China’s GDP Beats Expectations in Q3 as Memory Giant CXMT Forecasts Record Growth

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • China’s GDP expanded by 4.5% year-on-year in the third quarter, surpassing analyst estimates of 4.4% driven by robust high-tech manufacturing and export demand.
  • ChangXin Memory Technologies (CXMT) (688825) projected a ninefold revenue surge to approximately 270 billion yuan ($40.4 billion) for the first nine months of 2026, though shares fell 7.6% on slowing quarterly growth.
  • US Secretary of State Marco Rubio clarified that the Trump administration has not paused intelligence sharing with Kyiv, following reports of a brief "de-blocking" of data flows.
  • Gold (XAU) prices rose 0.2% to $4,173.59 as traders lowered the probability of an October Fed rate hike to under 20% following comments from Chair Kevin Warsh.
  • EUR/USD remains technically bearish below 1.1250, pressured by fiscal instability in France and a failure to reclaim its 100-day Simple Moving Average (SMA).

China’s Industrial Engine Drives Q3 GDP Beat

China’s economy showed signs of resilience in the third quarter of 2026, with Gross Domestic Product (GDP) growing 4.5% year-on-year. This figure exceeded the 4.4% growth forecasted by economists and marked an acceleration from the 4.3% recorded in the second quarter. The growth was primarily fueled by industrial production and exports, particularly in specialty materials and components for data centers and semiconductors.

Despite the headline beat, the internal composition of China's growth remains uneven. Retail sales grew only 1.1% in September, highlighting persistent weakness in domestic consumer demand. Meanwhile, property investment plummeted 20.6% for the January-September period, indicating that the real estate sector has yet to find a floor despite various government support measures.

CXMT Forecasts Massive Revenue Growth Amid AI Boom

Chinese memory chip leader ChangXin Memory Technologies (CXMT) (688825) announced a blockbuster preliminary earnings estimate, forecasting revenue between 265 billion and 270 billion yuan for the first nine months of the year. This represents a nearly ninefold increase from the 32.08 billion yuan reported in the same period last year. The company expects to swing to a net profit of up to 132.5 billion yuan ($19.8 billion), reversing a prior loss.

However, CXMT's stock fell 7.6% to 41.58 yuan in Shanghai trading as investors reacted to signs of a "strategic slowdown." Reports indicated that quarter-on-quarter profit growth slowed to 1-4% in the third quarter, as the rapid price increases for DRAM began to moderate. To bolster investor confidence, Chairman Zhu Yiming has proposed a share buyback program valued at up to 2 billion yuan.

Geopolitical Tensions and Intelligence Cooperation

In Washington, Secretary of State Marco Rubio addressed concerns regarding the US-Ukraine relationship, stating that intelligence cooperation has not been permanently paused. This follows an interview where Ukrainian President Volodymyr Zelensky thanked the US for "unblocking" critical data on Russian ballistic missile strikes after a three-day gap in sharing. Rubio emphasized that the administration is currently in a 60-day "analysis" period regarding Russian sanctions and tariffs to evaluate their impact on global energy prices.

Market Reactions: Gold Gains, Euro Falters

Gold (XAU) edged higher to $4,173.59 per ounce as market participants re-evaluated the Federal Reserve's interest rate trajectory. Comments from Fed Chair Kevin Warsh were interpreted by some as dovish by omission, leading the CME FedWatch Tool to show an 84% probability that rates will remain unchanged this month. This shift provided a tailwind for non-yielding bullion, which has maintained a floor above $4,000 since August.

In the currency markets, the EUR/USD pair struggled to maintain momentum, trading near 1.1230. Technical analysts at FXStreet noted that the pair remains in a bearish tone as long as it stays below the 100-day SMA at 1.1465. Downside pressure is being exacerbated by fiscal risks in France and widespread protests across Europe regarding the cost-of-living crisis, which continue to weigh on the shared currency.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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