[Market Dissection]
Yesterday, we managed to hold on under very difficult circumstances, but unexpectedly, today the market fell again. Both markets showed weakness, with the Hang Seng Index almost declining unilaterally, closing down 1.73%.
The U.S. stock market rebounded quite actively, and the Trump administration has a solid plan for market rescue. U.S. Treasury Secretary Janet Yellen also came out to reassure the market, stating on Monday that the situation between China and the U.S. has significantly eased. Both sides communicated extensively over the weekend and are expected to hold more talks. More importantly, on October 13, OpenAI and Broadcom announced a strategic partnership to jointly launch customized chips with a total capacity of 10GW (gigawatts). OpenAI will be responsible for chip design, while Broadcom will begin chip development and deployment in the second half of 2026. OpenAI has continuously announced major collaborations, signing agreements worth approximately $1 trillion with giants like Oracle, NVIDIA, and AMD, covering key areas such as computing power and cloud services. This series of arrangements is expected to provide OpenAI with over 30GW of computing power support in the next decade.
It must be said that American companies are excelling in the AI sector, directly forming a &#34;closed loop&#34; of the AI ecosystem. Since it cannot be falsified for the time being, this bubble can continue to inflate, and the capital market is buying into this narrative, leading to a collective celebration among tech stocks, with Taiwan Semiconductor surprisingly rising nearly 8%. On the Hong Kong stock market, the beneficiaries include InnoCare Pharma (02577), which rose nearly 5% today, and KB LAMINATES (01888), which rose nearly 3%. Overall, the U.S. stock market seems to have completely sidelined the rare earth sanctions, probably believing they are unlikely to happen. It seems that the U.S. thinks that canceling the tariffs it randomly imposed can offset the sanctions.
In contrast, Chinese technology chip stocks faced significant declines today. This is likely influenced by Wingtech (600745.SH), as the Dutch government announced on October 12 that it had implemented an administrative directive against Nexperia, citing concerns that Nexperia might transfer technology to its Chinese parent company, Wingtech. Seeing that the situation has escalated, a spokesperson for the Dutch Ministry of Economic Affairs stated that the U.S. was not involved in the Netherlands' decision regarding Nexperia, and that the timing of this incident coinciding with the escalation of U.S.-China trade conflicts is &#34;purely coincidental.&#34; Media reports indicate that the Dutch government's statement did not specifically explain why it believed the company's operations posed a risk, and the article hinted that this action was related to the U.S. Department of Commerce tightening restrictions on China in September. Another media outlet bluntly stated that the Dutch government's move would exacerbate tensions between the West and China in the high-tech sector, with multiple media warning that this extraordinary action would further worsen Sino-European relations. Clearly, this action by the Netherlands is in line with the backdrop of the U.S. crackdown, aiming to seize assets and leverage ASML's advantages to carve out a share of the AI feast, aspiring to become the leader in European AI.
Let's look at a positive example. According to reports on the 11th, Serbian President Aleksandar Vučić revealed in an interview that the U.S. had requested him to nationalize the Serbian Oil Industry to evade sanctions. &#34;I told them, 'This is unacceptable to me,'&#34; Vučić stated at the time, &#34;We do not like to seize others' funds and property.&#34;
&#34;This is the gap. The Western jungle law has seeped into the marrow over hundreds of years, and the survival of the fittest has become a given. However, as time changes, being intoxicated by the era of strongmen a hundred years ago will only pay a heavy price. There are many Dutch companies in China, ASML goes without saying, in 2024, ASML's revenue from mainland China soared to €10.195 billion, accounting for 36.1%. According to news from August 2025, ASML's market value has exceeded $400 billion, surpassing half of the Netherlands' annual GDP. Others include Shell, Unilever, Philips, Heineken Group, etc., waiting to observe the follow-up countermeasures. To deal with this, it must be done in a way they can understand.
This incident has led investors to have concerns about the chip industry, with Hua Hong Semiconductor (01347) dropping over 13%, Shanghai Fudan (01385) dropping over 9%, and SMIC (00981) dropping over 8%. Whether it can be quickly repaired depends on whether the New Kai will release significant news at the 2025 Bay Area Semiconductor Industry Ecosystem Expo to be held from October 15 to 17, which will greatly influence the sentiment for domestic substitution.
Countermeasures are still ongoing. In response to the U.S. maritime, logistics, and shipbuilding industry 301 investigation measures against China, with the approval of the National Coordination Mechanism for Foreign Sanctions Work, the Ministry of Commerce announced countermeasures against five U.S. subsidiaries of Hanwha Ocean Co., Ltd., prohibiting organizations and individuals within China from engaging in related transactions and cooperation activities with them, effective today (14th). The Baltic Dry Index surged over 10%, China COSCO Shipping Holdings (01919) plans to repurchase up to 100 million A shares, simultaneously implementing H-share repurchase, rising over 4% today. Orient Overseas (00316) also showed stable performance. China Shipbuilding Defense (00317) in shipbuilding also had unusual movements. As technology weakens, funds are once again moving towards safe havens; gold stocks should have performed well. However, due to the easing of the conflict in Gaza, they weakened, and Trump arrived at the Israeli parliament in Jerusalem. At the summit, leaders of the four mediating countries—Egypt, the U.S., Qatar, and Turkey—signed the &#34;Comprehensive Document of the Gaza Ceasefire Agreement.&#34; Before his speech in parliament, Trump told the media, &#34;The Gaza war is over, and Hamas will disarm.&#34; The rhythm of gold stocks is difficult to grasp because the pricing power is overseas. Metal stocks collectively adjusted as well.
Therefore, funds have flowed back into dividend stocks. Bank stocks have adjusted sufficiently, and with stable performance, they were favored today, mainly small banks, such as Chongqing Rural Commercial Bank (03618) rising over 6%; Chongqing Bank (01963), China Merchants Bank (03968), and Everbright Bank (06818) all rose over 3%. Others include public utilities like highways, such as Anhui Wantuo (00995) and Jiangsu Ninghu (00177), both rising by 3%.
On September 17, China Mobile Hong Kong Company Limited officially completed the acquisition of a controlling stake in Hong Kong Broadband for HKD 5.9 billion. After the transaction, Hong Kong Broadband will become an indirect subsidiary of China Mobile, with a total acquisition of 78.08% of Hong Kong Broadband's shares, involving a transaction scale of approximately, but its existing business structure, employee team, and fixed assets will remain unchanged
Hong Kong Broadband (01310) rose over 12%, while Limited Broadband (01097) rose over 14%.
Famous investor Duan Yongping voiced on social media, &#34;I bought some Moutai today,&#34; sparking market discussions. He believes Moutai has a unique brand barrier and significant long-term value. Duan Yongping's views have a certain influence on the market, especially since the current timing is quite good, coinciding with a lack of hot topics. The aromatic liquor Zhenjiu Lidu (06979) was consequently speculated, rising over 5% today, while other consumer stocks like Bruker (00325) also rose nearly 4%.
Today, there are rumors that important policies regarding photovoltaics are expected to be released, with new developments in the industry's anti-involution. Additionally, it is understood that relevant authorities may issue a notification document on strengthening photovoltaic capacity regulation. The Photovoltaic Association clarified the rumor of a &#34;three-day meeting&#34;: it is a monthly meeting of the association. Photovoltaics are currently one of the few varieties still at the bottom and are sensitive to positive news, with Flat Glass (06865) and Xinyi Solar (00968) showing unusual movements.
【Sector Focus】
The Shanghai Municipal Economic and Information Commission recently issued the &#34;Action Plan for the High-Quality Development of the Intelligent Terminal Industry in Shanghai (2026-2027),&#34; strengthening the capabilities of robotic terminals. It aims to create humanoid robot products that can listen, communicate, possess emotional intelligence, intelligence, and skills, supporting the research and development and mass production of humanoid robot products, and promoting the industrialization breakthroughs of core components such as edge-side chips, dexterous hands, and batteries. It also aims to promote the collaboration of industrial robots and focus on weak links in key components and high-end complete machines to fill the gaps in the industrial chain. The plan accelerates the penetration of robotic terminal products into the consumer market, creating consumer-grade robot products such as companion robots and household robots.
Ministry of Foreign Affairs Lin Jian: The &#34;2025 World Robotics Report&#34; released by the International Federation of Robotics previously indicated that by 2024, the stock of industrial robots in China will exceed 2 million units, ranking first in the world. At the same time, we also see that Chinese robots are showing broad application prospects in the fields of automotive, electronics, metal machinery, household services, and medical education, gradually moving from laboratories to factory production lines and households around the world.
Main varieties in Hong Kong stocks: UBTECH (09880), Sanhua Intelligent Control (02050), MicroPort (02252), and Yuejiang Technology (02432).
【Stock Picking】
Weichai Power (02338): Traditional core business under pressure, emerging business growing rapidly.
In 2025, Weichai Power reported a mid-term performance with revenue of 113.152 billion yuan and a net profit attributable to shareholders of 5.643 billion yuan. Despite the adverse situation of declining sales of traditional heavy-duty truck engines, the company's revenue slightly increased by 0.59% year-on-year, but net profit decreased by 4.4% year-on-year.
Comment: The company's net profit is under short-term pressure. Weichai Power is at a critical stage of strategic transformation. The 1.51 billion yuan severance benefits due to layoffs at its subsidiary KION have dragged down short-term profits. In the first half of 2025, the company sold 362,000 engines, a year-on-year decrease of 9.5%. Among them, sales of traditional core heavy-duty truck engines were 125,000 units, a year-on-year decrease of 22.4%. Weichai Power's market share in the natural gas heavy-duty truck engine sector has dropped from over 70% to 51.85%
In stark contrast to traditional businesses is the rapid growth of emerging businesses. In the first half of 2025, the company's M series large-bore engines achieved cumulative sales of over 5,000 units, a year-on-year increase of 41%; sales of engine products for data centers reached nearly 600 units, a year-on-year increase of 491%. The new energy business is equally impressive, with power battery sales of 2.3 GWh, a year-on-year increase of 91%; sales of new energy vehicles exceeded 10,000 units, a year-on-year increase of 255%.
Technological breakthrough: Diverse mining power solutions unveiled. The company's newly launched 12M25 diesel engine has a maximum power of 1,224 Ps and a maximum torque of 5,116 N·m, suitable for large equipment such as 90-100 ton mechanical drive mining trucks and 165-ton excavators. Weichai Power's M series large-bore mining product line now covers a power range of 522 kW to 2,800 kW, meeting the needs of various large mining equipment. The company's overseas market expansion has shown significant results, with sales in markets such as Guinea, Saudi Arabia, and Algeria doubling year-on-year. In terms of new energy transformation, Weichai Power has a balanced layout, with substantial investments in new energy, natural gas, and traditional diesel power sectors. The company's layout in the new energy field is expected to continue driving growth

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In a challenging market environment, the Hang Seng Index closed down 1.73%. U.S. stocks rebounded positively as the Trump administration took measures to soothe the market. OpenAI reached a strategic cooperation with Broadcom, expecting to gain over 30GW of computing power support in the next decade. U.S. tech stocks performed strongly, with Taiwan Semiconductor rising nearly 8%. Hong Kong stocks saw InnoCare rise nearly 5% and KB LAMINATES rise nearly 3%. However, Wingtech was affected by concerns over technology transfer from the Dutch government, leading to a decline in tech chip stocks

- The markets faced challenges, with the Hang Seng Index dropping 1.73%, while U.S. stocks rebounded due to government interventions and easing tensions between China and the U.S.  
- OpenAI and Broadcom announced a strategic partnership to develop custom chips, expected to enhance OpenAI's capabilities significantly.  
- Meanwhile, Dutch government actions against semiconductor firms have raised concerns in the Chinese tech sector, leading to significant stock declines in related companies.

Zhitong Hong Kong Stock Analysis | Wingtech's event impacts sentiment, technology still looks at new KaiLai