**Market Performance** Last week, major A-share indices posted gains. The Shanghai Composite Index rose 1.08%, while the Shenzhen Component Index edged up 0.19%. The ChiNext Index climbed 0.65%, and the Xinhua 500 Index advanced 0.76%. The Xinhua 500 opened at 5,124.88 points, rebounded from lows, and closed at 5,167.46 points on Friday, with a weekly volatility of 3.24% and turnover of 3.52 trillion yuan.

Sector-wise, power equipment, coal, petrochemicals, steel, and basic chemicals led gains, while beauty & personal care, computers, pharmaceuticals, and autos lagged.

**Key Developments** 1. **Trade Measures** - China extended the suspension of sanctions on certain U.S. entities under the *Unreliable Entities List* for one year starting November 10, 2025, aligning with U.S.-China Kuala Lumpur trade talks. Domestic firms may now apply to transact with these entities, subject to approval. - Additional tariffs on select U.S. imports were lifted effective November 10, 2025, per State Council directives.

2. **Economic Data** - October CPI rose 0.2% month-on-month and year-on-year, with core CPI up 1.2%—marking a six-month streak of expansion. PPI turned positive (0.1% MoM) for the first time this year, while the annual decline narrowed to 2.1%. - The PBOC resumed treasury bond operations in October, injecting 200 billion yuan net, alongside 400 billion yuan via reverse repos and 200 billion yuan via MLF.

3. **Global Highlights** - The U.S. reported stronger-than-expected ADP employment (+42,000 jobs) and a rebound in ISM Services PMI, though wage growth stalled. Fed officials hinted at further rate cuts but warned of tariff-related economic risks. - Eurozone manufacturing PMI stabilized at 50, with Germany (49.6) and France (48.8) remaining in contraction. - The Bank of England held rates at 4%, with a split vote (5-4) on potential cuts. Governor Bailey noted December’s decision would factor in fiscal policy. - Global gold ETFs saw $2.5 billion in outflows, reducing holdings by 22.1 tons.

4. **Policy Updates** - China’s CSRC unveiled rules for the *Securities Settlement Risk Fund*, effective December 8, 2025, emphasizing risk controls and accountability. - The MoF issued $4 billion in sovereign bonds in Hong Kong, with 3-year and 5-year tranches priced at 3.646% and 3.787%, respectively, attracting 30x oversubscription.

**This Week’s Focus** Markets will monitor central bank signals, trade developments, and economic indicators amid evolving global dynamics.