US moves to ban AI deals in China

Hi there, this is your daily ☕️ Finpresso.

Before The Bell

Change over the last 24 hours · as of Oct 23, 2026, 6:08 AM ET

🇨🇳 US proposes curbs on AI investment in China LINK

• The US Treasury has proposed rules that would ban or require advance notice on American investments in sensitive technology deals across China, Russia, Iran, North Korea and Cuba, with an outright ban on AI-system deals.
• The draft covers six fields, semiconductors, AI, quantum, supercomputing, hypersonics and biotechnology, but targets only defined dual-use deals tied to military or surveillance work, exempting publicly traded shares and transactions below $50,000.
• The rule is still a proposal, open to public comment through December 7, and a former Justice Department lawyer told the AP it could force companies into substantial compliance programs to screen portfolio holdings before deals close.

SpaceX seeks 80,000 cell sites to rival carriers LINK

• SpaceX is in talks to lease at least 80,000 US cell sites as it builds out a terrestrial network to become a fourth nationwide wireless carrier, challenging the three dominant operators, people familiar with the discussions told Bloomberg.
• The threat of new competition sent AT&T, Verizon, and T-Mobile shares 4-5% lower in extended trading on Thursday, while tower landlords rallied on potential deals that could reach into the billions of dollars, with Crown Castle and American Tower both gaining.
• The push builds on SpaceX's recent purchase of low-band spectrum and FCC clearance to launch 15,000 satellites for direct-to-phone service, which Musk said would make Starlink Mobile a major US carrier; SpaceX shares rose 1.4% after hours.

DeepSeek raises $15B days after US ban LINK

• DeepSeek has raised about $15 billion, roughly 100 billion yuan, in one of China's largest-ever funding rounds, closing it just two days after Washington ordered federal civilian agencies to strip the lab's AI from their systems over security concerns.
• Reported backers include battery maker CATL and WeChat owner Tencent, and the deal follows a June round of more than $7 billion at a $50 billion valuation, with a possible IPO in China as early as next year.
• The Hangzhou lab is spending more on AI infrastructure and open models for home and overseas markets despite the US restrictions, a push that could sharpen competition with Chinese rivals such as Moonshot AI, Zhipu and MiniMax.

🇭🇰 HSBC launches Hong Kong dollar stablecoin LINK

• HSBC has launched RedCoin, a digital token pegged one-to-one to the Hong Kong dollar, making it available to retail users today through the bank's PayMe payments app under the symbol RCHKD.
• Users can switch on a stablecoin wallet inside PayMe in the coming days, enabling transfers between individuals and payments to more than 100,000 merchants that already accept the app.
• The move follows Hong Kong granting its first stablecoin licenses in April 2026 to HSBC and Anchorpoint Financial, and the bank says it plans further products and an expansion into corporate and institutional uses.

SK Hynix scraps $15B Solidigm US IPO LINK

• SK Hynix has called off plans to list its US memory unit Solidigm on an American exchange in a deal projected at $15 billion, citing shareholder pushback and warnings from South Korean regulators that it could dilute minority investors.
• The company also dropped a parallel private fundraising round expected to raise about $3.8 billion, having lined up a Nasdaq listing for as early as 2027; regulators had flagged Solidigm as a "duplicate listing" that could erode parent shareholders' stakes.
• SK Hynix shares fell 4.2% in early trading today and are now down 58% from their June high on weaker memory demand, with investors watching how it funds Solidigm's US expansion without an IPO and whether other firms' overseas listings face the same rules.

Macro News

• Japan core inflation hit a yearly high, exceeding forecasts amid a weak yen. LINK
• FCC waiver lets Intel keep foreign-made robots, avoiding an import ban. LINK
• Wealthy Chinese shift offshore assets into US accounts to avoid taxes. LINK
• Traders cut Fed hike bets, potentially lowering mortgage rates as Treasury yields fall. LINK
• Japan may start cutting costly gasoline subsidies in December. LINK
• Ofgem approved a deal preserving UK gas imports from Europe during demand surges. LINK
• Gold fell as Middle East tensions offset expectations the Fed will hold rates. LINK
• UK proposes easing rules holding senior City executives accountable for misconduct. LINK

Corporate News

• OpenAI seeks up to $30 billion at a $1.25 trillion valuation. LINK
• Meta plans nonvoting shares, allowing Zuckerberg to cover California's wealth tax. LINK
• Musk invested about $1 billion in newly merged media company Skydance. LINK
• Apple raises foldable iPhone shipment target 44% to 14 million units. LINK
• Western Digital earnings beat estimates, reaching $4.64 per adjusted share. LINK
• Nebius secured a $3.5 billion Citi facility to expand AI data centers. LINK
• SoFi rolls out tokenized deposits offering crypto members accessible, interest-bearing cash. LINK
• Spotify shares rose after premium subscribers grew 9% year over year. LINK

Stocks

▲ Biggest winners

Allegion rose 11% after Q3 adjusted EPS of $2.02 beat $1.87 estimate and company raised full-year guidance. LINK

Waste Connections rose 10% after raising its quarterly dividend 10% to $0.385 per share. LINK

▼ Biggest losers

Carpenter Technology Corporatio fell 21% after fiscal Q1 2027 revenue of $798.5 million missed the $830.8 million analyst estimate despite an earnings beat. LINK

MACOM Technology Solutions Hold fell 16% after Lam Research warned supply chain bottlenecks and cleanroom constraints will restrict semiconductor equipment makers through 2027. LINK

Research & Reports

• Quantum computing could generate up to $2.7 trillion in value by 2035. LINK
• 18% of corporates now use stablecoins in production, double last year's share. LINK
• Euro-area one-year inflation expectations rose to 3.1% in September. LINK
• US money-laundering losses fell to 2.14% of the economy in 2025. LINK
• AI data-center demand and supply disruptions reshape metals markets, Wood Mackenzie says. LINK
• Goldman estimates Chinese gold purchases far exceeded official figures, intensifying scrutiny. LINK

Market Calendar

Earnings  ·  Economic events