased by over 3% [1] Group 3: Chinese Stocks - The Nasdaq Golden Dragon China Index declined by 2.05% [1] - Xiaoma Zhixing (小马智行) fell nearly 10% [1] - Futu Holdings (富途控股) dropped by more than 7% [1]

Core Viewpoint - The Nasdaq China Golden Dragon Index experienced a decline of over 1%, indicating a downturn in popular Chinese concept stocks [1] Group 1: Stock Performance - Futu Holdings (FUTU.US) fell by more than 5% [1] - Xpeng Motors (XPEV.US) decreased by nearly 4% [1] - Tiger Brokers (TIGR.US) dropped by over 3% [1] - Li Auto (LI.US) saw a decline of nearly 2% [1] - Alibaba (BABA.US) fell by over 1% [1]

Core Points - The market shows signs of concern despite a strong start to November, traditionally known as a strong month for US stocks, with the S&P 500 index rising by 0.17% and the Nasdaq Composite by 0.46%, while the Dow Jones Industrial Average fell by 0.48% [1] - Amazon AWS announced a $38 billion computing power contract with OpenAI, marking a significant partnership within the "Big Seven" tech companies [2] - Microsoft signed a $9.7 billion computing power contract with Australian cloud service provider IREN, and Lambda also secured a multi-billion dollar contract with Microsoft [5] - Nvidia's stock rose over 2%, contributing to a market capitalization increase of over $100 billion, driven by news of chip exports to the UAE [5] - Google issued $17.5 billion in bonds in the US market, following a €6.5 billion issuance in Europe, receiving approximately $90 billion in orders [5] - Despite the S&P 500 index reaching new highs, over 400 stocks in the index declined during the trading session, indicating a divergence between index performance and market breadth [5] - Historical data shows November has been the best-performing month for US stocks over the past 30 years, with an average gain of 2.6% when the S&P 500 is up over 10% year-to-date [6][7] Company Performance - Amazon's market capitalization increased by $104.5 billion, equivalent to approximately ¥743.7 billion, following the announcement of its contract with OpenAI [2] - Nvidia's stock rose by 2.17%, while other major tech stocks like Apple and Microsoft saw slight declines [8] - Tesla's stock increased by 2.59%, while other companies like Meta and Berkshire Hathaway experienced declines [8] - Chinese concept stocks showed mixed performance, with the Nasdaq Golden Dragon China Index rising by 0.26% [9] Other Industry News - The US electric vehicle market faced a significant drop in sales due to the expiration of federal purchase subsidies, with Hyundai reporting an 80% drop in sales for its Ioniq 5 and 71% for the Ioniq 9 [10] - Kimberly-Clark's stock fell by 14.57% after announcing a $48.7 billion acquisition of Kenvue, while Kenvue's stock rose by 12.32% [11] - Tesla's sales in Europe continued to decline, with a reported 89% drop in Sweden and 86% in Denmark, although there was slight growth in France [12] - Berkshire Hathaway's third-quarter report indicated a $1.2 billion decrease in the value of its Apple holdings, suggesting potential further reductions in its stake [13]

Group 1 - Amazon's stock rose approximately 4%, reaching an all-time high, following a $38 billion agreement with OpenAI to supply NVIDIA AI chips over the next seven years [2] - This deal is seen as a validation of Amazon's capabilities in building and operating large-scale data center networks, despite its previous lag in the AI sector [2] - The AI-driven market rally has been further fueled by positive earnings outlooks from five of the "Big Seven" tech companies [2] Group 2 - NVIDIA's stock increased by over 2% after the U.S. approved a deal for Microsoft to sell chips to the UAE, allowing the shipment of advanced NVIDIA chips [2] - Tesla's stock rose by over 2%, while Google saw a nearly 1% increase; however, Intel, Netflix, and Meta experienced declines of over 1% [2] - The Nasdaq China Golden Dragon Index rose by 0.26%, with notable gains in Tencent Music and NIO, while Alibaba and JD.com saw slight declines [6][7]

Core Viewpoint - The performance of popular Chinese concept stocks showed mixed results, with the Nasdaq Golden Dragon China Index increasing by 0.26% [1] Group 1: Stock Performance - Alibaba experienced a decline of over 1% [1] - Ctrip saw an increase of over 1% [1] - Tencent Music rose by over 3% [1] - Futu Holdings dropped by over 2% [1] - Li Auto fell by over 1% [1] - NIO increased by over 2% [1]

Summary of Futu Holdings 3Q25 Preview Company Overview - **Company**: Futu Holdings - **Industry**: Banks & Financial Services Key Financial Highlights - **3Q25 Expectations**: - Client AUM growth of **13% q/q** to **HK$1.1 trillion** [7][18] - Profit growth of **116% y/y** and **11% q/q** [7][16] - New paying clients expected to increase from **204k in 2Q** to **227k in 3Q** [7][17] - Brokerage revenues projected to rise by **10% q/q** and **85% y/y** [7][18] - Interest income anticipated to grow by **12% q/q** and **51% y/y** [7][18] Market Conditions - **Equity Market Performance**: - Strong performance in HK and US equities, with the Hang Seng Index and Nasdaq Index up **12%** and **11% q/q**, respectively [7][21] - Robust trading volumes in HK and US markets, with HK trading volume up **149% y/y** [22][23] Earnings Estimates - **Revised Earnings Estimates**: - Adjusted EPS for 2025 increased by **12%**, for 2026 by **10%**, and for 2027 by **6%** [7][39] - New price target set at **US$280**, implying a **54% potential upside** from the current price of **US$182.04** [3][11] Strategic Focus - **Key Areas of Interest**: - Management's guidance on 4Q25 operating trends, including client growth and trading velocity [7][17] - Updates on Futu's virtual asset trading platform (VATP) and crypto trading business [7][17] - Clarification on the treatment of new and existing mainland clients following the suspension of new account openings [7][17] Valuation Insights - **Valuation Metrics**: - Current share price at **17x 2026 P/E**, compared to an average forward P/E of **15x** since 4Q21 [7][11] - Anticipated multiple expansion due to a more stable regulatory environment and growth in the crypto and digital assets business [11][44] Risks and Considerations - **Potential Risks**: - Operating expenses expected to rise by **15% q/q** and **38% y/y**, primarily driven by selling and marketing expenses [7][18] - Ongoing regulatory changes and market volatility could impact future performance [11][44] Conclusion - **Investment Thesis**: Futu is positioned for strong growth driven by client acquisition, market expansion, and a robust crypto business. The company maintains an **Overweight** rating with a target price of **US$280** [10][43].

Investment Focus - Amazon is the largest player in the cloud industry with a global market share of 30%, benefiting from scale effects that stabilize and improve margins [1] - Google is expected to see improvements in margins due to rising IaaS cloud scale, with a projected margin increase of over 20% by year-end [1] - Alibaba's cloud revenue reached 33.4 billion RMB in Q1 FY26, demonstrating strong growth driven by instant retail and cloud business resilience [1] Hardware & AI - Arista Networks is a leader in high-end data center network switches, with expected revenue contribution of at least $750 million from AI backend switches in 2025 [3] - NVIDIA's data center business, which accounts for 88% of its revenue, is projected to see strong growth driven by AI capital expenditures, with a target price of $204.35 based on a 30x FY2027 EPS [4] - SK Hynix is expected to benefit from recovering downstream inventory and a doubling of HBM sales this year, with a target price of KRW 280,555 [3] Internet & Services - Tencent Music is expected to see steady revenue growth driven by its core subscription business and new high-margin services, with a focus on expanding its content offerings [4] - Futu Holdings is projected to maintain strong growth in paid user numbers and AUM, benefiting from its virtual asset business and competitive valuation [6] - JoYY's core overseas live streaming business is stabilizing, supported by a favorable policy environment and strong industry demand [5] Pharmaceuticals - Hansoh Pharmaceutical is expected to see innovative drug revenue exceed 10 billion in 2025, with a significant contribution from milestone payments [8] - Innovent Biologics is focusing on expanding its ADC platforms, with potential peak sales of its pipeline products reaching 100 billion [8] - Kintor Pharmaceutical's innovative pipeline is expected to drive significant revenue growth, with a strong cash reserve of over $2 billion [9]