
AI-generated summary
Hong Kong is seeking to reinforce its position as a leading international financial centre in the Asia-Pacific region amid growing competition from other financial hubs. The Apec finance ministers' meeting provides an opportunity to showcase the city's capabilities and strengthen regional economic cooperation.
The Apec finance ministers’ meeting in Hong Kong this month will focus on fiscal policies that support livelihoods, digital infrastructure financing, inclusive finance and young financial talent, underlining the city’s role as an international financial centre, the finance chief said.
“These four priorities are areas of strength for Hong Kong and fields in which we can make an active contribution,” Financial Secretary Paul Chan Mo-po wrote in his weekly blog on Sunday.
“Hosting the finance ministers’ meeting in Hong Kong highlights the central government’s strong support for the city and reflects the city’s status as an important international financial centre in the region.”
About 500 guests, including finance ministers and senior officials from Apec’s 21 member economies, are expected to attend the annual meeting on October 20 and 21 at the Convention and Exhibition Centre in Wan Chai. It will be the first time Hong Kong is hosting the event.

Taiwan stocks fluctuated before the 50,000 mark. High-dividend ETFs benefited from dividend protection and AI momentum. They have performed brilliantly in the past three months. Yuanta High-Dividend (0056) topped the list with an increase of nearly 16%. Since October, the net inflows of 0056 and 00919 have reached 6.82 billion yuan and 5.52 billion yuan respectively, totaling more than 10 billion yuan. Active ETFs have suffered capital outflows due to the expansion of scale and reduced operational flexibility.

TSMC will hold its third-quarter earnings conference on October 15. Yuanta Investment Consulting raised its target price to 3,500 yuan in its report. It estimates that EPS this year will exceed 111 yuan, and it is optimistic that gross profit margin will have the opportunity to challenge 70% next year. The report pointed out that thanks to the high capacity utilization rate of mature and advanced processes, third-quarter revenue was revised up to 1.477 trillion yuan, and the gross profit margin estimate was revised up from 66.9% to 67.3%; fourth-quarter revenue was revised up to 1.6625 trillion yuan, and the gross profit margin estimate was revised up from 67.8% to 68.1%; gross profit margins in 2027 and 2028 will stand at 69% and 71% respectively.

Meta released four AI glasses in September, including new thin and light audio-only and lens-less products and its own brand cost-effective products, and introduced the Muse AI function with agent capabilities. Yuanta Investment Consulting's report predicts that global sales will reach 13.04 million units in 2026, with an annual growth rate of 35%. The annual sales growth rates from 2024 to 2025 will be 168% and 256% respectively. Zhending, Taijun, and Realtek, which have already entered the Meta supply chain, are favored due to their technological advantages. Taiwanese manufacturers such as Huatong, Xinxin, GIS, and Yaguang also have long-term opportunities.

Taiwan stocks have risen strongly recently, approaching the 50,000-point mark, mainly due to lower-than-expected U.S. non-farm employment data, dovish comments from Federal Reserve officials, lowering expectations for another FOMC interest rate hike at the end of October, coupled with the strong growth momentum of the AI industry and the early return of funds to risky assets. The article pointed out that although the short-term may be volatile, the mid- to long-term trend is still positive, and it is recommended that investors deploy AI computing power and semiconductor supply chain-related groups in batches.

U.S. retail sales increased by 1.2% monthly in August, showing solid consumption momentum; the job market cooled down in September after a strong rebound in August, with only 29,000 new jobs added, and the unemployment rate rose to 4.2%. Driven by rising gasoline prices, CPI increased by 0.4% in August. AI chip power consumption is rising rapidly, and the power consumption of a single cabinet may exceed 1 million watts, driving demand for liquid cooling. Supervision upgrades have promoted computing power protection, and data center power supply has become a new test. Taiwan stocks focus on the three main lines of hardware, software and non-AI, and it is recommended to keep cash and wait for a pullback.

The number of non-farm payrolls in the United States increased by only 29,000 in September, far lower than expected, and the unemployment rate edged up to 4.2%, indicating a cooling of the labor market. This data has reduced market expectations for the Federal Reserve to raise interest rates in October, but inflation is still above the target, so suspense about raising interest rates before the end of the year still exists. Market focus has turned to follow-up inflation data to determine the direction of policy.