Several insurers recently received a letter clarifying the regulatory scope for insurance funds investing in Hong Kong Stock Connect ETFs. The document specifies that insurance institutions eligible to invest in Hong Kong Stock Connect stocks under regulatory rules may begin investing in Hong Kong Stock Connect ETFs, following the relevant regulatory provisions for insurance funds investing in Hong Kong Stock Connect stocks. The regulatory scope took effect on September 20.

Market Overview

The Nasdaq Golden Dragon China Index fell 0.67%. Overnight, U.S. stocks closed with the Dow Jones Industrial Average down 161.61 points, or 0.31%, at 51,349.98; the S&P 500 down 1.9 points, or 0.02%, at 7,704.13; and the Nasdaq Composite up 3.33 points, or 0.01%, at 26,939.37. Large-cap tech stocks were mixed, with Meta up 4.50% and Alphabet-A up 1.34%. Memory chip stocks mostly declined, with Micron up 0.81% and SK Hynix down 1.54%. Innovative drug stocks advanced, with Moderna up 6.98% and Eli Lilly up 2.68%. Lithium mining stocks fell broadly, with Albemarle down 4.60% and SQM down 2.84%. Popular Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index down 0.67%. On the New York Mercantile Exchange, the front-month WTI crude oil futures contract rose $2.60, or 2.82%, to $94.76 per barrel. The front-month COMEX gold futures contract fell $8.30, or 0.19%, to $4,310.1 per ounce.

Key Developments to Watch

China Life (02628) plans to form a partnership with China Life Wuxi Fund, China Life Chengda, and other investors, focusing on investments in two major technology innovation sectors: artificial intelligence and semiconductors. The total subscribed capital contribution of all partners is proposed to be no more than RMB 6 billion, of which the company plans to contribute no more than RMB 4.5 billion. China Life Equity Investment will serve as the partnership's manager. The company is expected to enter into the partnership agreement and ancillary agreements with relevant parties before December 31, 2026.

China Life: Subsidiary plans to form a partnership with SDIC Fund and other investors, focusing on investments in Shanghai's three major pioneering industries and other key areas. The total subscribed capital contribution of all partners is proposed to be RMB 20 billion, of which the pension insurance company plans to contribute RMB 2 billion. SDIC Fund will serve as the partnership's manager. The partnership will focus on investments in Shanghai's three major pioneering industries (integrated circuits, biomedicine, and artificial intelligence) and other key areas, with a focus on undertaking industrial fund shares centered on major strategic investments and directing key investments toward major national strategic projects.

Hansoh Pharma (03692): The marketing application for injectable recklifutamab (HS-20093) for the treatment of osteosarcoma has been accepted by the National Medical Products Administration. The group's innovative drug injectable HS-20093 (injectable recklifutamab) marketing application has been accepted by China's National Medical Products Administration (NMPA) for the treatment of osteosarcoma patients aged 12 and above who have failed at least two prior lines of therapy. Injectable HS-20093 is a B7-H3-targeted antibody-drug conjugate (ADC) independently developed by the group.

Harbin Electric (01133): The electric motor company has entered into an equity transfer agreement with Harbin Electric Group for Marine Intelligent Equipment Company. Following this transfer, Marine Intelligent Equipment Company will become a wholly-owned subsidiary of the electric motor company. Entering into the equity transfer agreement can help the company: establish a presence in the deep-sea equipment sector, accelerate future industry development, seize opportunities in the underwater drone market, secure a leading position in the marine equipment track, and add new economic growth points; strengthen marine engineering equipment R&D and manufacturing capabilities, improve the industrial technology system, enhance the company's core strength in the marine equipment sector, and continuously improve the competitiveness of underwater unmanned products.

Kerry Properties (00683): Subsidiary plans to sell the entire issued share capital of Mid-Levels Portfolio (Gladdon) Holdings Limited. The target company's main asset is its entire interest in the property company. The property company's main asset is the property. The property comprises a penthouse special unit located at 3 May Road, Mid-Levels, Hong Kong, with a saleable area of approximately 1,405 square feet, together with a terrace of approximately 820 square feet above the ground floor entrance lobby and 14 separate car parking spaces.

CSPC Pharma (01093): The Phase III clinical trial of injectable docetaxel (albumin-bound) (HB1801) for the treatment of advanced breast cancer has officially launched in China. HB1801 is one of the representative drugs independently developed by the group's nanomedicine technology platform. HB1801 encapsulates docetaxel in human serum albumin, offering significant advantages over conventional docetaxel injection: (1) Safety: no risk of allergic reactions, no need for hormone pretreatment, and rapid administration at high concentrations, effectively improving medication safety and patient treatment compliance; (2) Efficacy: multiple preclinical and clinical studies have confirmed its excellent anti-tumor activity, allowing higher doses to be administered clinically to further enhance efficacy.

CSPC Pharma: The Phase III clinical trial of JMT101 combined with osimertinib as first-line treatment for locally advanced or metastatic non-small cell lung cancer harboring EGFR exon 20 insertion mutations has achieved positive top-line results. CSPC Pharma announced that the Phase III clinical trial of its developed becotatug (JMT101) combined with osimertinib as first-line treatment for locally advanced or metastatic non-small cell lung cancer (NSCLC) harboring epidermal growth factor receptor (EGFR) exon 20 insertion mutations (EGFR ex20ins) met the primary endpoint in a pre-specified interim analysis, achieving positive top-line results. Compared with platinum-based chemotherapy combined with pemetrexed, the combination treatment of this product with osimertinib significantly prolonged patients' progression-free survival (PFS) and showed a trend of overall survival (OS) benefit.

CTF Services (00659) released its annual results, with profit attributable to shareholders up 11% year-on-year to HK$2.3926 billion, and a final dividend of HK$0.33 per share. The announcement stated that amid a challenging operating environment, the group's diversified business portfolio demonstrated resilience, driving overall attributable operating profit to grow steadily by 3% year-on-year to HK$4.5906 billion. The financial services segment achieved strong profit growth and became the largest contributor to the group's attributable operating profit for the first time.

Shandong Gold (01787) 2026 production and operation plan proposed to be adjusted to "gold output of 36 tonnes to 38 tonnes." The company's 2026 production and operation plan is proposed to be adjusted from the original "gold output of no less than 49 tonnes" to "gold output of 36 tonnes to 38 tonnes."

Hantang Tiancheng (02726): A major international customer has agreed to increase purchases of 6-inch and 8-inch silicon carbide epitaxial wafers. Hantang Tiancheng announced that a major international customer of the group has agreed to increase purchases of 6-inch and 8-inch silicon carbide epitaxial wafers, with a maximum total sales amount of approximately US$95.8 million, to be delivered to this customer on or before December 31, 2026 (the procurement matter).

United Lab (03933) received the second milestone payment from Novo Nordisk under the exclusive licensing agreement for UBT251. On September 23, 2026, United Biotechnology received a global Phase I clinical milestone payment of US$9 million (after deduction of Danish withholding tax) from Novo Nordisk for the type 2 diabetes indication of UBT251 injection. Under the exclusive licensing agreement and subject to its terms and conditions, United Biotechnology is eligible to receive potential milestone payments of up to US$1.8 billion, contingent upon the achievement of certain development and sales milestones, as well as tiered sales royalties calculated based on annual net sales in the region.

Shandong Molong (00568) obtained oil casing supplier qualification certification from Abu Dhabi National Oil Company. According to Shandong Molong, on September 24, Shandong Molong successfully passed the oil casing qualification certification of Abu Dhabi National Oil Company, becoming a qualified supplier of ADNOC oil casing products.

Stock Spotlight

Crealights (01191): 1.6T optical modules begin shipping in the second half; southbound shareholding rises to 4.2%. Crealights showcased its fully self-developed silicon photonics 1.6T optical modules and 6.4T NPO at the 27th China International Optoelectronic Exposition held from September 9 to 11. Previously, the company's deputy general manager and board secretary, Hu Yong, stated at the interim results briefing that the company's order guidance is fully booked through the end of 2027, with 1.6T optical modules beginning to ship in the second half of the year to leading overseas AI computing infrastructure customers, and R&D and customer validation for 3.2T and 6.4T NPO/CPO are underway. In addition, southbound funds have continued to increase their positions recently, and Crealights was included in the Hong Kong Stock Connect on September 7 this year. The latest data shows that on September 23, southbound funds increased their holdings of Crealights by 122,700 shares, with cumulative net purchases of 635,500 shares over the past five trading days. As of now, southbound funds hold 3.8444 million shares of Crealights, accounting for 4.19% of the company's issued ordinary shares.