★Macro Dynamics★ Ministry of Commerce: China Will Continue Litigation Against Unrescinded U.S. Clean Energy Subsidies The spokesperson for the Ministry of Commerce, He Yongqian, responded to the U.S. Inflation Reduction Act’s subsidies for new energy vehicles, noting that China is aware that the U.S. terminated the relevant subsidy clauses on September 30. The subsidy policy discriminates against products from WTO member states, violating trade rules and engaging in trade protectionism. He stated that China had already filed a complaint with the WTO regarding this policy, and while the cessation of this subsidy project is seen as a correction of U.S. errors, China has noted that the U.S. has not terminated other non-compliant measures regarding clean energy subsidies in the WTO dispute. Going forward, China will continue litigation according to WTO rules to steadfastly protect domestic industries' legal rights and uphold a rules-based multilateral trading system.

People's Bank of China and Central Bank of Iceland Renew Bilateral Currency Swap Agreement During the International Monetary Fund / World Bank Annual Meetings, PBOC Governor Pan Gongsheng renewed a bilateral currency swap agreement with Central Bank of Iceland Governor Johannsson to enhance bilateral financial cooperation and facilitate trade exchanges while jointly maintaining financial stability. The swap agreement, amounting to 3.5 billion RMB / 70 billion Icelandic króna, is valid for five years. Governor Pan highlighted the long-standing friendly cooperative relationship between China and Iceland and hopes to deepen financial collaboration through this renewed agreement.

UK Adds Several Chinese Companies to Sanctions List; Foreign Ministry: Strong Protests Submitted According to Beijing Daily, Foreign Ministry spokesperson Lin Jian held a regular press conference. A Reuters reporter inquired about the UK listing Shandong Yulong Petrochemical Co. and three port operators from Shandong, as well as North Sea Liquefied Natural Gas LLC, on a sanctions list, accusing them of supporting the Russian energy sector. Lin Jian responded that China opposes unilateral sanctions lacking international legal basis and called the UK's actions deeply unsatisfactory, stating that formal protests have been lodged. He emphasized that China has consistently worked to promote dialogue regarding the Ukraine crisis and that normal interactions between Chinese and Russian enterprises should not be disrupted. China will take necessary measures to safeguard its legitimate rights and interests.

World Gold Council: Overall Gold Holdings Remain Low from a Strategic Perspective The World Gold Council's latest monthly review notes that investors are concerned about significant overbought conditions in gold, and the long-standing low interest rates and dollar may rebound, consequently pressuring gold prices. However, from a strategic standpoint, overall gold holdings remain low. Data provided by the Council indicates that individual gold investment accounts for less than 2% of global assets, while central bank gold holdings comprise less than 30% of total foreign reserves—far from the historical highs observed in 1980.

Authoritative Sources: Rumors of the Establishment of a Polysilicon Reserve Platform are False According to Securities Times, the polysilicon reserve scheme has been a key topic within the photovoltaic industry. On October 16, rumors surfaced claiming that a reserve platform had been established, with the company’s business registration completed (named “Zhongxi Capacity Integration Co., Ltd.”) and a joint management account opened. However, authoritative industry contacts clarified that these rumors are untrue.

★Financial Institutions★ Jefferies: Limited Room for Decline in U.S. Treasury Yields Jefferies' global economist Mohit Kumar stated in a report that the room for further declines in U.S. 10-year Treasury yields from current levels is limited. Jefferies believes that the potential returns on German bonds appear more appealing, expressing a preference for a low allocation in U.S. Treasuries. Kumar pointed out, “We still believe that significant rebounds in U.S. Treasury yields are unlikely from current levels.”

★Market Data★ A-shares See Broad High-to-Low Reversal, with Total Market Turnover Below 2 Trillion Yuan On October 16, the market experienced a pullback after initially rising, with all three indices eventually trading in negative territory. The combined turnover for Shanghai and Shenzhen Stock Exchanges reached 1.93 trillion yuan, down 141.7 billion yuan from the previous trading day, sliding below the 2 trillion yuan mark for the first time since September 10. Market sentiment remains fragmented, with nearly 4,200 stocks declining.

The coal sector continued its strong performance, with Dayou Energy hitting the daily limit-up after five consecutive trading days of gains. The port shipping sector demonstrated vitality, with multiple stocks including Haitong Development reaching the daily limit-up. The pharmaceutical sector saw localized strength, with Guizhou Bai Ling and Luoshin Pharmaceutical both hitting the daily limit-up. The banking sector experienced a collective increase, with Agricultural Bank nearing its historical high. In contrast, stocks tied to controlled nuclear fusion plummeted, with Hedong Intelligent hitting the daily limit-down. By the market close, the Shanghai Composite Index rose by 0.1%, the Shenzhen Component declined by 0.25%, and the ChiNext Index increased by 0.38%.

Margin Financing Balance Increased by 2.299 Billion Yuan As of October 15, the balance of margin financing on the Shanghai Stock Exchange stood at 1.236366 trillion yuan, an increase of 17.43 billion yuan from the previous trading day; the Shenzhen Stock Exchange’s balance reached 1.188608 trillion yuan, rising by 5.56 billion yuan; and the total for both exchanges came to 2.424974 trillion yuan, up by 22.99 billion yuan from the preceding trading day.

Hong Kong Hang Seng Index Falls by 0.09%, Hong Kong Technology Index Down 1.18% On October 16, the Hong Kong Hang Seng Index closed down 0.09%, while the Hang Seng Tech Index fell by 1.18%. The new energy vehicle sector faced declines, with NIO dropping nearly 9%, and both Xpeng Motors and Xiaomi Group declining more than 3%. Additionally, Sanhua Intelligent Control dropped over 6%, and MicroPort dropped more than 5%. Conversely, Yaosheng Ankang saw gains of over 46%, while Pop Mart rose over 5%.

★Corporate Dynamics★ Lei Jun, Founder of Xiaomi Group: AI Models are the Future Trend for Smart Connected Vehicles According to the Science and Technology Innovation Board Daily, at the 2025 Smart Connected Vehicle Conference, Lei Jun, founder and chairman of Xiaomi Group, remarked that AI models are the future trend for smart connected vehicles, presenting enormous innovation opportunities. These on-device AI models operate offline, integrating signals from various in-vehicle and external sensors through emotion recognition and multimodal interaction technologies, enabling a humanized voice control experience as well as customizable gesture controls for in-vehicle devices, while preserving data privacy through local computational resources. Xiaomi's core strategy emphasizes the "people, vehicle, home all-ecology," marking automobiles as a crucial node. By interlinking different scenarios and terminals, vehicles can utilize AI capabilities from the entire ecosystem, providing a diverse range of applications with extensive future industry opportunities. Moreover, Lei Jun stated that Xiaomi's automotive products have delivered approximately 400,000 vehicles in one and a half years since launch. Xiaomi has consistently invested in advanced driver assistance systems (ADAS), with a total initial investment of 5.79 billion yuan and an intelligent driving team exceeding 1,800 members.

After Seven Months, Alibaba Group Makes Moves Again: YTO Express's Third Major Shareholder Hangzhou Haoyue Plans to Transfer Up to 2% of Company Shares Through Bulk Trading YTO Express (600233.SH) announced that shareholder Hangzhou Haoyue Enterprise Management Co., Ltd. intends to transfer no more than 68.451 million shares of the company through bulk trading within three months starting 15 trading days after the announcement, which constitutes up to 2% of the total share capital. Hangzhou Haoyue is an enterprise controlled by Alibaba Group Holding Limited, and this divestiture is part of the shareholder's own strategic development and financial planning. Alibaba holds shares in YTO Express through Alibaba Venture Capital, Hangzhou Haoyue, and Zhejiang Cainiao Supply Chain Management Co., Ltd. As of the end of the second quarter, Alibaba Venture Capital and Hangzhou Haoyue held 9.08% and 9% of YTO Express respectively, making it the second and third largest shareholders. Notably, this is not the first announcement regarding share reductions from Alibaba's Hangzhou Haoyue; YTO Express previously reported on March 12, regarding Hangzhou Haoyue's intent to offload up to 2% of the company's shares through bulk trading. Data shows that between April 3 and June 26, Hangzhou Haoyue transferred 68.9351 million shares of unrestricted circulating shares via bulk trading, equivalent to 2% of the company's total share capital.

Changan Automobile's Zhu Huarong: Humanoid Car Robots Scheduled for Mass Production by 2028 At the 2025 Smart Connected Vehicle Conference, Zhu Huarong from Changan Automobile presented the strategy for the next five years: accelerating the application of AI model technologies, with humanoid car robots expected to enter mass production by 2028 and airborne vehicles projected for launch by 2030.

Founder and CEO of Fengchao Reportedly Resigns According to reports from Southern Metropolis Daily and other media, Xu Yubin, founder and CEO of Fengchao, has officially resigned due to health reasons; he has held the CEO position since April 2015. Fengchao currently has no public response regarding the resignation or the identity of a successor. Tiantian Check indicates that Xu Yubin remains Fengchao's legal representative and he exited the board list as of April 2025.

Guangsheng Nonferrous Metals: Estimated Net Profit of 100 Million to 130 Million Yuan for Q3 2025, a Year-on-Year Turnaround Guangsheng Nonferrous Metals (600259.SH) announced its performance forecast for the first three quarters of 2025, estimating a net profit attributable to shareholders of listed companies between 100 million to 130 million yuan, indicating a turnaround from losses year-on-year. During the reporting period, the rare earth market saw price increases, prompting increased production scale, enhanced market analysis, improved marketing coordination, innovative models, and structural adjustments, leading to a rise in the production and sales volume of rare earth smelting separation and permanent magnetic materials; profits from its investee firm, Daboshan, increased due to rising copper and tungsten prices, boosting investment returns; meanwhile, efforts continue to rectify loss-making enterprises.