**Top News** A major announcement from two ministries: Export controls on superhard materials, rare earth, lithium batteries, and related items are temporarily suspended. According to the Ministry of Commerce, the suspension will remain in effect until November 10, 2026. The affected regulations include Announcements No. 55, 56, 57, and 58 by the Ministry of Commerce and Customs, as well as Announcements No. 61 and 62 by the Ministry of Commerce. Notably, these controls covered superhard materials, certain rare earth equipment and raw materials, lithium batteries, artificial graphite anode materials, and select medium-to-heavy rare earth products.

**Market Outlook** DBS warns of challenging valuations for U.S. stocks. Overnight, the Dow Jones Industrial Average rose 0.16% to 46,987.1, while the S&P 500 gained 0.13% to 6,728.8. The Nasdaq Composite fell 0.21% to 23,004.54, after an intraday drop exceeding 2%. Last week, the Dow, Nasdaq, and S&P 500 fell 1.21%, 3.04%, and 1.63%, respectively, ending three consecutive weeks of gains. Major tech stocks were mixed, with Tesla down over 3%, Google down more than 2%, and Nvidia briefly dropping over 5%. Most U.S.-listed Chinese stocks declined, with XPeng down over 6%, and Pony.ai and Zai Lab falling more than 5%. The Hang Seng Index ADR rose 0.18% to 26,288.46.

DBS CEO Piyush Gupta cautioned about potential turbulence in U.S. markets, particularly concerning high valuations of AI stocks, including the "Magnificent Seven." Earlier, Goldman Sachs, Morgan Stanley, and Capital Group also warned about stretched valuations.

**Key Insights** Fed Vice Chair Jefferson stated that monetary policy is nearing neutral, urging caution in future rate cuts. Last week, the Fed cut rates by 25 basis points to 3.75%-4.00%, as expected.

China’s State Council issued guidelines to accelerate the development and adoption of new application scenarios, focusing on emerging industries, industrial upgrades, and public services.

The Ministry of Commerce suspended the second clause of its 2024 Announcement No. 46, which tightened export controls on dual-use items to the U.S., effective until November 27, 2026. This impacts the rare earth sector.

The National Energy Bureau released guidelines to promote coal and renewable energy integration, aiming for significant progress by 2030, including higher renewable penetration and cleaner mining practices.

**Company Updates** - **FIH (02038)**: Reported a 25.88% YoY revenue increase to $5.229 billion for the nine months ending September 30, 2025, with a profit of $42.1 million versus a prior-year loss of $26.2 million. The company expects full-year revenue growth of ~15% and substantial financial improvement. - **BOYAA (00434)**: Forecasts a 105%-115% YoY rise in attributable profit for the first nine months of 2025, driven by fair value gains in digital assets. Excluding one-time factors, profit is expected to decline 30%-35% due to lower interest income and higher taxes.

**IPO Watch** - Leshi Comfort (02698): Hong Kong public offering oversubscribed 1,813.77x; listing expected November 10. - CNGR Advanced Material (02579) and Baili Heng (02615): Subscription open November 7-12; listing slated for November 17.

**Stock Spotlight: CHONGQING M&E (02722)** As AI growth strains power infrastructure, diesel generators—essential for data center backup—are in high demand. Citi forecasts the global market to expand from $6 billion in 2023 to $12 billion by 2030. CHONGQING M&E, a joint venture with Cummins since 1995, is a key supplier in this sector.