**Market Overview**

Hong Kong stocks opened with a gap up due to positive weekend news and maintained steady upward momentum throughout the day, closing up over 1.89%. China's economic data showed improvement, with industrial enterprises above designated size reporting a profit growth of 20.4% year-on-year in August, reversing from a 1.5% decline in the previous month. This positive change, while partly due to low base effects, mainly reflects the effectiveness of anti-involution policies.

The Ministry of Industry and Information Technology and seven other departments recently issued the "Work Plan for Stable Growth in the Non-ferrous Metals Industry (2025-2026)". The main target is for the non-ferrous metals industry to achieve an average annual growth rate of about 5% in added value from 2025 to 2026, with ten major non-ferrous metal production growing by approximately 1.5% annually. Domestic resource development of copper, aluminum, and lithium is expected to make positive progress, with recycled metal production exceeding 20 million tons and high-end product supply capacity continuously strengthening. This shows planned capacity control policies to prevent vicious competition.

Non-ferrous metals also benefit significantly from the global interest rate cutting cycle, creating a very favorable overall environment. Most varieties have entered upward channels, with aluminum companies CHALCO (02600) and China Hongqiao (01378) both rising over 4%; copper companies China Nonferrous Mining (01258), China Molybdenum (03993), and Jiangxi Copper (00358); lithium companies Ganfeng Lithium (01772) and Tianqi Lithium (09626) all performing strongly.

US stock investors are concerned about potential government shutdown as government funding expires on September 30, threatening millions of federal jobs. Congress must pass or extend a spending bill before October 1 to avoid shutdown. Trump plans to meet with congressional leaders, and historically, agreements are usually reached with low probability of actual shutdown. A shutdown would delay key employment data releases this week and disrupt Federal Reserve monetary policy.

Precious metals resumed their upward trend, with spot gold breaking through $2,680 per ounce early Monday morning, setting new historical highs with daily gains exceeding 1%. Spot silver rose 2.26% intraday. Spot gold has accumulated nearly 45% gains year-to-date, outperforming all other major asset classes and recording the largest annual increase since 1979. Bank of America data shows record $17.6 billion flowing into gold markets over the past four weeks. ZHAOJIN MINING (01818) rose nearly 7%; Zijin Mining (02899) also gained nearly 6%.

According to Federal Reserve data, the proportion of stocks (including investments in mutual funds or retirement plans) directly and indirectly held by Americans in their household financial assets reached a historical high of 45% in Q2 this year. While current US stock gains can stimulate consumer spending, the opposite would occur if stocks plummet. Both China and the US face this issue, but the US situation is more severe. With wealth concentrated in stock markets, major declines would create significant problems. Therefore, stimulating the stock market is the most direct and effective method to boost consumption.

There are rumors that the securities industry will implement a package of policies post-holiday, including extending trading hours. Whether there will be continued positive policies depends mainly on sustainability. If prices can continue rising, it indicates expectations; otherwise, it's just another index pull followed by decline. Top gainers included HTSC (06886), GF Securities (00176), CITIC SEC (06030), and DFZQ (03958) rising over 11%; other varieties all gained over 6 points, indicating incremental funds entering to accumulate securities stocks.

Besides securities, energy storage also performed strongly. According to CCTV Finance reports, domestic energy storage cell demand is very strong, with leading battery companies reporting full production capacity and some orders already scheduled until early next year. According to the "Special Action Plan for Large-scale Construction of New Energy Storage (2025-2027)" recently released by the National Development and Reform Commission and National Energy Administration, China's new energy storage installed capacity will reach over 180 million kilowatts by 2027, driving approximately 250 billion yuan in new project investment.

Ruipu Energy (00666) recently signed a 2026 supply agreement with global grid-scale energy storage solutions leader EnergyVault in the US. Under the agreement, Ruipu Energy will supply 3GWh energy storage systems to EnergyVault in 2026, with both parties deepening cooperation in Australian, US, and European markets. The stock rose over 16% today; Tianneng Power (00819) mentioned in Friday's stock selection surged nearly 16%, and CALB (03931) gained over 8%.

SinoHytec (02402): Recently, the Zhangjiakou wind-hydrogen integrated source-grid-load-storage comprehensive demonstration project (Phase I) hydrogen production EPC general contracting tender was launched. The project is led by Hebei Guochuang Hydrogen Energy Technology Co., Ltd., an indirectly held company of SinoHytec, aiming to reduce green hydrogen production costs through renewable energy off-grid hydrogen production and promote large-scale fuel cell vehicle applications. The stock rose over 8%.

Musk announced Tesla is going all out to scale up Optimus production. Additionally, media reported that Musk met with UAE National Media Office Director Abdullah at Tesla headquarters, with the Optimus robot also making an appearance. Meta announced development of humanoid robot systems at strategic level equivalent to AR. Sanhua Intelligent Controls (02050), deeply bound with Tesla as a main supplier of humanoid robot actuator assemblies, rose over 8% again today.

According to UBTECH (09880) Technology's official account, UBTECH's smart logistics subsidiary UQI recently formally signed a procurement contract with Tianqi Automation Engineering Co., Ltd. Tianqi will purchase 30 million yuan worth of UBTECH's industrial humanoid robots WalkerS series, with delivery to be completed before December 31, 2025. Including this order, UBTECH's Walker series humanoid robots have secured nearly 430 million yuan in contracts (including nearly 50 million yuan delivered in H1, excluding full-size scientific research and education humanoid robot Tiangong Walker orders). In September, UBTECH secured a 250 million yuan embodied intelligent humanoid robot products and solutions procurement contract from a well-known domestic enterprise, the largest humanoid robot contract globally to date. The stock rose nearly 6% today.

Shanghai Stock Exchange website shows Moore Threads' IPO application successfully passed review. According to disclosure, Moore Threads' IPO aims to raise 8 billion yuan, and if successfully listed this year, it would become the largest IPO on the STAR Market this year. Following Moore Threads' accelerated issuance, the market also expects Yushu's IPO to accelerate, with Shanghai Dazhong Public Utilities (01635), which has stakes in both, rising nearly 16%.

With Golden Week approaching, Macau Tourism Bureau expects average daily visitors to reach 150,000, continuing gaming stock speculation. New Orient International Development (00200) mentioned last Friday surged over 11%, MGM China (02282) rose nearly 6%. Gaming and education stock NetDragon (00777) rose 10% again today, mainly driven by AI empowerment themes.

Looking at post-holiday Hong Kong stock performance statistics: Over the 15 years from 2010 to last year, the probability of gains during National Day period reached 86.7%, with Hang Seng Index average gains of 2.1%; if the Hang Seng Index is already in an upward trend, the probability of gains reaches 87.5% with average gains of 2.8%.

**Sector Focus**

On September 29, Li Chao, Deputy Director of the Policy Research Office and spokesperson of the National Development and Reform Commission, stated that next steps will involve multiple measures to support various enterprises including private enterprises in deep participation in "AI+" actions. Policy-wise, support will be provided for domestic computing power model corpus development in "dual heavy" construction, increasing "dual new" policy support for private enterprises. Funding-wise, AI vouchers will continue to be issued in computing power and other fields, providing subsidies for enterprise computing power service usage.

On September 29, DeepSeek-V3.2 new model was uploaded to community platform HuggingFace official page, with model files currently uploading but still in hidden status. According to media analysis, following DeepSeek's usual practice, official release should occur today or tomorrow (before National Day holiday).

AI enthusiasm remains high with catalysts at all levels. Main varieties include: SenseTime (00020), Alibaba (09988), Baidu (09888), SMIC (00981), Hua Hong Semiconductor (01347), GDS (09698).

**Individual Stock Analysis**

KUAISHOU-W (01024): AI Commercialization Accelerates, Single Quarter Net Profit Margin Hits New High

The company recently announced the launch of Kling AI 2.5 Turbo new model. Kuaishou achieved revenue of 35.046 billion yuan in Q2 2025, up 13.1% year-on-year, with adjusted net profit of 5.618 billion yuan, up 20.1% year-on-year, representing a profit margin of 16.0%.

Commentary: Kuaishou's AI commercialization accelerates, with Q2 2025 creating new single-quarter adjusted net profit margin high, exceeding market expectations. Q2 2025 Kuaishou traffic maintained steady growth. DAU (Daily Active Users) reached 409 million, up 3.4% year-on-year, hitting historical highs.

Commercialization continued steady growth. Q2 2025 online marketing revenue reached 19.8 billion yuan, up 12.8% year-on-year with marginal improvement quarter-on-quarter. Other revenue reached 5.237 billion yuan, up 26% year-on-year, exceeding market expectations. E-commerce GMV reached 358.9 billion yuan, up 17.6% year-on-year. Monthly average buyers reached 134 million with improved repurchase frequency. Pan-shelf e-commerce GMV proportion exceeded 32%. Live streaming revenue reached 10 billion yuan, up 8% year-on-year.

Kling technology continues iteration, achieving 250 million yuan revenue in Q2 2025, exceeding expectations. Kuaishou launched Kling 2.1 series models in May 2025, achieving comprehensive improvements in model quality. The new model's cost for generating 5-second videos in high-quality mode decreased nearly 30% compared to version 2.1, with further effect improvements.

Kling AI currently has over 45 million creators globally. Since product launch, it has undergone over 30 iterative upgrades, generating over 200 million videos and 400 million images cumulatively, serving over 20,000 enterprise customers through API services. From commercialization perspective, Kling AI market share continues increasing. According to Poe data, on May 4, 2025, Kling 2.0/1.6/1.5 usage reached 30.7%, ranking first. Additionally, Kling revenue grows rapidly, with linear extrapolation suggesting annual revenue could exceed 1 billion yuan.

The company declared its first special dividend totaling approximately 2 billion Hong Kong dollars, demonstrating confidence in long-term growth prospects.