JPMorgan believes investment signals from AI financing are supporting US equities. The repricing of Brazilian assets remains confined to the local market for now, but crowded positions could transmit the shock to other markets through risk-management mechanisms. The Federal Reserve meeting and developments in the Middle East will also influence markets.
Risk appetite fell to its lowest level since April 2025, with credit assets leading losses while government bonds cushioned the AI-related sell-off. Goldman maintains a moderately pro-risk allocation but believes near-term events could prolong volatility.
ZTE’s revenue rose 34% year on year in the third quarter of 2026. Nomura sees Chinese cloud providers’ demand for AI servers as the main driver, but changes in the product mix and competition continue to weigh on gross margin.
Nomura reviewed four Phase III trials involving Kelun-Biotech, KeyMed Biosciences, Hengrui Pharmaceuticals and Hansoh Pharma: Kelun-Biotech’s drug improved both overall survival and progression-free survival, but had a higher rate of serious treatment-related adverse events; KeyMed’s drug met only one of its dual primary endpoints.
As growth in China’s mobile user base slows, ByteDance apps continue to expand their share of usage time. PineDrama leads overseas short-drama apps in user growth, but its user base remains smaller than those of earlier rivals. AI office tools and free music have also become new battlegrounds for platforms competing for users.
Higher customer advances and improved operating cash flow indicate that demand remains supported, but domestic price competition and the expansion of lower-margin products continue to weigh on margins. Nomura maintains its Buy rating and price target of 125 yuan.
Nomura has raised its forecast for new global data center deployments in 2027 from 32 gigawatts to 40 gigawatts and expects supply chain shortages to persist through 2027. At the same time, rising debt financing costs, project execution risks and limited visibility into 2028 demand constrain the optimistic view.
Li Ning brand retail sales fell by a low-single-digit percentage year on year in the third quarter. Direct retail sales were flat, but wholesale remained weak. Nomura cut its earnings forecasts and target price, saying brand investment supports long-term brand recognition, while a sluggish industry constrains near-term sales returns.
Wind turbine sales fell year on year and gross margin declined quarter on quarter, but overseas orders on hand continued to grow. Nomura cut its earnings forecasts and target price, while still expecting a greater share of overseas business to support a recovery in turbine margins.
Growth in smart cockpit products and higher memory prices lifted revenue, but rising research and development expenses and a net non-operating loss weighed on profit. Nomura believes automakers’ in-house development and a weak Chinese automotive market continue to put pressure on suppliers.
CITIC Securities’ third-quarter net profit fell 41% quarter on quarter, with investment income the main drag; investment banking, net interest income and lower expenses provided some cushion. Goldman Sachs cut its earnings forecasts and A- and H-share price targets.
In previously treated patients with gastric and gastroesophageal junction cancer, Sone-Ve showed a notable overall survival benefit in the third-line and later setting, but the primary progression-free survival endpoint in the overall second-line and later population did not meet the prespecified statistical threshold; IBI343 met both primary endpoints in a more strictly selected population.
Goldman Sachs expects Huazhu and Atour to report third-quarter results slightly above market consensus, while Trip.com Group and Tongcheng Travel are expected to be broadly in line. Hotel room rates are stabilizing and openings are accelerating, but competition at existing hotels and changes to online travel platform charges continue to affect growth.
In week 43, new and existing home transactions fell 4% and 5% week on week, respectively, although some new developments in Shanghai performed strongly. Goldman Sachs is optimistic about home prices in Shanghai and Shenzhen, while expecting sales by the top one hundred developers to still fall 12% year on year in October.
Sales during the Mid-Autumn Festival and National Day holidays fell short of expectations, and distribution channels continued to reduce inventories. Goldman Sachs expects baijiu industry sales to fall by an average of approximately 6% year on year in the third quarter, although declines at most producers will narrow from the second quarter.
Yue Yuen Group’s profit warning indicates that third-quarter net profit attributable to shareholders still fell sharply year on year, although its implied net margin was higher than in the second quarter. Goldman Sachs believes improved orders and efficiency helped, while watching the effect of orders brought forward on the fourth quarter.
Data center cooling drove revenue growth, but foreign-exchange losses and minority interests weighed on net profit. Goldman Sachs believes record contract liabilities and inventory support revenue recognition over the next one to two quarters.
Third-quarter revenue was broadly in line with Goldman Sachs’ expectations, while adjusted net profit slightly exceeded them. Backlog growth accelerated to 36.4%, and the company raised its full-year revenue, capital expenditure and free cash flow guidance.
Tianqi Lithium’s earnings per share exceeded market consensus in the third quarter of 2026, but lower lithium prices weighed on quarter-on-quarter performance. Bernstein believes falling inventories and pressure on marginal supply will support lithium prices, with mine restarts and year-end battery demand as key variables.
Bernstein is optimistic about prediction markets, derivatives and tokenization, but weaker crypto spot trading has forced it to lower its Coinbase earnings forecasts; growth at Circle and Figure also faces distinct cost and measurement constraints.
