**Market Overview**

Current market conditions exhibit a distinctive seesaw pattern, with overnight declines in the three major US indices contrasting sharply with today's dual rebound in A-shares and Hong Kong stocks. The Hang Seng Index closed up 1.37%. Federal Reserve Chairman Powell delivered remarks at a Providence Chamber of Commerce event in Rhode Island, stating that stock price valuations appear quite elevated by many metrics. As one of the world's most authoritative figures, this statement undoubtedly delivered a significant blow to US markets.

Additionally, Trump's stance on the Russia-Ukraine conflict has undergone a dramatic reversal, suggesting Ukraine could potentially reclaim all lost territory and encouraging NATO to shoot down invading Russian aircraft. This shift indicates Trump's desperation following failed attempts to court Putin, continuing to promote arms sales for the military-industrial complex.

China's Fujian aircraft carrier demonstrated its formidable technical capabilities through a spectacular "triple catapult launch," marking the navy's strategic transformation from "near-sea defense" to "far-sea protection."

According to CCTV News, at approximately 4:30 AM on September 23, the "Istanbul Bridge" vessel departed from Beilun Port District of Ningbo Zhoushan Port bound for Felixstowe Port, the UK's largest container port. This milestone marks the official inauguration of the world's first China-Europe Arctic container express service.

Following yesterday's mention of Poland closing transit ports for China-Europe Railway Express, the situation has taken a positive turn. On September 23 local time, Polish Prime Minister Tusk announced the reopening of border crossings with Belarus at dawn on the 25th, while noting the government reserves the right to close borders again if necessary. Poland's pragmatic approach appears well-timed, as closing these crossings would be counterproductive given China's robust maritime capabilities enabling Arctic route navigation.

This development naturally boosts confidence in European foreign trade exports. Today, the Ministry of Commerce, in collaboration with eight departments including the Central Cyberspace Affairs Commission and Ministry of Finance, issued "Several Policy Measures to Promote Service Exports," encompassing 13 specific measures providing comprehensive policy support for service exports. Related stocks such as Hisense Home Appliances (00921) and TCL Electronics (01070) surged over 14% and 6% respectively.

**Domestic Lithography Breakthrough**

Today's market was flooded with news about domestic lithography equipment. On September 23, 2025, Shenzhen Wending Juxin Technology Co., Ltd. announced the official production of China's first domestically-produced high-precision stepper lithography machine. Additionally, Shanghai Micro Electronics Equipment's (SMEE) booth at the Industrial Fair publicly unveiled specifications for its extreme ultraviolet (EUV) lithography machine for the first time.

As the "crown jewel" of semiconductor manufacturing, lithography equipment faces extremely high technical barriers with virtually zero domestic substitution rates, making this breakthrough a significant positive development. Under AI boom momentum, global memory chip giant Micron Technology reported better-than-expected Q4 2025 revenue and profits, providing strong guidance for the current quarter. As one of the world's three major memory chip manufacturers, demand for its high-bandwidth memory (HBM) chips remains robust.

Overall, AI sentiment remains highly positive with substantial domestic substitution potential. SMIC (00981) mentioned in yesterday's sector focus rose nearly 6%, Hua Hong Semiconductor (01347) gained nearly 4%, and ASMPT (00522) climbed over 6%.

**AI Infrastructure Investment**

Following yesterday's discussion of NVIDIA's trillion-dollar AI investment, domestic players are also ramping up efforts. At the 2025 Yunqi Conference in Hangzhou, Alibaba Group CEO and Chairman & CEO of Alibaba Cloud Intelligence Wu Yongming announced two key initiatives: First, Tongyi Qianwen will maintain its open-source strategy, aiming to become the "Android of the AI era." Second, building a super AI cloud as the "next-generation computer" to provide global intelligent computing networks.

Alibaba is actively advancing its three-year, 380 billion yuan AI infrastructure construction plan with continued larger investments. By 2032, Alibaba Cloud's global data center energy consumption is expected to increase tenfold, signifying exponential growth in computing power investment. Alibaba-W (09988) surged over 9%, while GDS Holdings-SW (09698), whose largest client is Alibaba, directly benefited with gains exceeding 6%.

**Autonomous Driving Progress**

According to the Ministry of Industry and Information Technology's latest data, from January to July 2025, China sold 7.76 million new passenger vehicles equipped with combined driving assistance systems, achieving a 62.6% penetration rate—an increase of 5.7 million vehicles and 40 percentage points compared to the same period in 2021. Combined driving assistance systems have become key selling points for new vehicle models and important consumer considerations.

Autowise.ai (02431) officially launched its unmanned logistics brand "Xiaozhu Unmanned Vehicle" and introduced two debut models T5 and T8, formally entering the unmanned logistics sector with nearly 5% gains today.

**Strategic Resource Competition**

Industry sources indicate the Trump administration is seeking to acquire stakes in Lithium Americas Corporation, with the White House renegotiating terms for a $2.3 billion Department of Energy loan to the company. This focus on Lithium Americas is clearly related to the strategically important Thacker Pass lithium project in US lithium supply chain development. Lithium has become a strategic resource, with Ganfeng Lithium (01772) gaining over 3%.

**Xiaomi's Dual Strategy**

On September 24 morning, Xiaomi Group Chairman and CEO Lei Jun posted on Weibo that decisions to manufacture cars and restart chip development were made simultaneously, putting all of Xiaomi's accumulated resources from the past decade on the line. Tomorrow, Lei Jun will deliver his sixth annual speech themed "Change," also announcing new phone models including Xiaomi 17, Xiaomi 17 PRO, and Xiaomi 17 PRO MAX, directly competing with Apple. Xiaomi supply chain stock O-film Tech (01478) rose nearly 6%.

**CHERY AUTO IPO**

CHERY AUTO (09973) will debut on the Hong Kong stock market tomorrow. The IPO pricing is HK$30.75 per share, raising approximately HK$9.1 billion, making it the largest IPO in Hong Kong markets so far in 2025. The public offering was oversubscribed by over 237 times, setting a new record for Hong Kong IPO subscriptions this year. Cornerstone investors include 13 institutions such as HHLR under Hillhouse, Greenwoods Asset Management, Dajia Life Insurance, and Gotion High-tech, with total subscriptions of approximately HK$4.57 billion. Current grey market trading shows gains around 9%. If strong performance continues tomorrow, it could stimulate solid-state battery stocks like Rept Battero (00666), CALB (03931), and CATL (03750).

**Sector Focus: Solar Glass**

According to Baiichuan Fuying data, industry inventory on September 19 reached 1.3 million tons, hitting a near one-year low. SMM data shows solar glass operating rates continued declining through late August, with capacity at 129,000 tons/day and industry operating rate at 51.59%. As supply-demand dynamics improve, solar glass prices have begun bottoming out and recovering.

SMM data indicates continuous price increases since July. On September 19, average prices for 3.2mm single-layer coated and 2.0mm single-layer coated glass were 20.25 and 13.35 yuan per square meter respectively, up 1.75 and 2.5 yuan per square meter from early July. Against the backdrop of anti-involution industry trends, solar glass with favorable supply-demand dynamics is poised for profit recovery. Key Hong Kong-listed companies include XINYI SOLAR (00968) and FLAT GLASS (06865).

**Individual Stock Analysis: KUAISHOU-W (01024)**

New AI model launch boosts market confidence with record quarterly net profit margin. The company recently announced the launch of its Kling AI 2.5 Turbo model. KUAISHOU-W achieved Q2 2025 revenue of 35.046 billion yuan, up 13.1% year-over-year, with adjusted net profit of 5.618 billion yuan, up 20.1% year-over-year, corresponding to a 16.0% profit margin. Kuaishou declared its first special dividend since listing, distributing HK$0.46 per share, totaling approximately HK$2 billion.

**Commentary**: Kuaishou's Q2 2025 adjusted net profit margin reached a quarterly record, exceeding market expectations. Q2 2025 showed steady traffic growth with DAU reaching 409 million, up 3.4% year-over-year to a historical high. Commercialization maintained steady growth with online marketing revenue of 19.8 billion yuan, up 12.8% year-over-year with marginal improvement quarter-over-quarter.

Other revenue reached 5.237 billion yuan, up 26% year-over-year, exceeding expectations. E-commerce GMV reached 358.9 billion yuan, up 17.6% year-over-year. Monthly average buyers numbered 134 million with improved repurchase frequency. Pan-shelf e-commerce GMV exceeded 32% of total. Live streaming revenue reached 10 billion yuan, up 8% year-over-year.

Kling technology continues iteration with Q2 2025 revenue of 250 million yuan exceeding expectations. Kuaishou launched the Kling 2.1 series in May 2025, achieving comprehensive quality improvements. The new model reduces 5-second video generation costs by nearly 30% in high-quality mode compared to version 2.1, with further enhanced effects.

Kling AI currently serves over 45 million global creators, with over 30 iterations since launch, generating over 200 million videos and 400 million images, serving over 20,000 enterprise clients through API services. From a commercialization perspective, Kling AI's market share continues growing, with Poe data showing Kling 2.0/1.6/1.5 usage reaching 30.7% on May 4, 2025, ranking first. Meanwhile, Kling revenue growth accelerates, with linear projection suggesting annual revenue could exceed 1 billion yuan. The company's new AI model launch significantly boosts market confidence.