【Market Analysis】 Asia-Pacific stocks unexpectedly plunged in the afternoon, dragging down European and U.S. index futures, while gold and cryptocurrencies also declined. Hong Kong's Hang Seng Index fell 0.79% at close. Despite the recent U.S.-China talks, market sentiment remains subdued due to skepticism over implementation, given former President Trump’s unpredictable track record. Meanwhile, the Netherlands' semiconductor export restrictions drew a sharp response from China’s Commerce Ministry, demanding full accountability. Without tangible pressure, Europe may lack sincerity in negotiations—Germany’s next move is key.

Domestically, A-shares rallied on themes like Taiwan’s reunification, though Hong Kong stocks remained indifferent except for Uni-President China (00220), which rose 2.41%. In the U.S., the federal government shutdown entered its 35th day, matching the longest record, as the Senate prepared for another vote. Prolonged gridlock risks global repercussions. Weak ISM manufacturing data (48.7 in October) and Nasdaq 100 futures dropping over 1% reflect growing concerns: inflation may curb Fed easing, while stretched tech valuations dampen momentum. This spillover affects Chinese tech stocks tied to Nvidia.

Bank stocks continued their rally, mirroring yesterday’s trend. Insurers aggressively bought shares: China Life became a top-10 shareholder of ICBC (01399) with a 0.21% stake, while Ping An acquired a 1.4% stake in Agricultural Bank (01288). Smaller banks like CEB Bank (06818), CM Bank (01988), and Chongqing Bank (01963) gained over 2%. The sector’s strength echoes past cycles, driven by tech giants’ internal competition—Alibaba’s rebranding of Ele.me to "Taobao Quick Purchase" intensifies pressure on Meituan (03690) and JD.com (09618).

In tech, Baidu (09888) surged nearly 3% as its Apollo Go hit 250K weekly autonomous rides, rivaling Waymo. Eaton’s acquisition of Boyd’s liquid-cooling unit and Minth Group’s (00425) AI server orders (up 6%) highlight booming demand. Meanwhile, U.S. energy grid upgrades and Microsoft’s power-supply warnings spotlight green energy. Sinohytec (02402) jumped 10% on Hebei’s hydrogen-wind project, while Xinyi Solar (00956) rose 3% to a yearly high, buoyed by wind projects and gas-power earnings. Coal stocks like China Coal Energy (01898) hit decade highs on robust dividends.

Tesla’s shareholder meeting (Nov 7, 4-5 AM Beijing time) will vote on Musk’s $56B pay package. His warning—“If activists could oust me, I wouldn’t build robots”—fuels volatility fears, dragging suppliers like Sanhua (02050) down 6%.

【Sector Spotlight】 Goldman Sachs raised 2026 Hong Kong property price forecasts to 5%, with JPMorgan noting “positive momentum.” Transactions hit 3-month highs (7,188 deals in October), led by CK Asset (01113) and Sun Hung Kai (00016).

【Stock Pick】 Midea Group (00300): Q3 profit grew steadily, with ToB revenue up 18% (outpacing ToC’s 13%). Its robotics line (Milo, Mela) and overseas expansions, including a Thailand “Lighthouse Factory,” drive growth. OBM sales rose 20%, contributing 45% of overseas income.