**Today's Headlines**

**NDRC: New Policy Financial Instruments Total 500 Billion Yuan**

On September 29, Li Chao, Deputy Director of the Policy Research Office and spokesperson of the National Development and Reform Commission, announced at a press conference that to implement the decisions and deployments of the Party Central Committee and the State Council, promote better financial services for the real economy, and drive effective investment expansion, the NDRC has actively advanced work on new policy financial instruments in collaboration with relevant parties. The new policy financial instruments total 500 billion yuan, all dedicated to supplementing project capital.

Huatai Securities' Chief Macroeconomist Yi Tan analyzed that against the backdrop of continued property cycle bottoming and narrowing monetary policy space, fiscal policy's actual effectiveness in China's counter-cyclical adjustment is crucial. If the 500 billion yuan in new policy financial instruments are implemented in Q3, under optimistic scenarios, they could drive broad credit expansion of approximately 4.4 trillion yuan. The physical workload formed by the new instruments is expected to boost infrastructure investment by about 2 percentage points within the year.

Dongfang Jincheng's Chief Macro Analyst Wang Qing calculated that the 500 billion yuan in new policy financial instruments could leverage approximately 6 trillion yuan in investment, equivalent to 24.4% of total broad infrastructure investment in 2024.

**Market Outlook**

**US Stocks Rise with Chinese Concept Stocks Generally Up**

Overnight US markets closed with gains: the Dow Jones Industrial Average rose 68.78 points to 46,316.07, up 0.15%; the S&P 500 gained 17.51 points to 6,661.21, up 0.26%; and the Nasdaq Composite climbed 107.08 points to 22,591.15, up 0.48%.

US storage concept stocks collectively rose, with Seagate Technology up 5.35%, Micron Technology up 4.22%, and Western Digital surging 9.23%. Popular Chinese concept stocks generally advanced, with the Nasdaq Golden Dragon China Index closing up 2.03%. Bilibili, Alibaba, and New Oriental gained over 4%, Li Auto and JD.com rose over 3%, while Baidu and NIO climbed over 2%.

Hang Seng Index ADRs rose proportionally to close at 26,665.59 points, up 42.71 points or 0.16% from Hong Kong's close.

International oil prices fell on September 29. WTI crude futures dropped $2.27 to settle at $63.45 per barrel, down 3.45%. International gold prices hit new record highs, with COMEX gold futures rising $46.20 or 1.21% to $3,855.2 per ounce.

Goldman Sachs upgraded global equities from neutral to overweight for the next three months.

With National Day and Mid-Autumn Festival approaching, Hong Kong stocks will be closed on October 1 (Wednesday) for National Day, resuming normal trading from October 2 (Thursday). October 7 (Tuesday), the day after Mid-Autumn Festival, is a Hong Kong public holiday with markets closed, resuming trading from October 8 (Wednesday).

**Hot Topics**

**DeepSeek-V3.2-Exp Model Officially Released and Open-Sourced**

On September 29, 2025, the DeepSeek-V3.2-Exp model was officially released and open-sourced. The model introduces sparse Attention architecture, effectively reducing computational resource consumption and improving model inference efficiency. The model is now officially available on Huawei Cloud's Model-as-a-Service (MaaS) platform. For the DeepSeek-V3.2-Exp model, Huawei Cloud continues using large EP parallel deployment solutions, implementing long-sequence-friendly context parallel strategies based on sparse Attention structures while balancing model latency and throughput performance.

**Individual Stock Updates**

**Junshi Biosciences (01877)**: Subsidiary Juntuo Bio plans to invest 80 million yuan for a 5.1105% stake in Beijing Shali Biomedical. Shareholder Shanghai Tanying will also participate with 40 million yuan investment. The target company specializes in tumor immunocell therapy with tumor-infiltrating lymphocyte drugs as its flagship pipeline.

**C-MER Eye Care Holdings (03309)**: Subsidiary signed a tripartite global licensing and cooperation agreement with Gilead Sciences and Hanmi Pharmaceutical regarding encequidar, the first P-glycoprotein inhibitor in virology. The subsidiary holds exclusive global rights outside Korea.

**China Railway Construction Corporation (01186)**: Recently won major contracts totaling 63.037 billion yuan across 14 projects exceeding 1.5 billion yuan each, representing 5.91% of 2024 audited revenue.

**CRRC Corporation**: Signed major contracts totaling approximately 54.34 billion yuan from July to September, including EMU sales contracts worth 37.82 billion yuan, locomotive sales and maintenance contracts worth 9.45 billion yuan, and urban rail vehicle contracts worth 3.48 billion yuan. Total contract value represents about 22% of 2024 revenue.

**Henlius Biotech (02696)**: Received FDA approval for Phase 1 clinical trial application of HLX13 (anti-CTLA-4 monoclonal antibody) for first-line treatment of unresectable hepatocellular carcinoma patients.

**Hua Hong Semiconductor**: Parent company Hua Hong Corporation is actively advancing the acquisition of Huali Microelectronics equity through share issuance and cash payment with supporting fundraising.

**Grey Market Updates**

**Pateo (02889)** grey market closed up over 33%, trading at HK$136 versus IPO price of HK$102.23, representing potential gains of HK$675.4 per lot.

**Xinyi Solar (02583)** grey market surged 187.84% to HK$85.2 versus IPO price of HK$29.6, representing potential gains of HK$5,560 per lot.

**Stock Spotlight**

**CALB (03931)**: Benefits from Lithium Battery Sector's Unexpected Boom

Recent institutional research feedback indicates energy storage expansion directly drove lithium battery sector performance beyond expectations. Lithium battery material price negotiations have begun, with lithium iron phosphate manufacturers starting to secure 2026 capacity. Battery companies are beginning to secure materials amid unexpected demand: while the market previously questioned CATL's 1,100GWh procurement target, downstream material suppliers have now confirmed these procurement expectations. Both CATL and BYD are seeking to lock in 2026 volumes with multiple cathode, electrolyte, and copper foil manufacturers.

CALB achieved strong growth in energy storage during the first half, expanding beyond domestic diversified customers to secure new European orders. With future capacity releases, new customers, and increased direct supply ratios, the energy storage business is expected to maintain high growth rates, potentially achieving the full-year target of 45GWh shipments and reaching approximately 70GWh next year, with profit margins expected to improve.