**Market Overview** A wave of positive developments over the weekend set the stage for a strong rally across both mainland and Hong Kong markets. The Hang Seng Index jumped 1.55% at close, buoyed by optimism. The most significant catalyst was the impending resolution of the U.S. government shutdown. Reports indicate the Senate has reached a consensus to end the 40-day impasse, with President Trump signaling a near-term resolution. The shutdown had strained liquidity, with the U.S. Treasury General Account (TGA) balance surpassing $1 trillion—a five-year high—siphoning over $700 billion from markets since July. Its conclusion is expected to release substantial liquidity back into the economy.

Sino-U.S. tensions further eased as China reinstated soybean import permits for three U.S. firms, including CHS Inc., effective November 10. Additional measures included suspending special port fees for U.S. vessels and rolling back trade countermeasures against Hanwha Ocean’s subsidiaries. These steps underscore commitments to stabilizing bilateral relations. Meanwhile, the Netherlands confirmed Nexperia China’s imminent resumption of chip supplies, a positive signal for EU-China ties.

Southbound capital inflows surged, with HKEX data showing a net buy of HK$6.65 billion via Stock Connect on November 10, pushing annual inflows past HK$1.3 trillion and cumulative totals above HK$5 trillion—a record high. This trend highlights growing domestic investor influence, a stabilizing factor compared to volatile foreign capital.

**Sector Highlights** *Consumption Revival*: October’s CPI rose 0.2% YoY, ending a deflationary streak (-0.3% in September), easing economic concerns. Luxury and consumer discretionary stocks led the rebound: - **Kweichow Moutai (600519.SH)**: +2% - **POP MART (09992)**: +8% - **Mixue Group (02097)**, **Samsonite (01910)**, **Guming (01364)**, and **WL Delicious (09985)**: All gained over 7%.

Double 11 sales boosted **MAO GEPING (01318)**, which entered the top 20 beauty rankings on Tmall and Douyin, rising 7%. **AUNTEA JENNY (02589)** soared 13% after announcing an H-share incentive plan covering up to 5% of its shares.

The standout was **CTG DUTY-FREE (01880)**, up 15%, as Hainan’s duty-free sales surged 34.86% YoY (November 1–7). Tourism-related stocks like **TONGCHENGTRAVEL (00780)** (+7%) and airlines (**AIR CHINA (00753)**, **China Eastern (00670)**, **China Southern (01055)**) climbed over 4%.

*Gold Demand Shifts*: Q1–Q3 2025 saw gold consumption fall 7.95% YoY, with jewelry down 32.5% but bars/coins up 24.55%, reflecting stronger investment demand. Central banks, including China (+23.95 tons), continued accumulating reserves, with global central bank gold holdings surpassing U.S. Treasuries in Q2. **CHIFENG GOLD (06693)**, **SD GOLD (01787)**, and **LAOPU GOLD (06181)** rose over 5%.

**Policy Spotlight** China’s NDRC and NEA issued guidelines targeting 2030/2035 milestones for renewable energy integration, aiming to meet annual新增 200GW capacity absorption. Key beneficiaries: **XINTE ENERGY (01799)**, **GCL TECH (03800)**, **TIANQI LITHIUM (09696)**, and **CHINA LONGYUAN (00916)**.

**Stock Pick: CHINA LESSO (02128)** Amid China’s “15th Five-Year Plan” to upgrade 700,000 km of underground pipelines (¥5 trillion investment), **CHINA LESSO** reported resilient H1 2025 results: - Revenue dipped 8.03% to ¥124.75 billion, but net profit edged up 0.27% to ¥10.46 billion. - Plastic pipe sales grew 3.9% against industry downtrend, with market share expanding to ~20%. - Non-property and non-southern China segments drove growth, while agri-sector pipelines led. - High-risk property receivables were provisioned at 75%+, mitigating risks. - Overseas sales jumped 30% to ¥880 million. - Key projects include the Hong Kong-Zhuhai-Macao Bridge and Beijing Daxing Airport.

With green infrastructure demand rising, **CHINA LESSO** is poised for sustained growth.