The U.S. and Chinese markets continued their volatile upward trend this month. At the beginning of the month, trade and technology frictions between the two countries intensified, but as the summit between the two heads of state took place, both sides reached short-term compromises, including mutual tariff reductions and a relaxation of export controls on rare earths. Our fundamental assessment of U.S.–China relations is that they will “compete without breaking” — while the two sides are unlikely to move toward a full rupture, competition in the technology sector will remain intense. 

We are focusing on the third-quarter earnings performance of companies in both the U.S. and Chinese markets. Overall, corporate earnings growth has been largely in line with expectations. However, given the strong market gains in previous months, we expect a near-term phase of valuation digestion. 

In terms of investment focus, we continue to emphasize AI-driven computing infrastructure and the expansion of application development as our key areas of attention.