Report Overview - Report Date: October 30, 2025 - Content: Covers overnight market trends, important news, and financial market updates Overnight Market Trends International Precious Metals - COMEX gold futures fell 1.04% to $3,941.7 per ounce, and COMEX silver futures fell 0.1% to $47.275 per ounce [4][50] Crude Oil - WTI crude oil rose 0.35% to $60.36 per barrel, and Brent crude oil rose 0.74% to $64.30 per barrel [5][50] London Base Metals - LME nickel rose 0.71% to $15,405 per ton, LME copper rose 0.47% to $11,090 per ton, LME zinc rose 0.39% to $3,070 per ton, LME lead fell 0.35% to $2,019 per ton, LME aluminum fell 0.66% to $2,870 per ton, and LME tin fell 0.70% to $36,105 per ton [5][50] Domestic Futures - As of 23:00, domestic futures contracts mostly rose. Coking coal rose over 2%, PVC, coke, BR rubber, and low-sulfur fuel oil rose over 1%, iron ore and styrene rose nearly 1%, and glass fell nearly 1% [5] Important News Macroeconomic News - Five departments including the Ministry of Commerce issued the "Urban Business Quality Improvement Action Plan" to regulate the market order [8] - Chinese President Xi Jinping will meet with US President Trump in Busan, South Korea, on October 30 to discuss Sino-US relations [8] - From October 1 - 26, the retail sales of new energy passenger vehicles in China were 901,000 units, a 0% year-on-year increase, an 8% decrease from the previous month, and a 22% year-to-date increase [8] - The Fed cut interest rates by 25 basis points to 3.75% - 4.00%, ending balance sheet reduction on December 1 [9] Energy and Chemical Futures - As of October 29, the inventory of Chinese polyethylene producers was 416,000 tons, a 19.16% decrease from the previous period [12] - As of October 27, the total refined oil inventory in Fujairah Port, UAE, decreased by 2.258 million barrels [12] - As of October 29, the total methanol port inventory in China was 1.5065 million tons, a decrease of 5,700 tons [12] - As of October 25, Japanese commercial crude oil, gasoline, and kerosene inventories decreased, and the refinery operating rate increased to 91.2% [13] - For the week ending October 24, US commercial crude oil inventories decreased by 6.858 million barrels, and strategic petroleum reserves increased by 533,000 barrels [13] Metal Futures - As of October 29, the FOB alumina price in Western Australia was $319 per ton, and the import window remained open [15][16] - Glencore's copper production in the first nine months decreased by 17%, and it tightened its 2025 production guidance [16] - HSBC expects gold prices to continue rising and peak in the first half of 2026 [17] - Zinc mines in central, northern, and southwestern China will experience production changes in November [17] - The China Smelter Group decided not to set a Q4 copper concentrate TC/RC guidance [18] - China has established a complete lithium product supply system, with lithium carbonate and hydroxide production of about 588,000 and 303,000 tons from January - September [18] - An explosion occurred at a mine in Australia on October 27, causing casualties [18] Black Futures - Shanxi is increasing coal production to meet winter demand, with a 3.7% year-on-year increase in the first three quarters [21] - The third round of coke price increases has begun in Shandong [21] - On October 29, coking coal auction prices in Linfen mostly rose [21] - A large factory in Gansu will reduce silicon iron production by about 340 tons per day [22] - On October 29, coal shipments from Qinhuangdao and Jingtang ports showed different trends [22] Agricultural Futures - China may have purchased US soybeans this harvest season [24] - The government of Uttar Pradesh, India, raised the new sugarcane purchase price by 8.1% [26] - Soybean planting in Paraná, Brazil, is progressing rapidly [26] - On October 29, the import costs of US, Brazilian, and Argentine soybeans increased [26] - Rabobank expects Brazil's 2025/26 soybean production to be 177 million tons, an increase of 3% [26] - The Argentine oilseed workers' union may go on strike next week [27] Financial Markets A-Shares - The Shanghai Composite Index rose 0.7% to 4,016.33, the Shenzhen Component Index rose 1.95%, and the ChiNext Index rose 2.93%. A-share trading volume was 2.29 trillion yuan [29] Regulatory News - The CSRC will regulate AI in the capital market and promote reforms in the Beijing Stock Exchange and the New Third Board [31][31] Fund News - As of September, the net asset value of China's public funds reached 36.74 trillion yuan, a record high [31] - Central Huijin's ETF holdings increased by over 200 billion yuan in Q3 [32] North Exchange - As of October 29, 90 out of 133 North Exchange companies had year-on-year revenue growth, and 72 had profit growth [32] M&A Rules - Beijing issued M&A rules to encourage strategic and emerging industry mergers [34] Private Fund - Ningquan Asset will suspend new investor subscriptions starting October 30 [35] Industry News - A 51 billion yuan central enterprise strategic emerging industry fund was launched [36] - The financial regulator promoted the use of the fourth life table in the life insurance industry [36] - The added value of the electronic information manufacturing industry increased by 10.9% in the first three quarters [36] - Five departments launched a three-year action to promote integrated medical and elderly care services [36] - The total social logistics volume in the first three quarters was 263.2 trillion yuan, a 5.4% increase [37] - In September, the automobile dealer inventory coefficient was 1.35, above the reasonable range [38] Overseas News - South Korea and the US reached a trade agreement, with South Korea investing $350 billion and the US reducing auto tariffs [40] - The US Senate passed a bill to end tariffs on Brazilian goods, but the House may delay the vote [40] - The US imposed new sanctions on Russian oil companies [40] - France plans to raise the digital tax rate on tech giants to 6% [41] - The Bank of Canada cut interest rates by 25 basis points to 2.25% [41] International Stock Markets - US stocks closed mixed, with the Dow down 0.16%, the S&P 500 flat, and the Nasdaq up 0.55% [42] - European stocks closed mixed, with the German DAX down 0.64%, the French CAC40 down 0.19%, and the UK FTSE 100 up 0.61% [44] - The Nikkei 225 rose 2.17% to a new high, and the South Korean Composite Index rose 1.76% [44] - Google, Meta, Microsoft, and other companies released their Q3 earnings [44][45][46] Commodities - International precious metals fell, crude oil rose, and base metals were mixed [50] - Russians are buying more gold, and the Indian central bank is repatriating gold reserves [51] Bonds - The domestic bond market was active, with short-term bond yields falling [53] - Barclays plans to issue up to 4 billion yuan in panda bonds in China [53] - US bond yields rose due to Powell's remarks [53] Foreign Exchange - The onshore RMB rose to a one-year high against the US dollar, and the US dollar index rose [54]

Group 1 - The Hong Kong stock market opened higher on October 30, with the Hang Seng Index rising by 0.76% to 26,545.92 points, and the Hang Seng Tech Index increasing by 0.53% [1] - The technology sector showed mixed performance, with major stocks like Tencent, Horizon Robotics, Midea Group, and Alibaba leading gains, while Tencent Music, Trip.com, Sunny Optical Technology, and Xiaomi faced declines [1] - Guotai Junan Futures highlighted that "technology" is the main investment theme during the 14th Five-Year Plan period, suggesting a focus on technology assets such as the AI industry chain and innovative pharmaceuticals for better risk-reward ratios in Hong Kong stocks [1] Group 2 - The medium-term strategy for Chinese stocks involves a "barbell strategy," with A-shares focusing on offensive sectors like technology (AI industry chain and innovative pharmaceuticals) and emerging industries such as new energy and aerospace, while Hong Kong stocks are positioned defensively [2] - The "barbell strategy" includes cross-border selections, emphasizing A-share self-innovation technology themes and industry leaders in the "anti-involution" sector for offensive strategies, alongside value technology and dividends in Hong Kong stocks for defensive positioning [2] Group 3 - Relevant ETFs include the Hang Seng Tech Index ETF (513180) for Hong Kong technology direction, supporting T+0 trading, and the Cloud Computing 50 ETF (516630) for A-share technology direction, covering popular computing concepts [3]

Report Summary 1. Report Industry Investment Rating - Not provided 2. Core View - The futures index is in a volatile pattern with the "boots" gradually landing [4] 3. Summary by Relevant Catalogs 3.1. Periodic Index Data Tracking - On October 29, all the current - month contracts of the four major index futures rose. IF rose 1.2%, IH rose 0.41%, IC rose 2.06%, and IM rose 1.4% [2] - On the trading day, the total trading volume of index futures declined, indicating a cooling of investors' trading enthusiasm. Specifically, the total trading volume of IF decreased by 11,905 lots, IH decreased by 6,016 lots, IC increased by 8,363 lots, and IM decreased by 23,657 lots. In terms of positions, the total position of IF increased by 439 lots, IH decreased by 762 lots, IC increased by 9,663 lots, and IM decreased by 5,250 lots [2][3] 3.2. Trend Intensity - The trend intensity of IF and IH is 1; the trend intensity of IC and IM is 1. The trend intensity ranges from - 2 to 2, with integer values, and the strength is classified as weak, relatively weak, neutral, relatively strong, and strong, where - 2 means the most bearish and 2 means the most bullish [7] 3.3. Important Drivers - Although the Fed cut interest rates by 25 basis points as expected and announced the end of QT, Powell's hawkish remarks on the prospect of a December interest - rate cut caused the market's probability of a December interest - rate cut to plummet from 95% to 65%. U.S. stocks, U.S. bonds, gold, and digital currencies tumbled briefly during the session, while the U.S. dollar rose. Eventually, the Nasdaq closed up supported by NVIDIA, and the Dow closed down [7] - The A - share market performed strongly. The Shanghai Composite Index reached 4,000 points, hitting a new high in the rebound; the ChiNext Index soared nearly 3%; the North Securities 50 soared more than 8%, hitting the largest daily increase in 9 months. The Shanghai Composite Index closed up 0.7% at 4,016.33 points, the Shenzhen Component Index rose 1.95%, the ChiNext Index rose 2.93%, the North Securities 50 rose 8.41%, the Science and Technology Innovation 50 rose 1.18%, and the Wind All - A rose 1.16%. The total trading volume of A - shares throughout the day was 2.29 trillion yuan, compared with 2.17 trillion yuan the previous day. The new energy sector exploded, with the energy - storage direction seeing a wave of limit - up stocks. The non - ferrous metals sector strengthened collectively, led by copper and zinc. Computing hardware stocks strengthened again, with many stocks hitting record highs. The quantum technology concept has been strengthening recently, and the Hainan Free Trade concept continued to rise [7] 3.4. Index Futures' Top 20 Member Position Changes - For IF contracts, the long - position changes of different contracts vary, such as - 111 for IF2511, 1981 for IF2512, etc.; the short - position changes also vary, like - 135 for IF2511, 1425 for IF2512 [6] - For IH contracts, the long - position changes of different contracts are different, such as - 222 for IH2511, - 1952 for IH2512, etc.; the short - position changes also show variations, like - 497 for IH2511, - 1497 for IH2512 [6] - For IC contracts, the long - position changes of different contracts are diverse, such as 1560 for IC2511, 4388 for IC2512, etc.; the short - position changes also have differences, like 1462 for IC2511, 4920 for IC2512 [6] - For IM contracts, the long - position changes of different contracts are different, such as - 948 for IM2512, - 262 for IM2603, etc.; the short - position changes also vary, like - 585 for IM2512, - 33 for IM2603 [6]

Summary of Quantum Secure Communication Conference Call Industry Overview - The conference focuses on the **quantum secure communication** industry, which utilizes specialized optical fiber networks to transmit quantum keys, addressing security vulnerabilities in traditional asymmetric encryption methods [1][2][4]. Core Points and Arguments - **Security Enhancement**: Quantum secure communication ensures absolute security in information transmission by using the polarization state of photons to encode information, making it resistant to eavesdropping [1][5]. - **Three-Step Strategy in China**: China is implementing a three-step strategy for quantum secure communication: 1. Building intercity backbone networks 2. Developing metropolitan/access networks 3. Achieving integrated coverage through satellite systems [1][10]. - **Key Players**: GuoDun Quantum is a significant supplier of key distribution devices in China, benefiting from the first phase of the backbone network project [1][11]. - **Rapid Deployment**: China has made swift progress in the global application of quantum secure communication, entering a large-scale deployment phase with significant operator involvement [1][12][13]. Financial and Market Insights - **Cost of Network Construction**: The construction cost for backbone networks is approximately **2 million yuan per 100 kilometers**, while metropolitan networks are more expensive, with costs exceeding **10 million yuan per 100 kilometers** in cities like Hefei [3][16]. - **Market Potential**: The market for metropolitan networks in China is projected to reach **15 billion yuan** over the next five years, with gradual coverage across cities [3][16]. Technical Aspects - **Core Technology**: The fundamental principle of quantum secure communication is based on the physical properties of micro-particles, ensuring that any eavesdropping attempt alters the state of the photons, thus revealing the presence of an intruder [5][8]. - **BV84 Protocol**: This protocol is used in quantum secure communication to ensure the integrity of the transmitted information by verifying measurement consistency between sender and receiver [6][7]. Infrastructure Development - **Satellite Integration**: The development of a space-based communication network requires multiple low-orbit satellites to enhance key distribution performance, indicating a growing market demand for such technologies [17]. - **Global Context**: Other countries, including the U.S. and European nations, are also advancing their secure communication networks, highlighting a global consensus on the need for enhanced security measures [18]. Industry Chain Composition - **Supply Chain**: The quantum secure communication industry chain includes upstream component manufacturers (e.g., optical fiber and chip producers), midstream integrators, and downstream users such as critical infrastructure sectors [9][19]. Conclusion - The quantum secure communication industry is rapidly evolving, with significant investments and strategic initiatives in China aimed at establishing a robust and secure communication infrastructure. The integration of quantum technology into existing networks presents both opportunities and challenges for stakeholders across the industry.

Market Overview - On October 28, Hong Kong stocks opened lower and fluctuated downwards, with the Hang Seng Index closing down 87 points (0.44%) at 26,346 points[1] - The Hang Seng Tech Index fell by 77 points, ending at 6,093 points, with total market turnover at HKD 242.7 billion[1] - The Hong Kong Stock Connect recorded a total turnover of HKD 104.64 billion, with a net inflow of HKD 2.26 billion[1] Global Market Dynamics - The U.S. Federal Reserve lowered the federal funds rate target range by 0.25% to 3.75%-4.00%, marking the second rate cut of the year, aligning with market expectations[2] - Following the announcement, U.S. stock indices initially rose but then turned negative, with the Dow Jones closing down 74 points at 47,632 points, while the Nasdaq rose 131 points to a new high of 23,958 points[2] - Nvidia's stock price surpassed USD 200, with a market capitalization exceeding USD 5 trillion, following advancements in AI and partnerships with 17 quantum computing companies[2] Macroeconomic Trends - The "14th Five-Year Plan" emphasizes building a manufacturing powerhouse and advancing AI initiatives, aiming to enhance infrastructure and promote new economic growth points such as quantum technology and hydrogen energy[3] Industry Insights - In the smart driving sector, Pony.ai (2026 HK) and WeRide (800 HK) are set to raise approximately HKD 7.2 billion and HKD 3 billion, respectively, with listings on November 6[4] - In the renewable energy sector, Xinyi Solar (968 HK) and Flat Glass Group (6865 HK) saw stock increases of 4.3% and 12.3%, respectively, following better-than-expected quarterly results[4] - Yuehai Investment (270 HK) reported a 13.2% year-on-year profit increase in the first three quarters, attributed to savings in financial and administrative expenses[4]

Core Viewpoint - The A-share market opened lower with the Shanghai Composite Index down by 0.21% and the ChiNext Index down by 0.32%, indicating a bearish sentiment in the market [1] Market Analysis - Huajin Securities suggests that the slow bull market and technology as the main line remain unchanged, recommending investments in technology growth and certain cyclical and core asset industries [1] - The recommended sectors for short-term investment include telecommunications (computing power), electronics (semiconductors, consumer electronics), media (gaming, AI applications), machinery (robots), computers (AI applications, autonomous driving), non-ferrous metals, and chemicals [1] - Additionally, sectors benefiting from the "14th Five-Year Plan" and improved Q3 performance include new energy, pharmaceuticals, consumer goods (food, retail), and military industry (commercial aerospace) [1] Future Market Outlook - Dongfang Securities notes that after the Shanghai Composite Index surpassed 4000 points, market trading enthusiasm has decreased, leading to increased volatility among major indices [1] - Despite potential trading disturbances, the overall trend suggests that the index is likely to continue its upward trajectory [1]

人民财讯10月30日电，10月30日，三大指数集体低开。沪指跌0.21%，深证成指跌0.22%，创业板指跌 0.32%。盘面上，广告包装、运输服务、钢铁等板块涨幅居前；量子科技、CPO概念、通信设备、有 色、酿酒、医药等板块跌幅居前。 ...

Company Insights - Nvidia's market capitalization has surpassed $500 billion, with a nearly 3% increase in stock price, and CEO Jensen Huang projects a business scale of $500 billion over the next six quarters [1] - Guizhou Moutai's Q3 revenue reached 39.81 billion yuan, with a year-on-year growth of only 0.35%, and net profit of 19.22 billion yuan, growing by 0.48%. The series liquor revenue declined by 7.78% [4] - New Yi Sheng reported a net profit of 2.385 billion yuan for Q3, marking a significant year-on-year increase of 205.38% [11] - Industrial Fulian's net profit for the first three quarters increased by 49% year-on-year [11] Industry Developments - A new central enterprise strategic emerging industry development fund has been launched with an initial scale of 51 billion yuan, focusing on supporting AI, aerospace, high-end equipment, and quantum technology [3] - OpenAI is reportedly planning to submit an IPO application in the second half of 2026, with an estimated valuation of $1 trillion, indicating a shift from model development to ecosystem building [7] - The Chinese robotics industry is experiencing a historical opportunity for growth, with domestic brands expected to increase their market share [8] - The lithium product supply system in China has been fully established, with strong demand in the lithium battery sector and significant price increases in key materials [9]

Group 1 - The Federal Reserve announced a 25 basis point interest rate cut, bringing the federal funds rate to 3.75%–4.00%, marking the second cut of the year and aligning with market expectations [2] - U.S. stock markets showed mixed results, with the Dow Jones down 0.16%, the S&P 500 flat, and the Nasdaq up 0.55% [3][4] - Nvidia's market capitalization reached $5.03 trillion after a nearly 3% increase in its stock price [3] Group 2 - Alphabet reported Q3 revenue of $102.35 billion, a 16% year-over-year increase, and net profit of $35 billion, up 33% [8] - Microsoft announced Q1 revenue of $77.67 billion, an 18% increase year-over-year, with net profit of $27.7 billion, up 12% [9] - The Central Enterprise Strategic Emerging Industry Development Fund was launched with an initial scale of 51 billion yuan, focusing on AI, high-end equipment, and quantum technology [11] Group 3 - Guizhou Moutai reported a 6.36% year-over-year increase in revenue for the first three quarters, totaling 128.45 billion yuan, and a net profit increase of 6.25% [12] - WuXi AppTec announced plans for a 2% share reduction by its controlling shareholders within three months, totaling approximately 59.7 million shares [13] - General Motors announced layoffs of thousands of employees in the U.S. due to market slowdown pressures, including 1,200 at its Detroit electric vehicle plant [16]

Market Overview - The Shanghai Composite Index closed above the 4000-point mark, ending at 4016.33, with a gain of 0.70% [2][4] - The Shenzhen Component Index rose by 1.95% to 13691.38, while the ChiNext Index increased by 2.93% to 3324.27, marking a significant upward trend in the market [2][4] Sector Performance - The top-performing sectors included Electric Power Equipment (+4.79%), Non-ferrous Metals (+4.28%), and Non-bank Financials (+2.08%) [3] - Conversely, the sectors that underperformed were Banks (-1.98%), Food & Beverage (-0.56%), and Textiles & Apparel (-0.24%) [3] Future Outlook - The market is expected to continue its upward trend, supported by a favorable macroeconomic environment and ongoing capital inflows, with a trading volume of 2.26 trillion yuan, an increase of 108.2 billion yuan from the previous trading day [6] - Key sectors to focus on include dividends, TMT (Technology, Media, and Telecommunications), New Energy, and Non-ferrous Metals, as the market is likely to maintain a steady upward trajectory [6] Policy Insights - The recent announcement from the Central Committee emphasizes the need to accelerate the construction of a financial powerhouse, which includes enhancing the central bank's system and developing various financial sectors such as technology finance and green finance [5] - The central bank's commitment to preventing systemic financial risks and supporting the capital market's positive momentum is expected to bolster market confidence [5]