Market Performance - Hong Kong stocks weakened. The Hang Seng Index opened 212 points lower, with its decline narrowing to 109 points in the morning session and then widening again. It closed down 356 points or 1.4% at 26,128 points. The Hang Seng China Enterprises Index fell 141 points or 1.5% to 9,303 points, and the Hang Seng Tech Index dropped 184 points or 2.9% to 6,195 points. The total turnover of the market was HK$323.674 billion [1] - A - share market: The Shanghai Composite Index closed at 3,828 points, down 25 points or 0.7%, with a turnover of RMB 92.79 trillion. The Shenzhen Component Index closed at 13,209 points, down 236 points or 1.8%, with a turnover of RMB 1.22 trillion. The ChiNext Index closed at 3,151 points, down 84 points or 2.6%, with a turnover of RMB 567.1 billion [2] - US stocks rebounded on Friday. The Dow Jones Industrial Average rose 299 points or 0.7% to 46,247 points. The S&P 500 Index rose 38 points or 0.6% to 6,643 points, and the Nasdaq Composite Index rose 99 points or 0.4% to 22,484 points [2] Monetary Policy and Exchange Rate - The People's Bank of China conducted 7 - day reverse repurchase operations worth RMB 165.8 billion at an operating rate of 1.4% and 14 - day reverse repurchase operations worth RMB 600 billion on the 26th. There were RMB 354.3 billion of reverse repurchases maturing. The central parity rate of the RMB against the US dollar was lowered by 34 points to 7.1152 [2] - The CFETS RMB exchange - rate index rebounded 0.61 to 96.97 on a weekly basis on the 26th. The BIS currency - basket RMB exchange - rate index rose 0.73 to 102.87, and the SDR currency - basket RMB exchange - rate index rose 0.44 to 91.34 [5] Oil Market - Due to rising oil prices, OPEC+ may approve an increase in oil production by at least 137,000 barrels per day at its October 4th meeting to regain market share. OPEC+ has reversed its production - cut strategy since April and has increased its daily production quota by more than 2.5 million barrels, about 2.4% of global demand. The October 5th meeting will discuss an increase of at least 137,000 barrels per day in November, but no final decision has been made [3] Stock Market Valuation - The "Buffett Indicator" measuring the degree of over - valuation has risen to 217% as of the end of June, breaking the previous record and higher than the 190% level during the millennium dot - com bubble and the COVID - 19 period. When the indicator drops to 70% - 80%, it may be profitable to enter the market, while when it rises to 200%, it is risky [3][4] Trade Policy - The Trump administration is studying new tariffs on imported electronic products containing chips, calculating the number of chips in the products to force companies to move manufacturing back to the US. The US Department of Commerce initially plans to estimate the value of chips in products and levy tariffs proportionally. If implemented, it will cover a wide range of consumer goods [4] Logistics and Industrial Data - China's logistics demand has maintained rapid growth this year. The total social logistics volume in the first eight months was close to RMB 230 trillion, with stable expansion in scale and continuous optimization and upgrading in structure [4] - The total profits of industrial enterprises above designated size in China increased by 0.9% year - on - year in the first eight months. In August alone, the profits of these enterprises increased by 20.4% after a 1.5% decline in July, showing obvious improvement [4] Company News - Meituan's international food - delivery brand Keeta officially launched operations in Dubai, UAE on September 27th, its third Middle - Eastern market in 40 days [5] - Xiaomi 17 series phones went on sale on the 27th. The Xiaomi 17 Pro Max accounted for over 50% of the sales volume in the Xiaomi 17 series and broke the sales and revenue records of domestic mobile phones in all price segments on the first - sale day [5] - Tmall announced that the 2025 "Double 11" will be divided into a pre - sale and an on - spot sale stage. The pre - sale will start at 2 pm on October 15th, and the on - spot sale will start at 8 pm on October 20th [5] - New World Development reported a widened loss attributable to shareholders from continuing operations of HK$16.301 billion for the year ended June 30th, and no dividend was declared [6]

Market Overview - The Hang Seng Index is challenging the 25,000 point mark, with active trading and a positive risk appetite despite limited corporate earnings improvement [2][6] - The market is awaiting catalysts such as potential China-US summits or unexpected policies from mainland China to drive further gains [2] Sector Focus - The focus for today includes the release of China's one-year and five-year Loan Prime Rate (LPR) [3] Macro Focus - The Chinese government is encouraging foreign investment through various measures to enhance project service guarantees and optimize land allocation [7] - Foreign Direct Investment (FDI) in China decreased by 15.2% year-on-year in the first half of 2025, with a notable decline in the manufacturing sector [7] - The Ministry of Finance announced plans for a more proactive fiscal policy in the second half of the year [7] - The People's Bank of China maintained the LPR at 3% for one year and 3.5% for five years, aligning with market expectations [7] - The Ministry of Industry and Information Technology is promoting innovation in future industries, including humanoid robots and digital transformation in various sectors [7] Corporate News - Xinyi Solar's product prices have dropped, leading to an expected profit decline of 56%-66% for the first half of the year [4] - Meituan, JD.com, and Ele.me were summoned by the market regulator to ensure rational competition in the food delivery sector [8] - HSBC is reportedly dissolving a team focused on managing geopolitical risks despite increasing threats [9] - Ant Group is collaborating with Citibank to enhance foreign exchange risk management using AI technology [9] - Meituan and Alibaba's Taobao are engaged in a price war, reportedly spending 1.6 billion RMB on promotions [9]

Company Recommendation - BYD Electronics (0285) is recommended for purchase with a target price of HKD 38.50, indicating a potential upside of 16.7% from the current price of HKD 33.95 [2][10] - The catalysts for growth include the lifting of the EDA ban in the US and the completion of the US-Vietnam trade agreement, which is expected to ease concerns regarding upstream supply chain pricing and gross margin pressures [2][10] - The company is diversifying into AI servers, liquid cooling, and Autonomous Mobile Robots (AMR), with a strong partnership with NVIDIA, which is anticipated to drive new growth momentum [2][10] Valuation - The current price corresponds to a forecasted P/E ratio of 13.2x for FY25E and 11.2x for FY26E, with FY26E valuation being 29% lower than the 5-year average [2][10] - The expected revenue and net profit compound annual growth rates for FY24-FY27E are 11.6% and 22.4%, respectively [2][10] Market Review - The Hang Seng Index is facing resistance at 24,700 points, influenced by US-China trade negotiations and limited progress in economic stimulus from mainland China [2][4] - The market is experiencing a slowdown in capital inflow from Northbound trading, with corporate earnings showing limited improvement [2][4] Industry Insights - The automotive sector in China is showing resilience, with a 22.2% year-on-year increase in vehicle exports in June, and production and sales also reflecting positive growth [11] - The construction and real estate sectors are seeing increased land sale revenues, particularly in first and second-tier cities, with a 40% increase in land sale amounts [11] - The gaming industry in Macau is expected to benefit from strong summer season revenues, with June's gaming income exceeding expectations [5]

Market Overview - The Hang Seng Index closed at 23,108.27 points, down 1.87% for the day and up 15.20% year-to-date[6] - The Technology Index fell by 3.26% to 5,269.66 points, with a year-to-date increase of 17.94%[6] - The total turnover decreased by 31.8% to HKD 219.845 billion[8] Company Performance - Micron Robotics (2252.HK) raised HKD 380 million through a 13.8% discounted placement, with major shareholder intending to reduce stake from 48.08% to 43.98%[8] - Samsonite (1910.HK) reported a first-quarter profit of HKD 48.2 million, a year-on-year decline of 42.55%, with net sales of HKD 797 million, down 7.33%[8] Economic Indicators - The one-month HIBOR is at 1.57%, the lowest in two and a half years[8] - The U.S. Consumer Price Index (CPI) growth rate was lower than expected, contributing to a rise in U.S. stock markets[8] Investment Recommendations - Cathay Pacific (293.HK) is recommended for purchase at HKD 9.60, with a target price of HKD 10.50 and a stop-loss at HKD 8.50[16][17] - Tencent Holdings (700.HK) has a suggested buy price of HKD 390, with a target price of HKD 450[12] Commodity Prices - New York crude oil closed at USD 63.67, up 2.78%[8] - New York gold settled at USD 3,247.80, an increase of 0.61%[8] Bond Yields - The U.S. 10-year Treasury yield is at 4.4729%, with a year-to-date change of -9.61 basis points[23]