【Top News】 Five departments, including the Ministry of Finance, have issued a notice to improve duty-free shop policies to support consumption growth. Key measures include decentralizing approval authority for establishing outbound duty-free shops at ports and changing the operators of inbound and outbound duty-free shops. Provincial governments will oversee the layout and construction of outbound duty-free shops in their regions. The establishment of outbound duty-free shops will be approved by provincial finance departments in coordination with commerce, culture, tourism, customs, and tax authorities.

For ports with both inbound and outbound duty-free shops, separate tenders may be conducted. If tender conditions are not met—such as low passenger flow or limited space—provincial authorities may approve operators through competitive negotiations under China’s Government Procurement Law. Airports under the Civil Aviation Administration of China will follow existing regulations for duty-free shop approvals.

【Market Outlook】 The Hang Seng Index ADRs fell 0.33%. Overnight, U.S. stocks closed lower: the Dow Jones Industrial Average dropped 0.23%, the S&P 500 fell 0.99%, and the Nasdaq Composite declined 1.57%. Meta plunged over 11%, its worst single-day drop in three years. Tesla fell over 4%, while Amazon surged 13% post-market.

Among Chinese ADRs, Bilibili dropped over 5%, NetEase fell over 4%, and Alibaba declined over 3%. COMEX gold futures rose 0.38% to $4,015.9/oz.

【Key Updates】 - **Hong Kong** has invited the Shanghai Gold Exchange to collaborate on establishing a central gold clearing system. - **TVB (00511)** reported an 80% market share in Hong Kong’s free-to-air TV channels and reiterated full-year profitability expectations. - **Yuexiu Property (00123)** secured two land plots in Guangzhou for RMB 3.48 billion and one in Chengdu for RMB 1.32 billion. - **Lepu Biopharma (02157)** received approval for its ADC drug Meiyouheng® to treat recurrent/metastatic nasopharyngeal cancer. - **China Shengmu (01432)** received a 14.75% premium buyout offer from Modern Dairy (01117). - **Air China (00753)** plans to issue up to 3.04 billion new A shares to raise RMB 20 billion, with parent company CNAC Group subscribing for at least RMB 5 billion. - **HPV vaccines** will be included in China’s national immunization program starting November 10, 2025, covering girls aged 13+ born after November 10, 2011.

【Earnings Highlights】 - **Rongchang Bio (09995)**: Net loss narrowed 48.6% YoY to RMB 551 million. - **CRRC (01766)**: Q3 net profit fell 10.7% YoY to RMB 2.72 billion. - **China Galaxy (06881)**: Net profit rose 57.51% YoY to RMB 10.97 billion. - **AIA (01299)**: Q3 new business value grew 25% to $1.48 billion. - **GLMS SEC (01456)**: Net profit surged 345.3% YoY to RMB 1.76 billion.