Global Market Overview - The global market experienced a further pullback this week due to the decline in AI stocks across multiple markets and the Federal Reserve's uncertain stance on interest rate cuts [1][3] - The VIX index rose above 28, indicating increased market volatility [1][3] - The TAMAMA Technology Index has shown fluctuations, currently with a P/E ratio of 35.3, while the Philadelphia Semiconductor Index has decreased slightly but remains at a P/E of 43.4 [1][3] - The S&P 500 Shiller P/E ratio is at 38.94, still considered high despite a decrease from above 40 [1][3] US Market Performance - Major US indices, including the S&P 500, Dow Jones Industrial Average, and Nasdaq, saw declines of 1.95%, 1.91%, and 2.74% respectively [3][11] - The S&P 500 sectors mostly declined, with the largest gain in Communication Services at 3.04% and the largest loss in Information Technology at 4.73% [11][15] - The market is expected to face adjustment pressures in sectors such as finance, communication services, consumer, and industrials due to high valuations and uncertain monetary policy [1][3] Hong Kong Market Performance - The Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Hong Kong Chinese Enterprises Index all fell, with declines of 5.09%, 5.09%, and 3.45% respectively [23][27] - The Hang Seng Technology Index dropped by 7.18%, indicating significant pressure on tech stocks [23][27] - Despite the overall decline, there are opportunities for selective low-cost acquisitions in undervalued assets with favorable fundamentals [1][3] Economic Data - Japan's GDP growth rate for Q3 2025 was -0.4%, lower than the previous value of 0.6% [37][39] - Japan's industrial production index showed a month-on-month increase of 2.58%, surpassing the previous decline of -1.47% [37][39] - The core CPI in Japan for October 2025 was 3%, higher than the previous 2.9% [39][43]

Group 1: Macroeconomic Insights - Recent increase in overseas ultra-long-term government bond yields, with Japan's 30-year bond yield reaching 3.15% and the US 30-year bond yield at 5.08%, the highest since October 2023 [2][4] - Concerns over inflation and fiscal policies are driving the rise in yields, with expectations of a potential short-term pullback in Japanese bond yields after temporary factors dissipate [2][4] - The report suggests that the long-term outlook for US Treasury yields may remain elevated [2] Group 2: Currency Dynamics - The US has adjusted tariffs, leading to a slight rebound in the US dollar index and a 0.5% increase in the RMB against the USD [3] - The report indicates that the RMB may have upward appreciation potential due to structural rebalancing in global asset allocations, particularly in Asia [3] Group 3: Fixed Income Market - Global bond yields have risen, with Japan's 10-year bond yield increasing to 1.53% and the US 10-year bond yield reaching 4.58% [4] - The report highlights that the rise in yields is influenced by various factors, including uncertainty surrounding tariff policies and inflation expectations [4] Group 4: Real Estate Sector - The report discusses the "pre-sale + current sale" model used in many overseas real estate markets, emphasizing the importance of third-party fund supervision to protect buyers [5] - This model ensures that most payments are made after project completion, reducing the risk of fund misappropriation [5] Group 5: Oil and Gas Sector - Oil prices have rebounded due to revised demand expectations following tariff reductions and OPEC+ production adjustments, with WTI and Brent prices rising by 5.8% and 2.8% respectively [6] - The report notes that trade tensions and OPEC+ production strategies are key short-term factors affecting oil prices [6] Group 6: Hong Kong Market Dynamics - The report highlights the recent surge in liquidity in Hong Kong's banking system, driven by currency interventions and successful IPOs, such as that of CATL [6] - It suggests that Hong Kong's market may benefit from a structural shift in global capital flows, particularly in the context of de-dollarization [6] Group 7: Company-Specific Insights - Black Sesame Intelligence is highlighted as a leading supplier of AI chips for smart driving and robotics, with a target price of 24.04 HKD and a "buy" rating [14] - Meitu's strategic partnership with Alibaba is expected to enhance growth prospects, with a "buy" rating maintained [16] - ZTO Express reported a revenue of 10.89 billion RMB, with a focus on market share despite short-term profit pressures, maintaining a "buy" rating [18] - Baidu's transition towards AI cloud services is noted, with a "buy" rating based on strong revenue growth in this segment [23]