Breakfast | Alibaba and Tencent lead the way, the earnings report week for Chinese concept stocks is coming! Pay attention to China's financial and economic data for October

Last Week's Market Review

Last week, the "Trump trade" combined with the Federal Reserve's interest rate cuts supported the three major U.S. stock indices to reach new highs, with the Dow Jones and S&P 500 achieving their best weekly performance in a year. On Friday, the Dow Jones broke through 44,000 points for the first time, and the S&P 500 briefly rose above 6,000 points, marking the 50th new high of the year. However, due to weakness in chip stocks and technology stocks, the Nasdaq barely closed up but still reached a new high.

Boosted by financial stocks, the Russell small-cap index rose 0.71% on Friday and gained 8.57% for the week, outperforming other indices and achieving its best weekly performance since April 2020 during the pandemic.

Most sectors rose, with only telecommunications, technology, and materials sectors declining, while utilities, real estate, and consumer staples sectors led the gains. This week, due to Trump's policy inclination to relax regulations, financial and energy stocks performed well.

On Friday, the "Trump trade" supported Trump Media & Technology (DJT) to close up 15.22%; Tesla rose over 8%, with a market value surpassing $1 trillion, accumulating nearly 30% gains in the three days following Trump's victory; Nvidia's five-day winning streak ended; the China concept index briefly fell over 5%, with Fangduoduo down over 21% and Tiger Brokers down over 14%.

Key Focus This Week

China concept earnings reports are coming: NetEase, JD.com, Tencent Holdings, Bilibili, Alibaba, and other companies will disclose their earnings reports. China's October financial and economic data, U.S. October CPI and PPI, Powell's speech, and the European Central Bank's October monetary policy meeting minutes will also be released.

Wednesday: Tencent earnings report, U.S. October CPI, Jensen Huang's discussion with SoftBank CEO Masayoshi Son;

Thursday: JD.com, NetEase, and Bilibili earnings reports, U.S. October PPI;

Friday: Alibaba earnings report, China's October economic data.

China's National People's Congress Approves an Increase of 60 Billion Yuan in Local Government Debt Quota to Replace Hidden Debt

Chinese Finance Minister Lan Fo'an stated that the approach to debt resolution has fundamentally changed, which will directly increase local debt resolution resources by 10 trillion yuan, with an additional 60 billion yuan in local debt quota arranged over three years.

Analysts say that the task of resolving hidden debt has been reduced by 12 trillion yuan, a decrease of 83.9%, releasing the vitality of local governments; the M2 growth rate has one less drag factor, further reducing the restrictive factors faced by the real economy; the government is addressing the issues, with improvements in all three restrictive factors to varying degrees.

Reports Indicate Musk Participated in Trump's Call with Zelensky

According to CCTV news, on the 7th local time in Ukraine, President Zelensky stated that he had a conversation with former U.S. President Trump, who had just won the U.S. election, and both sides agreed to maintain close dialogue and develop cooperation.

Recent media reports indicate that the call between Trump and Zelensky lasted about 25 minutes, and Musk's appearance during the call was unexpected and not pre-arranged, as he happened to walk into the room at that time.

Media sources cited informed individuals stating that Musk was not formally involved in the call, and his interaction with Zelensky lasted only a few seconds. However, this brief interaction indicates the smooth channels of communication between Musk and Trump, as well as Musk's unprecedented influence during Trump's second term

Putin Signals Willingness to Engage with the U.S., On the Same Day Trump Expresses Desire to "Talk" with Putin

"Russian President Putin's speech at the Valdai Conference signaled Moscow's readiness to engage with Washington." This was the commentary from TASS on Putin's remarks the previous day about being "ready to communicate with U.S. President-elect Trump." Meanwhile, Trump stated in an interview with U.S. media on the 7th that he hopes to "talk" with Putin.

First Remarks After Rate Cut, Federal Reserve Official: "Stronger Economy" Means "Fewer Rate Cuts"!

Neel Kashkari, President of the Minneapolis Federal Reserve Bank, stated that it is too early to determine whether Trump will trigger inflation. If the U.S. economy continues to improve, the Federal Reserve may not implement significant rate cuts.

Media Reports: Discovery of New Generation Large Model "Not Such a Big Leap," OpenAI Has Changed Strategy

OpenAI's next flagship model "Orion" shows progress that is far less than that of the previous two flagship models, directly challenging the "scaling law" that has been followed in the field of artificial intelligence. The industry is shifting its focus to improving models after initial training.

Last Week's Hottest U.S. Stock: Not Tesla or DJT, But AppLovin

AppLovin has seen a cumulative increase of 647% this year, far exceeding Nvidia's growth during the same period, with a market capitalization surpassing $100 billion, becoming Wall Street's "new darling of AI." This company, which started with advertising, has prospered in the AI boom, with its third-quarter performance greatly exceeding expectations, and its AI advertising engine AXON 2.0 enhancing its advertising profitability.

SF Holding Passes Hong Kong Stock Exchange Listing Hearing

Reports indicate that SF plans to launch PDIE (Pre-Deal Investor Education) on Monday, aiming to list on the Hong Kong Stock Exchange within November, with a fundraising target of approximately $1 to $1.5 billion. In terms of fundraising amount, SF will be the second-largest IPO this year, surpassing the 5.4 billion yuan raised by Horizon, second only to the Midea Group, which went public in September