【Today's Headlines】
Shenzhen: Connecting Hong Kong's Capital Market to Facilitate Domestic and Foreign M&amp;A Resources
The Shenzhen Municipal Bureau of Local Financial Supervision, Shenzhen Development and Reform Commission, Shenzhen Science and Technology Innovation Bureau, Shenzhen Industry and Information Technology Bureau, Shenzhen Municipal Bureau of Commerce, and the State-owned Assets Supervision and Administration Commission of the Shenzhen Municipal People's Government issued the &#34;Action Plan for Promoting High-Quality Development of Mergers and Acquisitions in Shenzhen (2025-2027).&#34; It proposes that by the end of 2027, the quality of listed companies in the jurisdiction will be comprehensively improved, with the total market value of domestic and foreign listed companies exceeding 20 trillion yuan, and the cultivation of 20 enterprises with a market value of over 100 billion yuan. The M&amp;A market will see both quantity and quality improvements, with over 200 completed M&amp;A projects and a total transaction amount exceeding 100 billion yuan, along with a number of industry demonstration cases. Efforts will be accelerated to create a matrix of M&amp;A funds, cultivate and gather excellent M&amp;A fund managers, and drive the formation of a trillion-level &#34;20+8&#34; industrial fund group, promoting collaborative mergers and acquisitions in key industrial chains and building a complete industrial chain M&amp;A ecosystem.
It is proposed to connect Hong Kong's capital market to facilitate domestic and foreign M&amp;A resources. Support will be given to qualified industry-leading enterprises to list or refinance in Hong Kong, enhancing the efficiency of cross-regional M&amp;A implementation and broadening the scope of resource integration. Innovative use of tools such as cross-border asset transfers, cross-border bilateral equity investments, and cross-border syndicated loans will be promoted to facilitate orderly bilateral M&amp;A integration between domestic and foreign enterprises, with support for enterprises acquiring assets through cross-border share swaps. Guidance will be provided for Shenzhen-Hong Kong cooperation to establish equity investment funds for industrial M&amp;A projects. Support will be given to strengthen cooperation between the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, exploring the interconnection of M&amp;A and financing mechanisms for stocks and bonds, enriching M&amp;A financing tools, enhancing payment flexibility, and striving to promote innovative M&amp;A cases. Support will also be provided for local securities companies to collaborate with overseas branches to assist Chinese enterprises in cross-regional layout through investment and financing, financial advisory, and cross-border M&amp;A professional services.
【Market Outlook】
Nasdaq Falls Nearly 1%, Netflix Drops Over 10%
Overnight, U.S. stocks closed with the Dow Jones Industrial Average down 334.33 points, a decrease of 0.71%, closing at 46,590.41 points; the Nasdaq fell 213.27 points, a decrease of 0.93%, closing at 22,740.40 points; the S&amp;P 500 index fell 35.92 points, a decrease of 0.53%, closing at 6,699.43 points. Apple (AAPL.US) fell over 1%, AMD (AMD.US) dropped 3.2%, and Google A (GOOGL.US) rose 0.4%. The Nasdaq Golden Dragon China Index closed down 0.92%. In individual stocks, Netflix's third-quarter operating profit margin fell short of expectations, with its stock price dropping over 10%, marking the largest single-day decline since April 2020. Tesla announced its earnings after the market closed, with revenue exceeding expectations but profits under pressure, leading to a stock price drop of over 4% at one point after hours. The Hang Seng Index ADR fell, closing at 25,776.19 points, down 5.58 or 0.02% compared to the Hong Kong close.
【Hot Topics Ahead】
Hong Kong Securities and Futures Commission Proposes to Optimize Retail Fund Code to Enhance Global Competitiveness
According to Zhitong Finance APP, on October 22, the Hong Kong Securities and Futures Commission launched a three-month consultation on proposed amendments to the &#34;Code on Unit Trusts and Mutual Funds&#34; (the &#34;Unit Trust Code&#34;). The proposals aim to align the regulatory framework recognized by the Hong Kong Securities and Futures Commission with the latest international regulatory standards and expand the product choices available to investors
It is reported that among the financial products approved by the Hong Kong Securities and Futures Commission for public offering in Hong Kong, unit trusts and mutual funds account for the majority. As of June 30, 2025, there are a total of 2,424 funds approved by the Hong Kong Securities and Futures Commission, accounting for 80% of all collective investment schemes approved by the Commission.
Total U.S. National Debt Exceeds $38 Trillion for the First Time
On October 22, local time, the U.S. Department of the Treasury released the latest data showing that as of October 21, the total federal government debt of the United States has exceeded $38 trillion for the first time. This comes just over two months after the total federal government debt reached $37 trillion in mid-August.
Tesla's Q3 Net Profit Drops 29%, Below Expectations
On October 23, Tesla announced its Q3 2025 financial report. Tesla's Q3 revenue was $28.1 billion, a year-on-year increase of 12%, compared to an estimate of $26.36 billion; the adjusted net profit for Q3 was $1.77 billion, a year-on-year decrease of 29%, following a 23% year-on-year decline in Q2; Q3 earnings per share were $0.39, down from $0.62 in the same period last year; adjusted earnings per share for Q3 were $0.50, down from $0.72 in the same period last year, compared to an estimate of $0.54; Q3 gross margin was 18%, compared to an estimate of 17.2%; Q3 free cash flow was $3.99 billion, compared to an estimate of $1.25 billion.
IDC: China's AI Infrastructure Market Experiences Explosive Growth, Alibaba Cloud Holds First Place in Market Share
International data agency IDC recently released its latest report &#34;China Intelligent Computing Cloud Infrastructure Market Tracking,&#34; showing that in the first half of 2025, China's AI infrastructure service market grew by 122.4% year-on-year, reaching 19.87 billion yuan. Among them, Alibaba Cloud accounted for 24.7%, maintaining the first position, and ranked first in both the GenAI IaaS and Other AI IaaS sub-markets. AI IaaS refers to AI infrastructure with AI-specific chips such as GPUs as the core computing power. In recent years, driven by the wave of generative AI and large models, the AI IaaS market has experienced explosive growth. IDC predicts that by 2029, the overall market size of AI infrastructure will approach 150 billion yuan. This involves Hong Kong stock Alibaba-W (09988).
Vanke Acquires Three Residential Land Parcels in Chengdu and Xuzhou in One Day, At Least &#34;Restocking&#34; in Nine Cities This Half-Year
On October 22, Vanke won three residential land parcels in Chengdu and Xuzhou, with two parcels in Chengdu's Pidu District sold at a base price of 316 million yuan, and one parcel in Xuzhou acquired at a base price of 213.25 million yuan. According to incomplete statistics, since the second half of this year, Vanke has &#34;restocked&#34; in at least nine cities. This includes public land acquisitions in Shijiazhuang, Dalian, Harbin, Yinchuan, Suzhou, Taiyuan, Xuzhou, Chengdu, and others, with a total land price of approximately 3.3 billion yuan; at the same time, on August 26 of this year, Vanke collaborated with Sanya Urban Investment Construction Group Co., Ltd., and its subsidiary Hainan Wanjingxi Real Estate Development Co., Ltd. obtained 90% equity of Sanya Luming Jiayuan Development and Construction Co., Ltd. through equity transfer, leading the development of the C-03 and D-09-02 parcels in the Linchun area of downtown Sanya, with a total price of approximately 1.2455 billion yuan
Cathay Pacific Airways (00293) September passenger volume increased by 21% year-on-year
According to Zhitong Finance APP, Cathay Pacific Airways (00293) announced that its passenger volume in September 2025 increased by 21% compared to the same month in 2024. Available seat kilometers increased by 20% year-on-year. In the first nine months of 2025, passenger volume increased by 27% compared to the same period in 2024.
Tao Bo (06110) announces interim results, profit attributable to equity holders of the company approximately HKD 789 million, down 9.69% year-on-year
According to Zhitong Finance APP, Tao Bo (06110) announced its interim results for the six months ended August 31, 2025, with revenue of approximately HKD 12.2986 billion, a year-on-year decrease of 5.79%; profit attributable to equity holders of the company was approximately HKD 789 million, a year-on-year decrease of 9.69%; earnings per share were 12.72 cents.
China Unicom (00762) plans to spin off Zhinet Technology for listing on the Shenzhen Stock Exchange's Growth Enterprise Market
According to Zhitong Finance APP, China Unicom (00762) announced that considering the current market conditions (including others), the company plans to spin off Zhinet Technology for listing on the Growth Enterprise Market of the Shenzhen Stock Exchange (this spin-off listing). If the company proceeds with this spin-off listing, it will constitute a spin-off under the Hong Kong Stock Exchange Limited's Securities Listing Rules (Listing Rules) Guidance Note 15.
SENY International (00732) plans to acquire approximately 11.43% equity of SENY Renshou through public bidding
According to Zhitong Finance APP, SENY International (00732) announced that on October 22, 2025, the board of directors decided to submit a bid through the property rights exchange to acquire approximately 11.43% equity of Renshou Investment held by Renshou. The company recommends that the total bid price submitted by SENY Optoelectronics does not exceed RMB 1.05 billion.
China Unicom (00762) releases third-quarter results, profit attributable to shareholders of RMB 20 billion, up 5.1% year-on-year
According to Zhitong Finance APP, China Unicom (00762) released its results for the first three quarters of 2025, with the group achieving operating revenue of RMB 292.985 billion (same unit), a year-on-year increase of 1%; service revenue of RMB 261.6 billion, a year-on-year increase of 1.1%; profit attributable to equity holders of the company was RMB 20 billion, a year-on-year increase of 5.1%.
Shanxi Installation (02520) plans to establish a joint venture with Shanxi Sanjian and Huaneng Power for the Shanxi Qingshui Pumped Storage Power Station project
According to Zhitong Finance APP, Shanxi Installation (02520) announced that on October 22, 2025, Shanxi Sanjian, Huaneng Power, and the company signed a cooperation agreement to establish a joint venture, in which Shanxi Sanjian, Huaneng Power, and the company will contribute RMB 65 million, RMB 25 million, and RMB 10 million respectively, accounting for 65%, 25%, and 10% of the registered capital of the joint venture. The joint venture will be established as the project company for the Shanxi Qingshui Pumped Storage Power Station project
[Stock Highlights]
Junshi Biosciences (01877) Subsidiary Passes FDA On-Site Inspection
According to Zhitong Finance APP, Junshi Biosciences (01877) announced that its wholly-owned subsidiary Suzhou Zhonghe Biopharmaceutical Technology Co., Ltd. (hereinafter referred to as &#34;Suzhou Zhonghe&#34;) underwent an unannounced inspection by the U.S. Food and Drug Administration (hereinafter referred to as &#34;FDA&#34;) from June 16, 2025, to June 24, 2025, for CGMP (Current Good Manufacturing Practice). Recently, Suzhou Zhonghe received the Establishment Inspection Report (EIR) issued by the FDA, indicating that Suzhou Zhonghe has passed this CGMP on-site inspection.
As of the announcement date, the Suzhou Wujiang production base has a fermentation capacity of 4,500 liters and has obtained GMP certification from multiple countries and regions, primarily responsible for the overseas market supply of Toripalimab. Passing the FDA inspection provides assurance for the company's expansion into the U.S. market and will have a positive impact on the company's production and operations

TSLA

The Shenzhen Municipal Government has released the "Shenzhen Action Plan for Promoting High-Quality Development of Mergers and Acquisitions (2025-2027)", aimed at improving the quality of listed companies in the region, promoting the integration of domestic and foreign merger resources, and striving to exceed a total market value of 20 trillion yuan for listed companies by the end of 2027. Tesla's third-quarter financial report shows revenue of $28.1 billion, a year-on-year increase of 12%, but a net profit of $1.77 billion, a year-on-year decrease of 29%

- Shenzhen's government has launched an action plan to enhance the quality of mergers and acquisitions (M&A) from 2025 to 2027, aiming for a total market value of over 20 trillion yuan for listed companies.  
- The plan includes connecting with Hong Kong's capital market to facilitate cross-border M&A and support leading enterprises in listing or refinancing in Hong Kong.  
- Additionally, it seeks to establish a robust ecosystem for M&A, with over 200 completed projects and a total transaction value exceeding 100 billion yuan by 2027.

Zhitong

Tesla

Zhitong Hong Kong Stock Early Knowledge | Shenzhen: Unicom connects Hong Kong capital market to facilitate domestic and foreign merger and acquisition resources. Tesla's net profit in the third quarter dropped by 29%, falling short of expectations