Zhitong Hong Kong Stock Exchange Unravels | The situation is favorable, the strengthening exchange rate boosts the full bloom of the market, and medicine is worth lurking

[Anatomy Dashboard]

The current stock market is in a bit of a downward trend. Yesterday, US stocks began to rise weakly, and the domestic stock market is starting to strengthen today. Hong Kong stocks fluctuated strongly and rose 1.84% after the shorting today. More than half of the lost ground has been recovered.

The various countermeasures we have intensively launched over the past two days have caused the Trump administration a great headache. All kinds of shouting to appease the market have stabilized for a while, but that doesn't mean the matter has been solved. The Federal Reserve is very clear. It knows the seriousness of the problem, and it has to come out and take a strong shot. Powell said on Tuesday that policymakers will “meet one by one” to decide whether to cut interest rates further, and that the Federal Reserve may be close to ending the quantitative austerity policy. The meaning is very clear. To end the downsizing is to start QE. The decision by meeting is actually to decide whether to cut interest rates based on the current situation; there won't be that much consideration. It's almost certain that interest rates will be cut every time later. Even so, US stocks haven't improved much.

Because now the focus of the conflict has become sanctions and countersanctions. In the case of rare earth countermeasures, not only the US, but the European Union is also facing this problem. According to a report by the European edition of “Politician News Network” on the 14th, the EU joined the Group of Seven (G7), hoping to jointly deal with this new Chinese regulation. Take a look at Trump's latest tweet, saying he is considering ending some trade deals with China, including cooking oil. If you don't buy cooking oil, it really feels like Qiandao is poor at skills. America has run out of options, let alone Europe; this is not a problem that can be solved by too many people.

Also, the countermeasure against shipping charges is also having a big impact. According to a report by Yonhap News Agency on the evening of October 14, the South Korean president's office said on the same day that the South Korean government has already initiated economic and trade communication channels with China, hoping to minimize the losses that South Korean companies will suffer. If you don't knock, you won't be honest. Next, let's see how Europe, South Korea, and Japan respond. The situation is favorable to us; this is the motivation for today's rebound. Under the catalyst of performance, insurance stocks became the main driving force in the market, such as Xinhua Insurance (01336) and China Taiping (00966), which rose more than 8%.

The Financial Times quoted the head of the central bank's monetary policy department as saying that medium- to long-term exchange rate stability has a solid foundation, which will strengthen the guidance of expectations and prevent the risk of exchange rate overadjustments. This morning, the central price of RMB rose to over 7.10 yuan, for the first time since November last year. The central price of RMB against the US dollar was 7.0995, an increase of 26 points; the offshore RMB rose in a straight line. A stronger exchange rate favors aviation. Furthermore, in October 2025, international oil prices continued to fall. WTI crude oil futures prices fell from $72 per barrel in September to around 58 US dollars/barrel, a drop of more than 19%. Stimulated by dual benefits, China Eastern Airlines (00670), China Southern Airlines (01055), and Air China (00753) all increased by more than 7%.

Speaking about the “Wanxin Exhibition” yesterday, although Xinkailai did not directly release news about the lithography machine, there was also a surprise. The subsidiary Qiyunfang released two domestic electronic engineering EDA (schematic and PCB) design software with completely independent intellectual property rights. Additionally, its subsidiary Wanli has released an ultra-high speed oscilloscope. The former has broken through the blockade of foreign software and is completely autonomous and controllable; the latter is also very powerful. Oscilloscopes are an indispensable tool in the development of technology-intensive industries such as electronic information, semiconductors, and integrated circuits. This technology can be used to support R&D in 3nm and 5nm advanced manufacturing processes. These two products are of great significance for domestic chip design and improving chip yield. Today, Huahong Semiconductor (01347) and SMIC (00981) increased by more than 5% and nearly 4% respectively; Jiantao Laminated Board (01888): Qiyunfang's PCB design software increased the automatic wiring efficiency by 4 times compared to traditional tools when processing 128-layer high-speed server PCBs, which will directly drive the demand for high-end products of Jiantao laminates. It also rose more than 6%.

A few days ago, I mentioned mutual investment cooperation between American giants, and the domestic market is beginning to follow suit. Shangtang (00020) signed a strategic cooperation with Cambrian (688256.SH). The two sides will focus on promoting the deep adaptation of the latest Cambrian cloud inference chip (such as MLU370-X8) and Shangtang's “Japan-Japan” big model to jointly create a full-stack service plan for the computing power market. After the news was announced, Shangtang rose more than 5%, and Cambrian A shares rose nearly 4%. We look forward to more giants cooperating in the future, which can improve valuations.

On October 14, JD (09618) announced the launch of a new energy model with GAC Group (02238) and Ningde Times (03750). This cooperation model has pioneered a full-chain collaborative innovation paradigm of “e-commerce platform+traditional car company+battery giant”. According to the plan, the new car will be sold exclusively during the JD Double 11 period. GAC will be responsible for vehicle R&D and manufacturing, Ningde Era will provide battery and power exchange support, and JD will integrate online and offline channel resources. This cooperation directly hits market pain points: the new car is positioned to be friendly to the public, has a battery life of 400-500 kilometers and supports overcharging. In line with the trend of consumption upgrading, it is expected to quickly seize 150,000 to 250,000 yuan of mainstream market share. GAC Group (02238) rose more than 11%. It looks really good; the key depends on whether it can produce a best-selling model.

Yesterday's section focused on robots. There are rumors in the market today that Tesla has placed an order worth 685 million US dollars for Optimus linear actuators from Chinese supplier Sanhua Intelligent Control. In response, a staff member of the securities department of Sanhua Intelligent Control said that the company has noticed the rumor and is urgently verifying it within the company. If the news is untrue, the rumor will be refuted through official channels. Currently, the cooperation with Tesla is progressing smoothly, but details cannot be disclosed due to a confidentiality agreement. Stock prices skyrocketed, Sanhua Intelligent Control (02050) surged more than 11%, and the minimally invasive robot-B (02252) mentioned also rose more than 8%.

The issuance of the 1.3 trillion yuan ultra-long-term special treasury bond scheduled for the 2025 budget was completed on October 14, and the capital was focused on the infrastructure sector. The policy directly boosts market expectations for demand for building materials such as cement and steel. China Building Materials (03323) and Conch Cement (00914) rose more than 7%, while construction machinery Sany International (00631) and Zhonglian Heavy Industries (01157) all rose more than 5%. Steel stocks as a whole also showed strong performance, because China has a high degree of autonomy in iron ore purchases, and BHP Billiton has also begun to compromise. We invest in iron ore in Africa almost need to be produced. Iron ore prices will finally not have to be expensive, and the profit margin of steel stocks will increase markedly. Angang Steel (00347) and Maanshan Steel Iron (00323) both rose more than 7%.

There is also quite a bit of stimulus news in consumer stocks. On October 14, a 5.9 yuan glass of beer from the Mixue Group (02097) hit the Weibo Hot List. During the National Day, Michelle Ice City announced the acquisition of 53% of Fresh Beer's shares at a total price of 297 million yuan. Michelle Group (02097) rose more than 6%, driving Gu Ming (01364) to rise by nearly 7%; when Xiaomian's Hong Kong stock listing application was filed by the China Securities Regulatory Commission, individual catering stocks also showed positive results, such as Guoxuan (02517), which rose nearly 12%. Haidilao (06862) rose more than 5%.

[Section Focus]

The 2025 European Society of Medical Oncology (ESMO) Annual Meeting is scheduled to be held from October 17 to October 21 in Berlin, Germany. As the top event in the field of oncology in the world, the conference is expected to bring together a number of major clinical research results, and the major oral reports (LBA) of innovative domestic pharmaceutical companies will be the focus of market attention. Money has already begun to lurk early.

Related varieties: 1. Colombotai (06990): ROP2ADC lucansastuzumab (Cathailai®) was selected for the LBA oral report in two phase III clinical studies, one of which was a major presidential symposium (PresidentialSymposium) oral report.

2. Fu Hong Han Lin (02696): The final analysis results of the Phase III study (ASTRUM-002) on first-line treatment of non-squamous NSCLC with anti-PD-1 monoclonal antibody (sululimab) combined with chemotherapy were selected for the ESMOLBA oral report.

3. Kang Fang Biology (09926): PD-1/VEGF dual antibody evossi (AK112) was selected for the LBA oral report for a registered phase III study (Harmoni-6) on first-line treatment of advanced squamous non-small cell lung cancer (SQ-nsCLC) with tirizumab combined with chemotherapy.

4. Rongchang Biotech (09995) was selected for the LBA oral report for the RC48-C016 phase III clinical study of first-line treatment of urothelial cancer with viducitumab combined with treprilizumab.

[Individual Stock Mining]

Geely Auto (00175): Profits are expected to continue to grow and sales reach record highs

Geely Holding Group sold 2,953,452 vehicles in the first three quarters of 2025, up 29% year on year; sales of new energy vehicles were 1,590,866 units, up 68% year on year, and the penetration rate of new energy was 54%. The total sales volume and new energy sales reached record highs. Among them, sales in the third quarter were 1,020,913 vehicles, up 28% year on year; sales of new energy vehicles were 588,110 units, up 59% year on year, and the penetration rate of new energy was 58%.

Comment: Geely Holding Group's quarterly sales volume exceeded one million vehicles for the first time. The penetration rate of new energy sources continued to rise, and the electrification transformation maintained a strong momentum. The company entered 2025, and the momentum is even stronger. In the first half of this year, Geely Automobile's revenue was 15.3 billion yuan, a year-on-year increase of 27%, a record high for the same period; the company's core net profit to mother was about 6.66 billion yuan, an increase of 102% over the previous year. The company's overall revenue and net profit to mother are expected to continue to grow. Geely raised its annual sales target by about 11%, from 2.71 million units to 3 million units. From January to September 2025, Geely sold 2.17 million vehicles, an increase of 46% over the previous year. Among them, sales of new energy were 1.168,000 units, including 794,000 pure electric units and 374,000 plug-in hybrid vehicles, up 141% and 73%, respectively. By brand, the Geely brand sold 1.785 million units, up 55% year on year, the Lynk & Co brand 241,000 units, up 23% year on year, and the Extreme Krypton brand sold 144,000 units, up 1% year on year. Overseas exports amounted to 296,000 vehicles, a year-on-year decline of 7%. Krypton's older 001 and 009 models equipped with lidar will launch a crowdfunding program for the “Thousand Mile H7” assisted driving upgrade next month. Recently, Geely Auto plans to spend up to HK$2.3 billion on its share repurchase plan. If successfully implemented, it will consolidate the market for Geely Automobile to successfully cross the industry cycle. As the company enters a new stage of strategic transformation, the new car cycle of brands such as Galaxy, Extreme Krypton, and Lynk & Co is strong, and sales are expected to continue to grow rapidly.