Zhitong Hong Kong Stock Early Knowledge | The Federal Reserve cuts interest rates by 25 basis points as scheduled, and the Hong Kong Monetary Authority follows suit with a 25 basis point cut

[Headline]

The Federal Reserve Cuts Interest Rates by 25 Basis Points as Expected

At 2 a.m. Beijing time on Thursday, the Federal Reserve announced its first interest rate cut of 2025 as expected. In line with market expectations, the Federal Open Market Committee lowered the federal funds rate target range by 25 basis points to 4.00%-4.25%.

The resolution pointed out that recent indicators show a slowdown in economic activity growth in the first half of this year. Employment growth has slowed, and the unemployment rate has slightly increased but remains low. Inflation has risen and remains at relatively high levels. The committee is concerned about the risks to its dual mandate and assesses that the downside risks to employment have increased.

Federal Reserve Chairman Jerome Powell stated that a 50 basis point cut did not receive broad support today, believing that there is no need for a rapid adjustment of rates. Today's action can be viewed as a risk management-style rate cut. Since the last Federal Reserve meeting, the risks facing the labor market have changed significantly. The labor market is cooling, and it is time to consider this in policy-making. According to CME's "FedWatch": the probability of the Federal Reserve maintaining rates in October is 12.3%, the probability of a 25 basis point cut is 87.7%. The probability of the Federal Reserve maintaining rates in December is 1.1%, the cumulative probability of a 25 basis point cut is 19.0%, and the cumulative probability of a 50 basis point cut is 79.9%.

Hong Kong Monetary Authority Cuts Interest Rates by 25 Basis Points

The Hong Kong Monetary Authority has lowered the benchmark interest rate by 25 basis points to 4.50%, following the overnight 25 basis point cut by the Federal Reserve.

[Market Outlook]

U.S. Stock Indices Mixed, Most Popular Chinese Stocks Rise

Overnight, U.S. stocks closed with the Dow Jones Industrial Average up 260.42 points from the previous trading day, closing at 46,018.32 points, a rise of 0.57%; the S&P 500 index fell 6.41 points to 6,600.35 points, a decline of 0.1%; the Nasdaq Composite Index fell 72.63 points to 22,261.33 points, a decline of 0.33%. Large tech stocks were mixed, with NVIDIA down over 2%, Oracle down over 1%, Netflix up over 2%, and Tesla up over 1%.

Most popular Chinese stocks rose, with the Nasdaq Golden Dragon China Index closing up 2.85%. Baidu rose over 11%, Nio rose over 6%, Alibaba, Bilibili, and Li Auto rose over 2%. The Hang Seng Index ADR fell, closing at 26,797.18 points, down 111.21 points or 0.41% compared to the Hong Kong close.

[Hot Topics Ahead]

Hong Kong Securities and Futures Professionals Association: Establishing a "Mainland Enterprises Going Global Task Force" Helps Strengthen Hong Kong's Role as an International Financial Center

According to Zhito Finance APP, the Hong Kong government mentioned in its new policy report that it will integrate Hong Kong's overseas offices and establish a "Mainland Enterprises Going Global Task Force." The Hong Kong Securities and Futures Professionals Association stated that this is beneficial for financial services, the establishment of treasury centers, professional services, and promotes cross-border capital cooperation, helping to strengthen Hong Kong's role as an international financial center and drive local professional service growth.

Silicon Industry Association: With the strict implementation of new energy consumption standards, domestic polysilicon effective capacity will decrease by 31.4% compared to the installed capacity. As of this week, the number of domestic polysilicon production enterprises remains at 10, with one company expected to complete maintenance by the end of September and resume normal production in early October. On September 16, the National Standardization Administration released three mandatory national standards, including "Energy Consumption Limits for Silicon Polysilicon and Germanium Unit Products." After the formal implementation of this standard, enterprises whose polysilicon unit product energy consumption does not meet the benchmark requirements will be given a deadline for rectification. Those that fail to rectify by the deadline or do not meet the access value after rectification will be shut down. According to preliminary statistics, after the orderly adjustment of the existing capacity structure, the effective polysilicon production capacity in China will decrease to about 2.4 million tons per year, a decrease of 16.4% compared to the end of 2024, and a reduction of 31.4% compared to the installed capacity. Therefore, with the strict implementation of the new energy consumption standards, the supply and demand pattern of polysilicon will be substantially improved.

Pig Production Capacity Control Symposium: Focus on "Controlling Breeding Sows" Participating Leading Enterprises Have Stated No New Breeding Sow Capacity

On September 16, a symposium on pig production capacity control was held in Beijing, attended by leading pig farming companies such as Muyuan and Wens. The meeting discussed the control of breeding sow capacity, restrictions on "secondary fattening," and reducing the weight of pigs for slaughter, aiming to regulate the supply of pigs for slaughter next year. Previously, the authorities proposed to reduce the number of breeding sows to 39.5 million. Several leading pig companies have stated their response to the regulation, pledging not to increase breeding sow capacity, orderly eliminate inefficient sows, and reasonably control the number of sows and the average weight of pigs for slaughter. This involves Hong Kong stocks such as COFCO Joycome (01610), Dekang Agriculture (02419), and WH Group (00288).

Qualified Foreign Limited Partner Foreign Exchange Management Pilot Expanded to Hengqin Guangdong-Macao Deep Cooperation Zone

According to reports, the Guangdong Provincial Branch of the State Administration of Foreign Exchange recently issued the "Implementation Rules for the Qualified Foreign Limited Partner Foreign Exchange Management Pilot Business in the Hengqin Guangdong-Macao Deep Cooperation Zone." The Hengqin Guangdong-Macao Deep Cooperation Zone has become the second area approved by the Guangdong Provincial Branch of the State Administration of Foreign Exchange to carry out QFLP foreign exchange management pilot after the Nansha Free Trade Zone in Guangzhou.

Tencent Cloud Launches Intelligent Agent Development Platform 3.0 Globally

On September 17, at the 2025 Tencent Global Digital Ecosystem Conference, Tencent Cloud announced the global launch of the Intelligent Agent Development Platform 3.0, with key intelligent agent technologies from Tencent Youtu Lab continuing to be open-sourced.

CATL (03750): Sodium New Battery Has Over 500 Kilometers of Pure Electric Range, Will Supply in Bulk Next Year

CATL (03750) stated on the interactive platform that sodium-ion batteries have slightly lower energy density than lithium-ion batteries, but have advantages in low-temperature performance, carbon footprint, and safety. Specifically, the sodium new battery will help expand into cold markets and broaden the regional boundaries of new energy applications; the energy density of the sodium new battery reaches 175Wh/kg, with a pure electric range of over 500 kilometers, covering more than 40% of the domestic passenger car market demand, with a broad target market space; the sodium battery pack launched by the company has high compatibility with 20 and 25 standard packs/replacement packs, suitable for all standard pack/replacement pack vehicle customers. Currently, the company's sodium new passenger car power batteries are being developed and implemented with customers, progressing smoothly, and bulk supply will be achieved next year according to customer schedules Dongfeng Motor Group Co., Ltd. (00489) plans to establish a joint venture to develop and sell smart vehicles

According to Zhitong Finance APP, Dongfeng Motor Group Co., Ltd. (00489) announced that on September 17, 2025, the company, Dongfeng Motor Co., Ltd. (a jointly controlled entity of the company and regarded as a subsidiary of the company), Xiangyang Holdings, and Xianggao Investment signed an investment agreement, under which the parties will jointly establish a joint venture through capital contributions.

Nio-SW (09866) completes $1.16 billion equity issuance and full exercise of underwriters' option to purchase additional American Depositary Shares

According to Zhitong Finance APP, Nio-SW (09866) announced that on September 17, 2025 - the pioneer and leader in the global smart electric vehicle market, Nio Inc. (NIO.US, 09866; Singapore Exchange: NIO) announced the completion of a $1.16 billion issuance involving a total of 209 million shares of the company's Class A common stock, including (i) the issuance of 161 million American Depositary Shares, each representing one share of the company's Class A common stock, (ii) the issuance of 20.995 million shares of the company's Class A common stock, and (iii) the issuance of 27.2727 million American Depositary Shares based on the full exercise of the underwriters' option to purchase additional American Depositary Shares on September 10, 2025.

Hengrui Medicine (01276) injection of SHR-A1811 new indication marketing application accepted and included in priority review process

According to Zhitong Finance APP, Hengrui Medicine (01276) announced that recently, its subsidiary Suzhou Shengdiya Biopharmaceutical Co., Ltd. received the "Acceptance Notice" issued by the National Medical Products Administration. The company's injection of SHR-A1811 for the treatment of locally advanced or metastatic HER2-positive adult breast cancer patients who have previously received one or more anti-HER2 drug treatments has been accepted by the National Medical Products Administration and included in the priority review process.

Rongchang Biopharmaceutical (09995): Currently, the clinical trials of RC48 overseas are progressing as planned

Rongchang Biopharmaceutical (09995) stated at the earnings briefing that the company reached a global exclusive licensing agreement with Seattle Genetics in the United States in 2021, authorizing the global development and commercialization rights of Vadastuximab Talirine outside of Rongchang Biopharmaceutical's region. Currently, the clinical trials of RC48 overseas are being advanced as planned by Pfizer. The main challenges faced in the internationalization process include the differences in regulatory environments in different countries and regions, the complexity of market access policies, and the dynamic changes in the competitive environment. The company is actively maintaining close cooperation with Pfizer, providing necessary support and data to assist in the clinical development and application work in overseas markets.

Ping An Insurance (02318): 2025 long-term service plan completes stock purchase

Ping An Insurance (02318) announced that the company's 2025 long-term service plan has completed stock purchases in the secondary market, acquiring a total of 74.615 million H shares of the company, accounting for 0.412% of the company's total share capital, with a total transaction amount of 3.875 billion yuan and an average transaction price of approximately 51.87 yuan per share A total of 83,024 core talents voluntarily participated in the plan. The shareholding ratio of directors, supervisors, and senior management in the plan is 2.52%, while the shareholding ratio of other employees is 97.48%. Participants in the long-term service plan can only apply for the vesting of plan rights upon retirement from the company.

Kaisa Capital (00936) collaborates with a virtual asset trading platform licensed by the Hong Kong Securities and Futures Commission to layout real-world asset tokenization business

According to Zhitong Finance APP, Kaisa Capital (00936) announced that the group has officially launched a strategic transformation, leveraging shareholder resources, its own industry and regional advantages, as well as technological accumulation with partners in the Web 3.0 field, to explore digital financial innovation in a compliant regulatory environment starting from Hong Kong.

【Stock Highlights】

Kaxin International Resources (03858): Strong tungsten price trend

According to Shanghai Nonferrous Metals Network, recently, under the continuous new highs of tungsten prices, the tungsten market has seen a significant decrease in transaction volume, with high prices being transmitted to downstream slowly. The operating rate of the downstream hard alloy industry has decreased due to high-cost constraints, leading to a stalemate in the market. However, SMM believes that the supply-demand mismatch in the tungsten market has not yet been resolved, making it difficult to say there will be a significant correction in the future, and it is expected to maintain a predominantly strong oscillation.

It is reported that Kaxin International is a tungsten mining company based in Kazakhstan, focusing on the development of the Bakuta tungsten mine. China Merchants Securities believes that the company's core asset is the Bakuta tungsten mine, which has already been put into production, and there are still expectations for increased production in the future. Benefiting from the rise in tungsten prices, the company's profits are expected to grow rapidly