Group 1 - The industry allocation strategy for October emphasizes high-risk preferences, suggesting that technology growth and non-bank financial sectors are likely to benefit significantly from the implementation of AI-related policies, particularly in downstream applications like media and computing, as well as strong beta stocks in brokerage firms [1] - The expectation of a Federal Reserve interest rate cut is leading to increased attention on non-ferrous metals and basic chemicals [1] - The top five sectors with net inflows include non-ferrous metals, domestic software, rare earth materials, military industry, and wind power [1] Group 2 - Huawei has announced a series of upcoming products aimed at enhancing AI computing power, including the Ascend 950PR/950DT, with launches scheduled from 2026 to 2028, indicating a strong focus on meeting the growing demand for AI computing capabilities [3] - Major overseas storage manufacturers have adjusted prices, with SanDisk increasing flash memory prices by over 10%, and Micron pausing quotes, suggesting a potential rise in NAND prices due to increased enterprise SSD demand [5] - The price of iodine is expected to rise significantly due to emerging demands from perovskite solar materials and solid-state batteries, with companies that have quality iodine recovery capacity and overseas iodine mining rights being highlighted as key investment opportunities [5] Group 3 - The Shanghai Composite Index has reached a new high of 3900 points, indicating a shift from a sideways market in September to a bullish trend in October, with significant inflows of capital driving the market upward [9] - The market is experiencing a rotation from small-cap to large-cap stocks, with the ChiNext Index continuing to rise, suggesting a strong bullish sentiment [9] - Precious and industrial metals have performed well under the backdrop of a weakening dollar and expectations of interest rate cuts, while the bond market remains relatively weak in comparison to the stock market [9]

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [9]. Core Insights - The communication sector has seen a 0.36% increase in the 38th week of 2025, ranking 13th among major industries in the Yangtze River region. Since the beginning of 2025, the sector has surged by 63.61%, leading all industries in the same region [2][4]. - Huawei has announced the Ascend series chip roadmap, introducing the Atlas 950 super node and the Lingqu 2.0 interconnection protocol, aiming to build a cluster of over 520,000 cards, with the Atlas 960 targeting a million-card scale [5][7]. - Microsoft is accelerating the expansion of the Fairwater cluster, investing an additional $4 billion in Wisconsin, bringing the total investment to $7.3 billion, to support AI model training [6][7]. Summary by Sections Market Performance - In the 38th week of 2025, the communication sector rose by 0.36%, ranking 13th among major industries. Year-to-date, the sector has increased by 63.61%, ranking first [2][4]. - Notable stock performances include Dekeli (+59.1%), Changfei Fiber (+35.1%), and Guangku Technology (+27.6%) for gains, while Sanwei Communication (-14.0%), Yongding Co. (-10.8%), and Dongxin Peace (-10.2%) faced declines [4]. Technological Developments - Huawei's Atlas 950 super node, set to launch in Q4 2026, will utilize 8192 Ascend 950 DT chips, achieving a bandwidth of 16.3PB/s, significantly outperforming previous models [5]. - The Atlas 960 super node, expected in Q4 2027, will support up to 15,488 Ascend 960 chips, targeting high-density scenarios with a total computing power of 2 ZFLOPS [5]. Investment Recommendations - The report recommends several companies across various segments: - Telecom Operators: China Mobile, China Telecom, China Unicom - Optical Modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication - Liquid Cooling: Yingweike - Hollow Core Fiber: Fenghuo Communication, Hengtong Optic-Electric - Domestic Computing: Runze Technology, Guanghuan New Network - AI Applications: Boshi Jie, Heertai - Satellite Applications: Huace Navigation, Haige Communication [7].

Core Insights - Huawei's Vice Chairman Xu Zhijun presented a clear development roadmap for its Ascend AI chips, targeting a million-card cluster by 2028, indicating a significant leap in computing power [1][2] - The introduction of the "Lingqu" all-optical interconnection protocol is expected to revolutionize the field of computing interconnectivity, enhancing data transfer speeds and overall efficiency [2] Group 1: Huawei's AI Chip Development - Huawei plans to rapidly iterate its Ascend AI chips, with the Ascend 950 series launching in 2026, followed by the Ascend 960 in 2027, and the Ascend 970 in 2028, aiming for a tenfold increase in overall computing power [1][2] - The Ascend 960 chip will achieve a comprehensive doubling of key metrics such as computing power and memory bandwidth, while the Ascend 970 will further enhance interconnect bandwidth and memory bandwidth [1] Group 2: Super Node Technology - The Atlas 950 super node, built on the new "Lingqu" protocol, is anticipated to maintain a leading position in global computing power for the coming years [2] - The establishment of large-scale computing clusters, potentially reaching 500,000 to 1,000,000 cards, will significantly reduce data transfer delays and enhance computational efficiency [2] Group 3: Implications for AI Development - With robust computing infrastructure, China's AI models are expected to experience explosive growth, positioning them among the global leaders in AI technology innovation and application [2]

Group 1 - A-shares indices opened higher on September 22, with strong performance in the storage chip sector, particularly the Computer ETF (159998) which rose by 2.17% with a trading volume exceeding 47 million yuan [1] - Key stocks in the Computer ETF included Jiangbolong, which increased by over 11%, and other notable gainers were Zhongke Shuguang, Xiechuang Data, and 360 [1] - The Cloud Computing ETF (517390) experienced a slight decline of 0.17%, but notable stocks like Donghua Software reached the daily limit up, with other gainers including Guanghuan New Network and Aofei Data [1] Group 2 - The Cloud Computing ETF (517390) closely tracks the CSI Hong Kong-Shanghai Cloud Computing Industry Index and includes major stocks like Tencent Holdings and Zhongke Shuguang [2] - Recent developments include the establishment of the Shanghai Quantum Artificial Intelligence Joint Alliance and the release of ten application scenarios for quantum computing at the Pujiang Innovation Forum [2] - Huawei announced the "Tian Gong Plan" at the Huawei Connect 2025 conference, committing 1 billion yuan to support the Harmony AI ecosystem, focusing on AI agents as a key direction for development [2] Group 3 - CITIC Securities indicated that the third quarter is a traditional peak season for the electronics sector, with strong demand for AI computing-related products, including chips and servers, and an upward trend in both overseas and domestic computing chains [3] - The demand for storage is expected to increase, with enterprise-level demand remaining robust, and NAND and DRAM demand growth and price increases exceeding expectations since the second half of 2025 [3] - The semiconductor equipment chain is steadily advancing in domestic production, with a clear trend of mergers and acquisitions in the industry [3] Group 4 - CITIC Jinpu highlighted Huawei's upcoming product launches, including the Ascend 950 series, which will be released between 2026 and 2028, aimed at meeting the growing demand for AI computing power [4] - Huawei's Atlas 950 super node, supporting 8192 Ascend 950DT cards, is set to launch in the fourth quarter of 2026, significantly enhancing overall computing power [4] - The North American AI computing demand remains strong, with expectations of a rebound in domestic AI computing demand from September to October, and a recommendation to focus on domestic cloud service providers [4]

Report Industry Investment Rating - The report recommends a long position for IF, IC, IM, and IH in the stock index futures of the macro and financial sector [1]. - Goldman Sachs maintains an overweight rating for A - shares and H - shares [1]. - CITIC Construction Investment Research Report is bullish on the overall Hong Kong stock market [1]. Report's Core View - The Chinese stock market's strong performance this year may be driven by "re - inflation" expectations and artificial intelligence, and future improvements in valuation and liquidity may contribute to further prosperity [1]. - International capital is actively increasing its positions in China's technology sector as China has global competitiveness in frontier fields such as AI, robotics, and biotechnology, and the window for stock market valuation repair is opening [1]. - The narrowing of the Sino - US interest rate spread will attract more global funds to focus on RMB assets, and investors will adjust their asset allocation to increase holdings of Chinese bonds and stocks [1]. - After entering September, the A - share market is in a consolidation period, and the advantages of Hong Kong stocks are emerging [1]. - The current stock market is in a rest stage after a sharp decline on Thursday. The traditional industries are strengthening, and the CSI 300 index stabilizes the market. The market is undergoing a phased style shift from growth to defense, but the upward trend remains unchanged [2]. Summary by Relevant Catalogs Market Review - On Friday, the main indexes of the two markets fluctuated and closed slightly lower, with the CSI 300 index rising. The trading volume of the two markets was 2.32 trillion yuan, showing a rapid contraction. The CSI 300 index closed at 4501 points, up 3 points or 0.08%; the SSE 50 index closed at 2909 points, down 3 points or - 0.11%; the CSI 500 index closed at 7170 points, down 29 points or - 0.41%; the CSI 1000 index closed at 7438 points, down 38 points or - 0.51% [1]. - Among industry and theme ETFs, coal ETF, military industry leading ETF, engineering machinery ETF, real estate ETF, and tourism ETF led the gains, while auto parts ETF, robot 50ETF, and integrated circuit ETF led the losses. Among the sector indexes of the two markets, energy metals, engineering machinery, tourism, film and television theaters, and coal mining indexes led the gains, while motor manufacturing, home appliance parts, auto services, reducers, and PEEK material indexes led the losses [1]. - The settlement funds of stock index futures for the CSI 1000, CSI 500, CSI 300, and SSE 50 indexes had net outflows of 5.8 billion, 3.1 billion, 2.6 billion, and 2.2 billion yuan respectively [1]. Important Information - Goldman Sachs believes that "re - inflation" expectations and artificial intelligence may be the key drivers of the Chinese stock market's strong performance this year, and future improvements in valuation and liquidity may contribute to further prosperity [1]. - Goldman Sachs maintains an overweight rating for A - shares and H - shares, and international capital is actively increasing its positions in China's technology sector [1]. - The narrowing of the Sino - US interest rate spread will attract more global funds to focus on RMB assets [1]. - CITIC Construction Investment Research Report shows that after entering September, the A - share market is in a consolidation period, and the attention of domestic and foreign funds to Hong Kong stocks is increasing, and the advantages of Hong Kong stocks are emerging [1]. - Huawei's core strategy is "super - node + cluster", and its Atlas 950 super - node is leading compared with NVIDIA's planned NVL576 in 2027 [1]. - In July, Japan and the UK increased their holdings of US Treasury bonds, while China reduced its holdings by 25.7 billion US dollars to 730.7 billion US dollars, the lowest level since 2009 [2]. - The Bank of Japan announced that it will sell its ETF holdings at a rate of about 330 billion yen per year and real - estate REIT at a rate of about 5 billion yen per year [2]. - The US Department of Energy launched the "Power Acceleration" plan to meet the surging power demand from artificial intelligence and data centers [2]. - Microsoft will invest 3.3 billion US dollars in a data center in Wisconsin, which will be put into use early next year and will be 10 times more powerful than the current fastest supercomputer [2]. Market Logic - The Chinese stock market's current rally is mainly driven by liquidity, with "re - inflation" expectations and AI autonomy as key catalysts [2]. - If the proportion of foreign institutional holdings in the A - share market rises to the average level of emerging or developed markets, it may bring 14 trillion to 30 trillion yuan of potential capital inflows [2]. Future Market Outlook - The narrowing of the Sino - US interest rate spread will attract more global funds to focus on RMB assets, and investors will increase their holdings of Chinese assets [2]. - The current stock market is in a rest stage after a sharp decline on Thursday. The traditional industries are strengthening, and the CSI 300 index stabilizes the market. The market is undergoing a phased style shift from growth to defense, but the upward trend remains unchanged [2]. Trading Strategy - For stock index futures directional trading, in the rest stage, traditional industries are strengthening, and the CSI 300 index stabilizes the market. The market is undergoing a phased style shift from growth to defense, and the upward trend remains unchanged [2]. - For stock index option trading, during the volatile period when the market is undergoing a phased style shift from growth to defense, it is advisable to wait and see [2].

Core Viewpoint - Huawei is leading a new paradigm in AI infrastructure with its innovative supernode interconnection technology, emphasizing the importance of computing power in artificial intelligence development [2][3]. Group 1: Ascend Chip Development - Huawei has made significant progress in its Ascend chip series, with the upcoming Ascend 950 series expected to enhance AI computing capabilities [3][4]. - The Ascend 950 series includes two chips: Ascend 950PR and Ascend 950DT, which will improve training efficiency and inference throughput [5][6]. - The Ascend 950PR chip targets inference prefill and recommendation scenarios, while the Ascend 950DT focuses on inference decode and training, with significant improvements in memory bandwidth and capacity [6][7]. Group 2: Supernode Products - The Atlas 950 supernode, based on the Ascend 950DT chip, will support 8192 Ascend 950DT chips, significantly increasing computing power and interconnection bandwidth [9][10]. - The Atlas 960 supernode, set to launch in 2027, will further enhance performance with a maximum support of 15488 cards, doubling the capabilities of the Atlas 950 [11][12]. - The Atlas 950 SuperCluster will consist of 64 Atlas 950 supernodes, achieving a total computing power of 524 EFLOPS, making it the world's strongest computing cluster [21][22]. Group 3: Interconnection Technology - Huawei has developed a new interconnection protocol, "Lingqu," to support large-scale supernode architectures, enhancing reliability and bandwidth [20][23]. - The interconnection technology addresses challenges in long-distance, high-reliability connections and aims to achieve TB-level bandwidth with low latency [19][20]. - The Lingqu protocol will be open for industry partners to foster collaboration and innovation in interconnection technology [20][23].

Market Overview - The three major US stock indices and small-cap indices reached new highs for the first time in nearly four years, with the S&P 500 rising by 0.48%, the Dow Jones by 0.27%, and the Nasdaq by 0.94% [1] - Chip stocks rebounded over 3%, with Nvidia increasing by 3.5% and Intel soaring over 20%, marking its largest gain since 1987 [1] - FedEx reported strong Q1 earnings, leading to a post-market surge of over 7% [1] - Chinese concept stocks fell, with the Chinese concept index dropping nearly 2% [1] Currency and Commodities - The US dollar index rebounded over two days, moving away from a three-year low, while the offshore RMB fell by 200 points, breaching the 7.11 mark [2] - Oil prices dropped over 1% amid Trump's preference for low oil prices [3] - Gold prices fell for two consecutive days, with futures down over 1% to a one-week low [3] Technology and Innovation - Nvidia announced a $5 billion investment in Intel, with both companies planning to co-develop chips [7] - Panasonic Energy committed to producing all-solid-state batteries, aiming for sample shipments by the fiscal year 2026 [8] - Huawei's Xu Zhijun announced the launch of the Atlas 950 super node, which is expected to surpass Nvidia's offerings in terms of computing power [19] Automotive and Energy - The Chinese Ministry of Commerce is advancing an anti-dumping investigation into EU pork products [9] - The National Data Bureau supports pilot zones for data factor integration in more fields [10] - The AI application cooperation center between China and ASEAN countries has been initiated [12] Semiconductor and Storage - According to market research, SK Hynix is expected to maintain its position as the largest supplier in the early production phase of HBM4 [6] - Micron has notified channels of a 20%-30% price increase for storage products, while Samsung has informed major clients of a 15%-30% price increase for DRAM products [20] New Stock Offerings - New stock offerings include Ruili Kemi with a subscription price of 42.28 yuan per share and Yunhan Chip City at 27 yuan per share, both representing significant players in their respective fields [23] Company Announcements - Yonghui Supermarket appointed Wang Shoucheng as CEO [24] - Lihexing is preparing for a fundraising project focused on semiconductor equipment [24] - Shiyun Circuit's new PCB product is expected to be produced by mid-2026, potentially supplying Tesla [24]

Group 1 - Shanghai Municipal Education Commission is investigating a food safety incident involving a dish served in schools, with results expected within a week [5][7] - The market supervision bureau in Jiangxi Province is investigating a hotel for price gouging during the National Day holiday, with room rates reportedly increasing from around 90 yuan to approximately 1000 yuan [9] - The Chinese Ministry of Commerce urges the EU to avoid protectionism and eliminate market barriers in the context of electric vehicle tariffs [6] Group 2 - The Chinese Ministry of Science and Technology reported that national R&D investment exceeded 3.6 trillion yuan in 2024, a 48% increase from 2020, with a focus on foundational research [6] - The film "731" achieved a single-day box office of over 3 billion yuan, setting two records in Chinese film history [10] - Hong Kong police arrested 13 individuals in connection with a gold theft case, recovering stolen gold valued at approximately 50 million HKD [8] Group 3 - Huawei's Xu Zhijun announced that the Atlas 950 super node will have a computing power of 8192 cards, expected to launch in Q4 2024, positioning it as a leading product in AI computing infrastructure [14] - Alibaba's market capitalization has returned to 3 trillion HKD, with reports of founder Jack Ma's increased involvement in the company [16] - Cambrian's revenue for the first half of 2025 reached 2.881 billion yuan, a staggering increase of 4347.82% year-on-year, driven by AI chip products [17]

Group 1 - US stock markets closed higher with the Dow Jones up 0.27%, Nasdaq up 0.94%, and S&P 500 up 0.48% [5] - Chip stocks performed strongly, with Intel rising over 22%, Applied Materials and ASML up over 6%, Micron Technology up over 5%, and Nvidia up over 3% [5] - The Nasdaq Golden Dragon China Index fell by 1.79%, with notable declines in stocks like NetEase down over 4% and Bilibili down over 3% [5] Group 2 - The international gold futures fell by 1.07%, settling at $3678.2 per ounce, while silver futures dropped by 0.12% to $42.1 per ounce [6] - International oil prices saw a slight decline, with WTI crude oil down 0.61% at $63.31 per barrel and Brent crude down 0.71% at $66.98 per barrel [7] Group 3 - The Chinese Ministry of Commerce urged the EU not to weaponize tariffs and to eliminate market barriers, emphasizing the importance of fair competition in the electric vehicle sector [10] - The Ministry of Science and Technology reported that China's R&D investment exceeded 3.6 trillion yuan in 2024, a 48% increase from 2020, with a research intensity of 2.68% [10] Group 4 - Huawei's rotating chairman announced that the Atlas 950 SuperPoD, with a computing power of 8192 cards, is expected to launch in Q4 2025, claiming it will be the strongest computing node globally [19] - Nvidia announced a partnership with Intel, where Intel will customize x86 CPUs for Nvidia, which will invest $5 billion in Intel shares at $23.28 per share [18] Group 5 - Alibaba's market capitalization returned to 3 trillion HKD, with reports of Jack Ma's increased involvement in the company, potentially impacting its business strategy [21] - Cambricon Technologies reported a staggering revenue increase of 4347.82% year-on-year for the first half of 2025, driven by demand for AI chips [23]

Group 1 - The U.S. stock market saw all three major indices close higher, with the Dow Jones up 0.27%, Nasdaq up 0.94%, and S&P 500 up 0.48%, marking new closing highs [3] - Chip stocks performed strongly, with Intel rising over 22%, Applied Materials and ASML up over 6%, Micron Technology up over 5%, and Nvidia up over 3% [3] - Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index down 1.79%, and notable declines in companies like NetEase and Bilibili [3] Group 2 - International precious metal futures generally fell, with COMEX gold futures down 1.07% at $3678.2 per ounce, and COMEX silver futures down 0.12% at $42.1 per ounce [4] - International oil prices slightly decreased, with WTI crude oil down 0.61% at $63.31 per barrel, and Brent crude oil down 0.71% at $66.98 per barrel [5] Group 3 - The European stock indices all closed higher, with Germany's DAX up 1.35% at 23674.53 points, France's CAC40 up 0.87% at 7854.61 points, and the UK's FTSE 100 up 0.21% at 9228.11 points [6] Group 4 - The Chinese Ministry of Commerce expressed hope that the EU would not weaponize tariffs and called for the elimination of market barriers, emphasizing the importance of fair competition in the electric vehicle sector [8] - The Chinese Ministry of Science and Technology reported that national R&D investment exceeded 3.6 trillion yuan in 2024, a 48% increase from 2020, with a research intensity of 2.68% [9] Group 5 - The National Health Commission and the Ministry of Finance issued new regulations on childcare subsidies, streamlining the application process and emphasizing online applications [10] - The Shanghai Education Commission reported issues with school lunches supplied by a specific company, indicating ongoing investigations and quality control measures [10] Group 6 - The Hong Kong police arrested 13 individuals in connection with a gold theft case, recovering approximately 65 kilograms of stolen gold valued at around 50 million HKD [11] - Beijing announced the social insurance contribution limits for 2025, with a maximum monthly contribution base of 35,811 yuan and a minimum of 7,162 yuan [7] Group 7 - The film "731" achieved a single-day box office of over 3 billion yuan, setting two records in Chinese film history [13] - The U.S. vetoed a UN Security Council resolution regarding a ceasefire in Gaza, with 14 votes in favor and the U.S. voting against [13] Group 8 - Nvidia announced a partnership with Intel, where Intel will customize x86 CPUs for Nvidia, which will integrate them into AI infrastructure platforms [16] - Huawei's Xu Zhijun stated that the Atlas 950 super node will surpass Nvidia in computing power, with a scale of 8192 cards expected to launch in Q4 of this year [17][18] Group 9 - Alibaba's market value returned to 3 trillion HKD amid reports of Jack Ma's increased involvement in the company, which may positively impact its business strategy [19] - Cambrian Technology reported a staggering revenue increase of 4347.82% year-on-year, driven by AI chip products and partnerships with leading tech firms [20] Group 10 - DeepSeek issued a statement warning users about scams involving impersonation and fraudulent activities related to their services [21] - The pre-prepared food controversy continues to affect the restaurant industry, with notable establishments removing claims of serving freshly made dishes [23] Group 11 - Nestlé Group has experienced significant management changes, including the dismissal of its CEO and the appointment of a new chairman, raising concerns about strategic execution [24] - The trial of former executives from Zhongzhi Enterprise Group for illegal public deposit collection commenced, highlighting ongoing legal issues in the corporate sector [26]