Electricity Consumption - In October, total electricity consumption reached 857.2 billion kWh, a year-on-year increase of 10.4%[5] - The growth rates for the primary, secondary, and tertiary industries were 13.2%, 6.2%, and 17.1% respectively, with residential electricity consumption growing by 23.9%[5] - The tertiary industry and urban-rural residents contributed 5.9 percentage points to the overall electricity consumption growth[5] Employment Data - In September, the U.S. non-farm employment increased by 119,000, significantly exceeding the expected 51,000[7] - The unemployment rate in the U.S. reached 4.4%, the highest since October 2021, up from the previous value of 4.3%[7] Japan's Bond Yield - As of November 21, Japan's 10-year government bond yield rose to 1.8%, marking a significant increase and reaching levels not seen since 2008[17] - The 40-year bond yield peaked at 3.73%, while the 30-year yield reached 3.36%[17] China-Japan Relations - The Chinese Ministry of Culture and Tourism advised citizens to avoid traveling to Japan, impacting Japanese tourism and consumer stocks significantly[10] - China's suspension of Japanese seafood imports due to nuclear contamination concerns has led to a drastic drop in Japan's seafood export value to China, falling over 90% from 2022 levels[10] Youth Unemployment - In October, the unemployment rate for urban youth aged 16-24 was 17.3%, while the rate for those aged 25-29 was 7.2%[13] - The total estimated unemployed population in China for the 16-59 age group is approximately 41.95 million, with an overall estimate of around 45 million[13]

Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating expected performance above the market benchmark by over 10% [49]. Core Insights - NVIDIA reported a record revenue of $57.006 billion for FY2026 Q3, with a year-on-year growth of 62% and a quarter-on-quarter growth of 22%, driven by strong demand in the AI sector [11][12]. - Google's Gemini 3.0 series was launched, showcasing advancements in deep reasoning and agent capabilities, outperforming previous models in various benchmarks [13][16]. - The optical cable export data for October 2025 showed a significant month-on-month growth of 26.14%, reflecting a sustained high demand in the industry [24]. Summary by Sections Industry News Tracking - NVIDIA's FY2026 Q3 revenue reached $57.006 billion, with data center revenue at $51.2 billion, marking a 62% year-on-year increase and a 22% quarter-on-quarter increase [11][12]. - Google's Gemini 3.0 series introduces a "Deep Think" mode, enhancing its ability to handle complex reasoning tasks, achieving notable scores in various benchmarks [13][16]. - Optical cable exports from China to the U.S. in October 2025 totaled 520 million yuan, with a year-on-year increase of 61.02% and a month-on-month increase of 26.14% [24]. Investment Recommendations - Continuous focus on AI computing infrastructure development is advised, with recommendations to monitor companies involved in optical devices, communication equipment, and liquid cooling technologies [46]. - The three major telecom operators are highlighted as important assets for dividend allocation, with stable operations and increasing dividend payouts [46]. Market Performance Review - The communication sector index decreased by 2.51%, while the Shanghai and Shenzhen 300 index fell by 3.77%, resulting in a relative return of 1.26% [36]. - Among sub-sectors, optical devices/chips and operators showed relatively better performance, with specific stocks like Tengjing Technology and Dekeli leading in gains [39].

Core Viewpoint - A public fund, which previously faced significant losses and reduced its scale to 40 million, has successfully transformed by investing in AI, achieving a 12-fold increase in scale and doubling its value within a year [1][4][20]. Fund Performance - The fund's unit net value experienced a maximum decline of nearly 60% in less than two years, dropping from 246 million to approximately 40 million [4]. - As of November 18, 2025, the unit net value surged to 1.52, with an annual return of 109.57%, effectively doubling its value [4][20]. Investment Strategy - Initially, the fund heavily invested in the liquor sector, with seven out of ten top holdings in well-known brands, but faced losses due to a downturn in the industry [6][8]. - The fund manager, Liu Xiaoming, pivoted to AI investments, recognizing the potential in CPO sectors, which began to show significant profit growth [12][14]. - In 2025, the fund aggressively increased its positions in key AI-related stocks, achieving substantial gains, with some stocks seeing increases of over 350% [14][16]. Fund Scale and Challenges - Following the impressive performance, the fund's scale grew from 344 million in Q2 2025 to 4.487 billion in Q3 2025, marking a 12-fold increase [20]. - The increase in scale presents challenges, as larger funds face reduced flexibility in trading and may struggle to manage liquidity effectively [22][24]. - The transition from a small, agile fund to a larger one requires not only a focus on sector selection but also skills in position management and industry diversification [24].

Group 1: Global Market Overview - Recent global market turmoil is attributed to multiple factors, including the Federal Reserve's mixed signals on interest rate cuts, leading to increased volatility across asset classes [3][4][5] - Concerns over AI sector sustainability and geopolitical tensions have also contributed to the decline in various asset prices, particularly in the tech sector [4][5][6] Group 2: A-shares and H-shares Outlook - The current adjustments in A-shares and H-shares are seen as emotional disturbances rather than fundamental changes, with expectations for policy support and foreign capital inflow remaining positive [6][7] - Analysts maintain a long-term optimistic view on A-shares and H-shares, anticipating a healthy recovery despite potential short-term volatility [6][7][8] Group 3: Gold Market Analysis - The outlook for gold remains positive due to anticipated global monetary expansion, although its risk-return profile may decline as economic conditions stabilize [9][10] - Analysts highlight that gold serves as a hedge against rising debt levels and geopolitical risks, reinforcing its long-term investment appeal [10][11] Group 4: Oil Market Projections - The oil market is expected to experience a range-bound trading pattern, with prices projected between $60 and $70 per barrel due to weak demand and OPEC's production strategies [14][15] - Geopolitical factors and supply-demand dynamics will continue to influence oil prices, with a cautious outlook for significant price increases [15][16] Group 5: Investment Opportunities - A-shares are viewed as having superior investment value, with a focus on sectors like technology and high-end manufacturing, while also considering defensive positions in high-dividend stocks [16][17] - Analysts suggest that the current market environment favors a diversified approach, balancing risk and return across various asset classes [17][18] Group 6: Risks to Monitor - Key risks include potential economic data surprises from the U.S. and geopolitical developments that could impact market sentiment and liquidity [18][19] - The end of the U.S. government shutdown has not alleviated concerns over liquidity, and ongoing uncertainties in economic performance may affect global asset markets [19][20]

Core Insights - Liu Xiaoming, the manager of Xinda Australia Fund, has achieved remarkable success, with his fund's net asset value soaring from 0.4 yuan to 1.52 yuan within a year, resulting in a 12-fold increase in scale to 4.487 billion yuan [1][15][30] Fund Performance and Strategy - The fund initially focused on consumer stocks but faced challenges as these stocks weakened in early 2023, leading to a significant decline in performance [5][6] - Liu shifted his strategy to invest heavily in the liquor sector, including top brands like Luzhou Laojiao and Wuliangye, but this move also faced difficulties due to high inventory levels in the industry [6][10] - In mid-2024, Liu made a bold decision to pivot towards the AI sector, allocating nearly 70% of the fund's assets to electronics and communications, which proved to be a timely and successful move [10][12] Market Trends and Predictions - The AI sector is anticipated to be a major market driver by 2025, supported by ongoing demand for computing power and advancements in AI technologies [10][12] - Liu's strategic investments in PCB companies and leading CPO stocks have led to significant gains, with the fund's performance increasing by over 80% in a single quarter [14][15] Fund Size and Implications - The fund's size increased dramatically from 344 million yuan to 4.487 billion yuan in just one quarter, enhancing its ability to invest in large-cap stocks [15][17] - However, the rapid growth in size has introduced challenges, such as reduced flexibility in trading smaller stocks and increased difficulty in adjusting positions [18][20] Industry Context - The success of Liu's fund reflects broader trends in the AI industry, driven by national initiatives and increased capital expenditure from major tech companies [25] - The story serves as a reminder of the importance of a fund manager's ability to assess market trends and adjust strategies accordingly, especially in a rapidly evolving sector like AI [27][28]

Group 1 - The recent global market turmoil is attributed to multiple factors, including the Federal Reserve's mixed signals on interest rate cuts, concerns over AI sector sustainability, and geopolitical tensions affecting supply chains [4][5][6]. - A-shares and H-shares are viewed as having long-term strategic opportunities despite recent adjustments, with expectations for policy support and foreign capital inflow remaining intact [8][9]. - The outlook for A-shares and H-shares is positive, with analysts suggesting that the current market environment presents a window for investment [8][9][10]. Group 2 - Gold is expected to remain a strong asset in the medium to long term, supported by global monetary expansion and increasing central bank purchases [11][12][13]. - Analysts predict that the global stock market will continue to trend upwards, driven by liquidity and risk appetite, although caution is advised regarding inflation and geopolitical risks [14][15][16]. - The oil market is anticipated to experience a range-bound trading pattern, influenced by geopolitical factors and supply-demand dynamics [17][18][19]. Group 3 - A-shares are considered to have superior investment value, with a focus on high-growth sectors such as technology and advanced manufacturing, while also incorporating defensive strategies [20][21]. - The investment landscape for 2026 is expected to favor A-shares, H-shares, gold, and short-term U.S. Treasuries, as global liquidity conditions remain favorable [21][22]. - Attention should be paid to liquidity and geopolitical risks, particularly in light of potential economic data releases and the Federal Reserve's policy decisions [23][24][25].

Core Viewpoint - Lingyi Zhi Manufacturing (领益智造) is advancing its H-share listing on the Hong Kong Stock Exchange, aiming to enhance its funding sources and support future expansion while improving its global influence and talent retention [1] Group 1: H-Share Listing and Strategic Goals - The application for H-share listing was submitted on November 20, 2025, to align with the company's 2030 strategic goals [1] - The listing is expected to provide additional fundraising platforms and broaden potential cross-border acquisition channels [1] - The company aims to enhance its business image and global impact through this listing [1] Group 2: Use of Proceeds - A portion of the funds raised will be allocated to enhance R&D capabilities, increase production capacity, and upgrade core manufacturing processes [1] - Investments will focus on emerging markets, particularly in high-density AI computing servers, humanoid robot hardware, and AI optical communication infrastructure [1][2] - Additional funds will support strategic investments and acquisitions in high-growth technology verticals, including servers, humanoid robots, and AI optical communication infrastructure [2] Group 3: AI Server and Hardware Manufacturing - Lingyi Zhi Manufacturing plans to expand its production capacity for AI server power supplies, which are critical components of data center infrastructure [2] - The company aims to introduce next-generation systems with high power density and efficiency to meet the growing demand for AI computing [2] - In the field of embodied AI, the company will enhance its vertical integration capabilities in precision component manufacturing and system-level assembly [2][3] Group 4: Future Growth and Product Strategy - The company is positioned as a leading AI hardware intelligent manufacturing platform, providing one-stop smart manufacturing services [3] - Lingyi Zhi Manufacturing focuses on modularity, reusability, and scalability across various products and applications [3] - The strategic focus includes four emerging application areas: humanoid robots, AI glasses, foldable screens, and servers, aiming to create a multi-scenario growth pattern [3]

Core Viewpoint - Hong Kong stocks continued to decline, with the Hang Seng Index and Hang Seng Tech Index dropping by 2.38% and 3.21% respectively, influenced by overnight movements in US stocks. However, the Hong Kong Internet ETF (513770) showed signs of stabilization, recovering from earlier losses and closing down only 0.92% after a significant drop of over 2% in the morning session [1][4]. Market Performance - The Hong Kong Internet ETF (513770) experienced a net inflow of 54.14 million CNY over the past five days, with a total of 4.271 billion CNY accumulated over the last 60 days, indicating strong buying interest despite recent declines [2][6]. - The ETF has seen a significant drop over five consecutive days, yet investors have been increasingly buying into the fund, demonstrating confidence in the sector [2][6]. Sector Analysis - The performance of tech giants in the Hong Kong market was mixed, with Xiaomi Group-W rising by nearly 3% at one point, while other major players like Kuaishou-W, Tencent Holdings, and Alibaba-W saw declines of over 1% to 4% [4][6]. - The market's overall weakness was attributed to the lack of clear signals regarding interest rates from the latest US non-farm payroll data, alongside ongoing concerns about the high valuations of AI stocks [4][6]. Valuation Insights - The current price-to-earnings (PE) ratio of the CSI Hong Kong Internet Index stands at 22.47, which is significantly lower than the NASDAQ 100 (34.42) and the ChiNext Index (39.2), indicating a historical low valuation compared to the past decade [4][5]. - According to招商证券, the valuation of the Hong Kong tech sector remains at historically low levels, suggesting substantial room for valuation recovery [5][6]. Future Outlook - Analysts from 中信证券 predict that the Hong Kong market will experience a second round of valuation recovery and performance resurgence by 2026, driven by a rebound in fundamentals and significant valuation discounts [6]. - 广发证券 believes that the foundation for a bull market in Hong Kong remains intact, with a potential for a "volatile upward trend" as liquidity improves, which could attract funds into core assets in the internet sector [6][7]. ETF Composition - The Hong Kong Internet ETF (513770) has a total scale exceeding 11.2 billion CNY, with an average daily trading volume of over 600 million CNY, indicating good liquidity [7]. - The ETF tracks the CSI Hong Kong Internet Index, which is heavily weighted towards major internet companies, with Alibaba-W, Tencent Holdings, and Xiaomi Group-W comprising the top three holdings, accounting for 18.89%, 17.01%, and 10.05% of the index respectively [6][7].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The research highlights the significant generational differences in consumer behavior and production capabilities across Thailand, Vietnam, and Cambodia, with Thailand resembling a "miniature" version of the Western consumer market, Vietnam in a rapid growth phase, and Cambodia reflecting characteristics of less developed nations [1] - The report emphasizes the potential for investment in Southeast Asia, particularly in consumer goods and technology-driven sectors, as companies leverage local production capabilities and growing consumer markets [1][2] Summary by Sections 1. Industry Insights - Thailand is compared to a "miniature" Western market, showcasing a mature consumer culture and a well-developed service industry, making it a reference point for companies looking to expand into Western markets [1] - Vietnam is characterized as a rapidly developing economy, with a GDP projected to reach approximately 62.69 trillion VND (around 4,700 USD) in 2024, indicating a significant consumer market potential [1] - Cambodia is noted for its low average income and high income disparity, with consumer spending primarily focused on essential goods, suggesting a slower penetration of discretionary spending [1] 2. Segment Tracking - Xiaomi Group is exploring the future of smart home technology with its Xiaomi Miloco initiative, aiming to enhance user interaction and privacy through advanced AI models [9][10] - The pet food sector saw significant growth during the Double Eleven shopping festival, with sales for the brand Guibao exceeding 1 billion RMB, reflecting a trend towards premium pet products [11][12] - The AI and 3D printing industry is experiencing high demand, with companies like Tuozhu achieving record sales during major shopping events, indicating strong market potential [21][22] 3. Macro Consumption Data - In October, the Consumer Price Index (CPI) showed a year-on-year increase of 0.2%, with service sector prices rising, indicating a recovery in consumer spending [35] - The Producer Price Index (PPI) decreased by 2.1% year-on-year, but showed signs of improvement in the month-on-month trend, suggesting a potential stabilization in production costs [45] - Online sales data from major platforms indicated a decline in the home appliance sector, with specific brands like Ecovacs and Roborock showing positive growth despite overall market challenges [50]

Investment Rating - The report maintains a cautious outlook on high-risk assets, particularly cryptocurrencies, while expressing optimism for AI technology and the Macau tourism sector [3]. Core Views - The market is currently under pressure due to the Federal Reserve's interest rate discussions and ongoing debates about AI, leading to significant declines in high-risk assets like cryptocurrencies. Concerns are rising regarding the sustainability of AI's commercial applications despite its recognized efficiency improvements. The report emphasizes the importance of focusing on technology leaders with strong cash flows, such as Google, META, Microsoft, Alibaba, and Tencent, while also monitoring the application of AI in various sectors [3]. - The Macau tourism industry is highlighted as a valuable investment opportunity, benefiting from a favorable supply-demand dynamic and expected growth during the upcoming holiday periods [3]. - The report suggests that trading platforms remain attractive, with potential for accumulation following market corrections [3]. Summary by Sections 1.1 Consumer & Internet 1.1.1 Education - The Chinese education index fell by 4.60%, outperforming the Hang Seng Index but underperforming major indices like the Shanghai Composite [11]. - New Oriental launched an AI education product, SureChinese, aimed at a broader audience, with 160,000 users across 138 countries [19]. 1.1.2 Luxury Goods & Gambling - The S&P Global Luxury Goods Index decreased by 1.49%, with notable declines in major gambling stocks like Sands China and Wynn Macau [21]. - The upcoming sports events in Macau are expected to attract over 2 million tourists, boosting the local tourism sector [3]. 1.1.3 Coffee & Tea - The coffee sector remains robust, while the tea segment faces challenges due to reduced promotional activities from delivery platforms [30]. 1.1.4 E-commerce & Internet - The Hang Seng Internet Technology Index fell by 5.90%, with mixed performances among major e-commerce players [36]. - Pinduoduo reported a 9% year-on-year revenue increase, reaching 108.3 billion yuan [41]. 1.2 Platforms & Technology 1.2.1 Streaming Platforms - The Hang Seng Media Index dropped by 6.86%, with mixed results among key players like iQIYI and Spotify [45]. - iQIYI reported a revenue decline of 8% year-on-year for Q3 [53]. 1.2.2 Virtual Assets & Internet Brokers - The global cryptocurrency market capitalization fell to $305.32 billion, with Bitcoin and Ethereum prices decreasing by 10% and 11% respectively [49]. - Futu Holdings reported a significant revenue increase of 86% year-on-year for Q3 [56]. 1.2.3 Automotive Services - The automotive sector saw a mixed performance, with some companies like AutoZone and O'Reilly Auto Parts showing gains while others faced declines [60].