Today, both markets opened lower but surged impressively. The Shanghai Composite Index broke through the 4,000-point mark, reaching a ten-year high. The Hang Seng Index also surpassed the 27,000-point level, coming within less than 300 points of this year's high, with trading volume exceeding 270 billion.
[Market Analysis]
Today, both markets opened lower but surged impressively. The Shanghai Composite Index broke through the 4,000-point mark, reaching a ten-year high. The Hang Seng Index also surpassed the 27,000-point level, coming within less than 300 points of this year's high, with trading volume exceeding 270 billion.
As mentioned yesterday, there was significant hope for an end to the U.S. government shutdown. The latest reports indicate that President Trump signed a temporary appropriations bill passed by both chambers of Congress at the White House, ending the longest federal government “shutdown” in history, which had lasted 43 days. This will alleviate the recent strain on dollar liquidity, thereby driving a synchronized rise in risk assets and safe-haven assets. By convention, Congress must approve 12 appropriations budgets annually. However, the temporary appropriations bill recently passed by the Senate and House only includes three annual appropriations budgets, meaning nine budgets remain unresolved. In just over two months, the U.S. federal government may once again face the risk of a “shutdown.” For now, there is no need to worry. Some have called for the U.S. government to prioritize compiling November’s employment and inflation reports after reopening to ensure Federal Reserve officials have up-to-date information for their December policy meeting.
Simply put, this brings rate cuts closer. Consequently, spot gold rebounded overnight to USD 4,196.54 per ounce, targeting the USD 4,200 mark. Gold ETFs have regained net inflows, with SGE’s 9999 Gold Index recording a single-day net inflow of CNY 1.26 billion. Among these, Huaxia Gold ETF has attracted capital for ten consecutive days, accumulating a total net inflow of CNY 2.015 billion over the past 20 days. China Gold International (02099) surged over 7%, while Zijin Mining (02899) and Lingbao Gold (03330) rose over 4%.
U.S. Treasury Secretary Bessent stated on November 12 that the Trump administration is discussing a “tariff dividend” plan to provide USD 2,000 tax rebates to households earning less than USD 100,000 annually. However, a final decision has not yet been made. This serves as a contingency plan corresponding to the U.S. Supreme Court’s review of tariffs. If the ruling is unfavorable, the funds will not be distributed, and the responsibility will fall on the Supreme Court.
German Finance Minister Klindt stated that he is negotiating with finance ministers of other European countries to prepare for his upcoming visit to China next week. The topics under discussion include competitiveness and critical issues such as rare earths. Klindt will become the first minister from Germany’s new coalition government to visit China. Germany has finally taken a pragmatic approach, sending its finance minister instead of the foreign minister.
Today, the People’s Bank of China released October’s financial data. The figures show that as of the end of October 2025, the stock of aggregate financing to the real economy stood at CNY 437.72 trillion, representing a year-on-year increase of 8.5%. At the end of October, the broad money supply (M2) was CNY 335.13 trillion, growing by 8.2% year-on-year. The narrow money supply (M1) reached CNY 112 trillion, increasing by 6.2% year-on-year. The M1-M2 spread continued to narrow at the end of October, indicating an ongoing trend of funds being converted into demand deposits. This reflects positive signals such as increased business activity and improved consumer investment and spending.
Price hikes were particularly aggressive today. Driven by supply-demand imbalances, technological barriers, and growing demand in the new energy sector, prices for VC electrolyte additives (vinylene carbonate) have risen significantly. According to Xinluo third-party quotes, the average price of VC yesterday was CNY 110,000 per ton, marking an increase of CNY 44,500 compared to the previous day—a surge of 68%. Analysts believe that under tight industry supply and demand, VC has replaced lithium hexafluorophosphate as the product with high price elasticity. Meanwhile, Hiberstorage signed a strategic cooperation agreement with CATL, stipulating that the company’s cumulative electricity purchases from 2026 to 2028 will be no less than 200 GWh. Longpan Technology (02465) soared over 18%; Ganfeng Lithium (01772) and November’s Zhitong Gold Stock, Tianqi Lithium (09696), both surged over 10%; Ruipulanjun (00666) completed a placement of HKD 794 million. From January to September 2025, global energy storage battery shipments exceeded 30 GWh, securing a leading position among global energy storage suppliers; CALB (03931): The company ranked fourth globally in energy storage cell shipments in the first half of the year. It successfully supported the largest power station projects in Latin America and South Africa and entered the supplier lists of several top developers and grid companies. All of the above stocks rose over 8%.
According to Baichuan Yingfu data, as of October 31, the prices of R32, R125, R410a, and R134a have increased by 46.51%, 8.33%, 27.83%, and 27.06% respectively compared to the beginning of the year. The latest news indicates that R32 has risen to CNY 68,000 per ton, benefiting Dongyue Group (00189) the most, with its shares rising nearly 9%.
The day before yesterday, it was mentioned that the commissioning ceremony of the Simandou project was held at the Port of Marebaya in Guinea. The Simandou iron ore deposit is the largest in terms of global reserves and has the potential to become the fifth-largest mine. With its vast resource volume, the commencement of the Simandou project could significantly break the oligopoly of the four major mines over iron ore supply, potentially leading to substantial changes in the iron ore supply landscape. Maanshan Iron & Steel (00323) rose more than 7%, Angang Steel (00347) surged over 4%, and Chongqing Iron & Steel (01053) climbed over 2%.
Recently, the effect of crude oil production increases from the Middle East and South America has become evident, and the U.S.'s intensified sanctions on Russia have led India to reduce Russian oil imports and shift towards the Middle East and the U.S. Gulf region. This directly benefits compliant VLCCs and has driven freight rates up sharply over the past two months. COSCO Shipping Energy Transportation (01138) rose more than 6%; China Shipbuilding Leasing (03877) gained nearly 3%.
After a long period of dormancy, tech stocks have finally seen a ray of hope. On November 13, it was learned from the official website of the CSRC that the CSRC has approved the initial public offering and listing application of Maxi Integrated Circuit (Shanghai) Co., Ltd. on the STAR Market. This time, Maxi plans to raise CNY 3.904 billion, mainly for the independent research and development of a full-stack high-performance GPU chip and computing platform; SMIC (00981) is its largest wafer foundry partner and stands to benefit directly. Looking at performance: net profit attributable to shareholders in Q3 was CNY 1.517 billion, a year-on-year increase of 43.1%, mainly due to an increase in wafer sales and product mix changes; for Q4, the company’s revenue guidance is flat to a 2% increase, with a gross margin guidance of 18% to 20%. This is quite good, with capacity utilization reaching 95.8%, and Q4 being the off-season. Future focus will be on the ramp-up and the acquisition of SMIC Northern. Overall outlook remains optimistic, with a gain of more than 3% today.
On the 13th, according to media reports citing insiders, Alibaba (09988) plans to update its existing “Tongyi” iOS and Android applications in the coming months and rename them “Qwen,” fully targeting the ChatGPT model. The revamped app will gradually incorporate agentic-AI features in the coming months to enhance shopping experiences on major platforms like Taobao. This revamp marks Alibaba's transition from B-to-B to B-to-C monetization and accelerates its global expansion. AI is increasingly becoming a significant growth driver for Alibaba. In the most recent quarter, the company's AI-related products achieved triple-digit growth, and its cloud business unit exceeded sales expectations, becoming the fastest-growing business unit within the group. Today it rose more than 3%.
Paradigm Intelligence officially announced a deep collaboration with AlloyX Group, a leading global fintech company, to jointly establish a joint venture focusing on global blockchain compliance and financial regulatory technology (RegTech). They aim to build new industry compliance standards through “AI + Blockchain.” Fourth Paradigm (06682) surged more than 9%.
Today, funds flowed heavily into the Hang Seng Innovative Pharmaceutical ETF, particularly the Hang Seng Medicine ETF (159892), which now has a scale of CNY 6.15 billion, making it the largest of its kind. The top ten weighted stocks include BeiGene (06160), Wuxi Bio (02269), Akeso (09926), Sino Biopharm (01177), and 3SBio (01530). All these stocks showed notable gains.
[Sector Focus]
Since November, several papermaking companies have announced price hikes, primarily concentrated in the packaging paper sector. Key updates: Shanying International (600567.SH): took the lead in November, raising prices for Jinshan, Hongshan, T-paper, and corrugated paper products by CNY 50 per ton starting November 5 at its Guangdong base; Nine Dragons Paper (02689): as the industry leader, followed closely by increasing prices for kraft paper and boxboard products. Corrugated paper prices at its Shenyang base were raised by CNY 30 per ton starting November 13; Other paper companies: besides the two leading enterprises, Dongguan Jinzhou Paper also raised the price of corrugated paper on November 12.
This round of price increases is primarily driven by rising costs (such as reduced waste paper recycling pushing up raw material prices) and expanding demand (for example, the “Double Eleven” e-commerce event driving packaging orders). Key players: Nine Dragons Paper (02689) and Lee & Man Paper (02314).
[Stock Insights]
COSCO Shipping Energy (01138): Long-term Contracts Secure Stable Revenue; Plans to Acquire Large LPG Transport Vessels
Recently, the company plans to acquire all shares of Shanghai Liquefied Gas from COSCO Shipping Dalian Investment for RMB 5.98 billion. In the third quarter of 2025, the company achieved operating revenue of RMB 5.47 billion, a year-on-year decrease of 2.5%; net profit attributable to shareholders was RMB 850 million, a year-on-year increase of 4.4%.
Commentary: This acquisition will significantly strengthen COSCO Shipping Energy's capabilities in the liquefied gas transportation sector. Under the dual impact of cost control and rising freight rates, profitability has begun to recover. International crude oil transportation is the core business of COSCO Shipping Energy, primarily relying on the Middle East-China route (accounting for approximately 60%). In the first half of 2025, the company’s capacity deployment saw a 35% year-on-year increase in volume on the Brazil-China route and a 28% year-on-year increase on the North America-China route. COA agreements secure long-term revenue. In the first half of 2025, COSCO Shipping Energy signed 12 new COA agreements and renewed 8, covering approximately 20 million tons of cargo, accounting for 38% of total international crude oil transportation volume, an increase of 5 percentage points compared to the same period last year. Among these, contracts renewed with international oil companies such as Shell and BP featured freight rates 5%-8% higher than the market average, providing support for the rebound in gross profit in the second quarter. The deployment of NG capacity further boosted profits, marking a turning point in international crude oil transportation. In terms of LNG transportation, long-term contracts bring stable revenue, with 32 ships in the order book steadily contributing to profit growth. As of June 2025, COSCO Shipping Energy owns 50 LNG carriers with a total capacity of 8.7 million cubic meters, capturing 28% of the domestic market share, firmly ranking first in China.
At the same time, the company has secured orders for the construction of 41 LNG vessels, which are expected to be delivered sequentially between 2026 and 2030. LNG transportation represents the most critical growth driver for COSCO Shipping Energy in the future. The company plans to expand its LNG fleet from the current 50 vessels to 90 by 2030, with total capacity exceeding 16 million cubic meters, positioning itself among the top five global LNG transportation enterprises. Large LPG transport vessels hold significant strategic importance in the international energy transportation market and are expected to provide the company with a stable source of income.
