Yum China (09987) shares rose more than 3%, reaching HK$345 as of press time, up 3.17%, with a turnover of HK$133 million.

On the news front, Daiwa released a research report stating that after reviewing September and early October "Golden Week" data, it continues to favor Yum China within the Chinese restaurant sector. The company's stock price has fallen about 17% since mid-August, and Daiwa believes the share price level has bottomed out, reiterating its position as the top pick among Chinese restaurant stocks.

The report noted that Yum China's third-quarter same-store sales may have declined slightly year-on-year, but the market may have already priced in related factors. These include the impact of McDonald's collaboration with G-Dragon's PEACEMINUSONE brand being promoted across approximately 7,000 stores in China from October 8 to November 3, as well as the opening of Tastien's new pizza brand featuring "Chinese hamburgers."