Zhitong Hong Kong Stocks Early Knowledge | International gold prices hit a new historical high, Powell: tapering may end in the coming months

【Today's Headlines】

Federal Reserve Chairman Powell: Balance Sheet Reduction May End in the Coming Months

Federal Reserve Chairman Powell stated on Tuesday that the central bank may end its balance sheet reduction process in the coming months to prevent liquidity tightening in the short-term funding markets. This statement marks a potential turning point for the Fed's quantitative tightening (QT) policy and reinforces market expectations for another rate cut this month. Key points from Powell's speech on October 14:

1. Chairman Powell hinted that officials may stop shrinking the balance sheet in the coming months, acknowledging "some signs" of tightening in the money markets.

2. Powell stated that bank reserves remain "ample," but officials are closely monitoring various indicators to determine when to stop the reduction.

3. Powell noted that since the September FOMC monetary policy meeting, the inflation and employment outlooks seem to have changed little, although he emphasized that there are increasing signs of weakness in the labor market.

4. Powell mentioned that even in the absence of government data during the shutdown, "the downside risks to employment seem to have increased."

5. He pointed out that alternative data reviewed by officials cannot replace official government statistics.

6. Powell kept the possibility of a rate cut in October open, reiterating that officials do not have an easy choice as they must balance the risk of prematurely ending the fight against inflation with the danger of supporting the labor market too late.

7. The market's reaction to Powell's remarks was most evident in the dollar swap spreads, which widened after Powell hinted at the potential end of the balance sheet reduction. Following Powell's speech, the Bloomberg Dollar Index fell to a daily low, while U.S. Treasury yields declined.

【Market Outlook】

International Gold Prices Hit New Historical Highs

Overnight, U.S. stocks closed with the Dow Jones Industrial Average up 202.88 points from the previous trading day, closing at 46,270.46 points, an increase of 0.44%; the S&P 500 index fell 10.41 points to 6,644.31 points, a decrease of 0.16%; the Nasdaq Composite Index dropped 172.91 points to 22,521.7 points, a decline of 0.76%. Most large tech stocks fell, with Nvidia down over 4%, Broadcom down over 3%, and Tesla and Amazon down over 1%. Semiconductor and cryptocurrency reserve concept stocks led the declines, with Intel down over 4%.

Popular Chinese concept stocks generally fell, with the Nasdaq Golden Dragon China Index closing down 1.95%. The Hang Seng Index ADR rose, closing at 25,667.98 points, up 226.63 points or 0.89% compared to the Hong Kong close.

International gold prices hit new historical highs, with COMEX gold futures for the current month rising by $30.40, an increase of 0.74%, to $4,163.4 per ounce.

【Hot Topics Ahead】

China Automotive Power Battery Industry Innovation Alliance: In September, China's total production of power and other batteries increased by 35.4% year-on-year

According to Zhito Finance APP, on October 14, the China Automotive Power Battery Industry Innovation Alliance released monthly information on power batteries for September 2025. In terms of production, in September, China's total production of power and other batteries reached 151.2 GWh, an increase of 8.3% month-on-month and 35.4% year-on-year From January to September, the cumulative production of power and other batteries in China reached 1,121.9 GWh, with a year-on-year growth of 51.4%.

People's Bank of China: Will conduct 600 billion yuan reverse repurchase operation on October 15

On October 15, the People's Bank of China will conduct a 600 billion yuan 6-month (182 days) reverse repurchase operation, using a fixed quantity, interest rate bidding, and multiple price bidding method. This is the second reverse repurchase operation in October, aimed at maintaining ample liquidity in the banking system and addressing potential tightening pressure on funds.

Mixue Ice Cream (02097) starts selling beer, priced from 5.9 yuan

Recently, Mixue Ice Cream Co., Ltd. announced that it has acquired a 53% stake in Fresh Beer Fu Lu Jia for approximately 297 million yuan, achieving absolute control. After the transaction is completed, Fresh Beer Fu Lu Jia will become its non-wholly-owned subsidiary, and its financial performance will be consolidated into the group’s financial statements. This also means that Mixue Ice Cream officially extends its business scope from freshly made tea and coffee to alcoholic beverages. Fresh Beer Fu Lu Jia's operating hours are mostly from 11 AM to 12 AM, with some stores open until 1 AM the next day. This involves the Hong Kong stock Mixue Group (02097).

Harbin Electric Group signs joint R&D cooperation letter with General Technology Group

According to the "Harbin Electric Group" WeChat official account on October 14, on October 13, Harbin Electric Group signed a joint R&D cooperation letter for industrial mother machines with General Technology Group at the Harbin Electric Group headquarters. Huang Wei, Chairman and Party Secretary of Harbin Electric Group, stated that for many years, Harbin Electric Group and General Technology Group have cooperated pragmatically to serve national strategies and promote new industrialization, hoping to further deepen cooperation in areas such as industrial mother machines, power equipment industry chain, and international business. This involves the Hong Kong stock Harbin Electric (01133).

Galactica Pharmaceuticals-B (01672) completes pre-NDA communication with the National Medical Products Administration for denifanstat (ASC40)

According to Zhitong Finance APP, Galactica Pharmaceuticals-B (01672) announced that its board of directors has recently completed pre-New Drug Application (Pre-NDA) communication with the National Medical Products Administration of China regarding denifanstat (ASC40) for the treatment of moderate to severe acne, and plans to submit the new drug application soon. The pre-NDA communication for this new drug application began in June 2025 and ended in October 2025.

Lianzhong (06899): Strategic investment in cryptocurrency promotes the integration of blockchain technology with group business

According to Zhitong Finance APP, Lianzhong (06899) announced that its subsidiary Allied Gaming & Entertainment Inc. (AGAE, NASDAQ: AGAE.US) has invested in Bitcoin (BTC) and increased its holdings in Ethereum (ETH). This marks the official launch of AGAE's strategic plan to incorporate cryptocurrency into its balance sheet and lays the foundation for its broader blockchain applications and tokenization of Real World Assets (RWA), aiming to promote the deep integration of blockchain technology with the group's core gaming and entertainment industry Shanghai Pharmaceuticals (02607): Doxycycline Capsules Approved by the US FDA

According to Zhito Finance APP, Shanghai Pharmaceuticals (02607) announced that its subsidiary, Changzhou Pharmaceutical Factory Co., Ltd., recently received notification from the US Food and Drug Administration (hereinafter referred to as "US FDA") that its abbreviated new drug application ("ANDA", i.e., US generic drug application) for doxycycline capsules has been approved.

China Antibody-B (03681): SM17 Subcutaneous Injection Bridging Study Completes First Cohort Dosing in Healthy Subjects in China

According to Zhito Finance APP, China Antibody-B (03681) announced that the SM17 subcutaneous injection bridging study conducted in China on October 14, 2025, has successfully completed dosing for the first cohort of healthy subjects. As of the date of this announcement, all subjects have tolerated the treatment well, with no adverse events reported (including injection site reactions (ISR)). This bridging study aims to investigate the safety, tolerability, and pharmacokinetic characteristics of the SM17 subcutaneous injection and to explore the bioavailability of SM17 in humans. A total of 30 healthy subjects are planned to be enrolled in this bridging study. All healthy subjects are expected to complete recruitment by November 2025 and complete all follow-ups by March 2026.

JD.com Registers Multiple JD Auto Trademarks

According to Tianyancha App, Beijing JD 360 Degree E-commerce Co., Ltd. has applied to register multiple trademarks including "JD Auto," "JD Auto JD AUTO," and "JD Auto CAR.JD.COM," classified under transportation tools, scientific instruments, advertising sales, etc. Some of these trademarks have already been successfully registered.

JD.com announced yesterday that it has partnered with CATL's Times Electric and GAC Group to jointly launch a new car on November 9. Many media outlets interpreted this as JD.com officially entering the automotive industry and planning to produce cars under the JD brand. In response, JD.com stated that this new car is a joint launch by the three parties, with JD.com primarily providing consumer insights and exclusive sales, without direct involvement in the manufacturing process.

ZTE Corporation (00763): Self-Developed Chips Meet Core Needs of Internet Companies

On October 14, ZTE Corporation stated on the interactive platform that its wholly-owned subsidiary, ZTE Microelectronics, has developed custom processor chips that not only meet the core needs of internet companies but also provide a lower total cost of ownership for enterprise-level application scenarios such as large-scale data processing, video encoding and decoding, and cloud gaming.

Meet Xiaomian's Hong Kong IPO and Domestic Unlisted Shares "Full Circulation" Approved by the China Securities Regulatory Commission

The International Cooperation Department of the China Securities Regulatory Commission issued a notice regarding the overseas issuance and listing of Guangzhou Meet Xiaomian Catering Co., Ltd. and the "full circulation" of its domestic unlisted shares. The company plans to issue no more than 235,108,000 overseas listed ordinary shares and list them on the Hong Kong Stock Exchange. Eleven shareholders of the company plan to convert a total of 613,324,800 domestic unlisted shares into overseas listed shares for circulation on the Hong Kong Stock Exchange [Stock Highlights]

Shandong Gold (01787): Expected net profit growth of 83.9%-98.5% year-on-year in the first three quarters

Shandong Gold announced that it expects to achieve a net profit attributable to the owners of the parent company of RMB 3.8 billion to RMB 4.1 billion in the first three quarters of 2025, an increase of RMB 1.73 billion to RMB 2.03 billion compared to the same period last year, representing a year-on-year increase of 83.9% to 98.5%. It is expected that the net profit attributable to the owners of the parent company, after deducting non-recurring gains and losses, will be RMB 3.78 billion to RMB 4.08 billion in the first three quarters of 2025, an increase of RMB 1.69 billion to RMB 1.99 billion compared to the same period last year, representing a year-on-year increase of 80.5% to 94.8%.

In the first three quarters of 2025, the company will comprehensively optimize its production layout, strengthen core technology breakthroughs, and enhance fine management levels, while also benefiting from rising gold prices, resulting in a significant year-on-year increase in company profits