The study is led by Professor Song Yuqin (宋玉琴) of Beijing Cancer Hospital as principal investigator, plans to enrol 282 subjects and has overall survival (OS) as its primary endpoint.

JS203 comprises an anti-CD20 arm and an anti-CD3 arm that link and activate lymphoma cells and T cells, promoting T-cell killing of lymphoma cells; preclinical in vivo studies showed significant tumour inhibition and good tolerability in animals. Preliminary Phase I results presented as a poster at AACR in April 2025 showed that step-up dosing after rituximab pretreatment was generally well tolerated, with an objective response rate (ORR) of 80% and a complete response rate (CRR) of 40% among DLBCL patients treated at 30mg. Updated results presented at the ASH Annual Meeting in December 2025 showed that 30mg monotherapy at the recommended Phase II dose achieved an ORR of 72.4% in CD20-positive relapsed or refractory B-cell non-Hodgkin lymphoma, with an ORR of 69.7% and a CRR of 39.4% in DLBCL patients; cytokine release syndrome occurred in 27.3% of patients and no immune effector cell-associated neurotoxicity syndrome was observed.

DLBCL is one of the most common types of non-Hodgkin lymphoma in China, accounting for about 40% of adult NHL, with about 45,000 new cases each year; the five-year survival rate for relapsed or refractory patients is about 30% even with aggressive treatment. The Company cautioned that pharmaceutical development is lengthy, involves multiple stages and is subject to uncertainties, and investors should exercise caution.

The announcement disclosed that, at the recommended Phase 3 dose (RP3D) of 1.6 mg/kg, based on data as of the September 2026 data cut-off, among patients receiving zoci 1.6 mg/kg plus atezolizumab every three weeks (n=33), the investigator-assessed confirmed objective response rate (ORR) reached 81.8% (27/33; 95% CI: 64.5-93.0) and the six-month progression-free survival (PFS) rate was 81.9% (n=33). Among patients treated with zoci 1.6 mg/kg plus atezolizumab with at least six months of follow-up (n=15), after a median follow-up of 10 months, median PFS (mPFS) and median duration of response (mDOR) had not yet been reached; at the data cut-off, 10 of these 15 patients (66.7%) remained free of disease progression or death.

The Company stated that no dose-limiting toxicities were observed during dose escalation of the doublet; at the 1.6 mg/kg dose, the common (>=20%) zoci-related treatment-emergent adverse events (TEAEs) of any grade were anaemia (48.5%), nausea (36.4%), leukopenia (30.3%), decreased appetite, increased ALT and neutropenia (27.3% each) and lymphopenia (21.2%), most of which were grade 1 or 2 and non-serious; zoci-related grade 3 or higher adverse events occurred in 3/33 patients (9.1%), with no treatment-related discontinuations and only one grade 1 case of interstitial lung disease/non-infectious pneumonitis. An indirect comparison showed that zoci plus atezolizumab has a favourable safety profile relative to chemotherapy plus immuno-oncology (IO) regimens. In addition, patients who received the triplet of zoci plus atezolizumab and carboplatin as first-line treatment (n=13; three dose levels) showed a high ORR of 92.3%, with median PFS across all dose levels of 8.4 months (95% CI: 3.7 to not reached) and median DOR of 7.7 months.

The Company stated that a global randomised Phase 3 study in first-line ES-SCLC is expected to be initiated before the end of 2026. Zoci is an antibody-drug conjugate (ADC) targeting delta-like ligand 3 (DLL3), which is overexpressed in small cell lung cancer, and has the potential to become the Company's first globally marketed oncology product. In addition to the Phase 3 combination study being prepared, the Company is conducting the Phase 3 DLLEVATE study evaluating zoci against physician's choice of chemotherapy in previously treated ES-SCLC, and a Phase 1/2 study in neuroendocrine carcinoma (NEC) and other DLL3-positive solid tumours. The Company has also entered into a global clinical research collaboration with Amgen to evaluate zoci in combination with IMDELLTRA (tarlatamab), a DLL3/CD3 bispecific T-cell engager, in ES-SCLC, and a clinical research collaboration with Boehringer Ingelheim to evaluate zoci in combination with obrixtamig in small cell lung cancer and other neuroendocrine carcinomas.

On October 23, 2026, the three major Hong Kong indices opened higher and briefly turned negative before rebounding with the A-share market in the afternoon and closing higher. The Hang Seng Index closed at 23,093.37, up 0.69%; the Hang Seng TECH Index closed at 3,871.66, up 2.05%; and the Hang Seng China Enterprises Index closed at 7,756.25, up 0.87%. Full-day turnover on the Hang Seng Index reached HKD 249.8 billion, slightly below HKD 256.1 billion a day earlier. Nineteen of the 20 AI concept stocks rose and one fell, with LLM and autonomous driving names leading.

In the LLM space, MINIMAX-W (00100.HK) rose 16.74%, Z.AI (02513.HK) rose 8.29%, KUAISHOU-W (01024.HK) rose 4.18%, BIDU-W (09888.HK) rose 1.13%, TENCENT (00700.HK) rose 0.94%, MEITUAN-W (03690.HK) rose 0.49% and BABA-W (09988.HK) rose 0.46%.

In the AI Chips space, GIGADEVICE (03986.HK) rose 8.62%, BIRENTECH (06082.HK) rose 5.15%, ILUVATAR COREX (09903.HK) rose 3.69%, MONTAGETECH (06809.HK) rose 3.07%, HUA HONG GRACE (01347.HK) rose 1.35% and SMIC (00981.HK) rose 0.47%.

In the Autonomous Driving space, HORIZONROBOT-W (09660.HK) rose 8.14%, PONY-W (02026.HK) rose 5.88%, ROBOSENSE (02498.HK) rose 3.68% and WERIDE-W (00800.HK) rose 3.48%, while BLACK SESAME (02533.HK) fell 3.87%, the only decliner in the pool.

In the Embodied AI space, both names advanced: UBTECH ROBOTICS (09880.HK) rose 6.73% and XIAOMI-W (01810.HK) rose 3.88%.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 23, 2026.

III. AI Industry & Corporate Developments

1. MiniMax Open-Sources the M3.1 Flash Model, Handling over 100 Trillion Tokens in Its First 72 Hours

On October 23, MiniMax announced the open-sourcing of its M3.1 Flash model. Compared with the previous M3 generation, the model improves agentic tasks, coding, computer operation and cybersecurity capabilities, cuts usage costs by 70% and raises online inference speed nearly threefold; the company said the model processed more than 100 trillion tokens within 72 hours of launch. On the ecosystem side, MiniMax is working with chipmakers including Huawei Ascend, T-Head, Kunlunxin, Moore Threads, NVIDIA and AMD, as well as inference and cloud platforms such as Together AI, Fireworks and Nebius, on day-one integration, while inference frameworks and open-source communities including vLLM, SGLang, BAAI FlagOS, Hugging Face and ModelScope completed adaptation in parallel.

2. Optical Communication Leaders Collectively Confirm Strong Order Books, Lifting the Computing Hardware Chain in the Afternoon

At midday on October 23, A-share optical communication and CPO supply chain companies including Zhongji Innolight, Eoptolink, TFC Optical, Accelink, Yuanjie Semiconductor and Lianxun Instruments published announcements on their operations, all pointing to normal production, ample order books and an industry upcycle that has not reversed. Eoptolink said 800G and 1.6T are its main delivery products this year, that 1.6T modules have entered sustained volume ramp-up, that orders from major overseas customers extend into 2027, and that some key customers have given clear guidance on 2028 demand; TFC Optical said the optical interconnect industry remains in rapid development amid continued AI computing infrastructure build-out. Hong Kong memory semiconductor, optical communication and PCB concept stocks rallied in the afternoon on the back of these statements.

3. MIIT Says Humanoid Robot Output Topped 40,000 Units in H1 as Unitree Launches the H2-X

Data recently released by the Ministry of Industry and Information Technology show that in the first half of 2026 Chinese manufacturers launched more than 400 humanoid robot models and produced over 40,000 units, with full-year output expected to exceed 100,000 units. On the product side, Unitree recently launched its new H2-X humanoid robot; company video shows a maximum battery life of about eight hours, the ability to lift a car by hand and a stable landing from a height of four metres. Overseas, Tesla is expected to unveil Optimus V3 in the fourth quarter, with domestic manufacturers and Optimus production ramp-up both accelerating.

4. NVIDIA Upgrades Its Isaac Platform with a Humanoid Robot Reference Framework and Simulation Tools

According to media reports, NVIDIA announced an upgrade to its Isaac general-purpose robotics development platform, introducing a new humanoid robot reference framework, simulation workflows and data tools to accelerate general robotics development. The updates cover robot training, simulation validation and deployment, helping developers train robots with synthetic data and simulated environments and verify robot behaviour before real-world deployment.

5. BYD Han Ships with ROBOSENSE Digital LiDAR as Standard as ROBOSENSE Advances Its Business Separation

In autonomous driving, BYD officially launched the Han, a flash-charging flagship sedan under its Dynasty series, priced between RMB 235,900 and RMB 275,900, with ROBOSENSE (02498.HK) digital LiDAR and the God Eye B advanced driver assistance system fitted as standard across the range; the perception suite combines one digital LiDAR with 11 cameras and 12 ultrasonic sensors. At the company level, 41 days after spinning off its embodied robot complete-machine business, ROBOSENSE announced on the evening of October 21 that its indirectly wholly owned subsidiary Shenzhen RoboSense will provide loans of up to RMB 10 million each to chairman Qiu Chunxin and chief technology officer Liu Letian, for a combined maximum of RMB 20 million.

IV. Profiles of Representative AI Concept Stocks

According to the announcement, updated data from the FLAMES study of senaparib showed that at a median follow-up of 48.5 months, median progression-free survival assessed by blinded independent central review was 38.7 months versus 13.6 months for placebo (HR=0.47); the figures were 49.8 months and 15.6 months for BRCA-mutated patients and 33.3 months and 12.9 months for BRCA wild-type patients, demonstrating benefit regardless of BRCA mutation status.

The announcement said that the objective response rate was 19.0% among evaluable patients receiving IMP1734 plus abiraterone for metastatic prostate cancer. In the Phase 1/2 study of IMP1707 in patients with HRR-mutated advanced solid tumours, Grade 3 or above anaemia and neutropenia each occurred in 1.5% of patients, and one breast cancer patient achieved a confirmed complete response at the 20mg dose level.

According to Economic Information Daily, as of May this year, Baidu’s Apollo Go has been launched in 27 cities worldwide, completing more than 22 million travel services in total. In Dubai, the United Arab Emirates, Apollo Go obtained a fully driverless test permit issued by the local Roads and Transport Authority in January this year and has since launched commercial operations. A Baidu official stated that the company has secured a fully driverless test qualification for right-hand-drive vehicles in Hong Kong, and such capability can be replicated in markets including the United Kingdom, Japan and Australia.

China Business Journal noted that the internet of vehicles is inherently cross-industry. The large-scale adoption of autonomous driving requires not only standards for complete vehicles and components, but also coordinated specifications covering information and communications, intelligent transportation, intelligent vehicle management, electronic products and related services.

BIDU-W (09888.HK) Focuses on the R&D of L4 autonomous driving algorithms and the commercialization of unmanned Robotaxis. Leveraged by the ERNIE foundational model and optimized by the Qianfan compute base, its "Apollo Go" autonomous ride-hailing service has achieved large-scale, normalized commercial operations across multiple core cities in China, with cumulative autonomous test mileage exceeding hundreds of millions of kilometers. Through high-frequency, high-confidence real-world road test data cleansing, the company continues to solidify the most robust data asset and algorithmic moat within the HKEX autonomous driving sector.

On the news front, on 21 October 2026 NVIDIA announced a multi-year capacity expansion agreement worth USD 1.3 billion with Amkor Technology, funding the expansion of Amkor's advanced packaging lines in South Korea, with the two sides planning to lift interposer wafer capacity by more than 300% by the end of 2028; combined with their earlier project in Arizona, the total value of the multi-year agreements between the two has risen to USD 3 billion. The advanced packaging build-out will directly lift procurement of packaging equipment such as thermo-compression bonders.

In addition, on 21 October 2026 NVIDIA also announced expanded global manufacturing capacity with supply chain partners including IBIDEN, KYEC, Samsung Electro-Mechanics, SPIL and Unimicron, covering substrates, advanced packaging, semiconductor test and optical engines, with substrate capacity planned to rise to 2.5 times the current level in three years and semiconductor test capacity to double between 2026 and 2027.

BofA Securities believes that NVIDIA's demand is exceptionally strong but capacity is the main constraint, and that the company is pushing packaging, test and co-packaged optics expansion with unprecedented force, leaving back-end packaging and test equipment supply chains as significant beneficiaries.

ASMPT (00522.HK) Engages in R&D and global sales of semiconductor assembly and packaging equipment, advanced packaging equipment, and surface mount technology. Its 2.5D/3D advanced packaging tools, such as thermo-compression bonding (TCB) machines, have been delivered to multiple leading OSATs, IDMs, and memory manufacturers worldwide for volume production of HBM and chiplet-based chips. The company has publicly disclosed multiple follow-on orders from AI-compute related customers.

On the news front, the company has no recent news of its own; within the sector, on 22 October 2026 the 2026 World Physical AI Conference and Unitree Partner Ecosystem Conference were held, at which Unitree said that with the release of GPT-6 the physical AI inflection point is coming into view, that the core challenge for embodied intelligence to pass its ChatGPT moment lies in aligning model inputs and outputs with real robots, and that commercial services will land faster than home and industrial applications.

In addition, on 23 October 2026 a brokerage industry weekly showed that Changde has released two batches of embodied AI data collection scenario resource lists covering 1,658 scenarios in total, with industrial applications shifting from product display to concrete tasks.

ZHESHANG SECURITIES believes that humanoid robot bodies are entering a period of accelerated volume release, with global shipments jumping from the 10,000-unit scale to the 100,000-unit scale, and the industry moving from batch validation to scaled deployment, pulling through demand for core components.

GUOTAI HAITONG SECURITIES noted that Tesla's Optimus production lines are being rolled out faster, humanoid robot volume production has entered a critical validation period, and the supply chain is switching from theme catalysts to capacity building, supplier onboarding and order validation, with core components and automation equipment set to see faster earnings delivery.

XIAOMI-W (01810.HK) Leverages its massive AIoT ecosystem network and full-stack proprietary AI algorithms to advance the collaborative deployment of consumer- and industrial-grade embodied AI devices. Algorithms for its CyberOne humanoid robot and CyberDog bionic quadruped robot undergo continuous iteration. The underlying multi-modal machine vision, force-control algorithms, and automated scheduling logic are deeply integrated into the "dark factory" operations and flexible manufacturing workflows of Xiaomi's smart factories, establishing a complete closed-loop model of "algorithm + hardware + proprietary manufacturing application scenarios."

The trial builds on positive phase III results in China and 52-week open-label extension data. In Ascletis's 12-week phase III study, denifanstat's placebo-adjusted 18.6% treatment success rate was 98% higher than sarecycline (9.4%), 178% higher than doxycycline (6.7%), both FDA-approved, and 60% higher than clascoterone cream (11.6%). Ascletis holds exclusive Greater China rights to develop, manufacture and commercialise denifanstat. Under Rule 18A.05, the Company warned it cannot guarantee successful development, sales or commercialisation. 

A fully human monoclonal antibody targeting the neonatal Fc receptor (FcRn), it blocks FcRn-mediated recycling of immunoglobulin G and speeds the breakdown of pathogenic IgG autoantibodies, and is the first anti-FcRn therapy to complete gMG development in China. Approval rests on a phase III study at 27 Chinese sites, where 58.2% of patients on subcutaneous batoclimab met the primary endpoint versus 31.3% on placebo (P=0.001), defined as a sustained MG-ADL gain of at least three points for four weeks, with efficacy from week two.

The trial will assess efficacy, safety and pharmacokinetics in patients with early post-operative PJI (within three months of knee replacement) or acute haematogenous PJI (within four weeks of symptoms) treated without debridement or replacement surgery, and in chronic PJI patients needing long-term antibiotic suppression. The primary endpoint is efficacy at six months.

The announcement disclosed that the drug is in tablet form, the application is for clinical trials and the acceptance number is CXHL2600871. The review conclusion states that, in accordance with the Drug Administration Law of the PRC and relevant provisions, following review, the clinical trial application for rezvilutamide tablets accepted on 17 July 2026 meets the relevant requirements for drug registration, and the product is approved to conduct clinical trials for prostate cancer, specifically a multicentre, randomised, double-blind, placebo-controlled Phase III clinical study on the efficacy and safety of rezvilutamide in combination with androgen deprivation therapy (ADT) versus placebo in combination with ADT in the treatment of high-risk localised or high-risk biochemically recurrent (BCR) prostate cancer after radical surgery or radiotherapy.

The Company stated that rezvilutamide tablets are a second-generation AR inhibitor which, compared with first-generation AR inhibitors, has stronger AR inhibitory effects and no agonist activity. The Company's rezvilutamide tablets were approved for marketing in 2022 for the treatment of patients with high-volume metastatic hormone-sensitive prostate cancer (mHSPC). Several second-generation AR inhibitors, including enzalutamide, apalutamide and darolutamide, are currently marketed in China and overseas. According to the EvaluatePharma database, global sales of comparable products of rezvilutamide tablets totalled approximately US$12.89 billion in 2025. As at the date of the announcement, cumulative research and development investment in the rezvilutamide tablet project amounted to approximately RMB 740.40 million (unaudited). The announcement also cautioned that, after obtaining the Drug Clinical Trial Approval Notice, the drug still requires clinical trials and review and approval by the National Medical Products Administration before it can be manufactured and marketed.

The announcement disclosed that Spark Medical LLM V3.7 achieves a multimodal technological breakthrough integrating medical semantics, medical imaging and speech, driving an all-round leap in agent capabilities in medical scenarios and marking a transition in applications for the two major scenarios of doctors' clinical diagnosis and treatment and residents' health management, from "the threshold of medical practicality" to "deep integration across the entire medical chain". Built on industry-leading data flywheel and medical self-iterative evidence-based reasoning technologies, the general capabilities of the Spark Medical LLM foundation have been comprehensively enhanced and its medical professionalism and personalised service capabilities further deepened, significantly surpassing GPT-6 Astra, DeepSeek V4.1 Flash and Qwen3.8-Max in key tasks including medical knowledge Q&A, medical language understanding, diagnostic and treatment recommendations, medical document generation, medical multimodal interaction and medical multi-turn interaction.

The Company stated that, for clinicians, the multimodal technologies of its clinical assistant have been upgraded across all dimensions: in medical record writing, the rationality rate of end-to-end medical record generation deeply integrated with medical speech recognition has risen to 85%, moving from practical to easy to use; in medical imaging, assisted diagnostic capability is more than 15% higher than that of domestic and overseas vertical imaging models, with automated report generation and in-depth quality control reaching industry-leading levels. For residents and patients, health interaction and management capabilities have been comprehensively enhanced, with Xunfei Xiaoyi achieving major upgrades in multiple respects, including comprehensive interpretation of multiple medical reports, dynamic memory management of health records, personalised health risk insights, generation of comprehensive health management plans, and TCM tongue and facial constitution identification with wellness plan recommendations, extending from single consultations to continuous health management to address residents' and patients' core needs for professional, convenient and continuous health services.

The announcement disclosed that the Product is a B7-H3-targeting antibody-drug conjugate (ADC) developed by the Group, whose antibody portion can specifically bind to the surface of cells expressing B7-H3 and be internalised into the cells; its linker-drug comprises a tetrapeptide linker conjugated to a topoisomerase I inhibitor, which releases a small-molecule toxin after specific cleavage by proteases to kill tumour cells and exerts a bystander effect that non-specifically kills surrounding tumour tissue cells. Unlike antibodies using a conventional wild-type crystallisable fragment (Fc), the Product can reduce uptake by lymphocytes and lower the risk of off-target toxicity, thereby improving treatment safety.

The Company stated that the trial launched is a randomised, open-label, multicentre Phase III clinical trial designed to evaluate the clinical efficacy and safety of the Product compared with investigator's choice of chemotherapy in participants with unresectable recurrent or metastatic triple-negative breast cancer in the first-line setting. Patient recruitment and screening for the Phase III trial are currently progressing actively.

The announcement disclosed that the Product works by binding to and locking the F protein of RSV, blocking its conformational change so that it cannot mediate membrane fusion between the virus and host cells, thereby preventing the virus from entering host cells for replication. Previously, in September 2025 the Group obtained the Drug Clinical Trial Approval Notice for the Product issued by the National Medical Products Administration, and immediately after approval launched a single-centre, randomised, double-blind, placebo-controlled, single- and multiple-ascending-dose Phase I clinical trial in healthy participants in China to evaluate the safety, tolerability, pharmacokinetics and food effect of the Product.

The Company stated that the Phase I data have preliminarily validated the safety and pharmacokinetic profile of the Product in humans, with the data showing a good safety profile for oral administration. The trial now launched is a multicentre, randomised, double-blind, placebo-controlled Phase II clinical trial designed to evaluate the efficacy and safety of the Product in adult participants with RSV infection in China; patient recruitment and screening for the trial are currently progressing actively.

The announcement disclosed that the trial is a multicentre, open-label Phase I study designed to evaluate the safety, tolerability, pharmacokinetics and preliminary efficacy of BA1203 in patients with advanced solid tumours. The Company noted that immunotherapy represented by PD-1/PD-L1 inhibitors has become a core treatment modality for malignant tumours, but benefits vary across cancer types and patient populations, and a significant proportion of patients still face challenges such as primary non-response, relapse or drug resistance, leaving unmet clinical needs; IL-2 is an important cytokine for promoting T cell proliferation and functional recovery, but conventional IL-2 therapies are limited by a narrow therapeutic window, non-selective activation of peripheral immune cells and the risk of systemic toxicity, so achieving precise delivery and selective activation of IL-2 in the tumour microenvironment has become an important direction for next-generation cancer immunotherapy.

The Company stated that BA1203, a next-generation immuno-oncology candidate independently developed by the Company, combines the dual mechanisms of action of a PD-1 antibody and an IL-2 cytokine, aiming to achieve both immune checkpoint blockade and local tumour immune activation. Its masked prodrug design enables IL-2 to be selectively activated in the tumour microenvironment while maintaining low activity in peripheral tissues, thereby enhancing local tumour immune responses and reducing the risk of systemic toxicity; the molecule also adopts a high-affinity bivalent PD-1 targeting design, which helps strengthen PD-1 pathway blockade and deliver IL-2 more precisely to PD-1-positive tumour-infiltrating T cells; in addition, BA1203 adopts a symmetric molecular structure design, which helps improve molecular stability and manufacturing process controllability. Preclinical studies showed that, in multiple tumour models with low or no response to PD-1/PD-L1 inhibitors, BA1203 demonstrated excellent anti-tumour activity significantly superior to existing PD-1/PD-L1 inhibitors; in tumour-bearing mouse models, BA1203 showed better efficacy than comparable competitors and a safety advantage of tumour-dependent activation; in terms of safety, BA1203 showed low peripheral toxicity while enhancing local tumour immune activation, with a favourable safety profile and excellent tolerability in cynomolgus monkey studies. The Company said it will accelerate the clinical development of BA1203 and fully explore its potential as monotherapy and in combination therapies across multiple solid tumours.

On October 22, 2026, the three major Hong Kong indices opened lower and extended losses, with the opening level marking the intraday high for all three. The Hang Seng Index opened at 23,513.79, down 0.58%, then slid to a low of 22,879.11 and closed at 22,934.68, down 3.03% and below the 23,000 mark; the Hang Seng TECH Index opened at 3,949.02, down 1.15%, hit a low of 3,781.15 and closed at 3,793.93, down 5.03%, breaking through both the 3,900 and 3,800 levels; and the Hang Seng China Enterprises Index opened at 7,887.51, down 0.70%, and closed at 7,689.19, down 3.20%. Full-day turnover on the Hang Seng Index reached HKD 256.1 billion, sharply higher than HKD 176.6 billion a day earlier. All 20 AI concept stocks closed lower, with LLM and embodied AI names falling the least and AI chips and autonomous driving falling the most.

In the LLM space, TENCENT (00700.HK) fell 2.89%, BIDU-W (09888.HK) fell 3.35%, KUAISHOU-W (01024.HK) fell 4.49%, MEITUAN-W (03690.HK) fell 4.55%, BABA-W (09988.HK) fell 6.12%, MINIMAX-W (00100.HK) fell 6.52% and Z.AI (02513.HK) fell 7.10%.

In the AI Chips space, MONTAGETECH (06809.HK) fell 5.79%, SMIC (00981.HK) fell 6.25%, GIGADEVICE (03986.HK) fell 7.88%, ILUVATAR COREX (09903.HK) fell 8.80%, HUA HONG GRACE (01347.HK) fell 9.46% and BIRENTECH (06082.HK) fell 10.56%, the worst performer in the pool.

In the Autonomous Driving space, WERIDE-W (00800.HK) fell 5.67%, BLACK SESAME (02533.HK) fell 6.79%, PONY-W (02026.HK) fell 7.56%, HORIZONROBOT-W (09660.HK) fell 8.50% and ROBOSENSE (02498.HK) fell 8.54%.

In the Embodied AI space, both names declined: XIAOMI-W (01810.HK) fell 3.73% and UBTECH ROBOTICS (09880.HK) fell 5.12%.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 22, 2026.

III. AI Industry & Corporate Developments

1. Meta Results and Lam Research Outlook Deepen AI Spending Concerns as Asia Pacific Semiconductor Shares Sell Off

After the US close on October 21, Meta and semiconductor equipment maker Lam Research reported quarterly results. Meta's earnings triggered concern over the payback on artificial intelligence investment, while Lam Research's guidance failed to restore confidence. On October 22, AI and semiconductor-related shares across Asia Pacific were sold off heavily: the Nikkei 225 closed down 2.65% at its lowest since July 31, the TOPIX fell 1.14%, and heavyweights such as Tokyo Electron and SoftBank Group dropped sharply. Overnight, the Nasdaq Golden Dragon China Index closed down 2.35%, a direct drag on Hong Kong technology names. In Hong Kong, memory semiconductors, optical communications and PCB concept stocks led the decline, and the Hang Seng Information Technology Index opened down 1.38%, the weakest of the 12 Hang Seng industry indices.

2. TrendForce Sees Q4 DRAM Contract Prices Up About 20% QoQ as the Memory Upcycle Extends at a Slower Pace

On October 21, market research firm TrendForce estimated that DRAM contract prices will rise about 20% quarter on quarter in the fourth quarter of 2026. The pace is markedly slower than the roughly 80% seen in the second quarter and 40% in the third, yet DRAM prices remain at high levels, with tight supply and strong demand persisting. Expanding AI inference demand is the main driver of the upcycle, while a high base from earlier price increases, softer end-market purchasing power and the gradual activation of price caps in some long-term procurement agreements are together capping further gains. The durability of the memory and memory interface upcycle remains a core variable for the AI chip space.

3. HUA HONG GRACE Completes the Huali Microelectronics Acquisition as 12-inch Specialty Capacity Expands

HUA HONG GRACE (01347.HK) acquired a 97.4988% stake in Shanghai Huali Microelectronics from four counterparties including Hua Hong Group through a share issuance. The transfer of the equity and the registration of the new shares have been completed, making Huali Microelectronics a wholly owned subsidiary, and its transactions with related parties during 2026 are included in the company's estimated daily related-party transaction quota from the completion date. On capacity, the company and its wholly owned subsidiary Shanghai Hua Hong Grace, together with Wuxi Xihong Guoxin Phase II, Huaxin Dingxin and the CDB new policy-based financial instrument, injected RMB 28.278 billion into Wuxi Hua Hong Grace Phase III Semiconductor to build 12-inch specialty process lines with monthly capacity of about 55,000 wafers. In the first half of 2026, revenue reached RMB 9.574 billion, up 19.41% year on year, and shipments rose 17.9% year on year, both record highs.

4. Xiaomi MiMo 2.6 Enters the Global Top Tier as Hard-Tech R&D Spending Is Guided Above RMB 200 Billion Over Five Years

On October 21, Lei Jun, founder of XIAOMI-W (01810.HK), said at the 2026 World Intelligent Connected Vehicle Conference that the company has built the world's largest consumer IoT platform, with more than 1.1 billion connected IoT devices as of the end of the second quarter. R&D spending on underlying technologies including chips, operating systems, artificial intelligence and embodied intelligence reached RMB 105.5 billion over the past five years, and is expected to exceed RMB 200 billion over the next five. On models, the MiMo 2.6 foundation model released in September ranked fifth among global foundation models and first among open-source models at the time of launch. The same day, Xiaomi opened its new car design centre, with the Pengcheng extended-range N70 and N90 joining the SU7 and YU7 to form two product series.

5. UBTECH Signs Distribution Deals in Japan and the Middle East as Global Humanoid Robot Sales Reach 36,000 Units in H1

UBTECH ROBOTICS (09880.HK) has accelerated its overseas channel and entity build-out. On October 19, the company signed an exclusive distribution agreement with Japanese listed company Bitcoin Japan, bringing six humanoid robot products into the Japanese market. On October 20, it signed a strategic cooperation memorandum with the International Relations Office of the Ras Al Khaimah government in the UAE to promote local deployment of humanoid robots, and will send engineers to take part in demonstration projects. On October 20, its wholly owned subsidiary Guangzhou Zengyou Technology was established with registered capital of RMB 30 million, covering service consumer robot manufacturing and intelligent robot R&D. At the industry level, global humanoid robot sales reached 36,000 units in the first half of 2026, already exceeding the 35,000 units sold in all of 2025, for combined revenue of USD 540 million at an average price of about RMB 100,000 per unit; the top five vendors by revenue are all Chinese companies, together holding 57.4% of the global market.

IV. Profiles of Representative AI Concept Stocks

According to Securities Daily, on October 21, at the 2026 World Intelligent Connected Vehicles Conference, Oliver Blume, Chairman of the Board of Management of Volkswagen Group, stated that the group launched a large-scale transformation three years ago and has built up technological layouts covering vehicle platforms, electrical and electronic architectures and intelligent driving. As planned, Volkswagen Group targets L3 readiness by 2027 and pushes forward relevant R&D.

Research notes from Guolian Minsheng Securities indicate that the industrial inflection point for RoboX has arrived. Penetration is expected to rise rapidly in 2026–2027, and profit model inflection points are emerging for autonomous driving solution providers and operators.

RoboSense(02498.HK) Focuses on the scaled mass production and delivery of LiDAR and core perception solutions for the autonomous driving perception layer. As a leading tier-1 supplier in the intelligent driving hardware supply chain, it has secured massive design wins across a wide range of models from global mainstream automakers and new energy vehicle (NEV) startups. The company maintains industry-leading growth in single-quarter automotive LiDAR shipments. Through process optimization and economies of scale, it continuously drives down per-unit hardware costs, solidifying its market share in the core perception infrastructure for autonomous driving.

On the news front, the company has no recent news of its own; within the sector, on 21 October 2026 an industry review showed that SMIC's 8-inch capacity utilisation reached 95.8% in the third quarter, and that the company and another foundry have raised prices on 8-inch BCD platforms by about 10%, with order visibility on 8-inch capacity generally close to six months.

In addition, the same review noted on 21 October 2026 that Samsung Electronics will shut its Giheung 8-inch fab from the second half of 2026, cutting 50,000 wafers of monthly capacity at a stroke, while TSMC plans to retire its 6-inch Fab2 and 8-inch Fab5 in 2027; AI rack power has risen from about 12 kW in conventional server racks to about 132 kW, lifting the power-management bill of materials for a single 8-GPU AI server from about USD 80 to more than USD 1,000.

CAITONG SECURITIES believes that SMIC's multi-site expansion and high utilisation are driving a steady recovery, with monthly capacity up from 520,800 wafers at end-2020 to 1.0965 million 8-inch equivalent wafers in the second quarter of 2026 and utilisation held at 93.7%; AI demand spillover combined with localisation of the supply chain is bringing structural growth to mainstream and mature nodes, with China accounting for 90.2% of second-quarter 2026 revenue.

SMIC (00981.HK) Provides IC wafer foundry and related technical services. It is the largest pure-play wafer foundry in China by capacity and offers the broadest coverage of process nodes. Its mature and select advanced process lines address applications including smart terminals, IoT, and computing chips. Based on its periodic disclosures, wafer shipments, capacity utilization, and revenue are at historically high levels.

On the news front, on 20 October 2026 UBTECH announced the signing of a strategic memorandum of understanding with the Ras Al Khaimah Government's Office of International Relations, under which the two sides will build a comprehensive cooperation framework covering advanced humanoid robot R&D, real-world testing and system deployment; the company will deploy humanoid robots in Ras Al Khaimah and send engineering teams for on-site demonstration projects, while Ras Al Khaimah will provide sandbox testing environments and a forward-looking regulatory framework.

In addition, on 22 October 2026 Tesla (TSLA.US) said at its third-quarter earnings call that humanoid robotics will become the world's largest industry, and that only after issues around robot AI, electromechanical design, reliability and service life are resolved can the company deliver Optimus to customers other than Tesla by the end of next year; its results also disclosed that Optimus has started production at the Fremont factory and that the current manufacturing process suits a commercial product, a timeline that offers an external reference for the delivery pace of domestic humanoid robot makers.

CITIC SEC noted that catalysts for robotics in liquidity, valuation, policy, technology and chain leaders largely match those of the past seven robotics rallies, and that the theme now meets the conditions for a launch; advances by GPT-6 and Gemini 4 in robot planning, spatial perception and real-to-sim modelling are widening the room for general large models in robot development and training.

GUOSHENG FINANCE noted that Tesla's Optimus is close to volume production, and that leading Chinese humanoid robot makers are moving from showcase applications to real work such as parcel sorting and goods packing.

UBTECH ROBOTICS (09880.HK) Focuses on humanoid robot complete machine R&D, full-stack motion control algorithms, and commercial deployment across industrial and logistics scenarios. Its core product, the Walker S series humanoid robot, has deeply integrated into the final assembly lines of multiple leading NEV manufacturers, executing on-site operations such as the flexible handling of automotive components, precision assembly, and intelligent quality inspection. The company pioneers the leap from laboratory prototypes to real-world industrial automation and mass production applications, holding immense technological scarcity and a definitive premium as a pure-play robotics asset.

According to the announcement, Yochanra® is a Class 1 new drug that obtained conditional marketing approval from the NMPA on August 6, 2026 for adult patients with unresectable advanced or metastatic cholangiocarcinoma harbouring FGFR2 fusion or rearrangement who have received prior systemic therapy and FGFR inhibitor treatment. It was included in the CSCO Guidelines for the Diagnosis and Treatment of Biliary Tract Cancers as a Class II recommendation Class 2A in September 2026, making it the first approved drug for this indication in China.

The announcement said that first clinical prescriptions have recently been issued in Beijing, Shanghai, Guangdong, Jiangsu and other provinces and municipalities, with distribution completed at DTP pharmacies in multiple locations. Sales will be further rolled out to retail pharmacies in 21 provinces, municipalities and autonomous regions, leveraging the distribution and logistics network of Sinopharm Holding Jiangsu Co., Ltd. Tinengotinib is a multi-target small molecule kinase inhibitor targeting FGFR, JAK, VEGFR and Aurora, and has been granted Orphan Drug Designation and Fast Track Designation by the U.S. FDA and Orphan Drug Designation by the EMA.

According to the announcement, the preparation of this product serves as a first-line emergency medication for gestational hypertension. The Group has already obtained the approval for its Labetalol Hydrochloride Injection preparation, and this approval of the bulk drug represents an important implementation of the Group's strategy of integrating bulk pharmaceuticals and preparations.

The announcement said that the Group's hypertension pipeline has established a comprehensive product portfolio covering conventional chronic oral monotherapy, fixed-dose compound preparations, hypertensive emergencies and obstetric intravenous administrations. Leveraging a dual layout of bulk pharmaceuticals and preparations across multiple core antihypertensive drug types, the Group covers the clinical demand of hypertension for both chronic and emergency cases, consolidating its competitive edge in the cardiovascular field.

The study was a multicentre, randomised, double-blind, double-dummy, active-controlled non-inferiority trial that randomised 500 subjects, of whom 467 were included in the full analysis set (FAS), with subjects randomised 1:1 to receive anlarazole sodium or rabeprazole sodium once daily. Unlike prior studies that largely enrolled Los Angeles (LA) grade A mild patients, this study enrolled only LA grade B-D moderate-to-severe erosive oesophagitis patients and prospectively required at least 20% of subjects to be LA grade C/D.

The results showed that anlarazole sodium met the primary endpoint, with week-8 endoscopic healing rates of 88.4% versus 84.6% in the FAS (adjusted risk difference 3.8%, 95% CI: -2.3% to 10.0%) and 93.9% versus 89.4% in the per-protocol set (PPS) (adjusted risk difference 4.8%, 95% CI: -0.4% to 10.0%). The lower bounds of both confidence intervals were well above the pre-specified -10% non-inferiority margin, and the week-4 healing rate in the PPS reached 81.6%; all treatment-related adverse events were grade 1-2, with no grade 3 or above drug-related events.

Anlarazole sodium enteric-coated tablets (trade name: Anjiuwei) were approved by the National Medical Products Administration in June 2023 for duodenal ulcers; only 3.5% of anlarazole sodium is metabolised via CYP2C19, so it is unaffected by CYP2C19 polymorphisms. In addition to the approved duodenal ulcer indication and the reflux oesophagitis new drug application accepted for review, a Phase III study in China for Helicobacter pylori eradication is also progressing.

The patent was filed for prioritised examination by the Company's wholly-owned subsidiary Suzhou Kintor Pharmaceutical Co., Ltd. on 27 March 2026 and was granted priority examination by the CNIPA on 12 June 2026, with the grant notice issued about six months after the priority examination request; the Company is completing the subsequent registration formalities. Under the claims to be granted, the chemical structure of KT-939 is covered by the specific compound claims and also falls within the protection scope of the general formula claims.

KT-939 is the Company's core commercial product, and the grant of its invention patent in China is expected to strengthen its competitive advantage in the high-end cosmetic ingredient market for skin whitening and spot removal. The Company submitted the full registration dossier for KT-939 as a functional cosmetic ingredient to the National Medical Products Administration on 18 September 2026 and will seek early approval; it is also developing analogues of KT-939 as topical innovative drugs for pigmentation disorders such as melasma.

On October 21, 2026, the three major Hong Kong indices opened higher and sold off through the session. The Hang Seng Index opened at 24,139.11, which was also its intraday high, before sliding to 23,651.87, down 0.90%; the Hang Seng TECH Index opened at 4,110.74 and closed at 3,994.77, down 1.26% and below the 4,000 mark; and the Hang Seng China Enterprises Index closed at 7,943.41, down 1.08%. Full-day turnover on the Hang Seng Index reached HKD 176.6 billion, down from HKD 190.5 billion a day earlier. AI concept stocks were split evenly, with 10 of the 20 names closing higher; AI chips and autonomous driving diverged internally, while LLM names mostly declined and TENCENT was the worst performer in the pool.

In the LLM space, Z.AI (02513.HK) rose 2.31% and MINIMAX-W (00100.HK) rose 0.23%, while BABA-W (09988.HK) fell 1.14%, BIDU-W (09888.HK) fell 1.15%, MEITUAN-W (03690.HK) fell 1.84%, KUAISHOU-W (01024.HK) fell 2.30% and TENCENT (00700.HK) fell 4.04%, dropping below HKD 400.

In the AI Chips space, MONTAGETECH (06809.HK) rose 8.97%, the top gainer among AI concept stocks; GIGADEVICE (03986.HK) rose 3.15%, BIRENTECH (06082.HK) rose 1.12% and HUA HONG GRACE (01347.HK) rose 0.20%, while ILUVATAR COREX (09903.HK) fell 0.06% and SMIC (00981.HK) fell 2.42%.

In the Autonomous Driving space, WERIDE-W (00800.HK) rose 2.55%, PONY-W (02026.HK) rose 1.71%, HORIZONROBOT-W (09660.HK) rose 1.59% and BLACK SESAME (02533.HK) rose 0.06%, while ROBOSENSE (02498.HK) fell 3.19%.

In the Embodied AI space, both names declined: XIAOMI-W (01810.HK) fell 0.96% and UBTECH ROBOTICS (09880.HK) fell 1.61%.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 21, 2026.

III. AI Industry & Corporate Developments

1. MONTAGETECH Guides a Sharp Rise in Third-quarter Profit as Interconnect Chip Revenue Reaches RMB 2.047 Billion

On October 20, MONTAGETECH (06809.HK) issued its preliminary results for the third quarter of 2026, projecting revenue of about RMB 2.079 billion, up roughly 46.0% year on year and 10.9% quarter on quarter, and net profit attributable to shareholders of RMB 1.20 billion to RMB 1.30 billion, up 153.6% to 174.7% year on year. Revenue from the interconnect chip product line reached about RMB 2.047 billion, about 98.5% of total revenue, up roughly 49.3% year on year and 20.9% quarter on quarter; gross margin for the line is expected at 68.0% to 68.5%, up 2.31 to 2.81 percentage points year on year. The company said DDR5 memory interface and module companion chip shipments rose sharply, with a higher share of third-, fourth- and fifth-generation RCD chips, and it expects demand to rise further in the fourth quarter. JEDEC is continuing to discuss DDR6 memory interconnect technology and standards, with each DDR6 module set to carry more memory interface chips. The stock closed up 8.97% on the day, the top gainer among AI concept stocks.

2. GIGADEVICE Rises 3.15% as Memory Operations Benefit from Niche DRAM Supply Contraction

GIGADEVICE (03986.HK) covers NOR Flash, niche DRAM, microcontrollers and sensors. According to Web-Feet Research, the company holds a 20.4% global share of NOR Flash, ranking second worldwide, with a stable base in IoT, AI PCs and automotive firmware; niche DRAM is the main source of earnings elasticity this cycle, as overseas majors exit the segment and supply contraction drives both volumes and prices higher. Its earlier periodic reports showed that tight supply in the memory chip industry lifted profitability in the memory business. The stock closed up 3.15% on the day, second only to MONTAGETECH in the AI chip space.

3. MiniMax Launches the M3.1 Flash Model as Inference Cost and Speed Take Centre Stage

On the evening of October 19, MiniMax launched its M3.1 Flash model, saying it delivers a threefold increase in inference speed and a 70% reduction in cost. In the same period, DeepSeek released V4.1-Flash-1017 and announced the full open-sourcing of its internal inference framework, ranking first in 4 of 11 agent benchmarks and comparing itself with models including Moonshot AI's Kimi K3 and Zhipu's GLM-5.3. Competition among Chinese large models is shifting from raw model capability toward inference cost, deployment efficiency and agentic workflows. Hong Kong LLM names diverged on the day: Z.AI (02513.HK) rose 2.31% and MINIMAX-W (00100.HK) rose 0.23%, while platform names such as TENCENT, KUAISHOU-W and MEITUAN-W mostly declined.

4. Physical AI and World Model Conference Opens in Nanjing as National Standard Pre-research Begins

On October 20, the 2026 Physical AI and World Model Conference opened in Nanjing. Jiangsu released an action plan for building high-quality datasets for physical AI and world models and presented nine representative innovations spanning general world models, embodied AI, autonomous driving and industrial digital twins. Two rounds of industrial cooperation projects were signed on site, with a total value above RMB 6 billion, covering complete embodied AI machines and core components, world models and robot brains, and physical AI chips. In parallel, the national embodied AI working group under the national technical standardisation committee was established, pre-research on the national standard for artificial intelligence world models was launched, and a physical AI and world model industry alliance was formed with an initial 40 members.

5. Robotaxi Unit Economics Turn Positive in Some Regions as Four Autonomous Driving Names Advance

At the industry level, leading Chinese Robotaxi operators are reaching positive unit economics in some regions. Public statistics show that Apollo Go had logged more than 350 million cumulative autonomous driving kilometres and more than 23 million cumulative orders as of August 2026; PONY-W (02026.HK) and WERIDE-W (00800.HK) have also turned positive on unit economics in selected areas. Overseas, PONY-W's US-listed shares rose more than 5% on October 20. Four Hong Kong autonomous driving names closed higher on the day, led by WERIDE-W at 2.55% and PONY-W at 1.71%.

IV. Profiles of Representative AI Concept Stocks

At week 12, haemolysis control, defined as LDH below 1.5 times the upper limit of normal, reached 100% in the 1,200 mg and 1,500 mg cohorts, all three cohorts had 100% transfusion avoidance and no breakthrough haemolysis. At week 24, 85.7% (6/7) of the 1,500 mg cohort had haemoglobin rise by at least 2 g/dL without transfusion and 71.4% (5/7) reached 120 g/L or above. No treatment-related serious adverse events were reported. The Board said the data support further development and reflect the long-acting four-weekly profile.

According to National Business Daily, Zheng Yeqing, Vice President of XPeng Motors, revealed that XPeng plans to cooperate with local manufacturers to boost European production capacity through new plants or existing facilities, with a decision expected in the coming months. The new production lines will target mid-range models with a lower cost base than its existing partner plant in Austria.

Economic Information Network reported that the installation rate of L2 combined driving assistance functions on new passenger vehicles in China has exceeded 70%. The first batch of L3 conditional autonomous driving vehicles has been launched for road trials in designated areas. Going forward, the Ministry of Industry and Information Technology will deepen cross-sector collaboration, steadily expand scenario-based applications, prudently push forward pilots on the access and road operation of intelligent connected vehicles, and accelerate large-scale demonstrations of autonomous driving in key scenarios.

XPENG-W (09868.HK) Focuses on the full-stack in-house R&D and large-scale deployment of end-to-end autonomous driving foundational models for mass-produced vehicles. Its proprietary XNGP (Advanced Driver Assistance System) has completely decoupled from high-definition maps, demonstrating exceptional generalization capabilities in complex urban NOA (Navigation Guided Pilot) scenarios. The activation rate of advanced ADAS and the mileage penetration rate among users of newly delivered models remain at the industry forefront, providing a highly deterministic benchmark for vehicle-side AI application delivery.

On the news front, the company has no recent news of its own; within the sector, on 19 October 2026 a market research report showed that global mature-node foundry capacity utilisation will reach 91% in the fourth quarter of 2026, and that 8-inch and 12-inch mature-node foundry prices are expected to rise 4% to 8% quarter on quarter in the first quarter of 2027, with 90nm prices already up 4% this quarter and set to rise another 8% next quarter.

In addition, on 20 October 2026 market data showed that HUA HONG's 8-inch lines ran at 109.5% capacity utilisation in the third quarter, above full load, as demand for 48V high-voltage power management chips used in AI servers keeps rising and supply of 8-inch mature-node capacity tightens further.

HUA HONG GRACE (01347.HK) Specializes in specialty process wafer foundry, offering customized manufacturing of power discretes, embedded non-volatile memory, analog and power management ICs. Its 8-inch and 12-inch production lines serve automotive, industrial control and data center power management applications. The company holds multiple automotive-grade quality certifications and provides mass production foundry services to various domestic and international automotive clients. Its overall capacity utilization has remained high over an extended period.

On the news front, the company has no recent news of its own; within the sector, on 20 October 2026 industry research showed that commercial cleaning robots cut labour costs in commercial settings by an average of 28% and raise cleaning efficiency 1.8 times, and that monthly Robot-as-a-Service (RaaS) arrangements have been widely adopted by hotel chains and large property management groups, with the company's RaaS revenue rising to 17.2% of total revenue in the first half of 2026.

In addition, on 20 October 2026 the service robot zone of the 140th Canton Fair showed that consumer-grade robots can be sold on site, while industrial-grade products still need more than six months of solution development, and leading companies remain cautious on overseas capacity planning.

CSC noted that the humanoid robot sector is seeing catalysts at home and abroad, supply chain companies are advancing factory audits and volume production, and robot makers continue to expand deployments across industrial and commercial scenarios, with shipments growing in step.

EXCELLAND ROBOT (03231.HK) focuses on the development, manufacturing and commercial deployment of commercial service robots, with products covering indoor delivery, high-capacity indoor transfer, delivery within enclosed parks, indoor and outdoor cleaning and unattended retail. The company also provides industry-applied AI vision model solutions and serves customers including hotels, office buildings, shopping malls, hospitals and industrial parks under Robot-as-a-Service (RaaS) and leasing arrangements. Based on 2025 revenue, the company is China's third largest supplier of commercial service robot products with a market share of 8.9%, and had cumulatively delivered more than 114,600 robots to over 5,100 customers worldwide as of 31 March 2026.

ACH is a rare, potentially life-threatening and debilitating growth disorder with limited treatment options currently available worldwide. Lavengratinib for ACH previously received Orphan Drug Designation (ODD) and Rare Pediatric Disease Designation (RPDD) from the US FDA, and its IND application has been cleared by the FDA. It is the first FGFR2/3 selective inhibitor in the world to enter clinical trials.

ACH is an autosomal dominant disorder primarily caused by mutations in the FGFR3 gene. Using Abbisko Therapeutics' oral mini-tablet technology, each tablet is less than 3 mm in diameter and can be conveniently taken with food or drink. The company is advancing a Phase II, multicentre, open-label, dose-escalation study (ABSK061-202) in children aged 3 to 12 with ACH; recent preliminary data showed positive growth-promotion signals with favourable overall safety and tolerability.

TQC2731 is a humanised monoclonal antibody targeting thymic stromal lymphopoietin (TSLP), blocking the upstream signal that starts the inflammatory cascade. CRSwNP causes persistent nasal blockage, loss of smell and nasal discharge, and recurrence after nasal corticosteroids plus endoscopic surgery still reaches 35% to 60%. Listed biologics mostly target type 2 inflammation and work poorly in non-type 2 patients. TQC2731 may modulate both types and is also in a Phase III trial for severe asthma, the first Chinese-developed TSLP antibody to reach Phase III. 

HMPL-A830 is a first-in-class antibody-targeted therapy conjugate (ATTC) pairing a potent KRAS small molecule inhibitor payload with an anti-EGFR antibody. A global Phase I trial in unresectable advanced or metastatic solid tumours, run in China and the United States, began its Phase Ia portion in September 2026 (NCT07718581). HUTCHMED Limited will run global Phase I development while the GSK unit handles later development and sales in its territories. HUTCHMED expects a USD 110 million upfront payment shortly plus up to USD 1.185 billion in milestones and tiered royalties on net sales.

Lisaftoclax was approved in China in July 2025 for adults with CLL/SLL after at least one prior systemic therapy including a BTK inhibitor, making it the first China-developed Bcl-2 inhibitor approved and the second Bcl-2 inhibitor launched globally. The Company is running four global registrational Phase III studies, including GLORA-2, which tests lisaftoclax plus acalabrutinib as first-line therapy. Breakthrough designation gives the CDE priority in communications and allows conditional approval and priority review where eligible.

The announcement disclosed that the product is a dual-target inhibitor of lymphocyte function-associated antigen-1 (LFA-1) and reactive aldehyde species (RASP), capable of inhibiting the interaction between LFA-1 and intercellular adhesion molecule-1 (ICAM-1), reducing LFA-1-mediated cell adhesion while efficiently scavenging reactive aldehyde species. The product is expected to exert synergistic LFA-1 and RASP dual-target effects, overcoming the safety and efficacy limitations of single-target drugs and thereby offering dry eye patients a potentially better treatment option.

The Company stated that SYH2083-001 is a single-centre, randomised, double-blind, placebo-controlled and dose-escalation Phase I clinical trial conducted in healthy participants in China, designed to evaluate the safety, tolerability and pharmacokinetic profile of the product after single and multiple dosing. Participant recruitment and screening for the trial are currently being actively advanced.

Under the principal arrangements for this launch, individual users will by default access the DeepWorks Individual Version upon registration, with a specified quota of complimentary trial usage made available to newly registered users, while enterprise users may enquire about DeepWorks Enterprise Version solutions to develop an AI employee platform tailored to their business needs. Building on its existing enterprise solution delivery business, the Group further provides standardised cloud-based services through DeepWorks, which users may continue to use by purchasing credits or through other actual payment methods once the free trial quota is used up, with fees for the relevant services calculated based on Token usage; deployment, system integration and other services for enterprise customers shall be separately agreed under the relevant contracts.

DeepWorks is the Group's enterprise agent platform for individual and enterprise users, serving as an edge-cloud collaborative, local-first platform for the development, deployment and operation of AI employees. It compiles enterprise knowledge into a knowledge base Wiki and an enterprise business ontology, supports the listing of vertical domain models and can be directly integrated with enterprises' existing business systems. Its principal capabilities comprise an AI-native workspace, a knowledge centre and collaboration, My AI Colleagues and an open skill ecosystem, and the Group's DeepSense industrial manufacturing expert, DataSense business operations expert and FDESense data governance expert can all be deployed and operated on the platform.

The Board is of the view that the launch will enable the Group to expand its user base and further develop its fee-based business model in relation to customers' continued use of platform services, beyond enterprise project delivery; the actual effectiveness of the launch and its impact on the Group's operating results will depend on market conditions, user acceptance, payment conversion, actual usage and the Group's subsequent operating arrangements.

The announcement disclosed that the study is a randomised, controlled, non-inferiority bridging trial of UTD2 versus the marketed utidelone injection (UTD1), each combined with capecitabine (CAP), in HER2-negative advanced breast cancer patients previously treated with taxanes or anthracyclines, with progression-free survival as the endpoint. It is led by Academician Xu Binghe of the Cancer Hospital of the Chinese Academy of Medical Sciences and involves more than 40 clinical research centres nationwide.

The Company stated that utidelone shares a similar mechanism of action with taxanes, but unlike taxanes, which are difficult to develop in oral form, utidelone is not readily pumped out of cells by P-glycoprotein, giving it an oral administration advantage and breaking the development barrier for oral formulations of traditional microtubule inhibitors. Phase II data presented at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting showed that UTD2 plus CAP achieved an objective response rate (ORR) of 52.3%, a disease control rate (DCR) of 88.6%, a median progression-free survival (PFS) of 8.25 months and a median duration of treatment (DoT) of 9.0 cycles, comparable to or slightly better than historical data for UTD1 plus CAP; on safety, UTD2 plus CAP reduced the incidence of grade 3 or above peripheral neuropathy from 25.1% with UTD1 plus CAP to just 2.0%, with haematological toxicity remaining very low and tolerability markedly improved. The Company has conducted multiple Phase II and Phase III studies of UTD2 covering advanced breast cancer, gastric cancer, ovarian cancer, adjuvant intensification in triple-negative breast cancer and soft tissue sarcoma. The Company cautioned that the combination may not ultimately be successfully developed and commercialised.

The announcement disclosed that BJ045 is a subcutaneously administered anti-CD20 antibody resistant to degradation by IgG-degrading enzymes, with potential for combination with IgG-degrading enzymes such as the Company's KJ103 in treating moderate-to-severe autoimmune diseases. BJ045 is a differentially designed CD20 monoclonal antibody which, through the Company's directed hinge engineering platform and defucosylation modification and by specifically binding to the CD20 type II epitope, retains both specific CD20 type II epitope binding and Fc effector function while resisting enzymatic cleavage; it significantly enhances affinity for Fc receptors on effector cells and boosts ADCC activity, supporting deep depletion of CD20-positive B cells in peripheral blood and tissues.

The Company stated that antibody therapies targeting B cells such as CD20 are typically used after acute flares of antibody-mediated autoimmune diseases or during organ transplantation, but such therapies mainly suppress the production of new antibodies without eliminating pathological antibodies already present in patients, and often fail to effectively slow disease progression or prevent further deterioration; when combined with IgG-degrading enzymes such as KJ103, BJ045 can deplete B cells that produce existing IgG antibodies and rapidly lower IgG levels, producing a synergistic therapeutic effect. In addition, leveraging the Company's competitive advantage in subcutaneously administered candidates, BJ045's subcutaneous formulation (containing recombinant human hyaluronidase) is expected to improve the treatment experience and patient compliance. The Company cautioned that, given the many unpredictable factors in clinical trials, it cannot guarantee the eventual successful development or commercialisation of BJ045.

On October 20, 2026, the three major Hong Kong indices opened and traded lower throughout the session. The Hang Seng TECH Index fell 1.52% to 4,045.91, having dropped nearly 2% in the afternoon to a fresh recent low; the Hang Seng Index fell 1.32% to 23,867.74, losing the 24,000 mark; and the Hang Seng China Enterprises Index fell 1.21% to 8,030.26. Full-day turnover on the Hang Seng Index reached HKD 190.5 billion, up from HKD 178.2 billion on the previous trading day of October 16; Hong Kong markets were closed on October 19 for the Chung Yeung Festival holiday. AI concept stocks declined broadly, with 6 of the 20 names closing higher; embodied AI and autonomous driving names bucked the trend in places, while LLM and AI chip names pulled back across the board.

In the LLM space, MEITUAN-W (03690.HK) rose 0.53%, while BIDU-W (09888.HK) fell 1.07%, TENCENT (00700.HK) fell 1.77%, KUAISHOU-W (01024.HK) fell 2.05%, BABA-W (09988.HK) fell 3.58%, MINIMAX-W (00100.HK) fell 5.82% and Z.AI (02513.HK) fell 6.41%.

In the AI Chips space, ILUVATAR COREX (09903.HK) rose 1.58%, while GIGADEVICE (03986.HK) fell 0.65%, BIRENTECH (06082.HK) fell 0.80%, HUA HONG GRACE (01347.HK) fell 2.13%, SMIC (00981.HK) fell 2.29% and MONTAGETECH (06809.HK) fell 3.88%.

In the Autonomous Driving space, ROBOSENSE (02498.HK) rose 3.92% and BLACK SESAME (02533.HK) rose 1.84%, while PONY-W (02026.HK) fell 0.25%, WERIDE-W (00800.HK) fell 2.14% and HORIZONROBOT-W (09660.HK) fell 3.95%.

In the Embodied AI space, UBTECH ROBOTICS (09880.HK) rose 6.04%, the top gainer among AI concept stocks, and XIAOMI-W (01810.HK) rose 1.50%, with both names in the space closing higher.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 20, 2026.

III. AI Industry & Corporate Developments

1. Frost & Sullivan Report Ranks UBTECH ROBOTICS First Globally in First-half Humanoid Robot Revenue

On October 19, Frost & Sullivan released its 2026 Global Humanoid Robot Market Research Report. Ranked by first-half 2026 revenue, the global top five humanoid robot players are UBTECH ROBOTICS, AgiBot, Unitree Robotics, Galbot and Leju Robotics, with the five Chinese companies together taking a 57.4% revenue share. UBTECH ROBOTICS (09880.HK) is the only company in the report to rank first in revenue share in both the overall humanoid robot and full-size embodied intelligent humanoid robot categories; its first-half revenue reached RMB 1.27 billion, up 104.2% year on year, with overall humanoid robot sales volume up 268.3%. In the same period, the first batch of six national standards for humanoid robots was formally released, with UBTECH ROBOTICS as a lead drafter and co-drafter; the motion control part takes effect on April 1, 2027. The stock closed up 6.04% on the day, the top gainer among AI concept stocks.

2. ROBOSENSE Ships 595,600 LiDAR Units in the Third Quarter, a Record Quarterly High

ROBOSENSE (02498.HK) shipped 595,600 LiDAR units in the third quarter, up 221% year on year and a record quarterly high, including 145,200 units for robotics and other applications, up 309% year on year. Cumulative shipments over the first three quarters reached 1.3148 million units, already exceeding the full-year 2025 level. The company is maintaining its 2026 sales target of about 900,000 LiDAR units for robotics and other applications. The stock closed up 3.92% on the day, the best performer in the autonomous driving space.

3. Physical AI and World Model Catalysts Build, Supporting the Embodied AI Space

The physical AI and robotics space has seen a dense run of developments recently. AgiBot, together with Nvidia and several universities, released WorldOracle, the world's first action-driven world model evaluation platform benchmarked on real execution, providing a unified standard for robot simulation training. OpenAI's chief executive confirmed in a podcast that the company will develop its own humanoid robots, focusing R&D on the AI brain, with a demonstration expected in 2027. Overseas semiconductor vendors are also positioning in supporting links: a Micron Technology vice president said at a Korean semiconductor exhibition that the company is developing edge inference memory designed for physical AI applications. Driven by these developments, A-share humanoid robot names led gains, and Hong Kong embodied AI names also bucked the trend on the day.

4. Tmall's Double 11 Launches a Token Top-up Centre as Z.AI and MiniMax Offer Discounts

Tmall's 2026 Double 11 shopping festival officially opened at 8 pm on October 20. The platform launched an AI Space Station token top-up centre where users can directly purchase subscriptions to several leading large models; Z.AI, MiniMax, Qwen and other model vendors rolled out collective discounts and bundled packages for users to choose from, while Tmall also partnered with model vendors to offer computers pre-installed with large models, lowering the barrier for end users to configure them. Large model vendors are extending customer acquisition and monetisation from their own platforms to e-commerce platforms. Hong Kong LLM names pulled back overall on the day, with Z.AI (02513.HK) and MINIMAX-W (00100.HK) among the biggest decliners.

5. Pricing Logic in Domestic Memory Shifts to Earnings Validation as Hong Kong Chips Miss the US Rebound

On October 19, A-share memory names diverged. ChangXin Memory Technologies, a leading domestic DRAM player, fell 7.77%, its second-largest single-day drop since listing, while names in segments such as DapuStor, Demingli and Biwin Storage recovered, reversing earlier broad declines, and several listed companies in the industry announced buyback plans. Industry observers said investors are demanding more from memory leaders, with the sector's pricing logic shifting from expectations of broad price increases to earnings validation. Overseas, the Philadelphia Semiconductor Index rose 1.61% on October 19, ending an eight-session losing streak; Hong Kong semiconductor names failed to follow the rebound, with 5 of the 6 AI chip stocks closing lower.

IV. Profiles of Representative AI Concept Stocks

On the news front, on 20 October 2026 ASMPT announced that its group chief financial officer has been appointed an executive director of the company with effect from 19 October 2026, with annual remuneration unchanged and no directors' fee payable for the appointment.

In addition, on 19 October 2026 industry data showed that advanced packaging will account for more than 50% of the overall OSAT market in 2026; TSMC's CoWoS capacity is planned to reach 120,000 to 140,000 wafers per month by the end of 2026, yet advanced packaging capacity will still fall 10% to 20% short this year.

SINOLINK SECURITIES noted that demand for TSMC's advanced packaging remains strong and growing, and that supply stays short of demand even with annual capacity expansion, so the structural gap in advanced nodes and advanced packaging will persist and pull through demand for upstream semiconductor equipment and materials.

SCS said it is positive on high growth in semiconductor equipment orders and profit next year, with domestic components being adopted faster amid shortages.

ASMPT (00522.HK) Engages in R&D and global sales of semiconductor assembly and packaging equipment, advanced packaging equipment, and surface mount technology. Its 2.5D/3D advanced packaging tools, such as thermo-compression bonding (TCB) machines, have been delivered to multiple leading OSATs, IDMs, and memory manufacturers worldwide for volume production of HBM and chiplet-based chips. The company has publicly disclosed multiple follow-on orders from AI-compute related customers.

On the news front, the company has no recent news of its own; within the sector, on 19 October 2026, the relevant national authorities issued the Opinions on Accelerating the Integration of Technology into Commerce, setting out 18 measures to push embodied intelligence into commerce and trade, expand application scenarios such as home services and commercial logistics, and speed the market conversion of frontier technologies including brain-computer interfaces and embodied intelligence.

In addition, on 19 October 2026, the relevant authorities said at a press conference that in the first half of this year Chinese humanoid robot makers launched more than 400 complete-product models and produced over 40,000 units, with full-year output expected to exceed 100,000 units; a dedicated practical-training campaign has pushed such products into more than 300 key scenarios, including warehousing and logistics, catering and retail, and home services.

SEALAND SECURITIES noted that the capacity plans of domestic humanoid robot makers mostly sit in the 10,000-unit range in 2026, and that the industry remains in the early stage of technological breakthroughs and commercial deployment, with volume production still to come.

XIAOMI-W (01810.HK) Leverages its massive AIoT ecosystem network and full-stack proprietary AI algorithms to advance the collaborative deployment of consumer- and industrial-grade embodied AI devices. Algorithms for its CyberOne humanoid robot and CyberDog bionic quadruped robot undergo continuous iteration. The underlying multi-modal machine vision, force-control algorithms, and automated scheduling logic are deeply integrated into the "dark factory" operations and flexible manufacturing workflows of Xiaomi's smart factories, establishing a complete closed-loop model of "algorithm + hardware + proprietary manufacturing application scenarios."

DolphinOne 2.0 integrates several mainstream artificial intelligence models and generative AI services, covering AI image generation, video creation, music generation, digital humans and AI agents. Technical integration and testing of music generation has been completed, while the AI agent feature has built natural language-driven task orchestration that selects available models and calls image and video tools based on user needs. Version 1.0 was open to selected users and creative partners by invitation only.

The Group is exploring revenue streams including individual subscriptions, enterprise service subscriptions, customised AI solutions and related technical services. It has started preliminary business discussions with several potential corporate clients on AI content creation, digital marketing, virtual digital humans and enterprise AI agent solutions, but no material commercial contract has been finalised and no revenue is assured.

According to multiple Hong Kong media reports, Apollo Go, Baidu’s autonomous ride-hailing service, will launch a two-week public free trial ride programme in Tung Chung starting October 21. The public trial is expected to invite more than 1,000 participants.

Per National Business Daily, on October 19, Alibaba DAMO Academy released the automotive-grade enhanced processor XuanTie E908A. It is the first RISC-V CPU IP that meets both ASIL-B and ASIL-D standards, with its Single Point Fault Metric (SPFM) exceeding 90% for the first time in the industry. DAMO Academy also unveiled its product roadmap for autonomous driving and embodied intelligence. The next-generation XuanTie C950A targets performance five times that of existing RISC-V automotive-grade products.

BIDU-W (09888.HK) Focuses on the R&D of L4 autonomous driving algorithms and the commercialization of unmanned Robotaxis. Leveraged by the ERNIE foundational model and optimized by the Qianfan compute base, its "Apollo Go" autonomous ride-hailing service has achieved large-scale, normalized commercial operations across multiple core cities in China, with cumulative autonomous test mileage exceeding hundreds of millions of kilometers. Through high-frequency, high-confidence real-world road test data cleansing, the company continues to solidify the most robust data asset and algorithmic moat within the HKEX autonomous driving sector.

The randomised, double-blind, placebo-controlled trial enrolled 678 children and adolescents aged 4 to 15 across eight countries, 450 in the OT-101 group and 228 in the control group, including 170 in China, with three years of dosing in a 48-month study. Overall adverse events were similar to the control group, while suspected treatment-related events, mainly photophobia, eye pain and conjunctivitis, were higher and consistent with atropine's known pharmacology. The company said the data are preliminary and registration plans depend on subgroup analyses and regulator talks.

The collaboration, first announced in early 2026, has a total value of up to USD 888 million, including USD 32 million in upfront and near-term research milestone payments. Both oncology programmes, run on the company's proprietary end-to-end Pharma.AI platform, have completed target nomination. The company cautioned that it cannot guarantee any forward-looking statements will be achieved and that the financial and other data disclosed have not been audited or reviewed by its auditors.

Two first-in-class once-weekly oral fixed-dose combinations based on ASC36o extended its half-life to about 8.3 days and 8.8 days, with bioavailability both above 10%. ASC36_37o FDC targets amylin, GLP-1, GIP and glucagon receptors, while ASC36_35o FDC targets amylin, GLP-1 and GIP. In a head-to-head diet-induced obesity rat study, ASC36 cut weight 32% and 91% more than eloralintide and petrelintide. ASC37o and ASC35o are expected to file FDA IND applications in the fourth quarter of 2026.

The announcement disclosed that, in first-line treatment of extrapulmonary neuroendocrine carcinoma (EP-NEC; abstract No. 5836), 69 patients with previously untreated advanced disease were enrolled as of 3 April 2026, of whom 65 were efficacy-evaluable, with a median follow-up of 16.9 months; median duration of response across all dose levels reached 10.2 months and median overall survival had not matured; median duration of response was 15.5 months and 10.2 months in the 6 mg/kg and 15 mg/kg cohorts, with 15-month overall survival rates of 63.6% and 58.4% respectively; among PD-L1-positive (CPS≥1) patients, the 15-month overall survival rate was 66.7% in both cohorts, versus 57.1% and 53.6% in PD-L1-negative patients. No dose-limiting toxicities were observed, treatment-related adverse events were mainly chemotherapy-induced myelosuppression, and no severe hepatotoxicity occurred. In first-line treatment of biliary tract cancer (abstract No. 5649), 20 advanced patients were enrolled in the safety run-in, with an overall objective response rate of 55.0%, a disease control rate of 100.0% and an objective response rate of 100.0% among PD-L1-positive patients.

The Company stated that, for LBL-034 in relapsed or refractory multiple myeloma (abstract No. 4727), 56 heavily pretreated patients were enrolled as of 31 March 2026, with a median of five prior lines of therapy, 73.2% triple-class exposed and 23.2% with extramedullary disease; among 55 evaluable patients with a median follow-up of 16.0 months, median progression-free survival was 15.8 months; at 400-1,200 μg/kg the 18-month PFS rate was 58.0%, and among the 23 patients achieving complete response or better the 18-month PFS rate was 87.7%, with a minimal residual disease negativity rate of 72.7% at 10^-5 sensitivity; in high-risk patients with extramedullary disease, the objective response rate was 75.0% and median PFS 11.5 months; only one case of grade 3 or above cytokine release syndrome occurred and there were no treatment-related deaths. In addition, the translational study of Weilixin in microsatellite-stable colorectal cancer (abstract No. 5512) showed tumour growth inhibition rates of 69.27%, 94.53% and 99.84% at 2, 8 and 30 mg/kg, with complete tumour regression in two of five mice in the 30 mg/kg group.

The announcement disclosed that, as of 10 April 2026, among 60 efficacy-evaluable patients, the objective response rate (ORR) was 30.0%, the disease control rate (DCR) was 80.0%, median progression-free survival (mPFS) was 3.7 months, median duration of response (mDOR) was 8.7 months and median overall survival (mOS) had not matured; no new safety signals were observed during the follow-up period. The results indicate that 9MW2821 has a manageable safety profile and positive therapeutic effects in triple-negative breast cancer patients.

The Company stated that 9MW2821 is Mabwell's first site-specific conjugated ADC targeting Nectin-4, with site-specific antibody modification achieved through its proprietary conjugation linker and optimised ADC conjugation process; after administration it binds to Nectin-4 on tumour cells, enters the cells and releases cytotoxic agents via enzymatic cleavage for precise tumour killing. 9MW2821 has been studied in multiple clinical trials across indications including urothelial carcinoma (UC), cervical cancer (CC), TNBC and oesophageal cancer (EC), with cumulative enrolment exceeding 2,200 patients; the Company is advancing four Phase III pivotal registration trials, of which the UC monotherapy and combination therapies have been included in China's breakthrough therapy designation list, and the CC monotherapy is the world's first same-target drug to enter Phase III trials.

The announcement disclosed the basic product information: the drug name is nimodipine tablets; the dosage form is tablets; the specification is 30mg; the drug classification is prescription drug; the applicant is Shandong Xinhua Pharmaceutical Company Limited; the application matter is generic drug quality and efficacy consistency evaluation; the acceptance number is CYHB2550245; the original drug approval number is Guoyaozhunzi H10910081; the notice number is 2026B07058; and the approval conclusion is that the product has passed the generic drug quality and efficacy consistency evaluation. In July 2025 the Company submitted the consistency evaluation filing to the Center for Drug Evaluation of the NMPA, which was accepted, and in October 2026 it obtained the Approval Notice of Supplementary Drug Application.

The Company stated that the product, as continuation therapy after prior use of nimodipine injection, can prevent and treat ischaemic neurological damage caused by cerebral vasospasm following aneurysmal subarachnoid haemorrhage; it can also be used to treat senile cerebral dysfunction, such as memory impairment, disorientation, attention deficits and mood swings, with underlying diseases requiring specific treatment to be ruled out before treatment. The product is a Class A item in the National Catalogue of Medicines for Basic Medical Insurance, Work-related Injury Insurance and Maternity Insurance (2025). According to relevant statistics, sales of nimodipine tablets at public medical institutions in China were approximately RMB 130 million in 2025. The Company said the passing of the evaluation will help enhance its market competitiveness, though pharmaceutical sales are subject to uncertainty from changes in domestic industry policy, tendering and procurement, and market conditions.

On October 16, 2026, the three major Hong Kong indices opened higher and rallied before paring gains in the afternoon. The Hang Seng TECH Index rose 1.16% to 4,108.24, having gained as much as 2.4% during the session; the Hang Seng Index rose 0.52% to 24,186.83; and the Hang Seng China Enterprises Index rose 0.31% to 8,128.25. Full-day turnover on the Hang Seng Index reached HKD 178.2 billion, down sharply from HKD 224.2 billion a day earlier. AI concept stocks gained broadly, with 16 of the 20 names closing higher; AI chips, LLM and autonomous driving names recovered across the board.

In the LLM space, KUAISHOU-W (01024.HK) rose 2.52%, BABA-W (09988.HK) rose 2.26%, MINIMAX-W (00100.HK) rose 1.45%, BIDU-W (09888.HK) rose 1.40%, Z.AI (02513.HK) rose 0.88%, MEITUAN-W (03690.HK) rose 0.33% and TENCENT (00700.HK) closed flat.

In the AI Chips space, performance diverged: MONTAGETECH (06809.HK) rose 4.55%, the top gainer among AI concept stocks; GIGADEVICE (03986.HK) rose 1.25%, BIRENTECH (06082.HK) rose 0.56% and SMIC (00981.HK) rose 0.48%, while ILUVATAR COREX (09903.HK) fell 1.07% and HUA HONG GRACE (01347.HK) fell 2.09%, the worst performer among AI concept stocks.

In the Autonomous Driving space, BLACK SESAME (02533.HK) rose 3.55%, WERIDE-W (00800.HK) rose 3.40%, HORIZONROBOT-W (09660.HK) rose 2.35%, PONY-W (02026.HK) rose 1.58% and ROBOSENSE (02498.HK) rose 1.23%, with all five names in the space closing higher.

In the Embodied AI space, UBTECH ROBOTICS (09880.HK) rose 3.03%, while XIAOMI-W (01810.HK) fell 1.55%.

II. Market Performance of Representative AI Stocks

Data Source: HKEX. For reference only, not investment advice. Data as of market close on October 16, 2026.

III. AI Industry & Corporate Developments

1. Apple Intelligence Integrates Alibaba Qwen, with a Test Version Due in Mainland China by End-October

On October 15, Apple executive chairman Tim Cook said in Shanghai that Apple Intelligence and the integrated Alibaba Qwen large model have been approved and will be released as a test version for mainland Chinese users by late October, covering real-time translation, writing tools and a photo cleanup tool in the first batch, but excluding Siri AI. Public reports said the mainland version combines on-device computing with domestic cloud-based models and covers phones, tablets, computers and headsets, with the full release to follow a system update; the related model filings involve Tongyi Qianwen and Tongyi Wanxiang.

2. Kuaishou Kling AI Fully Launches the Kling 4.0 Video Generation Model

On the evening of October 15, Kuaishou's Kling AI announced the full launch of its Kling 4.0 video generation model, with API services for enterprise clients and developers to open shortly. The company said the new version makes breakthroughs in narrative continuity and professional specifications. Kling AI has completed independent financing of up to USD 3 billion at a post-money valuation of USD 18 billion and plans to initiate a Hong Kong listing within the next 12 months.

3. Memory Demand Spreads from HBM to DDR5 as MONTAGETECH Interconnect Chip Revenue Climbs

Industry data show that AI server memory demand is no longer confined to HBM. As model parameters, inference calls and context lengths grow, demand is spreading from HBM to DDR5, enterprise SSDs and high-capacity QLC products. MONTAGETECH (06809.HK) has benefited from rising DDR5 penetration and generational iteration, with revenue from new interconnect chip products such as MRCD/MDB and PCIe Retimers climbing significantly; the company disclosed that its first-half 2026 net profit attributable to shareholders is expected to reach RMB 1.90 billion to RMB 2.10 billion, up 63.9% to 81.2% year on year. Hong Kong memory and semiconductor names ended their losing streak on the day, with MONTAGETECH halting a seven-session decline.

4. XIAOMI Open-sources MiDashengLM-Spatial, an End-to-end Spatial Audio Understanding Model

On October 15, XIAOMI-W (01810.HK) announced the full open-sourcing of MiDashengLM-Spatial. According to the company, the model is the industry's first open-source end-to-end spatial audio understanding model, adding spatial perception and reasoning to basic audio understanding. It will be applied across smart home and car cockpit scenarios to enhance interaction within the Human x Car x Home ecosystem.

5. Z.AI and MiniMax Push Ahead with Their A-share Listing Processes

Large model companies continue to advance their listing plans. According to China's securities regulator, CITIC Securities has published a progress report on its pre-listing tutoring for MiniMax Group Inc., indicating the company's A-share listing process has entered its second half. Z.AI (02513.HK), already listed in Hong Kong, previously disclosed that its pre-listing tutoring for a Shanghai STAR Market listing has been completed, with plans to raise no more than RMB 15 billion.

IV. Profiles of Representative AI Concept Stocks

According to Tianyancha App, Shenzhen RoboSense Technology Co., Ltd. recently completed industrial and commercial changes. Its registered capital rose from about RMB 620 million to roughly RMB 700 million, representing an increase of approximately 13%.

East Money Securities stated that the MIIT has clarified the implementation of a new round of work plans to stabilize growth in the automotive sector. Detailed rules for trade-in schemes have been rolled out across regions, and two rounds of vehicle replacement have unlocked demand for over 18.3 million units. Meanwhile, auto exports remain robust. Overseas shipments reached 1.807 million units between July and August, surging 83.7% year-on-year. The export penetration rate of new energy passenger vehicles hit 58.9%, delivering tangible order support for the industrial chain.

RoboSense(02498.HK) Focuses on the scaled mass production and delivery of LiDAR and core perception solutions for the autonomous driving perception layer. As a leading tier-1 supplier in the intelligent driving hardware supply chain, it has secured massive design wins across a wide range of models from global mainstream automakers and new energy vehicle (NEV) startups. The company maintains industry-leading growth in single-quarter automotive LiDAR shipments. Through process optimization and economies of scale, it continuously drives down per-unit hardware costs, solidifying its market share in the core perception infrastructure for autonomous driving.

On the news front, the company has no recent news of its own; within the sector, on 15 October 2026, TSMC reported third-quarter results for the period ended 30 September 2026, with consolidated revenue of NTD 1,494.24 billion, up 50.9% year on year and up 17.6% quarter on quarter; net income of NTD 763.06 billion, up 68.7% year on year and up 8.0% quarter on quarter; a gross margin of 66.4% and an operating margin of 58.7%. By process node, 2-nanometre shipments accounted for 8% of wafer revenue in the quarter, 3-nanometre for 33%, 5-nanometre for 28% and 7-nanometre for 10%, with 7-nanometre and more advanced technologies together accounting for 79%; by platform, high performance computing accounted for 68% of revenue and smartphones for 21%. TSMC expects fourth-quarter revenue of USD 52.3 billion to USD 54.3 billion and maintained its 2026 capital expenditure guidance at USD 60 billion to USD 64 billion.

In addition, on 14 October 2026, ASML reported its 2026 third-quarter results, with total net sales of EUR 11.662 billion, a record for a single quarter, a gross margin of 57.5% and net income of EUR 4.96 billion. ASML said customers continue to raise their short- and medium-term equipment demand forecasts, driven primarily by their views on the scale and duration of AI-related investments, with some customers expressing interest in placing orders for 2029 and even 2030; under its current plans, the company's supply for both 2027 and 2028 will not fully meet customer demand, and it is investigating ways to increase 2028 capacity beyond the previously announced 30% increase.

CITIC SECURITIES believes that the market has recently focused on whether Chinese mainland wafer fabs can achieve an effective technological breakthrough in the high-margin server DDR5 market, which, if realised, would shake the narrative logic of overseas makers maintaining ultra-high pricing power through monopoly capacity; DRAM technology is still dominated by the 6F² cell structure, and the progress of 4F² technology depends on advances by Samsung Electronics and ChangXin Memory Technologies, with the technology still in an early validation stage and a relatively limited impact on the memory industry in the short to medium term.

GF SECURITIES believes that the chip design segment is closest to end customers and can capture the dividends of AI computing power and import substitution demand release fastest; based on disclosed financial data, the chip design segment is in a phase of accelerating profit release.

SMIC (00981.HK) Provides IC wafer foundry and related technical services. It is the largest pure-play wafer foundry in China by capacity and offers the broadest coverage of process nodes. Its mature and select advanced process lines address applications including smart terminals, IoT, and computing chips. Based on its periodic disclosures, wafer shipments, capacity utilization, and revenue are at historically high levels.