【Today's Headlines】
The Federal Reserve's Beige Book shows overall employment levels remain stable, with a 96.6% probability of a rate cut in September
The Federal Reserve's Beige Book indicates that eleven districts reported overall employment levels remaining stable or showing little net change, while one district experienced a moderate decline. Seven districts noted that businesses are cautious about hiring due to weak demand or economic uncertainty.
Minneapolis Fed President Neel Kashkari stated on Wednesday that the Fed has some room to lower short-term interest rates, but he did not disclose when policy easing might be necessary. Atlanta Fed President Raphael Bostic reiterated that he believes one rate cut this year is appropriate, although this may change based on inflation and labor market conditions. According to CME's &#34;FedWatch&#34;: the probability of the Fed maintaining interest rates in September is 3.4%, while the probability of a 25 basis point rate cut is 96.6%. The probability of the Fed maintaining rates in October is 1.6%, with a cumulative probability of a 25 basis point rate cut at 46.8% and a cumulative probability of a 50 basis point rate cut at 51.6%.
【Market Outlook】
U.S. stocks mixed overnight, NASDAQ Golden Dragon China Index down 0.19%
Overnight, U.S. stocks closed mixed, with the Dow Jones Industrial Average down 24.71 points, a decrease of 0.05%, closing at 45,271.10 points; the NASDAQ Composite up 218.10 points, an increase of 1.02%, closing at 21,497.73 points; and the S&amp;P 500 index up 32.72 points, an increase of 0.51%, closing at 6,448.26 points. Alphabet (GOOG.US, GOOGL.US) rose over 9%, Tesla (TSLA.US) rose over 1.4%, and NVIDIA (NVDA.US) slightly fell by 0.09%. Figma Inc (FIG.US) plummeted nearly 14% in after-hours trading, with Q2 revenue of $249.6 million, a year-on-year increase of 41%, and adjusted net profit of $11.5 million, expecting full-year revenue of $1.021-1.025 billion.
Popular Chinese concept stocks closed mixed, with the NASDAQ Golden Dragon China Index down 0.19%. Fangdd fell nearly 15%, XPeng fell over 2%, and Alibaba fell over 1%; Pinduoduo rose over 2%, and iQIYI rose over 1%. The Hang Seng Index ADR fell, closing at 25,337.35 points, down 6.08 points or 0.02% compared to the Hong Kong close.
COMEX gold futures for the current month rose by $43.30, an increase of 1.21%, closing at $3,635.5 per ounce.
【Hot Topics Ahead】
Hong Kong Stock Exchange: The exchange rate deduction rate for RMB to HKD and RMB to USD will remain at 2.6% after the market closes on September 5
On September 3, the Hong Kong Stock Exchange announced that according to the operational procedures of the Central Clearing System, the deduction rate for RMB to HKD and RMB to USD will remain at 2.6% after the market closes on September 5, 2025. This deduction rate will apply to settlement participants choosing to pay any margin calls, deposits, and collateral requirements in RMB daily using HKD or USD, and vice versa. Settlement participants should make the necessary funding arrangements to meet any requirements adjusted by the RMB deduction rate
DBS Bank: Hong Kong stocks are short-term constrained by tightening liquidity or entering a consolidation phase, optimistic about technology and non-bank sectors
DBS Bank stated that due to the short-term tightening of local liquidity and investors waiting for signs of stabilization in China's fundamentals, the Hong Kong stock market may enter a consolidation phase in the short term, but it remains attractive in the long term. Ying Yuhua, Director of the Hong Kong Research Department and Hong Kong and China Equity Market Strategist, said at a media conference that local liquidity is unlikely to improve further in the short term, and the southbound funds that drove the market up at the beginning of the year have recently slowed down. Some investors are expected to shift their attention back to the mainland market, where foreign capital inflow is a highlight, with passive funds continuing to flow in and a small amount of active funds returning to Hong Kong stocks starting last week. The outlook for technology and non-bank financial stocks is optimistic, and it is believed that China's anti-involution measures will bring trading opportunities. The Hang Seng Index is expected to fluctuate around 25,000 points in the near term, with a 12-month target of 26,000 points.
FTSE China A50 Index quarterly review changes, including BeiGene and three other stocks
On September 3, FTSE Russell announced quarterly review changes for the FTSE China 50 Index, FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, and FTSE China A400 Index. The changes will take effect after the market closes on Friday, September 19, 2025. BeiGene (688235.SH) and WuXi AppTec (603259.SH) will be included, while China National Nuclear Power (601985.SH) will be removed.
Minsheng Insurance continues to increase its holdings in Zheshang Bank H shares, with holdings exceeding 6% of the bank's total H shares
According to information disclosed by the Hong Kong Stock Exchange, Minsheng Insurance increased its holdings in Zheshang Bank H shares by 4 million shares on September 2, bringing its total holdings in Zheshang Bank H shares to nearly 357 million shares, exceeding 6% of the bank's total H shares. Previously, Minsheng Insurance's holdings in Zheshang Bank H shares surpassed 5% of the bank's H share capital in early August, reaching the threshold for a mandatory disclosure.
Chifeng Gold: Rare earth business accounts for a small proportion and is in the early development stage
Chifeng Gold stated on September 3 on an interactive platform that the company adheres to a development strategy focused on gold, with the rare earth business accounting for a small proportion and currently in the early development stage.
Leapmotor (09863) completes a 2.6 billion yuan domestic share issuance
On August 29, Leapmotor completed a targeted issuance of domestic shares, raising a total of 2.6 billion yuan. CITIC Securities served as the lead underwriter for this issuance. Leapmotor's issuance introduced four state-owned shareholders: Wuyi County Jintou Industrial Investment Holding Group Co., Ltd., Jinhua Industrial Fund Co., Ltd., Huzhou Xinchuang Equity Investment Partnership, and Hangzhou Hehe Leapmotor Equity Investment Partnership.
UBTECH (09880) announces a procurement contract for 250 million yuan for embodied intelligent humanoid robot products and solutions
UBTECH announced that it has obtained a procurement contract worth 250 million yuan for embodied intelligent humanoid robot products and solutions from a well-known domestic enterprise. The contract focuses on the humanoid robot Walker S2, and UBTECH will initiate the delivery of this contract within this year
Jinli Permanent Magnet: The Robotics Field is Expected to Become One of the Company's Important Business Growth Points in the Future
On September 3rd, Jinli Permanent Magnet stated during an institutional research that embodied robots are one of the important demand growth points for high-performance neodymium-iron-boron magnetic materials and motor rotors in the future. The company has upgraded its relevant R&amp;D department to the embodied robot motor rotor division, with the company's CEO concurrently serving as the strategic coordinator for this division. Currently, the company has made various supporting investments, including project-specific factories, specialized equipment, and professional teams, based on customer needs, and has initially developed a certain scale of mass production capability. By the first half of 2025, the company has already delivered small batches of products, and the robotics field is expected to become one of the important business growth points for the company in the future.
SmarTone Telecommunications (00315) Releases Annual Results, Shareholders' Profit Attributable to Shareholders is HKD 478.9 Million, Up 1.87% Year-on-Year
According to the Zhitong Finance APP, SmarTone Telecommunications (00315) released its annual results for the 2024/2025 fiscal year, reporting revenue of HKD 6.253 billion, an increase of 0.52% year-on-year; profit attributable to shareholders of HKD 478.9 million, an increase of 1.87% year-on-year; earnings per share of HKD 0.435, and a proposed final dividend of HKD 0.175 per share.
【Stock Highlights】
Zhonghui Biotechnology -B (02627): Application for the Listing of Quadrivalent Influenza Virus Subunit Vaccine Approved by the National Medical Products Administration
According to the Zhitong Finance APP, Zhonghui Biotechnology -B (02627) announced that its board of directors is pleased to announce that the National Medical Products Administration of China has approved the group's new drug application for the quadrivalent influenza virus subunit vaccine targeting the population aged 6 to 35 months

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The Federal Reserve's Beige Book shows that employment levels remain generally stable across eleven districts, with seven districts taking a cautious approach to hiring due to weak demand. The probability of a rate cut in September by the Federal Reserve is 96.6%, while the probability of maintaining the current rate is 3.4%. U.S. stocks were mixed, with the NASDAQ Golden Dragon China Index closing down 0.19%

- The Federal Reserve's Beige Book indicates stable employment levels across most districts, with a 96.6% probability of a rate cut in September.  
- Minneapolis Fed President Kashkari noted potential for lowering short-term rates, while Atlanta Fed's Bostic supports a rate cut this year, contingent on inflation and employment conditions.  
- U.S. stock markets showed mixed results, with the Nasdaq China Golden Dragon Index down 0.19%, and various tech stocks experiencing fluctuations.

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Zhitong Hong Kong Stock Early Knowledge | The Federal Reserve's Beige Book shows that employment levels remain generally stable, with a 96.6% probability of a rate cut in September