News

Morning News

# Market Overview and Key News

Source: Wall Street CN

## Market Overview

The unexpected drop in U.S. ADP data has made investors almost fully convinced that the Federal Reserve will cut interest rates next week. The "bad news is good news" scenario is playing out again.

U.S. stocks rose generally, with nearly 350 companies in the S&P 500 advancing. Small-cap stocks performed prominently, jumping nearly 2%. Microsoft’s stock fell 2.5% due to sales concerns, weighing on large tech stocks, while the Nasdaq edged up 0.17%. Reports stated that the Trump administration is considering supporting the robotics industry, driving up robotics concept stocks—Tesla rose over 4%, and iRobot soared nearly 74%.

U.S. Treasury yields declined across the board, with the 10-year yield dropping 2.7 basis points. The U.S. dollar fell nearly 0.5%, hitting a more than one-month low and breaking below the 50-day moving average. Offshore RMB extended its November strength, breaking above 7.06. Ethereum accelerated away from its monthly low, rising approximately 5.7% intraday. Bitcoin gained 2.08%.

London copper hit a new all-time high again one day later, and U.S. copper surged 3.7% at one point, reaching a five-month high. Gold hovered around the $4,200 mark. U.S. oil rose 0.85%.

During the Asian session, A-shares fluctuated and adjusted—the ChiNext Index fell over 1%. Commercial aerospace stocks showed divergent performance, while super-hard material stocks rose against the trend. Hong Kong’s Hang Seng Tech Index dropped over 1%, and 30-year government bonds came under significant pressure.

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## Key News

1. Li Qiang presided over the 17th special study session of the State Council.

2. Bessent downplayed the Federal Reserve Chair’s control over interest rates, plans to push for setting residency terms for regional Fed presidents, and stated that tariffs can be restructured. The White House canceled the original interview process, and the new Fed Chair Hasset is "on the verge of being announced." Report: Bond investors have warned the U.S. Treasury about the possibility of Hasset taking office as Fed Chair.

3. U.S. ADP unexpectedly fell in November, with employment decreasing by 32,000—the largest drop since March 2023—and unemployment among small businesses surging.

4. The U.S. ISM Services PMI expanded at the fastest pace in nine months, with the price index hitting a seven-month low and the employment index reaching a six-month high.

5. Reports claimed Microsoft lowered AI software sales quotas, leading to a nearly 3% drop in its stock price; Microsoft denied the claim.

6. Meta poached talent: Reports stated that Apple design executive Alan Dye jumped ship with his deputy.

7. Benefiting from AI applications, Salesforce expects quarterly revenue to surge over 10%, raised its full-year guidance, and its stock jumped in after-hours trading.

8. Competing with OpenAI for an IPO! Report: Anthropic has hired IPO lawyers and plans to go public as early as 2026.

9. The Trump administration is going all in! It is said to be considering issuing a robotics executive order next year, with iRobot surging nearly 80% intraday.

10. A new milestone for China’s commercial aerospace: Zhuque-3 made a successful maiden flight and entered orbit, though the first-stage recovery failed.

11. Did Doubao Mobile Assistant trigger the forced logout of WeChat accounts? Both Doubao and WeChat responded.

12. Muxi Threads, China’s first domestic GPU stock, will go public on Friday!

13. Automakers cross into the smart wearable sector to seize entry points—Li Auto launched its first AI glasses, with a starting price of 1,999 yuan.

14. Copper prices hit a new all-time high, LME delivery orders soared to the highest level since 2013, and Asian demand surged. Glencore: Plans to increase copper production to 1.6 million tons per year within the next decade.

15. Report: The EU is promoting a "70% made in Europe" standard for key commodities, which may increase enterprises’ annual costs by over 10 billion euros.

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## Market Closing Quotes

### U.S. and European Stocks

- S&P 500: Rose 0.30%, closing at 6,849.72 points.

- Dow Jones Industrial Average: Rose 0.86%, closing at 47,882.90 points.

- Nasdaq Composite Index: Rose 0.17%, closing at 23,454.092 points.

- European STOXX 600 Index: Closed up 0.10% at 576.22 points.

### A-Shares

- Shanghai Composite Index: Closed at 3,878.00 points, down 0.51%.

- Shenzhen Component Index: Closed at 12,955.25 points, down 0.78%.

- ChiNext Index: Closed at 3,036.79 points, down 1.12%.

### Bond Market

- U.S. 10-year benchmark Treasury yield: Fell 2.32 basis points to 4.0633%.

- U.S. 2-year Treasury yield: Fell 2.24 basis points to 3.4855%.

### Commodities

- WTI Crude Oil Futures (January contract): Closed up 0.53% at $58.95 per barrel.

- Brent Crude Oil Futures (February contract): Rose 0.35% to $62.67 per barrel.

- COMEX Gold Futures: Rose 0.44% to $4,239.30 per ounce.

# Details of Key News (English Translation)

## Global Highlights

Li Qiang presided over the 17th special study session of the State Council. According to Xinhua News Agency, on December 3, the State Council held its 17th special study session with the theme of "Further Promoting People-Centered New Urbanization and Striving to Build a New Pattern of Integrated Urban-Rural Development." Li Qiang pointed out that new urbanization is an important vehicle for expanding domestic demand, promoting industrial upgrading, and strengthening the domestic circulation. In recent years, all regions and departments have thoroughly implemented the new urbanization strategy, driving significant progress in new urbanization. Looking ahead to the "15th Five-Year Plan" period, there remains ample room for the development of new urbanization.

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## U.S. Economic and Policy Dynamics

1. **Bessent downplays Fed Chair’s control over interest rates, plans to push for residency requirements for regional Fed presidents, says tariffs can be restructured**

U.S. Treasury Secretary Bessent emphasized on Wednesday that the Fed Chair has limited actual control over interest rates. He also stated that he will push for a new regulation requiring candidates for regional Fed president to have resided in the respective district for at least three years. When talking about private credit, he expressed concern that such credit would exhibit strong procyclicality during economic downturns. Bessent added that regardless of the final outcome of the case currently before the U.S. Supreme Court, the Trump administration still has the ability to advance its tariff agenda.

2. **White House cancels scheduled interview process; new Fed Chair Hasset "on the verge of being announced"**

The Trump team informed candidates that the scheduled interview with Vice President Vance on Wednesday had been canceled, without providing a reason. Trump himself clearly stated during a cabinet meeting on Tuesday that the candidate list had been "narrowed down to one person." In the presence of Hasset, he directly referred to him as the "potential Fed Chair," a statement that rendered the interview process carefully designed by Bessent useless.

*Report: Bond investors warn U.S. Treasury about Hasset’s potential appointment as Fed Chair*

According to media reports citing multiple insiders, bond investors have told the U.S. Treasury that they are concerned about Kevin Hasset’s possible appointment as Fed Chair. Investors worry that Hasset, the current director of the White House National Economic Council, will cut interest rates sharply to please U.S. President Trump.

3. **U.S. November ADP unexpectedly drops, employment falls by 32,000—biggest decline since March 2023; small business layoffs surge**

The ADP report shows that small businesses were the hardest hit by layoffs. Small businesses with fewer than 50 employees cut a total of 120,000 jobs, including 74,000 layoffs at companies with 20 to 49 employees. In contrast, large enterprises with more than 50 employees added a net 90,000 jobs, indicating a clear divergence in the labor market.

4. **U.S. ISM Services expands at fastest pace in 9 months; price index hits 7-month low, employment index reaches 6-month high**

The U.S. ISM Services PMI rose to 52.6 in November, a nine-month high, compared with the expected 52.0. The overall services index was supported by longer supplier delivery times and further improvement in business activity. The prices paid index fell to a seven-month low, while the employment index rose to a six-month high of 48.9, indicating a slowdown in the pace of job losses.

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## Tech Sector Developments

1. **Report: Microsoft cuts AI software sales quotas; stock drops nearly 3%, Microsoft denies**

Microsoft lowered its sales targets because enterprise customers’ adoption of AI products was slower than expected, causing its stock price to drop by nearly 3% at one point—the largest decline since November 18. The company has cut sales quotas for multiple AI products, including one Azure sales department that sharply reduced the growth target for a product called Foundry from 50% to 25%. Later, according to media reports, Microsoft stated in an email that it had not cut sales quotas for sales staff, and the stock price decline narrowed to 1.7%.

2. **Meta poaches talent: Report says Apple design executive Alan Dye jumps ship with deputies**

Alan Dye will serve as the Chief Design Officer of Meta’s new design studio starting December 31, fully responsible for the design of hardware, software, and AI interface integration. For Apple, its highly acclaimed design team is facing the challenge of increasing talent loss. However, the market reacted calmly to the news. During U.S. stock trading on Wednesday, Apple’s stock price fell to the day’s low, dropping 0.62% to $284.4.

3. **AI application boosts Salesforce; expects quarterly revenue to surge over 10%, raises full-year guidance, stock jumps in after-hours trading**

In the third fiscal quarter, Salesforce’s revenue increased by 9% year-on-year, slightly below expectations, but its EPS surged by 35%, significantly exceeding expectations. The annualized revenue of its AI and Data Cloud platforms maintained triple-digit growth. The midpoint of the fourth fiscal quarter revenue guidance represents a nearly 12% year-on-year increase—the first double-digit quarterly growth in seven quarters. CRPO, a key indicator reflecting pending contract revenue, is expected to increase by 15%, exceeding expectations and hitting the highest growth rate in more than three years, with the acquired Informatica contributing 4 percentage points of growth. The company raised its full-year revenue guidance for the second time this fiscal year. Its stock price rose by 8% at one point in after-hours trading.

4. **Competing with OpenAI for IPO! Report: Anthropic hires IPO lawyers, plans to go public as early as 2026**

Media reports state that Anthropic may be ready for an IPO in 2026, while OpenAI is also conducting preliminary IPO preparation work. OpenAI was valued at $500 billion in October last year, and Anthropic’s valuation ranges between $300 billion and $350 billion. Anthropic’s investors are enthusiastic about the IPO, believing that the company can seize the initiative from OpenAI by going public first.

*Anthropic’s first internal report released! Engineers recount: Productivity surges 50%, but feel they are "smashing their own jobs"*

Employee self-reports show that the proportion of Claude in their work has increased from 28% a year ago to 59%, and productivity improvement has risen from 20% to 50%, growing 2-3 times within a year. Engineers’ work efficiency has significantly improved, becoming more "full-stack," with faster learning and iteration speeds. Some have noticed that increased collaboration with AI means less collaboration with colleagues; others have begun to wonder if they will eventually be replaced by automated tools.

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## Industry and Market Trends

1. **Trump administration "goes all in"! Reportedly considering issuing robotics executive order next year; iRobot surges nearly 80% intraday**

Media reports indicate that the U.S. Secretary of Commerce has recently held frequent meetings with CEOs of the robotics industry to fully support the industry’s accelerated development. The U.S. Department of Transportation plans to announce the establishment of a robotics working group, which may be unveiled before the end of the year. A U.S. Commerce Department spokesperson said it is committed to robotics and advanced manufacturing because they are crucial for bringing key production back to the U.S. Tesla’s stock price rose by 3.5% at one point intraday.

2. **New milestone for China’s commercial aerospace: Zhuque-3 makes successful maiden flight and enters orbit, first-stage recovery fails**

LandSpace’s Zhuque-3 carrier rocket successfully sent the second stage into the scheduled orbit, verifying China’s R&D capabilities for large liquid oxygen-methane rockets in commercial aerospace. However, the first stage of the rocket failed due to abnormal combustion during the recovery process, and the specific cause is under investigation. Driven by policy benefits, China’s A-share commercial aerospace concept sector rose against the trend—Shanghai Hanxun and Zhaobiao Co., Ltd. both hit daily limits, Zhonghuan Hailu rose by over 10%, and Shunhao Co., Ltd. hit a daily limit earlier.

*The "war" behind reusable rockets: Whoever seizes the orbit seizes the future*

The race for reusable rockets has fully begun. This is not only about reducing launch costs but also about competing for the right to "enclose land" in low-Earth orbit, communication sovereignty, and control over infrastructure for the future space economy. From the end of 2025 to 2026, China’s commercial aerospace industry may witness intensive maiden flights of recoverable rockets, including Zhuque-3, Lijian-2, Tianlong-3, Yinli-2, Shuangquxian-3, and Zhishenxing-1.

The launch of Zhuque-3 marks important progress in China’s recoverable rocket technology. Meanwhile, driven by strong policies such as the establishment of a commercial aerospace department by the state and rising capital enthusiasm, an industrial track expected to reach 10 trillion yuan is taking shape at an accelerated pace. Analysts point out that the resonance of technological breakthroughs and policy dividends will support the construction of satellite constellations and make applications such as low-cost space tourism possible, bringing historic opportunities for China’s commercial aerospace industry.

3. **Did Doubao Mobile Assistant trigger forced WeChat account logout? Both Doubao and WeChat respond**

According to The Paper, the engineering prototype of Doubao Assistant’s preview version can currently use WeChat normally, but Doubao Assistant’s mobile phone operation function no longer supports WeChat operations. Doubao stated that Doubao Mobile Assistant obtains permissions through cooperation with terminal mobile phone manufacturers and fully discloses them in its privacy white paper and permission list. This permission allows the assistant to simulate click events to complete tasks. The mobile assistant requires user authorization to execute tasks, provides clear display during execution, and users can interrupt the process. The mobile phone operation capability is triggered and supervised by users, and does not run automatically.

4. **China’s first domestic GPU stock, Muxi Threads, to go public on Friday!**

Muxi Threads will be listed on the Sci-Tech Innovation Board (STAR Market) on December 5, with an issue price of 114.28 yuan—the highest in A-shares this year—corresponding to a market value of approximately 53.7 billion yuan. The company is not yet profitable and will be included in the STAR Market Growth Layer immediately after listing. Its issuance was popular among institutions, with an offline subscription multiple of up to 1,572 times and 267 institutions participating. The company raised approximately 8 billion yuan, becoming the largest IPO on the STAR Market this year. It took only 122 days from acceptance to registration, setting one of the fastest approval records on the STAR Market.

5. **Automakers cross into smart wearable sector to seize entry points; Li Auto launches first AI glasses, starting price 1,999 yuan**

Li Auto internally positions its AI glasses as "wearable robots," which are part of its embodied intelligence strategy. Users of Livis glasses can complete operations such as turning on the car’s air conditioning, heating the steering wheel, and controlling the tailgate through voice commands. Facing fierce competition in the AI glasses market, automakers like Li Auto do not have traditional advantages in brand recognition, and potential challenges also include whether the interaction logic between in-vehicle systems and glasses conflicts.

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## Commodities and International Policies

1. **Copper prices hit new all-time high; LME delivery orders surge to highest level since 2013, Asian demand surges**

London Metal Exchange (LME) copper prices continued to hit new all-time highs, with prices exceeding $11,461 per ton at one point. The main contract of Shanghai copper futures stood above the 90,000 yuan/ton mark, currently rising by over 1% to a new all-time high. LME exchange data shows that delivery orders recorded the largest single-day increase since 2013, with particularly strong demand from warehouses in Taiwan, China and South Korea. This round of market trends is driven by supply-side factors: production disruptions at major global copper mines, a deadlock in 2026 copper concentrate processing fee negotiations pushing up cost expectations, and accelerated transfer of inventories to the U.S. to avoid potential U.S. tariffs, all of which have jointly exacerbated spot tightness.

2. **Glencore: Plans to increase copper production to 1.6 million tons per year in the next decade**

Glencore announced a long-term production expansion plan, aiming to increase copper production to 1.6 million tons by 2035—nearly doubling the current output. The strategy mainly focuses on expanding existing mines, including the Collahuasi mine in Chile and projects in Argentina and Peru, and plans to restart the Bajo de la Alumbrera mine in Argentina. The company also lowered its 2026 production target to 810,000-870,000 tons.

3. **Report: EU pushes for "70% made in Europe" standard for key commodities; enterprises’ annual costs may increase by over 10 billion euros**

According to reports, the EU plans to introduce the "Industrial Acceleration Act," requiring key commodities (such as automobiles and batteries) to meet a maximum "made in Europe" local content standard of 70%. The policy will be implemented through government subsidies and public procurement incentives. However, there are divisions within the EU, with concerns that European products will be much more expensive than imports from Asia, which may increase enterprises’ annual costs by over 10 billion euros and weaken market competitiveness.

# Domestic and International Macroeconomics, Corporate Dynamics and Industry Insights

## Domestic Macroeconomics

1. China's November RatingDog Services PMI Edge Down to 52.1, with New Export Orders Showing Marked Improvement. China's RatingDog Services PMI slightly dipped to 52.1 in November, indicating a modest slowdown in the expansion momentum. New export orders improved significantly. Benefiting from enterprises' increased marketing efforts and the phased alleviation of expectations regarding Sino - US trade uncertainties, the prosperity of external demand has been enhanced.

2. Wang Jiang, Vice Director of the Central Financial Commission Office, Published an Article in People's Daily: Accelerate the Construction of a Strong Financial Nation. The article pointed out that we should actively develop diversified equity financing, expand bond financing, and increase equity and bond financing support for enterprises that conform to national industrial orientations and make breakthroughs in key core technologies. On the premise of controllable risks, we will steadily develop futures, derivatives and asset securitization. Support Shanghai in using technologies such as blockchain, big data and artificial intelligence to strengthen forward - looking research and timely assessment of financial risks.

3. JPMorgan Upgrades China's Stock Market Rating, Citing Low Valuations, Light Positions, and Optimism about Accelerated AI Application and Anti - Involution. JPMorgan holds the view that for China's stock market in 2026, "the risk of a sharp rise is far higher than that of a sharp decline". It also predicts that the MSCI China Index will have a 19% upside potential under the baseline scenario. The bank is optimistic about multiple positive factors in the Chinese market, including the accelerated application of AI, the boost to corporate profit margins from the "anti - involution" policies aimed at curbing excessive competition, the increase in shareholder returns, and the reallocation of domestic liquidity from deposits to the stock market.

## Domestic Enterprises

1. Chen Tianqiao Published an Article: In the AI Era, Corporate Management Fades While Cognition Takes Priority, and the KPI System is Collapsing! Chen Tianqiao believes that in the future, enterprises will no longer be led by humans who control intelligence, but intelligence will extend human capabilities. He emphasized that traditional management is established on the basis of making up for human cognitive defects. When the executive subject becomes an AI agent with eternal memory and holographic cognition, the foundation of this system will "collapse".

2. Morgan Stanley's Survey on China's Robotics Industry: Mature Humanoid Robot Products are Currently Lacking, and Hybrid Robots May Take the Lead in Volume Growth. According to a survey by Morgan Stanley, 62% of Chinese enterprises plan to deploy humanoid robots within three years, but only 23% are satisfied with the existing products. There is an urgent need to improve flexibility, functionality and price. Due to mature technologies, hybrid robots (equipped with mobile bases and robotic arms) will take the lead in volume growth, with a deployment rate of 64% in 2027, which is higher than that of wheeled robots (58%) and bipedal robots (41%). Logistics, warehousing and manufacturing have become the main application scenarios.

## Overseas Macroeconomics

1. Will the US AI Bubble Burst in 2026? Economist Ruchir Sharma believes that the AI technology bubble may come to an end at some point next year. He emphasized that once the US economy remains strong and rising inflation forces the Federal Reserve to shift to interest rate hikes, the current excessive investment bubble driven by AI capital expenditure will face collapse. He also believes that high-quality stocks will regain popularity and the multi-year trend of international markets outperforming the US market will continue.

2. Borrowing Short to Repay Long: Central Banks of the UK and Japan Take the Lead in Abandoning Long-term Bonds and Turning to High-frequency Rolling "Interest Rate Gambling". Major economies around the world are quietly moving away from long-term bonds and shifting to issuing short-term bonds to ease the fiscal pressure caused by high long-term borrowing costs. Against the background of central banks withdrawing from bond purchases and declining demand from traditional buyers, the UK and Japan have been particularly aggressive in significantly shortening the debt maturity. However, this move is essentially a bet on future interest rate cuts. If the expectation is not met, the government will face risks of cost out-of-control and fiscal sustainability problems resulting from frequent refinancing.

3. US - India Negotiations Stalled, India's Central Bank's Emergency Intervention Failed, and the Rupee Breached the 90 Mark Against the US Dollar. Amid the uncertain prospects of US - India trade negotiations and pressure from capital outflows, the Indian rupee historically broke through the key 90 mark against the US dollar. Although the Reserve Bank of India has intervened in the market, the declining trend of the rupee is difficult to reverse due to bearish market expectations and the expanding trade deficit, which may affect the direction of its monetary policy.

## Overseas Enterprises

1. Mounting Concerns Over AI Bubble Push Oracle's Debt Fear Indicator to a 2009 High. The price of Oracle's Credit Default Swap (CDS) closed at an annualized rate of approximately 1.28 percentage points on Tuesday, the highest level since March 2009. It has more than tripled since reaching a low of 0.36 percentage points in June. As major AI giants issue a large number of bonds, the US credit bond market is under pressure of supply-demand imbalance. Analysts predict that the industry's interest rate spread will reach a "baseline range" of 100 to 110 basis points above the benchmark interest rate next year, higher than the 75 to 85 basis points in 2025.

2. IBM CEO: Investing Trillions in AI Data Centers "Cannot Be Profitable" at Current Costs. Arvind Krishna, CEO of IBM, issued a warning about the upsurge in investment in AI infrastructure. He stated that at current costs, the approximately 8 trillion US dollars of global capital expenditure invested in the pursuit of AGI "cannot" be profitable, as the annual profit required to cover the interest alone amounts to 800 billion US dollars. He also expressed extreme skepticism about the possibility of achieving AGI through the current technical path, putting the probability at only 0% to 1%.

3. A New Competitor for GPUs Arrives! Amazon Officially Announces Trainium3: Costs Reduced by Over 50% Compared with GPUs. Tests conducted by AI video company Decart showed that Trainium3 has increased the video generation frame rate to four times that of other chips. Despite the rise of custom chips, Nvidia's market position is difficult to shake in the short term. Ron Diamant, Chief Architect of the Trainium chip, said: "Ultimately, the main advantage lies in cost-performance ratio."

4. AWS CEO: How Will Amazon Make a Comeback in the AI Era? Deliver Cheaper and More Reliable AI on a Large Scale. The AWS AI Factory provides customers with two technical route options. Customers can choose the Nvidia - AWS AI Factory integrated solution, and AWS also offers a solution based on its self-developed Trainium chip. By providing flexible deployment methods and more cost-effective dedicated infrastructure, Amazon has begun to compete for high-value customers with strict requirements on data sovereignty and compliance, such as government agencies and large organizations.

5. Marvell's Acquisition to Address Weaknesses: Is the Path to Becoming an Alternative to Nvidia Nearing Completion? Marvell announced the acquisition of Celestial AI to make up for its shortcomings in multi-rack interconnection, thus becoming an enterprise covering the entire scenario of "scale out + scale up". The company emphasized that there is "no revenue gap" in its cooperation with Amazon, alleviating concerns about market share. However, the growth rate of its data center business is only 25%, and the growth rate of custom ASIC is over 20%, which is much lower than the overall growth rate of the AI chip market. Analysts pointed out that Marvell lacks incremental business from other major customers, is in a relatively marginal position in the AI chip market, and has an obvious gap with Nvidia. There is still a long way to go to become a viable alternative to Nvidia.

6. Observations on the US Black Friday Shopping Season: ChatGPT's Shopping Recommendations Rose by 28%, with Amazon and Walmart Accounting for Nearly 70% Combined. Data from this year's US holiday shopping season shows that generative AI such as ChatGPT has become a new engine driving e-commerce traffic. The number of recommendations it generates has increased by 28% year-on-year, and the user conversion rate of such traffic is higher. However, this emerging dividend is highly concentrated. Amazon and Walmart together account for nearly 70% of the traffic, further consolidating their dominant market positions, while small and medium-sized retailers have not generally benefited from it.

7. iPhone 17 Triggers a Replacement Wave, and Apple's 2025 Mobile Phone Shipments are Expected to Hit a Record High. The latest forecast from IDC shows that driven by the strong performance of the iPhone 17 series, Apple's iPhone shipments in 2025 are expected to reach 247.4 million units, a year-on-year increase of over 6%, setting a new record high. Among them, the strong demand for the iPhone 17 in the Chinese market has become a key engine for performance growth.

8. AI Competes with Mobile Phones and Computers for Chips: Mobile Phone Manufacturers Warn of a Possible 30% Price Hike, and the Storage Shortage Will Last Until 2027. SK Hynix predicts that the storage shortage will last until the end of 2027. Tech giants such as Microsoft and Google are scrambling to secure supplies from storage chip manufacturers such as Micron, Samsung Electronics and SK Hynix. A source said: "Everyone is scrambling for supplies." Counterpoint Research predicts that the prices of advanced and traditional storage chips will rise by 30% in the fourth quarter and may increase by another 20% at the beginning of 2026.

## Industries/Concepts

1. Low-Altitude Economy According to Jiemian News, the "Several Policies for Promoting High-Quality Economic Development (2026 Version) (Draft for Comment)" has recently been open to the public for comments. The document mentions promoting the construction of provinces with strong civil aviation capabilities and the development of the low-altitude economy. It supports opening new international routes to global international hubs, countries along the "the Belt and Road" and BRICS countries, and expands the pilot scope of convenient transportation for sensitive goods such as magnetic, electrical and hydraulic products involved in cross-border e-commerce. It also supports the construction and operation of Class A general airports, the opening of short-haul general aviation routes, and the creation of "pioneer zones" for the low-altitude industry and "pilot zones" for the low-altitude economy, with certain financial support from provincial governments. It plans to open more than 5 new international routes and over 100 new drone routes.

- Comments: Guojin Securities stated that the low-altitude economy is a preferred direction for local governments to expand their balance sheets, and the "low-altitude +" economy represented by new quality productive forces can bring a multiplier effect on investment. Zheshang Securities believes that the low-altitude economy has made significant breakthroughs in multiple aspects including policies and industries. The industry is in an accelerating implementation stage, and a trillion-yuan market is expected to gradually take shape.

2. Robotics On December 3, Elon Musk, CEO of Tesla, reposted a short video on the social platform X showing Tesla's Optimus humanoid robot running, which was released by the Optimus team. The team captioned the video: "Just set a personal record (PR) in the laboratory." At the shareholders' meeting on the evening of November 6, Musk elaborated on his vision of accelerating the production of the Optimus humanoid robot, and the production line is expected to be completed and put into operation next year.

- Comments: Shanghai Securities said that continuous innovations and breakthroughs have been made in all links of the industrial chain, from AI software and core components to the manufacturing of robot bodies. Humanoid robots are expected to become a disruptive product following computers, smart phones and new energy vehicles.

3. TV Panels Public data shows that in November 2025, the actual quotations for 32-inch, 43-inch, 50-inch, 55-inch and 65-inch panels were 33 US dollars, 60 US dollars, 91 US dollars, 114 US dollars and 160 US dollars respectively, which were 2 US dollars, 2 US dollars, 2 US dollars, 4 US dollars and 4 US dollars lower than those in October 2025, in line with expectations.

- Comments: Research institutions predict that in December 2025, the prices of 32-inch, 43-inch, 50-inch and 55-inch TV panels will stop falling, while the price of 65-inch TV panels will drop by 3 US dollars, with a narrowed decline range. In December, due to the release of stocking demand, the industry is expected to achieve a high capacity utilization rate, and product prices are likely to stabilize and recover. Before and after the 2026 Spring Festival, the stocking and inventory replenishment in the supply chain and sports events will bring clear demand visibility in the first half of 2026. In addition, the professional research institution Runto believes that in December 2025, the prices of TV panels of various sizes will stabilize, among which the prices of 55-inch, 65-inch and 75-inch products for non-strategic customers will increase by 1 to 2 US dollars. It is expected that the prices of TV panels of all sizes will remain stable in January 2026.

4. Prebaked Anode According to Baichuan Yingfu, the domestic market price of prebaked anodes has risen rapidly. On December 3, the average market price of prebaked anodes was 5,638 yuan per ton, a sharp increase of 5.82% from the previous day, achieving three consecutive days of growth. Since the second half of this year, the market price of prebaked anodes has shown a step-by-step upward trend, with a cumulative increase of more than 15% since July.

- Comments: Securities Times pointed out that the price of petroleum coke has been consolidating at a high level recently, with the latest average market price reaching 3,115 yuan per ton, and the price of some negative coke continues to rise. The price of raw material coal tar is expected to remain firm with little short-term fluctuation, and the coal tar pitch market is consolidating steadily. Overall, the raw material cost remains at a high level, which is favorable for the price of prebaked anodes. On the demand side, the price of electrolytic aluminum continues to rise, and the operating capacity has increased slightly on a stable basis, reaching 44.14 million tons, leading to strong demand for prebaked anodes. Recently, electrolytic aluminum enterprises in Xinjiang will continue to release newly commissioned capacity. It is expected that the theoretical operating capacity of the industry will show an increasing trend, which may bring additional demand for prebaked anodes. Driven by high costs and strong sustained demand, the price of prebaked anodes is expected to remain on an upward trend.

5. Copper Due to the weakening US dollar, supply concerns and the tight supply of metals in the registered warehouses of the London Metal Exchange (LME), copper prices hit a record high on Wednesday. On the evening of December 3, the three-month LME copper futures hit a new all-time high of 11,434 US dollars per ton. As of 19:50 Beijing time, LME copper was quoted at 11,410.5 US dollars per ton, an increase of 2.38%.

- Comments: Data shows that the expansion rate of business activities in the euro zone in November reached the fastest level in two and a half years, which further boosted the bullish sentiment for copper in the market. Commodity market analysts said that copper prices have shown a strong trend after breaking the record high, and algorithmic models have also sent out buy signals. It is very likely that copper prices will rise from the current level to 12,000 US dollars per ton. The registered warehouse receipts of LME copper have dropped to the lowest level since July. Given the premium of copper prices on the New York Mercantile Exchange over those on the London Metal Exchange, traders still have a strong interest in exporting copper to the United States.

6. AI Chips According to The Paper, Amazon's cloud computing division has launched its latest artificial intelligence chip, named Trainium3, on the market, and the chip started supplying customers on Tuesday this week. Amazon said that this chip can drive the intensive computing behind AI models more cheaply and efficiently than Nvidia's market-leading graphics processing units (GPUs). Amazon also revealed for the first time the next-generation product in its AI training product roadmap - Trainium4, which is currently under development. It is reported that Trainium4 will support collaborative work with Nvidia chips.

- Comments: China Securities Journal pointed out that Amazon's efforts in developing artificial intelligence chips not only demonstrate its technical strength but also mark an important step in the competitive landscape of AI computing power. With the disruptive advantages of 50% lower training costs and 40% higher energy efficiency compared with Nvidia's GPUs, it is rewriting the rules of the AI chip market and challenging Nvidia's monopolistic position. In the long run, it will profoundly affect the patterns of cloud computing, large-model development and the popularization of AI applications.

7. Deep-Sea Economy According to Jiemian News, the Ministry of Natural Resources recently held a forum. The meeting emphasized the need to achieve new and greater breakthroughs in accessing, exploring and developing the deep sea. It is necessary to give play to the advantages of the new nationwide system, strengthen original innovation and tackle key core technologies, and improve the level of co-construction, sharing and application of major scientific and technological equipment. It also requires scientifically planning the deployment and key tasks of the "15th Five-Year Plan", continuously strengthening the survey of marine energy and resources, accelerating the realization of high-level self-reliance and self-improvement in marine science and technology, expanding and deepening high-level opening-up of the marine sector, and building a high-quality marine workforce for the new era with strong political awareness, excellent professional skills, a fine work style and the courage to overcome difficulties.

- Comments: China Securities Journal pointed out that as a national strategic emerging industry, the deep-sea economy is accelerating its transformation from the scientific research and exploration stage to the industrial application stage. The 2025 Government Work Report listed "deep-sea science and technology" as a strategic emerging industry for

# English Translation

## Comments

China Securities Journal pointed out that as a national strategic emerging industry, the deep-sea economy is accelerating its transition from the scientific research and exploration stage to industrial application. The 2025 Government Work Report listed "deep-sea technology" as a strategic emerging industry for the first time, and put forward the requirement to "accelerate the R&D of deep-sea technology and the process of its industrialization". At present, China's deep-sea economy has formed a complete industrial closed loop covering technology R&D, equipment manufacturing and commercial development. With the gradual improvement of the industrial chain, the deep-sea economy industry will achieve more efficient and coordinated development. It is expected that the scale of the deep-sea economy industry will reach 3.25 trillion yuan in 2025, and will achieve explosive growth at a compound annual growth rate of 20% in the next 5-10 years. It is expected to exceed 5 trillion yuan by 2030, becoming a core engine driving the high-quality development of the marine economy.

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## 8. Tourism

The Ministry of Culture and Tourism and the Civil Aviation Administration of China jointly issued the *Action Plan for the Integrated Development of Culture, Tourism and Civil Aviation Industry*. The plan proposes to enrich "civil aviation + culture and tourism" services, with specific measures as follows:

- Encourage airlines to launch package tickets and multi-ride cards covering multiple tourist destinations.

- Support cooperation between airlines, airports and cultural and museum venues, scenic spots, tourist resorts, hotels and homestays, travel agencies, car rental companies, and online travel platforms.

- Launch more optional package products for tourists in conjunction with events such as the "May 19 China Tourism Day" and national cultural and tourism consumption promotion activities.

- Support the development of themed package products such as "Travel with Performances", "Travel with Competitions", "Travel with Films and TV Dramas", and "Travel with Intangible Cultural Heritage". Encourage the launch of student group package tickets and family discount package tickets for study tours and parent-child tours.

- Encourage local governments to include "civil aviation + culture and tourism" package products in the scope of consumption voucher policy support.

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## Preview of Today's Key News

1. U.S. initial jobless claims for the previous week.

2. Opening of the 2025 Brain-Computer Interface Conference.

3. Remarks by Federal Reserve Governor Bowman on bank supervision.

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## Risk Warning and Disclaimer

The market is risky, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status or needs of individual users. Users should consider whether any opinions, views or conclusions in this article are in line with their specific circumstances. Investors shall bear their own responsibilities for investments made based on this article.