November 2 Investment Lightning Rod: Last Friday the Nasdaq closed down 2.9%, AI trades were hit hard, Intel fell 28%

Main text

Recent potential risk events in the A-share and overseas markets are as follows. Domestic economic information includes: 1) National Bureau of Statistics data show that the manufacturing Purchasing Managers' Index (PMI) for October was 49.3%; 2) The October land auction was steeped in "autumn chill," with the average premium rate across 300 cities falling to its lowest level of the year; Company highlights include: 1) Daye Co., Ltd. reported a net loss of 116 million yuan in the first three quarters, turning to a loss year-on-year. The company's robot tendon rope products have not yet achieved mass production; 2) Aojing Medical is suspected of false records in periodic reports and other financial data, and the company has been placed under investigation by the CSRC; Overseas market highlights include: 1) Last Friday the Nasdaq closed down 2.9%, chip stocks plunged, and Intel fell 28%; 2) Some U.S. officials said that if the midterm elections are a disastrous defeat, Trump may be more inclined to strike Iran again.

Economic information

1. Ministry of Finance data show that from January to September, the total operating revenue of state-owned and state-controlled enterprises nationwide (hereinafter referred to as state-owned enterprises) fell 3.2% year-on-year, while total profits rose 3.0% year-on-year. I. Total operating revenue. From January to September, the total operating revenue of state-owned enterprises was 60,006.09 billion yuan, down 3.2% year-on-year. II. Total profits. From January to September, the total profits of state-owned enterprises were 3,310.35 billion yuan, up 3.0% year-on-year. III. Taxes payable. From January to September, taxes payable by state-owned enterprises were 4,658.98 billion yuan, up 4.7% year-on-year. IV. Asset-liability ratio. At the end of September, the asset-liability ratio of state-owned enterprises was 65.5%, up 0.4 percentage points year-on-year.

2. National Bureau of Statistics data show that in October, the manufacturing Purchasing Managers' Index (PMI) was 49.3%, down 0.8 percentage points from the previous month, indicating that the manufacturing sector's prosperity level has somewhat retreated.

3. The latest data from the China Index Academy show that from January to October 2026, the total land acquisition amount of 100 real estate enterprises was 646.5 billion yuan, down 17.5% year-on-year, with the decline narrowing by 3 percentage points from January to September. The China Index Academy said that although some enterprises' land acquisition amounts increased year-on-year in the first ten months, these were all cumulative advantages. Looking at land acquisition in October alone, among the 10 key land-acquiring enterprises, China Resources Land and Binjiang Group showed relatively strong investment momentum in land acquisition, while Jianfa Real Estate and China Jinmao also increased their land acquisition efforts to some extent; the remaining 6 real estate enterprises all slowed their land acquisition efforts. The premium rate in the land auction market is also declining. In October, the average premium rate across 300 cities nationwide fell to 1.4%, the lowest level of the year; during the period, none of the three first-tier cities of Beijing, Shenzhen and Shanghai put land on the market, and although third- and fourth-tier cities continued to release land, most of it was acquired by local state-owned capital at the base price. (Yicai)

4. The domestic coking coal market operated in a weak adjustment. On the supply side, last week some coal mines in Luliang and other places suspended production after completing their monthly output tasks, and raw coal daily output fell 1.6 million tons month-on-month, with pithead inventories edging down, but the resumption process in major producing areas is still advancing in an orderly manner. Overall, the expectation of short-term supply contraction and medium- to long-term easing remains. On the demand side, last week the average daily hot metal output of 247 steel mills was 2.3187 million tons, down 430,000 tons month-on-month, continuing the downward trend. Profit levels remain low, downstream market trading sentiment continues to be weak, purchasing enthusiasm is insufficient, and overall procurement is maintained on an as-needed basis. (Mysteel)

Company alerts

1. Daye Co., Ltd.: Net loss of 116 million yuan in the first three quarters, turning to a loss year-on-year. The company's robot tendon rope products have not yet achieved mass production.

2. Aojing Medical: Suspected of false records in periodic reports and other financial data; the company has been placed under investigation by the CSRC.

3. Seres: October sales of new energy vehicles were 24,921 units, down 51.57% year-on-year.

4. Great Wall Motor: Net profit in the first three quarters of 2026 fell 55.69% year-on-year. The company's October vehicle sales were 120,400 units, down 15.87% year-on-year.

5. ST Hezong: Received a notice of investigation from the CSRC.

6. Aisino: Net loss of 664 million yuan in the first three quarters of 2026.

7. Gemdale Corporation: Net loss of 3.458 billion yuan in the first three quarters of 2026.

8. Shuangliang Eco-Energy: Net loss of 1.199 billion yuan in the first three quarters.

9. Marubi Biotechnology: Net profit in the first three quarters of 2026 fell 43.71% year-on-year.

10. Pien Tze Huang: Net profit in the first three quarters of 2026 fell 39.53% year-on-year.

11. GAC Group: Net loss of 6.987 billion yuan in the first three quarters of 2026.

12. BOE A: Net loss of 996 million yuan in the third quarter, with shipments of small- and medium-sized display products under obvious pressure.

13. Traffic Control Technology: Chairman Gao Chunhai was placed under detention and resigned.

14. BAIC BluePark: Net loss of 2.86 billion yuan in the first three quarters of 2026.

15. Tongwei Co., Ltd.: Net loss of 6.759 billion yuan in the first three quarters of 2026.

16. China Yangtze Power: Third-quarter net profit fell 23% year-on-year.

17. JAC Motors: Net loss of 1.141 billion yuan in the first three quarters of 2026.

18. Cambridge Technology: Plans to expand optical module production with HK$1.769 billion.

19. Tianshui Huatian Technology: Q3 net profit fell 9% year-on-year and 60% quarter-on-quarter.

20. LONGi Green Energy: Third-quarter net loss of 1.029 billion yuan, continuing quarter-on-quarter losses.

21. Shenghe Resources: Third-quarter net profit fell 41.76% year-on-year and 57% quarter-on-quarter.

22. New Hope: Net loss of 2.568 billion yuan in the first three quarters of 2026.

23. Laobaigan Liquor: Net profit in the first three quarters of 2026 fell 17.95% year-on-year.

24. Lao Feng Xiang: Net profit in the first three quarters of 2026 fell 58.86% year-on-year.

25. Sungrow Power Supply: Third-quarter net profit fell 68% year-on-year and 54% quarter-on-quarter.

Overseas alerts

1. Last Friday, the three major U.S. stock indices all closed lower: the Dow Jones Industrial Average fell 1.09%, the S&P 500 fell 1.82%, and the Nasdaq Composite fell 2.86%. Chip stocks suffered heavy losses: the Philadelphia Semiconductor Index fell 7.2%, its biggest drop since June; Intel fell 28.58%, its biggest single-day drop in more than four decades; SanDisk fell more than 13%; Qualcomm fell more than 11%; AMD fell more than 10%; ARM fell more than 9%; Seagate Technology, Western Digital, and Applied Materials fell more than 7%; ASML and Lam Research fell more than 6%; TSMC and Broadcom fell more than 5%. The "Magnificent Seven" tech giants all declined: Tesla fell 0.86%, Apple fell 1.11%, Google fell 1.37%, Amazon fell 1.42%, Microsoft fell 1.47%, Meta Platforms fell 1.49%, and Nvidia fell 4.08%.

2. According to U.S. reports on October 31, some U.S. officials said that if Republicans suffer a crushing defeat in the midterm elections, U.S. President Trump may be more inclined to order a large-scale military operation against Iran. Some U.S. officials said that if Iran wants to reach an agreement, now is the best time. Earlier, U.S. reports also said that Qatari mediators were continuing to operate in Tehran, seeking to push the United States and Iran to reach an agreement before the U.S. midterm elections.

Iran's Supreme Leader Mojtaba Khamenei issued an order to senior commanders of the Iranian armed forces on October 31 local time. Mojtaba said that regarding "making full preparations for combat readiness and engaging in strong confrontation with the enemy" as one of the requirements of Iran's "maximum deterrence," effective response measures must be taken immediately, without geographical restrictions, to respond to any level and type of threat. Mojtaba pointed out that if the enemy launches another military or terrorist attack, the Iranian armed forces and the Iranian people will decide when and under what conditions to end the war.

3. Federal Reserve official Musalem said that U.S. inflation is high and broad-based and may persist. Monetary and financial conditions remain accommodative. Third-quarter data confirm strong underlying economic momentum. Further policy tightening is necessary, and action should be taken as soon as possible.

4. Spot silver fell below the $50/ounce mark, hitting a new low since November 24, 2025. It is down about 59% from its January high and fell more than 17% in October. Spot gold is down more than 29% from its January high and fell more than 4% in October.

5. U.S. Democratic lawmaker Greg Casar said that if Democrats win a majority of House seats next week, they will push for strict scrutiny of AI labs.

6. Nvidia recently publicly demonstrated its next-generation co-packaged optics (CPO) technology at SEMICON West 2026, called OOI (Optics-on-Interposer). Unlike existing CPO solutions, OOI chooses to eliminate the organic packaging substrate and integrate the optical engine directly onto the silicon interposer that carries the GPU, bringing the optoelectronic conversion step closer to the chip core and providing a new interconnect approach for next-generation hyperscale AI clusters. According to Nikola Nedovic, chief research scientist at Nvidia Research, the solution replaces the current organic packaging substrate with a larger-area interposer, and Nvidia has already obtained prototype samples. OOI is still in the research stage, with no commercialization timetable yet.

(Source: Cailian Press) Mid-article embedded advertisement