**Market Overview**

Super typhoon "Huacasa" struck with intensity comparable to "Mangkhut," characterized by strong winds, large scale, stable trajectory, significant rainfall impact, and extreme wind conditions. In the past, the Hong Kong Stock Exchange would have suspended trading, but rule changes now allow trading to continue regardless of typhoon strength. Hong Kong stocks were somewhat affected, with the Hang Seng Index declining 0.70% today.

Following the Federal Reserve's rate cut, US stocks gained momentum and continued their upward trajectory. However, Chinese markets maintained policy independence by not following suit with rate cuts, which markets interpreted as falling short of expectations.

Property stocks continued their decline today, with New Town Development (01030) and Sunac China (01918) both falling over 5%.

Regarding US-China relations, communication has become more active following the leaders' meeting, including the first high-level US Congressional delegation visit to China in six years. However, some practical issues remain unresolved. Trump's team indicated that a TikTok deal is nearing completion, with investors including Oracle and Silver Lake Capital, suggesting an intention to acquire TikTok.

Meanwhile, US agricultural products face difficulties. On September 22, Argentina announced the temporary elimination of export withholding taxes on grains, beef, and poultry. Multiple traders revealed that following this policy, Chinese buyers ordered at least 10 shipments of Argentine soybeans, dealing another blow to US farmers already facing export restrictions to China.

On September 12, due to the "West-2025" joint strategic exercise, Poland closed all Polish-Belarusian border crossings effective immediately. This decision directly severed an important overland route for Chinese goods entering the EU via Russia-Belarus-Poland. According to the European Rail Freight Association, 85%-90% of China-Europe freight trains currently enter the EU through Poland, meaning approximately 300 trains loaded with electronics, automotive parts, and solar components are stranded in Belarus, with comprehensive supply chain costs rising over 15%.

Today brought news that Chinese securities regulators have advised some domestic brokers to suspend real-world asset (RWA) tokenization businesses in Hong Kong. The duration of this informal guidance remains unclear, likely as a risk prevention measure. Guotai Junan International (01788) fell over 11%, with other securities stocks declining collectively.

In this environment, finding motivation for long positions proves difficult, with funds continuing to pursue safe-haven strategies. Gold stocks showed relatively strong overall performance. Beyond the weakening US dollar, central bank reserves continue rising, with gold comprising a larger share of central bank reserves (excluding the Fed) than US Treasuries for the first time since 1996. Countries including China have continuously purchased gold and sold US debt over the past three years, with some central banks directly requiring gold reserves to reach 30%. Spot gold reached $3,740 per ounce, setting a new historical high.

On September 22 evening, Tang Gold announced a placement of up to 1.039 billion new shares at HK$0.275 per share, equivalent to 13.98% of existing issued shares. Upon completion, net proceeds are expected to reach approximately HK$274 million. One major investor is Victor Soar Investment Limited, whose controller Mr. Gao Mingqing is the largest shareholder, actual controller, and chairman of Wanguo Gold Group (03939). Following this placement, Mr. Gao will become Tang Gold's second-largest shareholder. With this major individual placement backing, Tang Gold (08299) surged over 28%. If trading remains active, mainboard transfer opportunities may emerge.

Today's market bombshell was chip manufacturer NVIDIA's planned investment of up to $100 billion in OpenAI while providing data center chips. Specifically, OpenAI will purchase chips from NVIDIA with cash, while NVIDIA will acquire non-controlling shares in OpenAI through investment. This creates another closed loop, similar to Oracle's approach. As one joke goes: "OpenAI gave Oracle $100 billion, Oracle gave NVIDIA $100 billion, then NVIDIA gave OpenAI $100 billion, and all three companies' stocks rose."

AI advertising company Mobvista (01860) rose over 5%, while cloud services provider Kingsoft Cloud (03896) gained nearly 4%.

According to the IPO schedule, Chery Automobile (09973) will complete public offering applications by noon on September 22, announce final offering prices and Hong Kong public offering application status on September 24, with H-shares beginning trading on the Hong Kong Stock Exchange on September 25. Markets are pre-trading related stocks, with Zhejiang Shibao (01057), which has business relationships, surging over 12%, and Nexteer Automotive (01316) rising over 2%.

Shanghai Dazhong Public Utilities (01635), mentioned yesterday for its investments in Moore Threads and Unitree Robotics, gained nearly 9% again today.

Wasion Holdings (03393) announced that subsidiary Wasion Group Limited won contracts for approximately 487,000 smart meters and low-voltage current transformers worth about RMB 97.48 million. Additionally, subsidiary Wasion Information Technology won contracts for approximately 37,000 smart integrated terminals and dedicated transformer collection terminals worth about RMB 67.96 million (approximately HK$74.22 million). The company ranked first in total contract value from this tender, rising nearly 7% today.

The State-owned Assets Supervision and Administration Commission recently announced 10 hydrogen energy pilot platform projects for central enterprises, including hydrogen liquefaction equipment pilot verification platform, marine low-speed diesel and new fuel engine pilot verification platform, 4MW combustion pilot verification platform, and 10-ton/year CO2 hydrogenation to methanol pilot verification platform. This demonstrates policy and regulatory support while potentially accelerating industrial chain technology commercialization.

Sino Hydrogen Energy (02582) recently completed a placement at HK$54.03 per share, raising HK$90.99 million for funding investments and cooperation in Chinese and overseas hydrogen energy projects, including partnering with Hylium to enter the Korean hydrogen energy market. The stock rose nearly 11% today.

**Sector Focus**

Semiconductor silicon wafer prices are expected to rise significantly starting in Q4 2025. Beyond AI chips driving massive incremental demand, non-AI segments are showing strong recovery, specifically: 1. General servers growing 20% in 2025; 2. For mature processes, TSMC and UMC maintain flat capacity utilization in Q4 2025, while SMIC's growth hasn't slowed in H2 2025, exceeding expectations.

Based on price increase expectations, global semiconductor wafer companies have seen significant short-term stock price gains. Global Wafers' stock price rose 50% in seven days, with US brokers raising EPS/ratings/target prices; Siltronic's stock rose 30% in seven days; SK Siltron's stock gained 40% in five days; GlobalTech's stock increased 35% in five days.

Key Hong Kong-listed semiconductor stocks include: SMIC (00981), Hua Hong Semiconductor (01347), and ASM Pacific Technology (00522).

**Individual Stock Analysis**

**Kingsoft Cloud (03896): Public Cloud Business Shines with AI Driving Strong Growth**

The company reported Q2 revenue of RMB 2.35 billion, up 24.2% year-over-year and 19.3% quarter-over-quarter, primarily benefiting from continued high AI revenue growth. Q2 FY25 adjusted gross profit reached RMB 351 million, up 8.4% year-over-year and 17.0% quarter-over-quarter.

Commentary: AI positively impacts core business operations, driving strong overall performance growth with outstanding public cloud business performance. By business segment, AI serves as the core driver. Q2 FY25 public cloud service revenue reached RMB 1.63 billion, up 32% year-over-year (vs. 14% in Q1); AI revenue reached RMB 730 million, up over 120% year-over-year, achieving triple-digit growth for eight consecutive quarters and comprising 45% of public cloud service revenue; intelligent computing cloud demand growth also boosted basic cloud product revenue.

By customer segment, contributions from Kingsoft + Xiaomi increased. Q2 FY25 revenue from Kingsoft + Xiaomi reached RMB 630 million, up 69.5% year-over-year, with revenue share rising to 27%; H1 FY25 completed 40% of this year's related transaction limit.

Looking ahead, with continued AI-related resource investment and leveraging synergies with Xiaomi & Kingsoft ecosystems, public cloud AI business is expected to maintain strong growth.

Industry cloud accelerated growth in Q2 FY25, with multi-sector AI project deliveries. Q2 FY25 industry cloud revenue reached RMB 724 million, up 10.1% year-over-year and 17.4% quarter-over-quarter, primarily benefiting from sustained customer demand for software IT services and accelerated Q2 project completions. In public services, the company comprehensively promotes government cloud and state-owned enterprise cloud businesses, partnering with WPS Office to launch Kingsoft Government AI integrated machines.

The company completed new funding in Q2, with cash, cash equivalents, and restricted cash reserves totaling RMB 5.52 billion as of June-end. With Xiaomi's clear AI investment commitment, Kingsoft Cloud will directly benefit from increased training and inference demands for foundation models and autonomous driving.