CGS International
Date of Report: September 26, 2025
Bullish Reversal and Emerging Tech: Key Singapore and China Market Insights for Investors
Market Overview: Shifting Dynamics in Chinese Bonds and Equities
Recent market movements have highlighted a significant shift in investor sentiment across China’s financial landscape. Chinese government bonds have seen yields rise to their highest levels this year, driven by a strong rotation out of sovereign notes and into equities. The 10-year bond yield peaked at 1.92% before settling at 1.88%, marking an upward trend for the third consecutive month—a streak unseen since 2022. Longer-term 30-year bonds also saw yields ascend to 2.28% before retracting slightly to 2.23%.
Key factors fueling this rise include:
- Investor preference for Chinese equities over sovereign notes, especially in anticipation of robust domestic AI and consumption sector growth.
- Lack of monetary easing and increased government bond issuance aimed at stimulating economic growth.
- Policy changes, such as higher taxes on investment income and increased redemption fees for short-term fund holdings, adding pressure to the bond market.
- Strategists predict the 10-year yield could reach 2%, with resistance at 1.95%.
Market optimism, particularly for AI and consumption sectors, combined with Beijing’s initiatives to reduce excessive price competition, may push yields even higher in the coming months.
China Telecom Sector: Hollow-Core Fibre Technology Ignites Industry Sentiment
The telecommunications sector in China is experiencing a surge in sentiment, powered by rapid scaling and commercialization of hollow-core fibre technology. Microsoft’s partnership with Corning has expedited the mass production and global rollout of hollow-core fibre, a transformative technology that slashes latency by a third—critical for AI and cloud applications.
Key highlights:
- Hollow-core fibre offers clear commercialization pathways for long-haul, low-latency data center connections.
- Chinese manufacturers are strategically positioning to capture expanding market share as industrialization accelerates.
- Projected demand surge, especially for applications requiring high reliability and ultra-low latency.
Technical Buy: iX Biopharma Ltd – Bullish Reversal Signals at the Bottom
Company Overview:
iX Biopharma Ltd is a Singapore-based pharmaceutical company, operating across drug development, manufacturing, and supply. The company specializes in pharmaceutical and nutraceutical therapies that improve life quality for patients with pain and other health conditions.
Analyst: Chua Wei Ren, CMT
Contact: [email protected]
Technical Analysis Summary
- Last Price: 0.036
- Entry Price(s): 0.036, 0.029, 0.023
- Support Levels: 0.026 (S1), 0.016 (S2)
- Stop Loss: 0.015
- Resistance Levels: 0.05 (R1), 0.090 (R2)
- Target Prices: 0.054, 0.062, 0.090, 0.105
| Technical Indicator |
Observation |
| Downtrend Breakout |
Price broke major downtrend line with two strong bullish candles |
| Ichimoku |
Bullish signal; price trades above all 5 indicators |
| MACD |
Signal/MACD line rises strongly above zero; histogram positive |
| Stochastic Oscillator |
Steadily rising |
| 23-period ROC |
Positive |
| Directional Movement Index |
Sustained bullish strength |
| Volume |
Healthy expansion |
Trading Strategy and Targets
- Multiple entry opportunities: 0.036, 0.029, 0.023
- Stop loss set at 0.015, with supports at 0.026 and 0.016
- Key resistance levels: 0.05 and 0.090
- Target prices: 0.054, 0.062, 0.090, and 0.105
CGS International’s Recommendation Framework
| Stock Rating |
Definition |
| Add |
Expected total return >10% over next 12 months |
| Hold |
Expected total return between 0% and +10% over next 12 months |
| Reduce |
Expected total return below 0% over next 12 months |
Sector and country ratings further refine positioning:
- Sector: Overweight, Neutral, Underweight (based on market cap-weighted recommendations)
- Country: Overweight, Neutral, Underweight (relative to benchmark)
Distribution of Stock Ratings (Quarter Ended June 30, 2025)
| Rating |
% of Coverage |
% Investment Banking Clients |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
561 companies under coverage for the quarter ended June 30, 2025.
Global Distribution and Compliance Notes
CGS International ensures strict adherence to regulatory frameworks and investor protections across all covered jurisdictions, including Hong Kong, Singapore, Indonesia, Malaysia, South Korea, Thailand, Australia, Canada, China, France, Germany, Ireland, New Zealand, United Kingdom, EEA, United States, Spain, Sweden, Switzerland, and UAE. The report is intended for professional, institutional, or sophisticated investors as defined by local laws and regulations.
Conclusion: Key Takeaways for Investors
- Rising bond yields and the shift to equities signal renewed optimism in China’s AI and consumption sectors.
- The telecom sector is on the brink of transformation, driven by hollow-core fibre technology and strategic maneuvers by Chinese manufacturers.
- iX Biopharma Ltd presents a compelling technical buy opportunity with multiple bullish signals and clearly defined entry, support, resistance, and target levels.
- CGS International’s robust recommendation framework and broad sector/country coverage support strategic investor decision-making in diverse markets.
Investors are encouraged to perform their own due diligence and consider their specific objectives before making investment decisions.
