The Hong Kong and mainland markets demonstrated resilience today despite strong external pressures. The Shanghai Composite Index managed to close in positive territory, while the Hang Seng Index opened sharply lower but recovered most losses, ending down just 0.07%.

The bearish sentiment was fueled by several factors. Michael Burry, the investor famous for "The Big Short," has reportedly taken massive short positions in Nvidia and Palantir, with put options totaling over $1 billion—accounting for 80% of his portfolio. Goldman Sachs' bearish outlook on U.S. stocks further spooked markets, sending the Nasdaq down over 2% overnight. Major tech stocks slumped, with Intel dropping 6%, Tesla falling 5%, and Nvidia declining 3%. South Korea's market also fell more than 2%, dragged down by AI-related stocks like Samsung Electronics and SK Hynix.

U.S. market declines were exacerbated by the government shutdown, which has led the Treasury to hoard about $1 trillion in cash at the Federal Reserve, draining approximately $700 billion in liquidity from markets—the highest level since April 2021. Meanwhile, U.S.-China relations remain volatile. While China continues to fulfill trade obligations, including implementing new tariffs, U.S. Treasury Secretary Janet Yellen recently labeled China an "unreliable partner," contradicting President Trump's praise for bilateral talks just days earlier. The Supreme Court is set to hear arguments on whether Trump's tariffs under the International Emergency Economic Powers Act overstepped authority—a case Trump framed as pivotal for U.S. defenses.

Amid global uncertainty, China's markets held up due to modest prior gains and a stable yuan. At the recent Canton Fair, exporters reported growing demand for yuan-denominated settlements, particularly from emerging markets in Southeast Asia, Central Asia, and Africa.

Today's rebound was led by energy storage and power equipment sectors, driven by Europe's ongoing energy crisis. Since Russia's invasion of Ukraine in 2022, Europe has prioritized energy security, targeting 42.5% renewable energy by 2030 under the REPowerEU plan. Storage demand is surging as lithium carbonate prices decline, reducing battery costs, while peak-valley electricity price spreads exceeding €85/MWh in Europe deliver storage project returns above 10%—exceeding 15% in some countries. Policy support accelerated after Spain's blackout, with Germany decommissioning coal and nuclear plants. Hong Kong-listed storage plays like LOPAL TECH (02465), REPT BATTERO (00666), and CALB (03931) rose over 7%, while hydrogen fuel cell firm SINOHYTEC (02402) also gained sharply.

Power equipment stocks rallied on North America's lagging energy infrastructure development relative to computing expansion, with transformer prices up 20% for AI data centers. Harbin Electric (01133) surged 10%, and Dongfang Electric (01072) climbed 4%.

Hainan Free Trade Port's full island customs closure set for December 2025 boosted CTG DUTY-FREE (01880) and MEILAN AIRPORT (00357). Airlines reported mixed Q3 results: China Eastern (00670) grew net profit 34% YoY while actively repurchasing shares.

Infrastructure stocks advanced on China's new five-year rail projects, lifting West China Cement (02233) and Huaxin Cement (06655) over 3%. Zoomlion (01157) and Weichai Power (02338) also gained, with Times Electric (03898) up 4%.

Gold stocks rebounded, with ZHOU LIU FU (06168) jumping 8% after announcing a new joint-store model to expand retail presence profitably.

**Sector Spotlight:** Huawei's upcoming Mate 80 series launch in mid-to-late November, featuring the Kirin 9030 chip, may revive consumer electronics sentiment. Related stocks include SMIC (00981), AAC TECH (02018), and Q TECH (01478).

**Stock Highlight – GOLDWIND (02208):** The wind turbine leader secured Saudi Arabia's 3GW PIF5 project—the world's largest under-construction onshore wind farm. Q3 revenue rose 25.4% YoY to RMB19.6 billion, with net profit soaring 170.6% to RMB1.1 billion. Order backlog reached 52.5GW (external: 50GW, +21% YoY), including 7.2GW overseas (+29%). With global energy transition accelerating, Goldwind's technology leadership and international expansion position it for sustained growth.