Chinese equities recorded modest gains in September with limited volatility, supported by steady domestic fund inflows. The overall economy continued its gradual recovery trend, underpinned by improving confidence and resilient consumption. Within the market, technology and non-ferrous metal sectors outperformed. The semiconductor industry saw further breakthroughs, with progress evident across the supply chain. Domestic chip production is expected to expand meaningfully over the next three years. Meanwhile, major internet platforms continued to increase AI-related capital expenditures, reinforcing infrastructure build out and accelerating AI adoption. This trend has benefited leading players such as Alibaba, Tencent, and Bilibili. In addition, advancements in large language models are expected to drive demand for AI-enabled devices—including robotics, smart glasses, and smartphones—creating attractive opportunities for competitively positioned Chinese companies. 

In the United States, equity markets remained resilient amid rising expectations of additional rate cuts. We expect further monetary easing in the coming months, likely implemented as a preemptive measure to sustain economic growth and labor-market stability. OpenAI’s continued expansion of partnerships with AI computing companies demonstrates strong confidence in the sector and is expected to further accelerate the commercialization of AI applications. We continue to monitor the pace of AI deployment and monetization across U.S. corporates closely. 

We remain constructive on both U.S. and Chinese equity markets, maintaining a focused allocation to leading companies in AI computing and applications, where we see long-term structural growth potential.