The Hang Seng Index closed at 21006 on Tuesday (5th), up 439 points or 2.1%; Total market turnover was 169.9 billion yuan for the day. The China Index rose 188 points or 2.6% to 7556; the Science Index surged 161 points or 3.6%, reaching 4693. Mainland brokerage stocks performed well overall. GF Securities (01776) surged 6.7%; CITIC Securities (03908) soared 8%; CITIC SEC (06030) rallied 6.5%. Foreign reports stated that Apple will increase its investment in Indonesia in exchange for lifting the ban on selling iPhone 16 locally, boosting the apple supplier concept stocks. The offshore RMB price hit a two-week high the previous day, benefiting mainland real estate stocks sensitive to exchange rate fluctuations. Blue-chip Longhu (00960) rose 3.8%;

The Dow Jones closed at 42221 points on Tuesday (5th), up 427 points or 1.02%. The Nasdaq Composite rose 1.23% to 5782 points; the Nasdaq gained 1.43% to 18439 points; Among heavyweight stocks, Nvidia and Meta rose 2.9% and 2.1% respectively, with Nvidia surpassing Apple once again in market cap, becoming the world's most valuable listed company; Intel climbed 3.6%, the best performer among Dow components. Republican presidential candidate Trump's social media company TrumpMedia & Technology (DJT) saw its stock price surge 18.6% at one point, but closed down 1.2%; DJT has become a barometer of "Trump Trade" speculation recently. However, Tesla, a Trump concept stock, closed up 3.5%. Big data company Palantir broke profit records and raised its full-year performance forecast, sending its stock price soaring 23.5%; conversely, automotive chip maker NXP disappointed in its performance outlook, dragging its stock price down 5.2%. Asia-Pacific stock markets varied this morning (6th), with the Nikkei 225 index currently at 38947 points, up 473 points or 1.23%. The Korea Composite Index is at 2585 points, up 8 points or 0.34%. The market is eagerly awaiting the results of the US election and interest rate decisions, with a more cautious market sentiment.

Market focus: Yum China (09987)

In September, total retail sales of consumer goods reached 4.11 trillion RMB, a year-on-year increase of 3.2%, accelerating by 1.1 percentage points from August. By consumption type, retail sales of goods in September were 3.67 trillion RMB, up 3.3% year on year; dining revenue grew by 3.1%, showing signs of improvement. Yum China (9987) released its third-quarter operating data, with group revenue increasing by 5% year on year, operating profit up 15% year on year, and diluted EPS up 33% year on year. System sales increased by 4% year on year, with same-store sales reaching 97% of last year's level. The group's same-store sales index improved compared to the previous quarter, achieving continuous growth in same-store transactions for the seventh consecutive quarter. Delivery sales increased by 18% year on year, maintaining double-digit annual growth seen over the past decade. Restaurant profit margins expanded by 50 basis points year on year, with core operating profit increasing by 18%. Diluted EPS increased by 32%, reflecting strong profitability and efficiency improvements. Revenue for the first nine months reached 8.7 billion USD, with operating profit exceeding 1 billion USD. The group opened 438 net new stores in the third quarter, exceeding 1,200 for the year, in line with the goal of netting 1,500 to 1,700 new stores. The group has been focused on innovating business models, such as KCOFFEE cafes and Pizza Hut WOW, driving customer engagement and market share growth. The group continues to reduce costs and increase efficiency, with confidence that gross profit will continue to rise.

Target $410, stop loss price $317

(The author is a licensed person of the China Securities Regulatory Commission and does not hold any of the above stocks.)

Author: Dr. Tang Shengxing, Chairman of the Hong Kong Stock Analysts Association.