From the market perspective, a significant reason for the recent lack of smooth performance is the underperformance of technology stocks.
[Market Analysis]
Whenever the U.S. stock market drops, Hong Kong stocks cannot escape, and the A-share market also failed to stabilize. Today, the Hang Seng Index remained underwater throughout the trading session, closing down 1.85%.
The U.S. government has reopened, but new issues have emerged. Media reports cited the Director of the White House National Economic Council, indicating that the October non-farm payroll report is expected to be released. However, the October employment report will not include unemployment rate data, featuring only business employment data. This implies that markets and policymakers may face incomplete information when assessing labor market conditions. Additionally, there are still divisions within the Federal Reserve regarding short-term interest rate cuts. Hawkish remarks from some Fed officials have led to a reduction in December rate cut expectations to below 50%.
Europe continues to stir up trouble. According to media reports, on November 13 local time, German Chancellor Friedrich Merz claimed at a business conference in Berlin that Huawei and other Chinese suppliers would be completely excluded from the country's 6G network construction, while also discussing with France ways to reduce dependence on the United States, China, and large tech companies. In addition, it was reported that German Finance Minister Lars Klingbeil made an outrageous statement before the meeting, claiming, "We don’t want Chinese junk." He also said, “We need to protect our own market, and I want to do this as soon as possible.” These are all conflicting messages. There is a disconnect between politicians' statements and corporate actions.
On November 13 local time, the media described Vincent Karremans, Dutch Minister for Economic Affairs, as the 'central figure' in this controversy and published an exclusive interview with him. Defiantly, he stated, “If I could do it again, I would do the same,” apparently maintaining a tough stance.
Tensions in the Taiwan Strait continue to escalate. According to a release by the Ministry of National Defense, in the afternoon today, Senior Colonel Jiang Bin, Deputy Director of the Defense Ministry Information Bureau and spokesperson for the Ministry of National Defense, delivered a message on recent military-related issues: If Japan dares to take reckless actions, it will suffer severe consequences.
From a market perspective, the recent lackluster performance can largely be attributed to underperforming technology stocks. Adding to the pressure, Japan's storage giant Kioxia reported an unexpected 60% drop in adjusted net profit for the second quarter, missing market expectations. This triggered a collective plunge in U.S. storage industry stock prices, dragging down A-shares as well. The entire AI sector was once again affected. For instance, SMIC (00981) released solid earnings yesterday, yet its shares did not rally as expected; instead, they fell, with some blaming weak Q4 growth guidance. However, this guidance has consistently been conservative and should not be the reason—it appears to be an unwarranted sell-off. Similarly, Tencent (00700) exceeded market expectations with its Q3 results, showing strong performance in both advertising and gaming, with AI emerging as a new growth driver. Yet, its shares did not rise today, due to the company’s forecast that total capital expenditure for 2025 would fall below previous guidance, although still higher than in 2024. Financial reports show that Tencent's Q3 capital expenditure was RMB 12.98 billion, down 24% year-on-year and over 32% quarter-on-quarter. Tencent President Martin Lau explained the chip supply situation, stating that the company currently has sufficient GPU reserves to meet internal needs—indicating no immediate issues. Moreover, Alibaba (09988) announced its entry into the consumer-facing segment,对标 ChatGPT, which should have been positive news, but its shares dropped more than 4% today. It seems that the market's enthusiasm for AI is not as high as before, and a landmark positive catalyst is needed to restore confidence.
The National Energy Administration issued the 'Guidance on Promoting the Integrated Development of New Energy': proposing to enhance the coordinated development of wind, solar, hydrogen, and storage, and steadily build green hydrogen-ammonia-alcohol (hydrogen-based energy) comprehensive industrial bases. The Shandong Provincial Energy Bureau stated that it plans to promote over 2,000 hydrogen-powered vehicles and build 38 hydrogen refueling stations. Multiple provinces and cities have announced toll fee reduction policies for hydrogen fuel cell vehicles on highways, expanding application scenarios. The National Energy Administration recently encouraged coal chemical projects to adopt green hydrogen substitution. The Shandong Provincial Energy Bureau mentioned promoting over 2,000 hydrogen vehicles and building 38 hydrogen refueling stations. Toll reductions for hydrogen-powered vehicles were announced across multiple regions, marking breakthroughs in hydrogen fuel cell vehicle applications. According to Refire Energy's (02570) 2023 data, the company holds the largest market share in several key metrics of heavy-duty truck hydrogen fuel cell systems in China. Its mid-2025 report shows that core business (fuel cell systems) revenue soared, overseas income surged 360%, and operating cash flow turned positive for the first time. Shares surged over 40% today. Yihua Tong (02402) unveiled its latest 260kW liquid hydrogen fuel cell system, driving large-scale adoption of fuel cell vehicles. Shares rose over 3% today.
Guofu Hydrogen Energy (02582) successfully commissioned and achieved bulk liquid hydrogen production at 10 tons per day for its QiLu liquid hydrogen project. Liquid hydrogen demonstrates significant advantages over gaseous hydrogen in long-distance transportation and large-scale storage, serving as one of the key technological pathways to address the challenge of 'west-to-east hydrogen delivery.' Its significance lies not only in being the first fully localized 10-ton capacity facility in China, breaking technological monopolies, but also in paving the way for the construction of subsequent hundred-ton or even larger-scale liquid hydrogen plants, effectively driving cost reduction and efficiency improvements across the entire industrial chain. The stock surged nearly 7% today.
In the energy storage sector, CIMC Group (02039), leveraging economies of scale and technical advantages in container manufacturing, exhibits strong cost competitiveness in the energy storage container market. The company continues to enhance its integrated capabilities across the energy storage value chain, offering products covering power generation, grid-side, and commercial-industrial energy storage systems, while establishing solid partnerships with overseas large-scale wind power operators. Recently, the company has been actively repurchasing shares; on November 13, it spent RMB 20 million to repurchase 2.46 million A-shares at a price of RMB 8.12-8.14 per share. On the same day, the company spent HKD 20 million to repurchase 2.805 million H-shares at a price of HKD 6.98-7.27 per share. Driven by the buyback, the stock surged over 14% today.
The previously active pharmaceutical stocks showed divergence yesterday, with promising varieties strengthening. Ascletis Pharma-B (01672) announced on November 13 that the combination formulation of ASC36 and ASC35 has entered the clinical development stage. Preclinical data indicate that this combination formulation demonstrated superior weight loss effects compared to the control drug combinations in animal models. The company plans to submit an Investigational New Drug (IND) application to the U.S. FDA in the second quarter of 2026 for the use of the ASC36 and ASC35 combination formulation in treating obesity. ASC30 is another core asset of Ascletis Pharma, with the advantage of being developed either as a once-monthly subcutaneous injection or as a once-daily oral tablet, providing patients with significant convenience. The market has high hopes for this weight-loss product, and the stock surged over 15% today.
CARVYKTI, developed by Genscript Biotech (01548), exhibited robust growth. As of Q3, 60% of U.S. market demand originated from frontline indications. Coverage expanded to 131 treatment centers in the U.S. (including 38 community hospitals) and 246 treatment centers globally, with non-U.S. centers nearly doubling since the beginning of the year. Continued profit contributions are expected, and the stock rose nearly 5% today.
[Sector Focus]
According to CCTV reports, the first cold wave of the second half of the year will occur from now until November 17, with local temperature drops exceeding 12°C. Following the cooling, temperatures will widely reach new lows for the second half of the year. By November 17, the line of maximum temperature at 0°C will shift southward to northern Shaanxi, northern Shanxi, northern Hebei, and northern Liaoning. By the morning of November 18, the minimum temperature at 0°C will move southward to southern Jiangsu, southern Anhui, and northern Hubei, with many areas in Northwest China, Inner Mongolia, and Northeast China experiencing minimum temperatures below -10°C.
The significant drop in temperature directly increases heating demand, thereby raising natural gas consumption. Major beneficiaries include urban gas operators such as China Gas (00384), ENN Energy (02688), and China Resources Gas (01193), as well as down jacket manufacturers like Bosideng (03998).
[Stock Insights]
TCL Electronics (01070): Strengthening Global Industrial Layout with Countercyclical Growth in Overseas Sales
In the first three quarters of 2025, the company’s export revenue/shipment volume/average selling price increased by 12.7%/7.9%/4.5%, respectively, with Q3 alone growing by 14.2%/6.6%/7.2%. The company's mid-year report for 2025 showed a year-on-year revenue increase of 20.4%, reaching HKD 54.7 billion, with adjusted net profit attributable to shareholders surging by 62%.
Commentary: TCL Electronics' globalization strategy unleashes growth potential. TCL Electronics continues to advance its dual-brand strategy of "mid-to-high-end + large-screen" and "TCL + Thunderbird." The smart glasses business under the company's Thunderbird brand is expanding rapidly. It is expected that Thunderbird Innovation, in which the company holds an 11.5% stake, leads in market share for AI glasses. In the first half of 2025, Thunderbird Innovation's AI/AR glasses captured a 39% market share in China by sales volume. According to Counterpoint data, in the second quarter of 2025, Thunderbird Innovation's AR glasses achieved a 39% global shipment market share, ranking first globally for the first time. The large-screen display business remains a cornerstone of TCL Electronics' performance.
The company's overseas markets and products such as ultra-large sizes remain key growth drivers. TCL has achieved counter-cyclical growth in overseas markets, with overseas revenue accounting for more than half of TCL Electronics' total revenue in the first half of this year, while revenue from North America accounted for 15.4%. In 2025, TCL's North American business is expected to grow by over 30%. In the first three quarters of 2025, TCL TVs achieved global shipments of 21.08 million units, representing a year-on-year increase of 5.3%; among them, TCL TVs sized 75 inches and above saw international shipments grow by 61.8% year-on-year. In the first three quarters of this year, global shipments of TCL Mini LED TVs increased by 153.3% year-on-year to 2.24 million units, while global shipments of TCL TVs sized 75 inches and above grew by 27.8% year-on-year. Optimized product mix drove an 8.7% year-on-year increase in TCL TV sales revenue in the first three quarters. TCL continues to expand its share in overseas premium TV markets. Notably, the company’s internet business (e.g., membership, advertising) has seen rapid growth in both revenue and profit, with extremely high gross margins. The company and its group continue to enhance their global industrial layout. Through decades of strategic positioning, TCL has made significant channel breakthroughs in the North American market and rapidly increased its market share in Europe. The company’s long-term profitability growth is promising, and it is expected to consistently achieve net profit growth targets tied to its equity incentive plan.
