Economy & Markets

Monday, October 26, 2026

MARKETS
China’s Stocks Shed US$3.5 Trillion as Profit Forecasts Fall and AI Costs Mount
Hang Seng Tech profit forecasts are down more than 13% since March, and MSCI China companies have missed third-quarter estimates by an average of 9%.
CHIPS & COMPUTEMARKETS
Memory Maker Techwinsemi’s Nine-Month Profit Hits RMB8.75 Billion as China Chip Earnings Surge
Third-quarter net profit of RMB2.73 billion was nearly four times the Shenzhen storage company’s RMB688 million profit for the whole of 2025.
CHIPS & COMPUTEMARKETS
Nvidia’s RTX 5090 Tops RMB50,000 in Shenzhen as Supply Fears Meet AI Demand
Huaqiangbei dealers quoted RMB51,000 to RMB60,000 for the card from October 23 to 25, more than three times its launch price of about RMB15,000 to RMB16,000.

CHIPS & COMPUTEMARKETS
China AI Chipmaker Cambricon’s Q3 Profit Jumps 148% as Inventory Climbs to RMB11.7 Billion
Quarterly revenue more than doubled to RMB3.53 billion, while operating cash flow turned negative as the company kept stockpiling materials.
MARKETS
HKEX Launches AI and Chip Indexes as China Southern Plans a Mainland AI ETF
The HKEX Artificial Intelligence Index holds 40 Hong Kong stocks, including SMIC, Alibaba and Tencent, with weights capped at 10%, or 3% for applications.

MARKETS
China’s CSI 300 Enters Bear Market as AI Selloff Wipes US$2.4 Trillion From Stocks
The benchmark closed 20% below its June high on Thursday, while Hong Kong’s tech index fell 5.03% to its lowest level since September 2024.
CHIPS & COMPUTEMARKETS
China’s JCET Lifts 2026 Investment Plan to RMB18.2 Billion as Q3 Profit Rises 60%
The chip packager’s computing-electronics revenue grew 54% in nine months and now makes up 30.9% of sales, as fixed-asset spending rises to RMB17.31 billion.

MARKETS
Former PBOC Governor Zhou Xiaochuan Warns Failed AI Investment Could Trigger a Financial Crisis
Zhou told a Bund Summit panel that so much capital is going into AI infrastructure that partial failures could require rescues of some financial firms.
BIG TECHMARKETS
Tencent Shares Drop Below HK$400 as AI Spending Squeezes Profit and Cash Flow
The stock closed at HK$393.8 on October 21, a near one-year low, after Tencent’s AI-driven second-quarter capex tipped free cash flow to minus RMB13.8 billion.
MARKETSROBOTICS
Unitree Warns of Valuation Risk After Nearly 30% Three-Day Share Rally
China’s first listed humanoid robot maker trades at 388 times trailing earnings, almost ten times the 39.5 times average for its industry group.
CHIPS & COMPUTEMARKETS
Optical-Chip Maker Shijia Photons More Than Triples Q3 Profit on AI Data-Center Demand
Third-quarter revenue rose 116% to RMB1.227 billion, yet the STAR-listed supplier burned RMB439 million in operating cash over nine months.

CHIPS & COMPUTEMARKETS
China’s Sharetronic Lands AI Compute Cloud Deal Worth up to RMB37.49 Billion
An unnamed customer can order up to three times Sharetronic’s 2025 revenue in compute services, billed monthly over 60-month terms after acceptance.
CHIPS & COMPUTEMARKETS
China’s Digital Manufacturing Drove a Third of Industrial Growth as Chip Output Jumped
Integrated-circuit output rose 23.3% in the first nine months and chip-making value added jumped 79.2%, as GDP grew 4.5% in the third quarter.

CHIPS & COMPUTEMARKETS
Hygon and Sugon lead China tech buyback proposals worth up to RMB2.4 billion
Five chip and computing companies filed plans on October 18 after a week in which the ChiNext index fell 8.9% and the Shenzhen Component lost 6.64%.
CHIPS & COMPUTEMARKETS
CXMT’s profit forecast leads an AI-driven wave of upbeat A-share earnings
Of 159 A-share companies with third-quarter forecasts out by October 18, 132 expect better results and 37 credit AI demand, by one newspaper’s count.
MARKETSROBOTICS
Lingyi iTech’s robot revenue stays folded into a broader segment after Hong Kong IPO
The Apple supplier netted HK$8.15 billion to fund AI hardware and humanoid robots; its assembly segment, which includes robots, made RMB2.22 billion in H1.
CHIPS & COMPUTEMARKETS
Apple supplier Luxshare leans on AI data-center hardware as profit trails sales
Luxshare’s first-half revenue rose 40% to RMB174.5 billion while net profit grew 18%; its data-center unit’s sales rose nearly 50% to RMB16.6 billion.

FUNDINGMARKETS
Citi sees China AI listings continuing in Hong Kong
The bank points to a balanced investor base and local liquidity as 118 Hong Kong IPOs raised HK$388 billion through September.

CHIPS & COMPUTEMARKETS
China’s Integrated-Circuit Export Value Rises Far Faster Than Volume
China’s September integrated-circuit export data carries a warning against reading a single large dollar figure as the whole story. Customs data cited by SCMP put the month’s export value at US$45 billion, up 136% year on year, while volume was 32.7 billion units, up 1%. The two measures moved very differently.

CHIPS & COMPUTEMARKETS
YMTC Sees a Bigger Role in the AI Data Center’s Storage Stack
YMTC’s potential next growth engine is not the phone market where flash memory is familiar to consumers. It is the server rack. South China Morning Post reports that Counterpoint Research expects server-related revenue, effectively zero for YMTC in 2024, to approach 39% of the company’s revenue by 2028.