**Today's Highlights**

Fed Chair Powell Indicates Possible End to Balance Sheet Reduction Within Months

Federal Reserve Chairman Jerome Powell stated on Tuesday that the central bank may conclude its balance sheet reduction process within the coming months to prevent liquidity constraints in short-term funding markets. This statement signals a potential pivot in the Fed's quantitative tightening (QT) policy and reinforces market expectations for another interest rate cut this month.

Key Points from Powell's October 14 Speech:

1. Fed Chairman Powell suggested officials may halt balance sheet contraction in the coming months, acknowledging "some indications" of tightening in money markets.

2. Powell noted that bank reserves remain "ample," but officials are closely monitoring indicators to determine when to cease the reduction process.

3. Since the September FOMC meeting, inflation and employment outlooks appear largely unchanged, though he emphasized increasing signs of labor market softening.

4. Powell stated that "downside risks to employment appear to have increased" even without government data during potential shutdowns.

5. He pointed out that alternative data reviewed by officials cannot replace official government statistics.

6. Powell maintained the possibility of an October rate cut, reiterating that officials face difficult choices as they balance risks of ending the inflation fight too early against the danger of supporting the labor market too late.

7. Market reaction to Powell's remarks was most evident in dollar swap spreads, which widened after Powell hinted at potentially ending balance sheet reduction. Following his speech, the Bloomberg Dollar Index fell to daily lows while US Treasury yields declined.

**Market Outlook**

International Gold Prices Hit New Historic High

Overnight US markets closed with mixed results: The Dow Jones Industrial Average gained 202.88 points to close at 46,270.46, up 0.44%. The S&P 500 fell 10.41 points to 6,644.31, down 0.16%. The Nasdaq Composite dropped 172.91 points to 22,521.7, declining 0.76%.

Major technology stocks mostly declined, with Nvidia falling over 4%, Broadcom dropping more than 3%, and Tesla and Amazon each declining over 1%. Semiconductor and cryptocurrency-related stocks led declines, with Intel falling over 4%.

Chinese ADRs broadly declined, with the Nasdaq Golden Dragon China Index closing down 1.95%. Hang Seng Index ADRs rose proportionally to close at 25,667.98, up 226.63 points or 0.89% from Hong Kong's close.

International gold prices reached new historic highs, with COMEX gold futures gaining $30.40 or 0.74% to $4,163.4 per ounce.

**Hot Topics Preview**

China Automotive Power Battery Innovation Alliance: September Combined Output of Power and Other Batteries Rose 35.4% Year-over-Year

According to data released on October 14, China's combined production of power and other batteries reached 151.2 GWh in September, increasing 8.3% month-over-month and 35.4% year-over-year. For the first nine months, cumulative production totaled 1,121.9 GWh, up 51.4% year-over-year.

People's Bank of China: 600 Billion Yuan Outright Reverse Repo Operation on October 15

On October 15, the PBOC conducted a 600 billion yuan 6-month (182-day) outright reverse repo operation using fixed quantity, rate bidding, and multiple price awards. This marks the second outright reverse repo operation in October, aimed at maintaining ample banking system liquidity and addressing potential funding tightness.

MIXUE GROUP (02097) Enters Beer Market with Products Priced from 5.9 Yuan

MIXUE GROUP recently announced acquiring a 53% stake in Xianbei Fulujia for approximately 297 million yuan, gaining controlling interest. Following the transaction, Xianbei Fulujia becomes a non-wholly owned subsidiary with financial results consolidated into the group. This marks MIXUE GROUP's official expansion from fresh tea drinks and coffee into alcoholic beverages. Xianbei Fulujia typically operates from 11 AM to midnight, with some locations extending to 1 AM.

Harbin Electric and China General Technology Group Sign Industrial Machine Tool R&D Cooperation Agreement

According to Harbin Electric's WeChat account on October 14, the company signed an industrial machine tool joint R&D cooperation agreement with China General Technology Group on October 13. This involves HARBIN ELECTRIC (01133).

ASCLETIS-B (01672) Completes Pre-NDA Communication with NMPA for Denifanstat (ASC40)

ASCLETIS-B (01672) announced completion of pre-New Drug Application (Pre-NDA) communication with China's National Medical Products Administration regarding denifanstat (ASC40) for treating moderate to severe acne vulgaris. The company plans to submit its NDA shortly. The Pre-NDA communication began in June 2025 and concluded in October 2025.

Allied Esports & Entertainment (06899): Strategic Cryptocurrency Investment to Integrate Blockchain Technology

Allied Esports & Entertainment (06899) announced that subsidiary Allied Gaming & Entertainment Inc. (NASDAQ: AGAE) has invested in Bitcoin (BTC) and increased Ethereum (ETH) holdings. This marks AGAE's formal launch of incorporating cryptocurrency into its balance sheet strategy and establishes groundwork for broader blockchain applications and Real World Assets (RWA) tokenization, aiming to deeply integrate blockchain technology with core gaming and entertainment businesses.

SH PHARMA (02607): Doxycycline Capsules Receive FDA Approval

SH PHARMA (02607) announced that subsidiary Changzhou Pharmaceutical Factory received FDA notification that its Abbreviated New Drug Application (ANDA) for doxycycline capsules has been approved.

SINOMAB BIO-B (03681): SM17 Subcutaneous Injection Bridging Study Completes First Cohort Dosing

SINOMAB BIO-B (03681) announced successful completion of first cohort dosing in the SM17 subcutaneous injection bridging study in China on October 14, 2025. All subjects have shown good tolerance with no reported adverse events, including injection site reactions. The bridging study aims to evaluate safety, tolerability, and pharmacokinetic characteristics of SM17 subcutaneous injection and explore bioavailability. The study plans to enroll 30 healthy subjects total, with recruitment expected to complete by November 2025 and all follow-ups by March 2026.

JD.com Registers Multiple JD Auto Trademarks

According to corporate records, Beijing JD 360 E-commerce has applied for multiple "JD Auto" related trademarks covering transportation, scientific instruments, and advertising sales categories. Some trademarks have been successfully registered. JD.com recently announced a joint venture with CATL's Times Electric Service and GAC Group to launch a new vehicle on November 9. JD.com clarified that this represents a three-party collaboration where JD.com provides consumer insights and exclusive sales rather than direct manufacturing involvement.

ZTE (00763): Self-Developed Chips Meet Internet Companies' Core Requirements

ZTE (00763) stated on October 14 that subsidiary ZTE Microelectronics' self-developed domain-specific processor chips not only meet internet companies' core requirements but also provide lower total cost of ownership for enterprise applications including large-scale data processing, video codec, and cloud gaming.

Yujian Xiaomian Receives CSRC Approval for Hong Kong IPO and Full Circulation

The CSRC International Cooperation Department issued approval for Guangzhou Yujian Xiaomian Catering's overseas listing and domestic unlisted shares "full circulation." The company plans to issue up to 235,108,000 overseas-listed ordinary shares on the Hong Kong Stock Exchange. Eleven shareholders plan to convert 613,324,800 domestic unlisted shares to overseas-listed shares for Hong Kong trading.

**Individual Stock Spotlight**

SD GOLD (01787): Q1-Q3 Net Profit Expected to Rise 83.9%-98.5% Year-over-Year

SD GOLD announced expected Q1-Q3 2025 net profit attributable to shareholders of 3.8-4.1 billion yuan, representing year-over-year increases of 1.73-2.03 billion yuan or 83.9%-98.5%. Expected adjusted net profit of 3.78-4.08 billion yuan represents increases of 1.69-1.99 billion yuan or 80.5%-94.8% year-over-year. The company optimized production layout, strengthened core technology development, and improved management efficiency during the first three quarters, with significant profit growth also supported by rising gold prices.