A Chinese phase III study showed that kidney function declined more slowly over two years in the telitacicept group than in the placebo group, while improvements in proteinuria persisted. J.P. Morgan considers it competitive for high-risk IgA nephropathy patients, but treatment choices and long-term costs will affect actual use.
Overnight copper prices tracked by JPMorgan rose 1.9%, while iron ore rose 0.8%. At the company level, third-quarter profits at CMOC Group and Zijin Mining both fell quarter on quarter. Whitehaven’s production exceeded expectations, but some sales were delayed, while Newmont faces cost and capital expenditure pressure next year.
OptiTROP-Lung06 showed that sac-TMT plus pembrolizumab achieved median progression-free survival of 15.0 months in first-line treatment of PD-L1-negative advanced non-squamous non-small cell lung cancer, versus 5.7 months in the control group. JPMorgan is optimistic about its first-line treatment opportunity, but overall survival data remain immature, and median progression-free survival may fluctuate as the data mature.
Ivonescimab plus chemotherapy extended median overall survival by 2.8 months compared with durvalumab plus chemotherapy. The result was statistically significant but fell short of JPMorgan’s previous optimistic scenario. Phase II lung cancer data for another PD-1/VEGF bispecific antibody support the drug class; the competitive landscape remains to be clarified by phase III data.
Gold, copper and lithium production in the first three quarters each fell short of seventy percent of their full-year targets. JPMorgan maintains its Overweight rating, focusing on fourth-quarter project ramp-ups and subsequent production guidance.
JPMorgan believes weaker trading activity, downward revisions to third-quarter earnings expectations and capital outflows jointly weighed on brokerage stocks. Net ETF inflows helped repair sentiment, but earnings expectations for CICC, China Merchants Securities and CITIC Securities diverged markedly.
Morgan Stanley believes both Hong Kong stocks and A-shares have room for further valuation declines, but the funding and policy signals supporting the onshore market are clearer, so it continues to prefer A-shares.
Lens Technology’s revenue fell 8% year over year in the third quarter of 2026, while net profit halved. Morgan Stanley is positive on the increase in value per foldable device but considers near-term earnings weak and the valuation not cheap, maintaining its Equal-weight rating.
Morgan Stanley believes sac-TMT plus pembrolizumab delivered a progression-free survival benefit beyond recent market expectations in a Chinese phase III lung cancer trial. Its safety profile also supports its potential to replace chemotherapy; efficacy in patients with brain metastases and results in certain subgroups remain important questions.
Morgan Stanley said lower turbine shipments and weaker wind resources reduced Goldwind’s third-quarter revenue, but an improvement in turbine gross margin drove gross profit growth; a decline in other income caused net profit to edge down year on year.
After launching LingeeOS in May 2026, Kingdee added enterprise context, a management portal and agent development capabilities. Morgan Stanley is optimistic about its ability to monetize AI through its ERP customers and business processes, but paid adoption and measurable gains in organizational efficiency remain critical.
A HER2 ADC achieved median progression-free survival of 16.4 months in a Chinese phase III breast cancer trial, but a weaker control group and a higher incidence of serious adverse reactions limit cross-trial comparisons; data from the HER3 ADC and KRAS G12D programs met Morgan Stanley’s expectations.
Morgan Stanley cut its price target for Hygon Information from 430 yuan to 380 yuan and maintained its Overweight rating. Rising high-bandwidth memory prices lifted GPU selling price expectations, but a higher GPU revenue mix and increased minority interests weighed on earnings forecasts.
Morgan Stanley expects tight fuel supplies to divert naphtha away from petrochemical uses, widening the cost advantage of coal-to-olefins production. But rising coal prices have already weighed on recent earnings, and the bank has cut its price target after switching to a dividend-yield valuation.
Pharmaceutical exports rose 10.5% year on year in the first three quarters of 2026, but the trade deficit still widened to 21 billion US dollars. Morgan Stanley says excess capacity and low utilization continue to suppress active pharmaceutical ingredient (API) prices, prompting some manufacturers to move into finished formulations or CDMO services.
Higher glass fiber volumes and prices, together with higher lithium-ion battery separator volumes and prices in the third quarter, improved Sinoma Science & Technology’s profitability in the first three quarters. However, third-quarter revenue and net profit were both broadly flat quarter on quarter, and Morgan Stanley viewed the results as slightly below market consensus.
COSL’s third-quarter earnings per share were broadly in line with Morgan Stanley’s expectations but below market consensus. The bank believes limited rig utilization and declining CNOOC capital expenditure constrain the transmission of higher energy prices into profit growth.
Morgan Stanley estimates that SoftBank’s net asset value per share rose 49.1% this year, while its share price fell 2.8% and its discount to net asset value widened to 48.4%. A decline in Arm’s valuation and an increase in net debt are also constraining the scope for AI assets to drive a re-rating.
Nomura sees a continued recovery in China’s upstream life sciences demand in multinational healthcare companies’ third-quarter results. However, the operating performance of innovative drugs, diagnostics and surgical robots diverges, and pricing reforms continue to affect revenue realization.
A higher contribution from overseas customers improved the third-quarter gross margin; the company raised its 2027 shipment targets, and Nomura consequently revised its earnings forecasts upward. But the tax burden, dilution from the trading business and cash spending on capacity expansion are constraints, while industry policy pressure also prompted Nomura to lower its valuation multiples.
