Daily Buzz: 23 October 2026

Cybersecurity Flaw Causes Some Global Websites to Go Dark

Global alerts to governments, businesses and organizations around the world were issued after serious cybersecurity flaws were revealed in a computer language used in about 70 percent of worldwide internet websites. Operators of the sites were scrambling to download a patch to PHP software before hackers could exploit the vulnerability. Flaws in PHP, software developed in the 1990s and maintained by a nonprofit foundation, have long been suspected, but it took an AI program operated by OpenAI to find them and show how they could actually be exploited. A leak about the flaws that appeared on social media sent hackers into action. Cloudflare recorded millions of attempts to exploit PHP vulnerabilities within hours of the disclosure. Cybersecurity experts praised the role of AI in finding the flaws but worried that "bad actors" might use the same AI program to find vulnerability in other software programs.

China's Ministry of Industry and Information Technology issued an alert to users about the PHP vulnerability, urging immediate inspection and version upgrades. A cloud service unit under Tencent Holdings called on customers to conduct checks, warning that external attackers could gain control of servers, while Alibaba Group also urged customers to update to the patched version of PHP. Some video streaming games on Bilibili were temporarily suspended for fixes.

DeepSeek Bags US$15 Billion in Fundraising Round

Chinese AI startup DeepSeek is wrapping up a funding round that raised about 100 billion yuan (US$15 billion), with tech titan Tencent and electricity battery giant Contemporary Amperex Technology (CATL) among the biggest investors, Bloomberg News reported. Hangzhou-based DeepSeek raised its target at least twice during the round on strong demand. Proceeds are aimed at better positioning the company to compete with US rivals like OpenAI and Anthropic. OpenAI is close to finalizing an up to US$30-billion funding round. DeepSeek is seeking to increase its valuation ahead of an expected initial public offering. Reuters earlier reported that the company has hired Citic Securities to prepare for a potential IPO on Shanghai's Nasdaq-style STAR Market.

Last month, DeepSeek released its latest ⁠model, the V4.1-Flash, which it said is designed for greater capability, faster inference, higher throughput and scaling to larger models. The company hit global attention headlines in 2025 when it emerged from obscurity to release large language models that could be developed and operated at lower costs than comparable US models. It has since been increasing research and development spending on data centers and open-source models.

Oil Prices Rise as Middle East Tensions Ratchet Up

Global oil prices rose to a five-month high amid reports of a planned resumption of attacks on Iran by the US and Israel, and Tehran's threats to retaliate with strikes on oil facilities, undersea cables and AI data centers in the Gulf region. US President Donald Trump has said there will be no strikes on Iran in the runup to November 3 midterm elections, where the war and its effects on the cost of living have become a campaign issue. Tehran claimed seven oil tankers caught fire or were damaged in the Strait of Hormuz after being hit by Iran or striking naval mines. Global Brent crude futures in New York closed at about US$113 a barrel.

French President Criticizes Trump for 'Stupid Comments'

As France braces for more demonstrations this week by residents seeking higher spending on education and lower costs of living, President Emmanuel Macron accused US Donald Trump and other foreign leaders of making "stupid comments" for political gain. Trump, facing US midterm elections next month where his party may lose control of Congress, blamed the unrest in French cities on immigration, citing Muslim agitators and communists. Israeli President Benjamin Netanyahu, who is facing a tough national election on October 27, said France has been hit by an "invasion of extremist Islam." Observers have discounted those factors in what have been largely peaceful mass protests. Macron told reporters on a visit to the Gulf states, "We don't need that. We already have enough difficulties to deal with." The French government is grappling with a budget crisis, amid record high debt and bond yields hitting a 24-year high, increasing repayments on the debt.

Top Business

China Telecom Q3 Net Profit Falls 14.7 Percent

China Telecom reported a 14.7 percent year-on-year decline in third-quarter net profit to 6.62 billion yuan (US$1 billion), while revenue fell 3 percent to 121 billion yuan. For the first nine months of 2026, net profit dropped 14.8 percent to 26.2 billion yuan, and revenue declined 3.6 percent to 380 billion yuan, according to the company's financial results. The state-owned telecom operator said it is accelerating its push into artificial intelligence, making token-based services a key focus of its business strategy. It has continued to upgrade its TokenHub platform, where daily token calls have grown rapidly, and has launched TeleAgent, an AI super-agent, to expand the adoption of AI applications. China Telecom is also advancing the rollout of its Smart Cloud City initiative and investing in next-generation communications and computing networks. Its mobile subscriber base reached 445.3 million at the end of the third quarter, up 2.8 million from a year earlier.

Shanghai-Listed Companies Largely Show Earnings Growth

Ninety-four companies on the Shanghai Stock Exchange's main board and its Nasdaq-style STAR Market posted a combined 7.6 percent year-on-year growth in nine-month profit, with revenue increasing 8.2 percent. As of October 22, about 90 percent of the reporting companies showed profitability. The nonferrous metals sector doubled profit, transportation rose 74 percent and electronics companies posted a 38 percent increase in revenue. Among losers on the STAR Market, Bestechnic said nine-month net profit fell 57 percent from a year earlier to 216 million yuan (US$32.4 million), with third-quarter profit plunging 77 percent on weak demand for electronics products. Amoytop Biotech posted a 28 percent drop in nine-month profit to 477 million yuan on higher research and development costs for drugs in its chronic hepatitis B pipeline.

China Revises Rules on Outbound Investment

China unveiled revised rules on outbound investment on Thursday, aiming to better support its development of overseas investment while strengthening safeguards against risks. The rules, which replace measures issued in 2017, designate the status of resident individuals as outbound investment entities for the first time. They also step up requirements for reporting of adverse developments and introduce an annual investment reporting system. The rules require advance reports on preparatory work for certain large investments or projects affecting China's diplomatic relations. The measures will take effect on December 1.

Samsung, SK Hynix Plans to Expand China Capacity Hindered by US Export Controls

Samsung Electronics and SK Hynix, the world's two biggest memory chipmakers, are seeking to upgrade output of advanced chips at their China factories, hoping to fend off competition from fast-growing Chinese rivals and supply growing global AI demand, Reuters reported. Both companies are required to seek US licenses annually if they want to install US chipmaking equipment in China and have been seeking more certain access after the US Commerce Department said last year it won't grant licenses related to upgrading technology or expanding capacity at foreign chipmakers' factories on the Chinese mainland. Executives at the two South Korea companies have warned that geopolitical tensions are undermining their Chinese operations. Neither firm has disclosed details of production expansion plans.

Economy & Markets

China Stock Index Slips Into Bear Market

China's benchmark CSI 300 index, which tracks stocks on the Shanghai and Shenzhen stock exchanges, slipped into bear-market territory on Thursday, falling 20 percent from its June peak, as a prolonged equity selloff continues. The index dropped 1.8 percent, heading for its 11th consecutive weekly decline. Analysts blamed slowing or lower company profits for part of the slide, combined with a global rout in tech shares this month and rising oil prices. State-backed funds have been trying to shore up markets with share purchases. The Chinese mainland is not alone in facing soured investor sentiment. The Hang Seng in Hong Kong plunged 3 percent on Thursday to a three-month low, with its tech index down 5 percent. China's Hong Kong-listed AI large-model company MiniMax closed below its March IPO offer price for the first time. In South Korea, the chip-heavy Kospi index was down 3.5 percent, and Japan's Nikkei lost 2.6 percent. On Wall Street, the tech-heavy Nasdaq tumbled 2.6 percent, its worst one-day drop since June.

Shanghai Economic Growth Exceeds Expectation

Shanghai's economic growth in the first three quarters of 2026 rose 5.5 percent, up 0.6 percentage points from its rate in the first half. The growth was driven by manufacturing, financial services and software and IT services, which together contributed more than 70 percent of total growth. Imports and exports increased 18 percent, led by high technology. Retail sales of consumer goods fell 1.1 percent.

US Bans Devices Embedded With Huawei Chips

The US Federal Communications Commission said on Thursday it is blocking two devices that use chips produced by a subsidiary of Chinese tech giant Huawei, citing surveillance security risks. The ban affects a dashboard camera and a wireless video transmitter containing chips produced by Huawei subsidiary HiSilicon.

Blackstone Sees Opportunities in AI Investment

Blackstone, the world's largest alternative asset manager and a major investor in AI, reported strong third-quarter operating growth, with assets under management rising to US$1.4 trillion. AI infrastructure investment comprised about 7 percent of assets. The hedge fund manager said distributable earnings to shareholders slipped 9.2 percent to US$1.7 billion, and fee-related earnings climbed 6 percent. Revenue of US$3.1 billion in the quarter fell short of forecasts. Chief Executive Steve Schwarzman said the quarter unfolded against a backdrop of sharply higher global bond yields, geopolitical conflicts, inflation concerns and elevated oil prices. His Chief Operating Officer Jon Gray said on an earnings call that widening credit spreads on AI-related debt tied to certain assets could be a potential opportunity to lock in higher returns. His comments come as investors seek higher returns for investment in the debt-financed AI boom against a backdrop of surging borrowing costs and growing doubts over the long-term sustainability of massive AI spending.

China Residential Electricity Use Declines

China's residential electricity use in the first three quarters of the year fell 0.3 percent from a year earlier to 1.23 trillion kilowatts-hours, the first decline for any comparable period in nearly a decade, according to data from China's National Energy Administration. The agency cited extreme weather, including a series of strong typhoons in August and September that reduced air-conditioning loads. In September alone, residential use declined 6 percent. In the first nine months of the year, overall electricity consumption by all users rose 3.9 percent, with new business models becoming principal drivers of growth. Battery charging and swapping services grew 55 percent, and use by internet data services increased 42 percent.

Corporate

China Tower Posts 13 Percent Profit Increase

China Tower, a major telecommunications infrastructure provider listed in Hong Kong, said third-quarter profit rose 13 percent to 3.3 billion yuan (US$498 million) despite a 5.7 percent drop in revenue to 23.3 billion yuan. The profit figure came in slightly lower than market forecasts. For the first three quarters of the year, profit rose 24 percent to 10.8 billion yuan on a 3 percent drop in revenue to 72 billion yuan.

Battery Maker Highpower Overcomes Headwinds With Profit Gain

Highpower Technology, a Chinese battery maker, reported third-quarter revenue rose 27 percent from a year earlier to 5.4 billion yuan (US$310.2 million) and net profit attributable to shareholders surged 46 percent to 114 million yuan. For the first nine months of the year, revenue rose 10 percent to 5.3 billion yuan, delivering a 35 percent increase in profit to 237 million yuan. The Shenzhen-listed company said the earnings come amid a downturn in the consumer electronics industry and fluctuating raw materials prices. It said its product mix helped overcome headwinds, especially with growth in its energy storage segment.

Huihe Receives Funds to Compete in Personal Agent Market

Shanghai-based Huihe Intelligent Technology said it has raised more than US$200 million in cumulative funding, with investors including IDG Capital, Tencent, 5Y Capital, Ant Group, HSG and Transsion Holdings. Founded by entrepreneur Qi Junyuan, the company focuses on a proactive personal agent built around long-horizon memory, with its global and China versions launched last month. The funding comes as Meta's Muse ignites the personal agent sector, with OpenAI, Anthropic and Chinese players including Alibaba, ByteDance and Tencent all racing to stake out positions.

Linewell Runs Afoul of Securities Regulators

Shanghai-listed Linewell Software drew a securities regulatory warning after a company official made comments of annual capacity of 300 AI short dramas and large revenue for 2027. The company's shares rose by the 10 percent market daily limit for three straight trading days after the remarks. Regulators said the comments were inaccurate and incomplete. The company subsequently admitted that it had not launched any short dramas or generated any income, with its AI computing center still under construction and no orders in hand. Linewell posted a net loss of 170 million yuan (US$25.5 million) for the first half of 2026 and is under investigation by the China Securities Regulatory Commission for suspected disclosure violations.