China Releases AI Development Policy, Auto Industry Regulations, and More

Huo Xing Finance News, October 12: Pre-market highlights for A-shares: 1. The Central Committee of the Communist Party of China and the State Council recently issued the "Opinions on Developing New Quality Productive Forces." The document proposes fully implementing the "AI+" initiative, accelerating the application of next-generation intelligent terminals such as intelligent connected new energy vehicles, AI-powered smartphones and computers, and humanoid robots; strengthening efficient supply of computing power, algorithms, and data; vigorously promoting AI applications across industries; and ensuring AI is safe, reliable, and controllable. 2. The Ministry of Industry and Information Technology and three other departments jointly issued the "Notice on Further Strengthening Management of Automotive Product Innovation Design and R&D Testing and Validation (Draft for Public Comments)." It states that automotive manufacturers must not make false, exaggerated, or misleading claims, nor induce drivers to neglect their safety responsibilities; it prohibits the use of fully hidden door handles and prohibits the adoption of foldable or flexible displays. 3. The China Automobile Industry Association issued a statement firmly supporting the "Notice on Further Strengthening Management of Automotive Product Innovation Design and R&D Testing and Validation (Draft for Public Comments)," and called on the entire industry to abandon irrational innovation models that prioritize form over safety, improve R&D testing and validation systems, support enhanced management of automotive product innovation design and R&D testing and validation, and promote sustainable and healthy industry development. 4. In August, China’s Corporate Credit Index reached 161.32, up 2.45 points from July. Compared with July, indices for manufacturing, transportation, warehousing, postal services, and wholesale and retail industries grew rapidly, with manufacturing reaching its highest ranking this year. 5. The China Federation of Logistics and Purchasing released data showing that China’s Logistics Performance Index for September stood at 51.5%, up 0.6 percentage points month-over-month, marking five consecutive months in expansion territory; the new orders index was 51.2%, up 0.4 percentage points month-over-month, marking seven consecutive months of improvement. 6. The China Securities Regulatory Commission revised and released the "Interim Measures for the Operation of Publicly Offered Securities Investment Funds (Draft for Public Comments)" after a 12-year gap. It proposes lowering the establishment threshold for equity funds, hybrid funds, and FOFs from RMB 200 million to RMB 50 million, and eliminating the mandatory liquidation clause requiring发起式基金 to maintain RMB 200 million in assets for three years, aligning exit conditions with those of ordinary funds. 7. In the period surrounding the National Day holiday, 262 listed companies on the A-share market received institutional investor visits. Jiangsu Bank and Amlogic received visits from over 100 institutions, with 146 and 136 institutions respectively; Rockchip and Hua Feng Test received visits from over 80 institutions; Jianxin Superconductor, Guangqi Technology, and Orbell received visits from over 50 institutions. 8. This week, 37 A-share stocks have restricted shares becoming tradable, with a total market value of approximately RMB 41.462 billion. Shaanxi Energy’s restricted share release exceeds RMB 23 billion; Shouyao Holdings, Dapu Micro, Jinke Shares, Jiali Technology, and Yangtze River Energy each exceed RMB 1 billion in restricted share release value. 9. In the first three quarters of 2026, South Korean investors net purchased approximately USD 228 million worth of the top 15 Hong Kong-listed stocks, compared to USD 798.7 million for the top 15 A-share stocks during the same period. Among them, Global X China Semiconductor ETF led in net purchases with USD 525.7 million in the first three quarters. The A-share stock most heavily bought by South Korean investors was Changxin Technology, with net purchases of approximately USD 420.7 million—accounting for about 53% of the total net purchases among the top 15 A-shares. 10. Both Foxconn and Luxshare Precision have been subjected to U.S. Section 337 investigations regarding patents related to “vertical power delivery systems.” Foxconn stated that the products under investigation are currently in internal validation and assessment stages and do not materially impact current production, operations, or financial performance. The investigation remains in its initial phase, with final outcomes uncertain. Luxshare stated that the products under investigation are in customer validation stages and have not yet entered mass production; it expects no significant adverse impact on current operations or financial performance. 11. U.S. major stock indices closed higher last Friday: the Dow rose 0.83%, the Nasdaq rose 0.64%, and the S&P 500 rose 0.59%. Most leading tech stocks advanced: Amazon rose over 3%, Microsoft and Tesla rose over 2%, Apple fell over 1%, while AMD and Intel each fell over 2%. 12. The International Energy Agency (IEA) Council will convene on October 15 to recommend that member states that have not yet fully delivered their pledged releases accelerate remaining releases, prioritizing diesel fuel. 13. The United States and Russia have reached an arrangement permitting Russian diesel exports; Trump stated that approximately 13.5 million barrels of diesel will enter global markets starting this month. 14. Trump stated on Sunday that Ukraine and Russia have agreed to immediately implement an “energy ceasefire.” Zelensky responded that Ukraine supports this arrangement but emphasized that Russia must also comply with it. 15. Samsung Electronics has pre-secured approximately 80% of its memory chip capacity for next year through long-term supply agreements. Global tech giants including NVIDIA, Google, and Microsoft have signed multi-year chip supply agreements with Samsung; companies yet to finalize deals are reportedly competing fiercely for the remaining roughly 20% capacity. 16. NVIDIA is in preliminary discussions with U.S.-based open-weight model developer Reflection AI regarding a potential acquisition or increased investment. Amazon is negotiating to acquire AI startup Decart AI in a deal potentially valued at around USD 7 billion. 17. Anthropic disclosed new instances of inappropriate behavior by its AI models, some involving U.S. government websites. Microsoft’s CEO called for establishing an “emergency brake” mechanism for advanced AI to prevent autonomous agent models from going out of control. 18. Elon Musk, founder of Tesla and SpaceX and the world’s richest person, stated that given the company’s expertise in manufacturing customized equipment, it is likely to “figure out a better way to manufacture chips than anyone else.” Musk is preparing to build a Terrafab factory in Grimes, Texas, through a joint venture between Tesla and SpaceX with Intel, with initial investment exceeding USD 15 billion. (Reported by KeGu Bao)