New York crude for December delivery climbed $2.32 to settle at $99.47 a barrel, a gain of 2.39%, while London Brent crude for December delivery rose $4.35 to settle at $113.17 a barrel, up 4.0%.

Oil prices advanced after a deadly attack in Saudi Arabia, further weighing on market sentiment and pushing Brent crude above $113 a barrel.

Amin Nasser, president and chief executive of Saudi Arabian Oil Co, said in an interview with Saudi media that the current Middle East situation has caused an unprecedented shock to the energy market. Saudi Arabia's Al Arabiya television broadcast the exclusive interview with Nasser on the 22nd. Nasser said that since the crisis erupted, global crude supply has fallen by roughly 3 billion barrels compared with normal levels. Without the release of global strategic reserves, oil prices would be far above current levels.

Market Outlook

US stocks ended mixed overnight. The Dow Jones Industrial Average rose 11.89 points to close at 52,867.98, up 0.02%; the S&P 500 fell 93.74 points to close at 7,663.43, down 1.21%; and the Nasdaq Composite dropped 694.0 points to close at 26,008.86, down 2.6%.

Most of the "Magnificent Seven" tech giants declined. Meta fell 6.98% after posting negative free cash flow of $2.12 billion in the third quarter, its first quarterly net outflow in more than a decade; Amazon dropped 4.57%; and Tesla slid 3.08%. Semiconductors, memory and chip stocks led the declines, with the Philadelphia Semiconductor Index closing down 6.72%. Lam Research fell more than 11%, SpaceX and KLA dropped more than 9%, and SanDisk, SK Hynix, Intel and AMD each lost more than 8%. Food and beverage, housing and daily chemicals sectors led the gainers, with Kohl's up more than 11%.

Chinese concept stocks pulled back broadly, with the Nasdaq Golden Dragon China Index falling 1.19% to 5,518.53 points, as new energy vehicle makers, e-commerce and internet platform shares weakened across the board. The Hang Seng Index ADR rose, implying a close of 23,135.63 points on a proportional basis, up 200.95 points or 0.88% from the Hong Kong close. On the New York Mercantile Exchange, the front-month WTI crude futures contract rose $1.95 to settle at $99.1 a barrel, up 2.01%. COMEX front-month gold futures fell $110.20, or 2.66%, to $4,039.8 an ounce.

Key Developments to Watch

Eighteen key enterprises signed agreements to establish operations in Hong Kong. The Hong Kong SAR government's Office for Attracting Strategic Enterprises held a partner signing ceremony on the 22nd to welcome a new batch of 18 key enterprises setting up or expanding business in Hong Kong. With the addition of the seventh batch, the office has attracted a total of 142 key enterprises, expected to bring about HK$84 billion in investment and create around 26,700 jobs. The 18 companies span advanced manufacturing, artificial intelligence and fintech, including one of the world's largest gold refining and precious metals service providers and a leader in next-generation financial infrastructure and digital asset solutions.

London to list a "Shanghai price" steel contract, marking the first overseas export of Chinese metals pricing influence. The London Metal Exchange will officially list the LME Shanghai hot-rolled coil contract on October 27, based on the settlement price of hot-rolled coil futures on the Shanghai Futures Exchange. This is the first time a metals "Shanghai price" has been exported to a mature overseas market. At a pre-listing seminar during LME Week, international traders and fund managers in attendance said that for the past few years they had "only one leg" when facing Chinese exporters. In other words, their Chinese counterparts could hedge using SHFE futures in addition to spot, while they had only spot to rely on. SHFE general manager Lu Dongsheng said at the meeting that SHFE hot-rolled coil futures prices have gradually become an important reference for imports of Chinese steel plate in Asia-Pacific, the Middle East, North Africa and South America. In his view, "the key to the sustained and healthy development of a contract lies in rooting itself in the real industry and responding to market demand." The LME listing involves Hong Kong-listed Hong Kong Exchanges and Clearing (00388).

Large model company DeepSeek is reportedly seeking about 100 billion yuan in its latest funding round. On October 22, market sources said Chinese large model company DeepSeek plans to raise about 100 billion yuan in its latest funding round, with Tencent and CATL as the largest investors, and the deal is expected to be formally completed within days. So far, DeepSeek, Tencent and other related investors have not publicly responded. Cross-verification through multiple sources close to the company and investors confirmed the report. Sources said the fundraising target was initially set at 50 billion yuan, then raised through multiple rounds to about 100 billion yuan, though it has not yet been officially announced and the final amount remains uncertain. The funds will continue to be used for model training, computing infrastructure and talent recruitment to support DeepSeek's global competitiveness. Some sources also believe the round will pave the way for the company's planned STAR Market IPO.

CDB Leasing (01606) plans to buy information technology computer equipment for 1.5 billion yuan. CDB Leasing announced that, as buyer, it entered into a product procurement agreement on October 22, 2026 with the seller, Guangdong Purui Yunchuang Technology Co Ltd, under which the buyer agreed to purchase the procurement subject for a total consideration of about 1.5 billion yuan. The procurement subject is information technology computer equipment.

CNGR Advanced Material (02579) is planning a restructuring of its Indonesian nickel mines, aiming to take control of DDL and ANHI. CNGR announced that on October 22, 2026, its board approved resolutions on equity acquisitions and external investment: wholly owned subsidiary CNGR Hong Kong Zhengxing plans to acquire a 53.3% stake in HML for about $108 million; wholly owned subsidiary EEP plans to subscribe to newly issued shares in ANHI's rights issue, and ANHI plans to acquire 100% of DDL for $324 million. The transactions still require approval by ANHI's extraordinary general meeting and relevant overseas regulatory procedures. The transactions form a package arrangement, after which the company will hold 100% of HML, ANHI will hold 100% of DDL, and the company aims to hold no less than 50% of ANHI (and DDL). The company urgently needs to obtain control of DDL and ANHI to quickly secure high-quality nickel ore assets. The deal will consolidate nickel interests currently scattered across ANHI, HML and DDL into a single operating and holding platform under the company's unified control, supporting its strategy of extending into upstream nickel resources in Indonesia and pursuing vertical integration.

Lopal Tech (02465) subsidiary plans to sell a 76% stake in its Indonesian phase-two lithium iron phosphate cathode materials project. Lopal Tech announced that on October 22, 2026, LBM AP, an indirect non-wholly owned subsidiary of the company, plans to sell a 76% stake in PT LBM Energi Baru to Kinetiq for a total consideration of $31.92 million. After completion, the buyer will hold 76% of the target company's issued shares, while the group will hold 24% through the seller and LBM SG.

Senior Technology Material (06067) reported net profit attributable to shareholders of about 354 million yuan for the first three quarters, up 209.28% year on year. Senior Technology Material announced that in the first three quarters of 2026 it achieved revenue of about 4.492 billion yuan, up 51.85% year on year; net profit attributable to shareholders of the listed company was about 354 million yuan, up 209.28% year on year; and basic earnings per share were 0.25 yuan.

Prada (01913) reported net revenue of 4.541 billion euros for the first three quarters, up 14.5% year on year. Prada released unaudited revenue for the nine months ended September 30, 2026. In the nine months ended September 30, 2026, the Prada group generated net revenue of 4.541 billion euros, up 14.5% from the same period in 2025 (organic growth of 3.5%). Foreign exchange fluctuations had a negative impact of about 2.9%, resulting in reported growth of 11.6%.

iFlytek Healthcare (02506) officially released Spark Medical Large Model V3.7. iFlytek Healthcare announced that it recently fully completed a major upgrade of the Spark Medical Large Model trained on fully domestic computing power, officially releasing Spark Medical Large Model V3.7. In the latest MedBench agent evaluation by Shanghai Artificial Intelligence Laboratory, the Spark Medical Large Model topped the ranking with a composite score of 99.6.

Ping An Good Doctor (01833) reported net profit of 248 million yuan for the first three quarters, up 35% year on year. Ping An Good Doctor released results for the nine months ended September 30, 2026, with revenue of 3.508 billion yuan, down 5.8% year on year; net profit of 248 million yuan, up 35% year on year; and adjusted net profit of 258 million yuan, up 19.5% year on year. As of the end of the reporting period, the company served more than 8,100 paying corporate clients over the past 12 months, up nearly 60% year on year, while GMV of its corporate health management business continued to grow.

Chow Tai Fook (01929) issued a positive profit alert, expecting net profit for the first half of fiscal 2027 to rise about 90-100% year on year. Chow Tai Fook announced that the group's net profit for the six months ended September 30, 2026 (the first half of fiscal 2027) is expected to increase by about 90-100% from a year earlier, mainly due to (a) a fair value gain from revaluation of gold borrowing contracts in the first half of fiscal 2027, compared with a fair value loss a year earlier; and (b) improved sales in the group's core markets.

Asymchem (06821) reported net profit attributable to shareholders of about 852 million yuan for the first three quarters, up 6.49% year on year. Asymchem announced results for the first three quarters of 2026, with operating revenue of about 5.395 billion yuan, up 16.52% year on year; net profit attributable to shareholders of the listed company of about 852 million yuan, up 6.49% year on year; and basic earnings per share of 2.36 yuan.

China Telecom (00728) reported profit attributable to shareholders of 26.207 billion yuan for the first three quarters, down 14.8% year on year. China Telecom announced that in the first three quarters of 2026 the group achieved operating revenue of 382.402 billion yuan, down 3.7% year on year; profit attributable to shareholders of the company was 26.207 billion yuan, down 14.8% year on year; and basic earnings per share were 0.29 yuan.

Stock in Focus

China Oilfield Services (02883): higher oil prices are favorable to oilfield service companies' business growth. China Oilfield Services' competitive position continues to strengthen, with industry-leading rig utilization, demand support for fleet expansion during the "15th Five-Year Plan" period, and expanding proprietary oilwell service capabilities. In international business, the company is expanding from wireline logging and cementing into completion services, improving earnings quality and strengthening its position on global supplier lists. Jefferies believes the market underestimates the durability of the upcycle in offshore oil and gas activity and continues to view China Oilfield Services as a drilling company, even though its oilwell service-led earnings structure and competitiveness are increasingly strong. Revenue from the Middle East accounts for less than 10% of the total, and all five offshore rigs in the region are operating normally, limiting the direct earnings impact. Supported by long-cycle offshore contracts, the bank believes China Oilfield Services is resilient under both escalation and de-escalation scenarios in the Middle East. It said the company's valuation remains below other offshore drilling companies and oilfield service peers, and believes its strengthening service competitiveness and long-cycle earnings visibility will drive a valuation re-rating. By the end of September, controlling shareholder China National Offshore Oil Corp had cumulatively increased its holdings by 815,000 A shares and 22.858 million H shares.