【HEADLINES】1. All three major US stock indices fell on Wednesday (23rd) as markets focused on rising bond yields and oil prices, coupled with investor concerns that the Fed might further tighten monetary policy, weighing on tech stocks, with Nasdaq dropping over 1%. The Dow closed down 352.1 points, or 0.68%, at 51,511.59 points; the S&P 500 dropped 58.59 points, or 0.75%, to 7,706.05 points; the Nasdaq fell 308.24 points, or 1.13%, to 26,936.04 points. The China Golden Dragon Index was flat. The Nikkei opened at 66,087 points, up 30 points.
2. Chinese President Xi Jinping arrived in the United States and received high-level hospitality from US President Trump, expressing confidence that his visit would yield fruitful results. US Treasury Secretary Bessent said the US and China agreed to extend their trade truce by two months until January 10 next year, although the scope of communication channels between the two countries in the AI field remains to be determined.
3. Iranian President Pezeshkian spoke at the United Nations General Assembly, stating that Tehran does not rule out negotiations but rejects threats, and as long as sanctions and blockades remain, Iran will not allow free navigation through the Strait of Hormuz. Brent crude futures rose over 3%.
4. Federal Reserve Governor Barr stated that US inflation remains above the Fed's 2% target and has not clearly moved toward the target level, and under the baseline scenario, further adjustments to monetary policy are needed to ensure inflation returns to target in a timely manner.
5. The US Treasury Department announced it will repurchase up to $6 billion in 20- to 30-year Treasury bonds on Thursday, the second time conducting such an operation with a $6 billion cap following Bessent's expansion of the long-term bond buyback program. After the announcement, the yield on 30-year US Treasuries briefly rose to 5.38%, approaching the earlier monthly level of around 5.4%; the 5-year Treasury yield surpassed 5%, hitting a nearly 20-year high; the 10-year Treasury yield briefly rose to 5.058%, reaching a pre-financial crisis high.
6. The Mortgage Bankers Association reported that the average contract interest rate on 30-year fixed mortgages rose 15 basis points week-on-week to 7.12% for the week ending September 18, the highest level since May 2024.
7. The People's Bank of China will conduct an 800 billion RMB one-year Medium-Term Lending Facility operation on September 24; it will increase overnight reverse repo operations next week, with daily operation volumes not exceeding 1 trillion RMB.
8. News on US diesel export restrictions has been inconsistent. Earlier reports indicated the Trump administration was preparing a 90-day diesel export ban, but the White House later denied considering a comprehensive, temporary diesel export ban.
9. The Securities and Futures Commission stated that the inclusion of RMB counters in the Stock Connect program will be implemented by July 1 next year; the mutual access of real estate investment trusts is targeted to be implemented in the first half of next year.
10. It is reported that the Hong Kong Stock Exchange will consult market participants on the potential extension of stock trading hours to further align Hong Kong's trading sessions with major global markets.
【STOCK HIGHLIGHTS】
Alibaba (09988)
- Morgan Stanley expects Alibaba to achieve a $240 billion cloud revenue capacity, supported by rapid monetization of Qwen and increasing penetration of Pingtouge, maintaining its overweight rating and target price of $180 for Alibaba's US shares, and naming it a top pick.
Interest-rate sensitive stocks: Sun Hung Kai Properties (00016), Henderson Land (00012), Zijin Mining (02899), Longfor Group (00960)
- Fed Governor Barr emphasized the need for further rate hikes to curb inflation
The 'Three Oil Giants': PetroChina (00857), CNOOC (00883), Sinopec (00386)
- Iran's hardline stance adds supply concerns, pushing Brent crude prices higher
Xiaomi (01810)
- Xiaomi 18 Pro series starts at 5,999 RMB, Xiaomi 18 Pro Max starts at 6,999 RMB
- Executives said Xiaomi 18 Fold's initial sales volume tripled compared to the previous generation of large foldable phones
Tencent (00700)
- Repurchased nearly 230,000 shares yesterday for 100 million RMB, with a maximum share price of 453.6 RMB
Estun (02715)
- Potentially repurchasing nearly 45% equity of subsidiary Estun Jiangsu Intelligence from three funds
UBTech (09880)
- Submitted application to CSRC for H-share full circulation filing, involving conversion of 17.58 million domestic shares into H-shares
Leqee Resources (02245)
- Raised nearly 37 billion RMB in final proceeds from new A-share listing in Shenzhen
Shandong Molong (00568)
- Placed shares at a 16% discount, netting about 115 million RMB to repay loans
Lufax (06623)
- Fulfilled all conditions for resumption of trading, applied for resumption this morning
【OIL & GOLD QUOTES】
NYMEX crude oil down 0.18%, at $91.99/barrel
Brent crude oil down 0.55%, at $102.85/barrel
Spot gold up 0.03%, at $4,288.85/ounce
Gold futures up 0.16%, at $4,288.85/ounce
2. Chinese President Xi Jinping arrived in the United States and received high-level hospitality from US President Trump, expressing confidence that his visit would yield fruitful results. US Treasury Secretary Bessent said the US and China agreed to extend their trade truce by two months until January 10 next year, although the scope of communication channels between the two countries in the AI field remains to be determined.
3. Iranian President Pezeshkian spoke at the United Nations General Assembly, stating that Tehran does not rule out negotiations but rejects threats, and as long as sanctions and blockades remain, Iran will not allow free navigation through the Strait of Hormuz. Brent crude futures rose over 3%.
4. Federal Reserve Governor Barr stated that US inflation remains above the Fed's 2% target and has not clearly moved toward the target level, and under the baseline scenario, further adjustments to monetary policy are needed to ensure inflation returns to target in a timely manner.
5. The US Treasury Department announced it will repurchase up to $6 billion in 20- to 30-year Treasury bonds on Thursday, the second time conducting such an operation with a $6 billion cap following Bessent's expansion of the long-term bond buyback program. After the announcement, the yield on 30-year US Treasuries briefly rose to 5.38%, approaching the earlier monthly level of around 5.4%; the 5-year Treasury yield surpassed 5%, hitting a nearly 20-year high; the 10-year Treasury yield briefly rose to 5.058%, reaching a pre-financial crisis high.
6. The Mortgage Bankers Association reported that the average contract interest rate on 30-year fixed mortgages rose 15 basis points week-on-week to 7.12% for the week ending September 18, the highest level since May 2024.
7. The People's Bank of China will conduct an 800 billion RMB one-year Medium-Term Lending Facility operation on September 24; it will increase overnight reverse repo operations next week, with daily operation volumes not exceeding 1 trillion RMB.
8. News on US diesel export restrictions has been inconsistent. Earlier reports indicated the Trump administration was preparing a 90-day diesel export ban, but the White House later denied considering a comprehensive, temporary diesel export ban.
9. The Securities and Futures Commission stated that the inclusion of RMB counters in the Stock Connect program will be implemented by July 1 next year; the mutual access of real estate investment trusts is targeted to be implemented in the first half of next year.
10. It is reported that the Hong Kong Stock Exchange will consult market participants on the potential extension of stock trading hours to further align Hong Kong's trading sessions with major global markets.
【STOCK HIGHLIGHTS】
Alibaba (09988)
- Morgan Stanley expects Alibaba to achieve a $240 billion cloud revenue capacity, supported by rapid monetization of Qwen and increasing penetration of Pingtouge, maintaining its overweight rating and target price of $180 for Alibaba's US shares, and naming it a top pick.
Interest-rate sensitive stocks: Sun Hung Kai Properties (00016), Henderson Land (00012), Zijin Mining (02899), Longfor Group (00960)
- Fed Governor Barr emphasized the need for further rate hikes to curb inflation
The 'Three Oil Giants': PetroChina (00857), CNOOC (00883), Sinopec (00386)
- Iran's hardline stance adds supply concerns, pushing Brent crude prices higher
Xiaomi (01810)
- Xiaomi 18 Pro series starts at 5,999 RMB, Xiaomi 18 Pro Max starts at 6,999 RMB
- Executives said Xiaomi 18 Fold's initial sales volume tripled compared to the previous generation of large foldable phones
Tencent (00700)
- Repurchased nearly 230,000 shares yesterday for 100 million RMB, with a maximum share price of 453.6 RMB
Estun (02715)
- Potentially repurchasing nearly 45% equity of subsidiary Estun Jiangsu Intelligence from three funds
UBTech (09880)
- Submitted application to CSRC for H-share full circulation filing, involving conversion of 17.58 million domestic shares into H-shares
Leqee Resources (02245)
- Raised nearly 37 billion RMB in final proceeds from new A-share listing in Shenzhen
Shandong Molong (00568)
- Placed shares at a 16% discount, netting about 115 million RMB to repay loans
Lufax (06623)
- Fulfilled all conditions for resumption of trading, applied for resumption this morning
【OIL & GOLD QUOTES】
NYMEX crude oil down 0.18%, at $91.99/barrel
Brent crude oil down 0.55%, at $102.85/barrel
Spot gold up 0.03%, at $4,288.85/ounce
Gold futures up 0.16%, at $4,288.85/ounce
