Review of Key News During the National Day and Mid-Autumn Festival Holiday, and Outlook for Important Data and Major Events This Week

During the National Day and Mid-Autumn Festival holiday, domestic and international news kept emerging!

Internationally: The US government shut down for the first time in nearly seven years, leading to the suspension or delay of some public services and affecting the release of economic data such as non-farm payrolls data. Its ripple effects on the global economy and financial markets have drawn significant attention. Meanwhile, gold prices repeatedly hit record highs, driven by concerns over the US government shutdown and political risks in countries like France and Japan. Rising safe-haven demand pushed gold prices above the $4,000 mark. Additionally, Trump announced the imposition of additional import tariffs on medium and heavy-duty trucks starting November 1. Indonesia shortened the validity period of mining quotas to one year, and Chile's copper production fell 9.9% in August, the largest decline in over two years, all of which impacted the relevant industrial landscapes.

Domestically: Scenic spots, box office revenues, and air travel all peaked during the "Golden Week." The central bank continued to increase its gold holdings for the 11th consecutive month. The central bank announced that it would conduct 1,100 billion yuan in outright reverse repo operations on the first working day after the holiday to "replenish liquidity" and support the market during the first week after the holiday. The National Development and Reform Commission (NDRC), together with the Ministry of Finance, allocated 69 billion yuan in ultra-long-term special treasury bonds to local governments to support consumer goods trade-in programs. Wu Qing emphasized the need for high-quality planning and implementation of the "16th Five-Year Plan" capital market-related work.

Additionally, SMM summarized other major events that occurred during the dual holiday and key data scheduled for release this week for your reference!

※ Holiday News Recap

On the Macro Front

[Qiushi Journal Publishes Important Article by General Secretary Xi Jinping, "The Formation and Development of the Chinese National Community Is the Will of the People, the Trend of the Times, and a Historical Inevitability"] The 19th issue of Qiushi Journal, published on October 1, featured an important article by Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the State, and Chairman of the Central Military Commission, titled "The Formation and Development of the Chinese National Community Is the Will of the People, the Trend of the Times, and a Historical Inevitability." This article is part of General Secretary Xi Jinping's speech delivered at the National Conference on Ethnic Unity and Progress on September 27, 2024. The article emphasizes that the Chinese nation is a great nation with a civilization history of over 5,000 years. China's various ethnic groups jointly developed the vast territory of the motherland, jointly built a unified multi-ethnic country, jointly wrote the glorious history of China, jointly created the splendid Chinese culture, and jointly cultivated the great national spirit.

[General Office of the State Council Issues "Notice on Implementing Domestic Product Standards and Related Policies in Government Procurement" ] The General Office of the State Council issued the "Notice on Implementing Domestic Product Standards and Related Policies in Government Procurement," which will take effect on January 1, 2026. The Notice aims to build a unified, open, and competitive government procurement market system, improve the government procurement regime, and ensure equal participation of various business entities in government procurement activities. The Notice specifies that the standard for domestic products in government procurement refers to products manufactured within China, with the cost of domestically produced components meeting the required proportion. For specific products, key components and critical processes must also be produced or completed domestically. This standard applies to goods involved in government procurement of goods and services projects. In government procurement activities, a 20% price evaluation preference is granted to domestic products over non-domestic products. Where international treaties or agreements concluded or jointly participated in by the People's Republic of China provide otherwise regarding domestic product policies in government procurement, such treaties or agreements shall prevail.

[Central Bank Announces 1,100 Billion Yuan in Outright Reverse Repo Operations to Bolster Post-Holiday Liquidity]The central bank announced that it will conduct 1,100 billion yuan in outright reverse repo operations on the first working day after the holiday. The concentrated maturity of large-scale cross-quarter injections may become a disturbance to post-holiday liquidity. The preliminary maturity scale for October 9-10 has already reached 1.95 trillion yuan. Data shows that 800 billion yuan in three-month outright reverse repos are set to mature in October. Thus, the central bank's 1,100 billion yuan outright reverse repo operation on October 9 implies a 300 billion yuan increase in the rollover of three-month outright reverse repos for October.

[NDRC Allocates This Year's Fourth Batch of 69 Billion Yuan in Ultra-Long-Term Special Treasury Bonds to Support Consumer Goods Trade-In Policy Funds]The National Development and Reform Commission (NDRC), together with the Ministry of Finance, has allocated the fourth batch of this year's 69 billion yuan in ultra-long-term special treasury bonds to local governments to support consumer goods trade-in policy funds. With this, the full annual 300 billion yuan in central funds has been allocated. Next, relevant departments will further guide local governments to reasonably manage the work pace, improve fund utilization plans, ensure balanced and orderly subsidy disbursement, strengthen quality and price supervision, crack down on fraudulent subsidy claims and other illegal activities, implement the consumer goods trade-in policy smoothly and orderly, and ensure subsidy funds are used effectively and deliver tangible results.

[CSRC Holds Symposiums with Listed Companies and Industry Institutions on the "16th Five-Year Plan" Capital Market Plan]The China Securities Regulatory Commission (CSRC) held symposiums with listed companies and industry institutions on the "16th Five-Year Plan" capital market plan. Wu Qing emphasized the importance of high-quality planning and implementation of the "16th Five-Year Plan" capital market plan. Using the reforms of the Sci-Tech Innovation Board and the ChiNext Board as key drivers, efforts will be made to further deepen comprehensive investment and financing reforms, comprehensively advance a new round of capital market reform and opening up, and continuously enhance the market's attractiveness, inclusiveness, and competitiveness.

[State Administration of Foreign Exchange: China's Foreign Exchange Reserves Stood at $3,338.7 Billion at End-September, Up 0.5%]According to statistics from the State Administration of Foreign Exchange, China's foreign exchange reserves stood at $3,338.7 billion at the end of September 2025, an increase of $16.5 billion, or 0.5%, from the end of August. In September 2025, influenced by macroeconomic data, monetary policies, and expectations of major economies, the US dollar index experienced minor fluctuations, while global financial asset prices generally rose. The combined effects of currency translation and asset price changes led to an increase in foreign exchange reserves during the month. China's economy maintained overall stability with steady progress, achieving new results in high-quality development, which is conducive to keeping the foreign exchange reserves basically stable.

[Ministry of Finance and Ministry of Commerce: Launch Work on Building an International Consumption Environment; International Consumption Center Cities to Receive a Total Subsidy of 200 Million Yuan per City]The Ministry of Finance and the Ministry of Commerce issued a notice on launching work to build an international consumption environment, stating that the central government will provide financial subsidies to pilot cities. During the implementation period, each International Consumption Center City will receive a total subsidy of 200 million yuan, while other cities will receive 100 million yuan per city. The subsidy funds will be allocated in two batches. Partial funds will be disbursed in the first year of the pilot launch, with the remaining funds allocated based on performance evaluation results. Pilot cities may, in accordance with market principles, provide support to eligible business entities through subsidies, rewards, and other methods as stipulated. The scope of application for pilot cities includes prefecture-level cities and above (including municipalities directly under the central government, cities separately listed in the state plan, provincial capitals or capital cities of autonomous regions, prefecture-level cities, autonomous prefectures, and leagues). Approximately 15 pilot cities will be supported, including eligible International Consumption Center Cities and other cities with strong consumption-driving effects, significant development potential, and a large number of international tourists. The policy implementation period is two years.

["Golden Week" Sees Peaks in Scenic Spots, Box Office, and Aviation; Shanghai-Listed Companies Release "Travel and Leisure" Data]① Tourist flows increased at scenic spots like Huangshan and Confucius Temple, with rich cultural activity experiences. ② The National Day box office surpassed 1.7 billion yuan, indicating sustained heat in the film market. ③ Carriers like China Eastern Airlines and Spring Airlines achieved record-high passenger volumes, with passenger numbers at multiple airports rising YoY. (Cailian Press)

[Yangtze River Delta Railways Expected to Carry 3.7 Million Passengers on October 8]According to China Railway Shanghai Group Co., Ltd., October 8, the last day of the National Day-Mid-Autumn Festival holiday, saw the peak of return passenger flow in the Yangtze River Delta region, with railways expected to carry 3.7 million passengers that day. On the basis of implementing the peak operation diagram, Shanghai Railway Group planned to add 456 passenger trains (including 131 direct trains and 325 intra-bureau trains) and organize 320 EMU trains to operate with double units. Additionally, 170 additional overnight high-speed rail services were added for popular intra-bureau routes (such as Fuyang and Bozhou to Shanghai and Hefei; Xuzhou and Lianyungang to Shanghai and Nanjing; Hefei and Bengbu to Shanghai; Wenzhou and Quzhou to Shanghai and Hangzhou) and direct routes (such as Nanchang, Fuzhou, Ganzhou, Zhengzhou, and Qingdao to/from Shanghai and Hangzhou), striving to meet passengers' travel needs. ((Cailianshe)

[National Day Holiday Sees Over 2.4 Billion Cross-Regional Trips, Hitting Record High]According to the Ministry of Transport, from October 1 to 8 (the Mid-Autumn Festival and National Day holiday), the total cross-regional passenger flow across society is estimated at 2.432 billion trips, with a daily average of 304 million trips, up 6.2% YoY.

[Cross-Regional Passenger Flow Exceeds 300 Million Trips on October 7]According to the Ministry of Transport, on October 7, 2025 (the 7th day of the Mid-Autumn Festival and National Day holiday), the cross-regional passenger flow across society reached 309.1699 million trips, up 3.7% MoM and 18.6% YoY.

[2025 National Day Holiday Film Box Office Surpasses 1.8 Billion Yuan]According to online platform data, as of 15:44 on October 8, the total box office (including presales) for films during the 2025 National Day holiday period exceeded 1.8 billion yuan. (Cailianshe)

[China Development Bank Has Disbursed 978.1 Billion Yuan in Special Loans for Urban Village Renovation Since the 14th Five-Year Plan]According to the China Development Bank, the bank has actively provided financial services for the "Three Major Projects." As of the end of August this year, since the 14th Five-Year Plan period, the bank has disbursed 4.8 billion yuan in loans for affordable housing, 978.1 billion yuan in special loans for urban village renovation, and 40.7 billion yuan in loans for the construction of public infrastructure for both normal and emergency use. It is reported that the affordable housing loans disbursed since the 14th Five-Year Plan period have supported 74 projects, helping to build and gather 62,000 units of affordable housing; the special loans for urban village renovation have supported 816 projects, helping to build and gather 1.769 million units of resettlement housing, benefiting 942,000 households in urban villages; and the loans for public infrastructure for both normal and emergency use have supported 180 projects.

[US Government Shutdown Causes Staff Shortages, Leading to Widespread Flight Delays in Multiple US Cities]According to CCTV News, on October 7 local time, due to a shortage of air traffic controllers caused by the US government shutdown, the US Federal Aviation Administration (FAA) issued a notice that evening stating that flights in major cities such as Chicago, Dallas, and Nashville were experiencing widespread delays. Data showed that all flights to Chicago O'Hare International Airport were delayed by an average of about 41 minutes; delays at Dallas/Fort Worth International Airport once reached 30 minutes; while the average delay at Nashville International Airport was as high as 126 minutes. The FAA stated that the delays were due to "staff shortages during the government shutdown," and related scheduling is gradually being restored.

[Probability of US Fed Cutting Interest Rates by 25 Basis Points in October Is 94.6%]According to CME's "FedWatch Tool," the probability of the US Fed keeping interest rates unchanged in October is 5.4%, while the probability of a 25-basis-point interest rate cut is 94.6%. The probability of the US Fed maintaining interest rates unchanged in December is 0.6%, the cumulative probability of a 25-basis-point interest rate cut is 16.0%, and the cumulative probability of a 50-basis-point cut is 83.4%.

[US Senate Fails to Pass Bipartisan Funding Bill, Government Shutdown Continues] On October 6 local time, the US Senate voted on a funding bill proposed by Democrats aimed at ending the government shutdown. The final vote was 45 in favor and 50 against, and the bill failed to pass. Subsequently, the US Senate voted on a temporary funding bill proposed by Republicans. The vote result still did not meet the threshold for passage, and the bill failed to pass. With the bills rejected, the US government shutdown will continue. (CCTV News)

[White House Official: Government Shutdown Costs US Economy About $15 Billion per Week] According to CCTV News, on October 6 local time, CCTV reporters learned that Kevin Hassett, Director of the US White House National Economic Council, stated that the government shutdown is reducing US economic output at a rate of approximately $15 billion per week. Hassett, citing an internal White House report during a media interview, said the shutdown would reduce US Gross Domestic Product (GDP) by about 0.1 percentage points per week. If it lasts for a month, it would lead to approximately 43,000 additional job losses and reduce consumer spending by $30 billion. The Congressional Budget Office previously estimated that the last government shutdown during Trump's first term cost the US economy $11 billion, of which about $3 billion was permanently lost.

[After Seven Years! US Government Shuts Down Again, How Will It Affect the Economy and Financial Markets?] As the clock struck midnight Eastern Time on October 1, the US government officially entered a shutdown. According to Xinhua News Agency, at 0:00 local time on October 1, the US federal government shut down again after nearly seven years. Hundreds of thousands of federal employees will be forced to take unpaid leave, some public services may be suspended or delayed, and the release of economic data will be affected. Previously, US parties failed to reach an agreement on a new temporary funding bill due to disagreements over healthcare benefits. The day before, after the US Senate successively rejected funding bills from both parties, the White House officially announced that the government was about to shut down. On the evening of the 30th local time, White House Office of Management and Budget (OMB) Director Vought issued a memorandum instructing government agencies to begin implementing their plans for an "orderly shutdown."

[ECB Governing Council Member Nagel: ECB's Current Monetary Policy is Appropriate] ECB Governing Council Member Nagel stated that the ECB's current monetary policy is appropriate, eurozone inflation is close to the medium-term target of 2%, and is expected to remain at this level in the coming years.

[ECB Governing Council Member Rehn Warns: Inflation Outlook May Face Downside Risks]ECB Governing Council Member Olli Rehn warned that consumer price growth could slow down to below the 2% target. "We have largely reached this target for now—in that sense, the current situation is good," the Governor of the Bank of Finland told the Karon Grilli podcast. "However, downside risks to inflation remain in the coming years—due to factors such as a stronger euro, and stabilizing wage and service inflation." After eight interest rate cuts of 25 basis points within a year, officials are weighing whether further policy easing is needed. Most officials appear to believe that maintaining the deposit rate at 2% is acceptable as long as no new shocks occur, while others insist that the possibility of further rate cuts should not be ruled out.

[Outgoing French Prime Minister Lecorni: All Parties Willing to Pass Budget Bill Within the Year, Reducing Risk of Parliament Dissolution]According to CCTV News, on October 8 local time, the resigned French Prime Minister Lecorni delivered a speech at the Prime Minister's office. Lecorni stated that since the initiation of "final negotiations," exchanges among political parties have achieved some positive progress. He said, "I can announce good news—all political forces invited to participate in the negotiations have expressed a common willingness to pass the national budget before December 31 this year." Lecorni added that this consensus "helps reduce the risk of the National Assembly being dissolved."

[French Prime Minister Lecorni Submits Resignation to Macron]According to CCTV News, on October 6 local time, French Prime Minister Lecorni submitted his resignation to President Macron, and Macron has accepted the resignation.

[Japanese Opposition Parties Seek to Jointly Propose Prime Minister Candidate]According to Reference News citing Jiji Press website on October 8, the parliamentary affairs chiefs of seven Japanese opposition parties held a meeting at the Diet on the 7th to discuss how to respond to the upcoming prime minister designation election. The report stated that, given the current deadlock in negotiations between the Liberal Democratic Party and Komeito on forming a coalition government, Constitutional Democratic Party Diet Affairs Committee Chairman Hiroshi Kasa again proposed voting for a candidate jointly endorsed by the opposition parties. All parties expressed willingness to consider this proposal. The Constitutional Democratic Party will intensify efforts to engage with Nippon Ishin no Kai and the Democratic Party for the People, and also consider making contact with Komeito.

[Takaichi Sanae Elected LDP President, Expected to Become Next Japanese Prime Minister]According to CCTV News, on the afternoon of October 4 local time, Japan's ruling Liberal Democratic Party held its presidential election vote counting. In the second round of voting, former Minister of Economic Security Sanae Takaichi received the majority of votes and was elected as the new president of the Liberal Democratic Party, and is highly likely to become the next Prime Minister of Japan.

[Australia and Singapore Announce Launch of Upgraded Comprehensive Strategic Partnership]According to Xinhua News Agency, Australian Prime Minister Anthony Albanese and Singaporean Prime Minister Lawrence Wong held talks on the 8th in Canberra, the capital of Australia. In a joint statement, the two prime ministers announced the launch of an upgraded Comprehensive Strategic Partnership, enhancing cooperation in areas such as the economy, climate change response, artificial intelligence, and healthcare. Albanese stated at a joint press conference that Australia and Singapore share a common worldview on multilateralism, free and fair trade, and the importance of multilateral institutions, including the United Nations and upcoming summits such as the ASEAN Summit, APEC meeting, and G20 Leaders' Summit. He said, "We strongly support multilateralism as one of the pillars of our foreign policy." Wong stated that in strengthening multilateralism, Singapore and Australia are taking concrete measures. When cooperating, both sides focus not only on mutually beneficial bilateral initiatives but also on maintaining or strengthening important multilateral frameworks to keep the rules-based global system functioning. The close cooperation between the two countries on regional and multilateral platforms is another way to consolidate and strengthen multilateral frameworks.

[WTO Raises 2025 Global Goods Trade Growth Forecast to 2.4%]The World Trade Organization (WTO) released the latest "Global Trade Outlook and Statistics" report on the 7th, pointing out that driven by increased demand for artificial intelligence (AI)-related products, a surge in North American imports ahead of tariff hikes, and active trade among emerging economies, global goods trade in the first half of 2025 exceeded expectations. Accordingly, the WTO raised its forecast for global goods trade growth in 2025 to 2.4%, up from 0.9% in August; however, the forecast for 2026 was lowered to 0.5%.

[New Zealand Central Bank Cuts Benchmark Interest Rate by 50 Basis Points to 2.5%, Previously Widely Expected to Cut 25 Basis Points]The Reserve Bank of New Zealand stated in a declaration following its policy meeting in Wellington on Wednesday: New Zealand's inflation outlook faces both upside and downside risks. Cautious attitudes among households and businesses could slow economic recovery and reduce medium-term inflation pressures. Additionally, recent high inflation may persist longer. Overall, the Committee reached a consensus to cut the Official Cash Rate (OCR) by 50 basis points to 2.5%, whereas most economists had previously expected a 25 basis point cut.

Industry Highlights

[Central Bank: China's Gold Reserves at 74.06 Million Ounces at End-September, Increasing for the 11th Consecutive Month]Data from the central bank showed that China's gold reserves stood at 74.06 million ounces at the end of September, an increase of 40,000 ounces MoM, marking the 11th consecutive month of gold accumulation. Gold reserves stood at 74.02 million ounces at month-end.

[Trump Announces Medium and Heavy-Duty Truck Import Tariffs to Take Effect on November 1]According to CCTV News, on October 6 local time, US President Trump posted on his social media platform "Truth Social" that starting November 1, 2025, a 25% tariff will be imposed on all medium and heavy-duty trucks imported into the US from other countries and regions. On September 25, Trump stated that a 25% tariff would be imposed on all imported heavy-duty trucks starting October 1.

[IEA: Global Renewable Energy Installation Capacity to Continue Strong Growth]The "Renewables 2025" report released by the International Energy Agency on the 7th predicts that, despite facing unfavourable factors such as supply chain and funding pressures, grid integration challenges, and policy uncertainty, global renewable energy installation capacity will continue to grow strongly. It is projected that the new installations of renewable energy globally over the next five years will double the increase seen in the previous five-year period. The report forecasts that from 2025 to 2030, global renewable energy capacity will increase by 4,600 gigawatts, roughly equivalent to the current combined capacity of China, the EU, and Japan. The report indicates that over the next five years, global renewable energy growth will be primarily driven by the solar PV industry, with solar PV growth expected to account for about 80% of the global renewable capacity increase, benefiting from low costs and accelerated approval processes. Wind power is expected to rank second in terms of its share of new renewable capacity; despite short-term challenges, wind power is still set for significant growth as supply bottlenecks ease and projects advance, particularly in China, Europe, and India. Furthermore, hydropower and other renewable energy technologies such as bioenergy and geothermal will continue to play important roles in supporting power systems and enhancing flexibility.

[Indonesia Shortens Mining Quota Validity to One Year, Effective Immediately]On Tuesday, October 7, Indonesia's Ministry of Mining issued a new regulation limiting the validity period of mining production quotas to one year, down from the previous three years. The ministry stated that the new rule takes effect immediately. (Wenhua Composite)

[Indonesian President Urges Authorities to Crack Down on Illegal Mining and Tin Ore Smuggling]On Monday, October 6, Indonesian President Prabowo Subianto called on the Attorney General, the military, customs, the coast guard, and other departments to continue efforts to stop illegal tin ore mining and smuggling activities. On Monday, he witnessed the handover of assets seized in a tin mining corruption case. He stated that this reflects the government's serious efforts to eradicate illegal mining. (

[Spot Gold Breaks Through $4,000/oz Mark, Hitting New Highs]On October 8, spot gold broke through the $4,000 per ounce mark, setting new highs, with a year-to-date surge of nearly $1,400 per ounce and a gain of over 52%. Spot silver approached $48 per ounce, reaching its highest level since May 2011. (Cailianshe)

[Domestic Gold Jewelry Prices Rise Above 1,160 Yuan/Gram at Multiple Brands]On October 8, international gold prices continued to hit new highs, with spot gold breaking through the $4,000 per ounce level during the day. Gold jewelry prices at several domestic gold jewelry brands continued to climb, with Lao Miao Gold and Lao Fengxiang's pure gold jewelry rising to 1,160 yuan per gram, Chow Sang Sang's pure gold jewelry to 1,165 yuan per gram, and Chow Tai Fook's pure gold jewelry to 1,162 yuan per gram. (Cailianshe)

[Goldman Sachs Raises Gold Price Forecast for December 2026 to $4,900/oz]Goldman Sachs raised its gold price forecast for December 2026 to $4,900 per ounce, up from a previous estimate of $4,300. It expects net central bank gold purchases to average 80 mt in 2025 and 70 mt in 2026, as emerging market central banks are likely to continue structurally diversifying their foreign exchange reserves by increasing gold holdings.

[Goldman Sachs: Market Currently in Slight Surplus; Copper Prices Expected to Fluctuate Between $10,000-$11,000/mt]Goldman Sachs stated in a research report that, based on resource constraints and structural demand growth in key industries, copper prices are expected to fluctuate between $10,000 and $11,000 per mt (the same hereinafter). The bank raised its 2026 copper price forecast from $10,000 per mt to $10,500 per mt, citing the shutdown of Indonesia's Grasberg mine, US interest rate cuts, and further depreciation of the US dollar, while maintaining its 2027 forecast of $10,750 per mt and expecting copper prices to remain around $10,000 per mt for the rest of 2025. Although bullish on copper, the bank believes prices will be capped at $11,000 over the next two years, as the copper market is currently in a slight surplus, which is expected to persist into 2026 despite recent mine disruptions significantly reducing global copper cathode production.

[Chile's August Copper Output Falls 9.9%, Marking Largest Drop in Over Two Years]On Tuesday, September 30, data released by Chile's National Statistics Institute showed that Chile, the world's largest copper producer, recorded its largest decline in copper production in over two years in August. Production fell 9.9% YoY to 423,643 mt, compared with 470,696 mt in August 2024.

[Morgan Stanley: Foreign Inflows into Chinese Stocks Rebound to $4.6 Billion in September; Active Funds Top Up Semiconductors Most]Morgan Stanley said foreign inflows into Chinese stocks rebounded to $4.6 billion in September, the highest monthly level since November 2024, mainly driven by $5.2 billion inflows from passive funds, while active funds saw a slight outflow of $600 million. Analysts including Chloe Liu stated in a report that following substantial inflows from US funds into Chinese stocks since mid-July, European Union passive funds began catching up in September. By September 30, cumulative inflows from foreign passive funds for the year reached $18 billion, surpassing last year’s level of $7 billion. Among sectors seeing increased allocations, active funds added the most to capital goods and semiconductors, while reducing holdings the most in insurance, durable consumer goods, and apparel. The largest increases in holdings were seen in Alibaba, CATL, and JD.com, while the largest decreases were in Tencent, Ping An Insurance, and Pop Mart.

[Shanghai and Shenzhen Stock Exchanges: Qualified Foreign Investors Allowed to Participate in ETF Options Trading for Hedging Purposes Only]The Shanghai and Shenzhen Stock Exchanges issued notices respectively, allowing qualified foreign investors to participate in exchange-traded fund (ETF) options trading listed on the Shanghai and Shenzhen Stock Exchanges, with trading purposes limited to hedging. Qualified foreign investors may apply for spot long hedging and spot short hedging open interest limits. Qualified foreign investors shall report the planned use of A-share securities accounts to the Shanghai and Shenzhen Stock Exchanges through their entrusted options operators, and after the reporting is approved, open corresponding derivatives contract accounts as dedicated hedging accounts. Qualified foreign investors shall submit applications for hedging limits for relevant options varieties to the Shanghai and Shenzhen Stock Exchanges through their entrusted options operators. Only after the limits are approved by the Shanghai and Shenzhen Stock Exchanges may they participate in hedging transactions, and they must continuously comply with the requirements for stock options hedging transactions set by the Shanghai and Shenzhen Stock Exchanges. The Shanghai Stock Exchange will begin accepting applications from qualified foreign investors to participate in stock options trading from the date of the above notice, while the Shenzhen Stock Exchange will begin accepting such applications from October 9, 2025.

[Multiple Global Chip Giants Raise Product Prices; Morgan Stanley Predicts Super Cycle for Memory Chip Industry]Over the past six months, global memory chip prices have continued to rise. Particularly in the recent month, price increase announcements have become more frequent. Major producers such as South Korea’s Samsung Electronics and the US’s SanDisk have recently notified customers of price adjustments, and spot market prices have risen rapidly in a short period. Capital markets have responded directly to the recent changes in memory chip trends, with share prices of multiple producers continuously hitting record highs. Over the past month, Micron’s stock price has accumulated a rise of approximately 60%, while Kioxia and SanDisk have both seen accumulated increases exceeding 100%. From an industry perspective, Morgan Stanley’s latest research report predicts that, driven by the artificial intelligence boom, the memory chip industry is expected to enter a "super cycle."

[OPEC+ Agrees to Increase Crude Oil Production by 137,000 Barrels per Day in November]OPEC+ representatives stated that the organization has agreed to a slight increase in crude oil production in November. Representatives revealed that the organization will increase production by 137,000 barrels per day next month, a decision that will be approved at the upcoming OPEC+ meeting.

[EIA Short-Term Energy Outlook: Forecasts 2025 WTI Crude Oil Price at $65 per Barrel]The EIA Short-Term Energy Outlook forecasts the 2025 Brent price at $68.64 per barrel, compared to a previous expectation of $67.80 per barrel. It forecasts the 2025 WTI crude oil price at $65 per barrel, compared to a previous expectation of $64.16 per barrel. The EIA raised its 2025 US crude oil production forecast to 13.53 million barrels per day (previously forecasted at 13.44 million b/d) and raised its 2026 forecast to 13.51 million barrels per day (previously forecasted at 13.3 million b/d).

Company News

[BYD: September NEV Sales Reach 396,300 Units]BYD released its September production and sales report. NEV sales for September were 396,300 units, down 5.52% YoY. Additionally, NEV exports in September were 71,256 units. The total installed capacity of power and ESS batteries for NEVs in September was approximately 23.2 GWh, and the cumulative total installed capacity for 2025 was approximately 203.251 GWh.

[Seres: September NEV Sales Up 19.44% YoY]Seres announced that its September 2025 NEV sales reached 44,700 units, up 19.44% YoY.

[Great Wall Motor: Total September Sales Reach 133,639 Units, Up 23.29% YoY]Great Wall Motor released its September production and sales report on October 8. Total sales in September were 133,639 units, up 23.29% YoY, while total production was 134,404 units, up 25.38% YoY.

[SAIC Leads Industry with 440,000 Auto Sales in September, Up 40% YoY]On October 8, SAIC released its production and sales report. Auto sales in September reached 440,000 units, up 40.4% YoY and 21% MoM, ranking first in the industry by sales volume. Since the beginning of this year, SAIC has achieved "nine consecutive months" of YoY sales growth. Cumulative wholesale auto sales from January to September reached 3.193 million units, up 20.5% YoY, while end-user retail sales reached 3.378 million units, maintaining its leading position in the domestic industry. Through comprehensive deepening of reforms and promoting innovation and transformation, SAIC's "new three pillars" – its proprietary brands, new energy vehicles, and overseas markets – continue to show strong momentum. In September this year, sales of SAIC's proprietary brands reached 294,000 units, up 50.4% YoY; NEV sales reached nearly 190,000 units, up 46.5% YoY; and overseas market sales reached 101,000 units, up 12.2% YoY.

[Xingye Silver & Tin: Stock Price Fluctuation Attributed to Significant Market Price Volatility of Its Main Products, Silver and Tin]Xingye Silver & Tin announced on October 8 that the cumulative deviation of its stock's closing price over three consecutive trading days (September 26, September 29, and September 30) reached 20.78%, meeting the Shenzhen Stock Exchange's criteria for abnormal stock price fluctuations. The company stated that it has not discovered any unreported major information in recent public media reports that could or has significantly affected its stock trading price; its recent operations are normal, with no significant changes in its internal or external operating environment; after analysis by the board of directors, the primary reason for this stock price fluctuation is the significant recent market price volatility of its main products, silver and tin.

[Sichuan Gold: Successfully Acquired Prospecting Rights for the Kugezi-Juebei Gold Ore Prospect in Gaochang District, Xinjiang via Auction]Sichuan Gold announced on October 8 that on August 13, the Department of Natural Resources of Xinjiang Uygur Autonomous Region, entrusted by the Xinjiang Uygur Autonomous Region Government Service and Public Resource Trading Center, issued the "Announcement on the Listing and Transfer of 9 Prospecting Rights, Including the 2025 Xarxili Hotel Geothermal Survey in Bole City, Xinjiang." On September 30, the company successfully acquired the prospecting rights for the Kugezi-Juebei gold ore prospect in Gaochang District, Xinjiang, with a winning bid of 510 million yuan. The exploration area is located within the Central Tianshan Metallogenic Belt, a significant gold metallogenic belt in China. The ore bodies are controlled by NW-SE trending anticlines and faults. The gold anomaly zone in the exploration area extends for several kilometers, consistent with the direction of the ore-controlling structures, indicating favorable metallogenic geological conditions and significant exploration potential.

[Cambricon: Private Placement Price Set at 1,195.02 Yuan Per Share]Cambricon disclosed its report on the issuance of A-shares to specific objects in 2025. The private placement price was set at 1,195.02 yuan per share, with the issuance targets finalized as 13 entities. The number of shares issued was 3.3349 million, raising a total of 3.985 billion yuan. After deducting issuance costs of 32.1713 million yuan, the net proceeds raised by the company amounted to 3.953 billion yuan. The raised funds will be used for the large model-oriented chip platform project, the large model-oriented software platform project, and to supplement working capital.

[VeriSilicon: Company Forecasts Q3 New Orders of 1.593 Billion Yuan, Up 145.8% YoY]On October 8, VeriSilicon announced that it expects Q3 2025 revenue to reach 1.284 billion yuan, up 119.74% QoQ and up 78.77% YoY. The company anticipates a significant improvement in profitability in Q3, with losses narrowing substantially both YoY and QoQ. Additionally, the company forecasts Q3 new orders of 1.593 billion yuan, up 145.80% YoY, of which orders related to AI computing power account for approximately 65%. The company's orders on hand have remained at high levels for eight consecutive quarters, and are projected to reach 3.286 billion yuan by the end of Q3 2025, continuously setting new historical records.

[Tesla Launches New Model Y with a Selling Price of $39,990]Tesla launched a new version of the Model Y with a selling price of $39,990, making its most popular car model more affordable to counter the impact of the expiration of US EV subsidies. According to the company's official website, the starting price of this new version is approximately 11% lower than the previous base Model Y. The new version has an estimated driving range of 321 miles, about 10% lower than the high-end version, and it removes the second-row touchscreen while featuring less than half the number of speakers compared to the high-end version.

[Foton Motor: Total Vehicle Sales in September Reach 55,253 Units, Up 6.08% YoY]Foton Motor released a quick report on production and sales data for various products in September on October 8. Total vehicle sales in September were 55,253 units, compared to 52,086 units in the same period last year, up 6.08% YoY; total production was 56,279 units, compared to 57,627 units in the same period last year. Among these, NEV sales in September reached 8,624 units, compared to 5,836 units in the same period last year, up 47.77% YoY; September production was 9,207 units, compared to 7,181 units in the same period last year.

[OpenAI Completes Stock Trading at a Record Valuation of $5 Trillion]According to reports, informed sources revealed that OpenAI has completed a transaction allowing current and former employees to sell approximately $6.6 billion worth of shares at a company valuation of $5 trillion. This secondary transaction makes the ChatGPT developer the world's most valuable startup, surpassing the valuation of Elon Musk's SpaceX. Previously, in a $400 billion funding round led by SoftBank Group, OpenAI was valued at $300 billion. The sources indicated that, as part of the deal, OpenAI employees sold shares to a group of investors including Sequoia Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price.

[Hainan Huatie: Subsidiary Terminates the "Computing Power Service Agreement"]Hainan Huatie announced that its wholly-owned subsidiary, Huatie Dahuangfeng, signed the "Computing Power Service Agreement" with Hangzhou X Company (hereinafter referred to as "X Company") in March 2025, stipulating that Huatie Dahuangfeng would provide computing power services to X Company for a term of five years, with an estimated total contract value of 3.69 billion yuan (including tax). Due to significant changes in the market environment and supply-demand conditions related to the transactions and equipment under the original agreement since its signing, and as no purchase orders have been received since the agreement was executed, the company recently issued a "Letter Regarding Termination of the <Computing Power Service Agreement>" to X Company.

[Apple Halts Headset Upgrade Plans Prioritizes Development of Smart Glasses to Rival Meta]Apple has suspended its plans to upgrade the Vision Pro headset, instead focusing on developing smart glasses that can compete with products from Meta Platforms. The company is working on at least two types of smart glasses, including one that pairs with an iPhone and does not have a built-in display, and another equipped with a display to challenge Meta's Ray-Ban Stories. Apple's glasses will heavily rely on voice interaction and artificial intelligence, expected to come in various styles, and feature speakers, cameras, and voice control.

[Boeing 777X Jet Delivery Slated for 2027 Could Result in Billions in Losses]According to sources, Boeing's 777X jet is set to enter commercial service in early 2027, not next year as originally planned, marking another setback for the US aircraft manufacturer. Analysts estimate the non-cash accounting charge could range between $2.5 billion and $4 billion, though Boeing has not provided detailed cost figures. This six-year-delayed jetliner is of significant strategic and financial importance for Boeing in its competition with Airbus SE for a larger share of the lucrative long-haul aviation market. Boeing executives plan to discuss the extent and costs of the latest delay for this large aircraft when they release earnings on October 29.

※Key Economic Data Releases This Week

This week, data will be released on Germany's seasonally adjusted export rate for August, the US initial jobless claims for the week ending October 4, the US continuing jobless claims for the week ending October 4, the final reading of the US wholesale inventory rate for August, China's M2 money supply year-on-year for September (1010-1017), China's total social financing for September year-to-date (1010-1017), China's new yuan loans for September year-to-date (1010-1017), Switzerland's seasonally adjusted consumer confidence index for September, Canada's employment change for September, Canada's unemployment rate for September, and the preliminary reading of the University of Michigan's US consumer sentiment index for October.

Also this week: the US Fed will release minutes from its monetary policy meeting; 2026 FOMC voter and Minneapolis Fed President Neel Kashkari will deliver a speech; the European Central Bank will release minutes from its September monetary policy meeting; Fed Chairman Jerome Powell will give opening remarks (pre-recorded) at a community banking conference hosted by the Federal Reserve Board; Fed Governor Michelle Bowman will speak; Fed Governor Michael Barr and 2026 FOMC voter and Minneapolis Fed President Neel Kashkari will speak at an event; 2025 FOMC voter and Chicago Fed President Austan Goolsbee will give opening remarks and moderate a discussion at a community bankers' symposium. Additionally, it is worth noting that the specific release date for the US non-farm payrolls data has not yet been determined (the exact timing will depend on the end of the US government shutdown and subsequent updated announcements). As the US government shutdown continues, the US Senate made a sixth attempt on October 8 local time to pass a temporary spending bill to end the federal government shutdown, after the previous five attempts failed.

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