Citi released a report indicating that U.S.-China trade tensions unexpectedly reignited last week, with both sides announcing significant new trade restrictions. Following China's announcement to tighten rare earth export controls, the Trump administration plans to impose a 100% new tariff on Chinese goods based on existing tariffs, effective November 1, while also implementing export controls on various critical software. The summit originally scheduled for the end of this month may also be canceled.

Citi stated that the renewed trade tensions may prompt investors to hedge by shifting towards domestically-focused stocks (semiconductors and software) and non-export-oriented companies, although Apple and the AI supply chain may not be affected due to their overseas production capabilities. Considering the numerous positive catalysts ahead, the pullback in the AI supply chain may provide a buying opportunity. Concept stocks include ASMPT (00522.HK), OmniVision Technologies (603501.SH), SG Micro (300661.SZ), JCET (600584.SH), KINGDEE INT'L (00268.HK), Q TECH (01478.HK), and Xiaomi-W (01810.HK)