Morning News

# Market Overview (Source: Wall Street CN)

U.S. unemployment data did not dampen expectations of an interest rate cut this month. Ahead of the release of the key PCE inflation data, the upward momentum of U.S. stocks weakened. The S&P 500 and Nasdaq narrowly extended their gains to three consecutive sessions, with the S&P 500 closing at a more than one-month high, while the Dow Jones Industrial Average pulled back from a three-week high. Meta rose over 3%. The semiconductor index halted its two-day winning streak, but NVIDIA rebounded by more than 2%. Salesforce, which issued a positive outlook, climbed nearly 4%. The U.S.-listed Chinese stocks index reversed its two-day decline, with NIO surging over 4%.

Following the release of the unemployment data, U.S. Treasury prices declined and yields accelerated their rebound during the session.

The U.S. Dollar Index hit a new one-month low intraday before turning higher. The Euro reached a nearly seven-week high but then reversed to a decline. Reports strengthened expectations that the Bank of Japan will raise interest rates this month, pushing the Yen to a more than two-week high. The offshore Chinese Yuan fell by over 100 pips during the session, breaking below the 7.07 level and moving away from its nearly 14-month high. Bitcoin rose above $94,000 for the first time in more than two weeks, but then reversed to a drop of over 3% at one point.

The Russia-Ukraine peace talks remained deadlocked. Crude oil extended its gains to two consecutive sessions, hitting a two-week high, with U.S. crude oil rising nearly 2% intraday. Gold recorded a slight rebound for two consecutive days. London-traded cobalt rose nearly 3%, while London-traded copper temporarily pulled back from its record high.

During the Asian trading session, China's A-shares and Hong Kong stocks rebounded after testing lower. The ChiNext Index and Hang Seng Tech Index rose over 1%, led by gains in the robotics, commercial aerospace, and semiconductor sectors. Treasury bond futures dropped sharply.

## Key News

China's President and Premier of the State Council respectively met with French President Emmanuel Macron, who is on a state visit to China.

Reports indicated that the production of AI chips is planned to triple next year. Cambricon's stock price surged in late trading, but the company issued a "solemn statement" late at night, dismissing the reports as untrue.

Private data providers reported that U.S. nonfarm payrolls decreased by 9,000 in November, with the October figure revised downward to a decline of 15,500. According to the U.S. Challenger Report, U.S. companies announced 71,000 layoffs in November, with the year-on-year growth rate slowing to 24%—still the highest level for the same period since 2022. The U.S. job market has entered a "no-layoff, no-hiring" mode: the number of initial jobless claims fell to a more than three-year low last week, while hiring plans dropped significantly.

Reports suggested that the Bank of Japan may raise interest rates in December, and the Japanese government is likely to tolerate this move, pushing the Yen to a more than two-week high intraday. The Japanese bond market turmoil intensified, with long-term bond yields surging collectively to multi-decade highs.

Targeting 33 trillion Euros in household savings, the European Union plans to break down national barriers in financial services and promote the creation of a truly unified capital market.

Facing chip competition from Google and Amazon, NVIDIA released another statement to "prove its strength": the GB200 NVL72 can boost the performance of open-source AI models by up to 10 times. Reports also noted that NVIDIA's Jensen Huang successfully lobbied, and the U.S. Congress will veto the AI chip export bill.

Google entered the AI coding competition by reaching a multi-year cooperation agreement with Replit.

Reports stated that Meta has significantly scaled back its former strategic core, planning to cut its metaverse budget by up to 30%. The European Union intends to launch a new antitrust investigation into Meta, focusing on the AI functions within WhatsApp.

## Market Closing Quotes

### U.S. and European Stock Markets

- S&P 500: Rose 0.11% to close at 6,857.12 points.

- Dow Jones Industrial Average: Fell 0.07% to close at 47,850.94 points.

- Nasdaq Composite: Rose 0.22% to close at 23,505.136 points.

- Europe's STOXX 600 Index: Rose 0.45% to close at 578.84 points.

### China's A-Shares

- Shanghai Composite Index: Fell 0.06% to close at 3,875.79 points.

- Shenzhen Component Index: Rose 0.40% to close at 13,006.72 points.

- ChiNext Index: Rose 1.01% to close at 3,067.48 points.

### Bond Market

By the end of the bond market session, the yield on the U.S. 10-year benchmark Treasury note stood at approximately 4.10%, up about 4 basis points intraday. The yield on the U.S. 2-year Treasury note was around 3.52%, also rising about 4 basis points during the day.

### Commodities

- WTI Crude Oil Futures (January contract): Rose 0.53% to close at $58.95 per barrel.

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

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

- COMEX Gold Futures (February contract): Rose 0.25% to close at $4,243 per ounce.

- LME Copper Futures: Fell approximately 0.3% to close at $11,450 per ton.

- LME Cobalt Futures: Rose approximately 2.9% to close at $51,480 per ton.

# Details of Key News

## Global Heavyweight News

The President of the People's Republic of China held talks with French President Emmanuel Macron, who is on a state visit to China. According to CCTV News, China is willing to work with France to always act in the fundamental interests of the two peoples and the long-term interests of the international community, adhere to equal dialogue and open cooperation, ensure that the China-France Comprehensive Strategic Partnership progresses more steadily and smoothly in the "new 60-year cycle", fully demonstrate its strategic value, and make new contributions to promoting an equal and orderly multi-polar world and inclusive economic globalization.

Premier Li Qiang of the State Council met with French President Emmanuel Macron. According to Xinhua News Agency, Premier Li Qiang pointed out that China is willing to strengthen the alignment of development strategies with France, expand two-way opening-up, consolidate cooperation in traditional fields such as aviation, aerospace and civil nuclear energy, and accelerate cooperation in emerging areas including artificial intelligence, green development and the silver economy. Macron stated that France is ready to enhance exchanges and dialogue at all levels with China, expand two-way opening-up and mutual investment, deepen cooperation in trade, agriculture, aerospace, aviation, civil nuclear energy, renewable energy and other fields, and jointly explore third-party markets.

Reports claimed that the output of AI chips is planned to triple next year. Cambricon's stock price surged in late trading, but the company issued a "solemn statement" late at night to refute the reports as false. Cambricon's stock fell nearly 3% in early trading on Thursday, then soared with increased trading volume in late trading, closing up 2.75%, with a cumulative increase of 108% so far this year. According to a report from the Securities Times, Cambricon plans to triple its current AI chip output by 2026 to fill the gap left by NVIDIA's withdrawal. Investment bank Bernstein upgraded Cambricon's rating to Outperform on the same day, and the target price of 2,000 yuan indicates a remaining upside potential of 46%.

U.S. private data provider Revelio Labs reported that non-farm payrolls decreased by 9,000 in November, and the figure for October was revised downward to a decrease of 15,500. Data shows that the weak trend of the U.S. labor market continued in November, indicating that a contraction trend is taking shape. The market has become increasingly divided, with only a few sectors such as education and health services and construction providing support, while the leisure and hospitality industry has become a major drag. Meanwhile, both the hiring rate and turnover rate have declined simultaneously, and the number of job vacancies has decreased, reflecting a sluggish state where enterprises have reduced willingness to expand and market liquidity has slowed significantly.

U.S.-based Challenger, Gray & Christmas reported that U.S. companies announced 71,000 layoffs in November, with the year-on-year growth rate slowing to 24%, but still the highest level for the same period since 2022. The technology, telecommunications and retail sectors led the layoffs in November. Layoffs related to artificial intelligence continued to rise, reaching 55,000 in the first 11 months of this year. The report shows that the total number of planned layoffs by Challenger-tracked companies in the first 11 months of this year has reached approximately 1.171 million, a sharp year-on-year increase of 54%. This is the highest annual layoff level since the 2020 pandemic and the sixth time since 1993 that annual layoffs have exceeded 1.1 million. In stark contrast, the number of planned hires in the first 11 months of this year was less than 500,000, hitting the lowest annual level since 2010 and a year-on-year decrease of 35%.

The U.S. job market has entered a "no-layoff, no-hiring" mode. The number of initial jobless claims unexpectedly dropped to a more than three-year low last week, while hiring plans fell sharply. Last week, which included the Thanksgiving holiday, initial jobless claims decreased by 27,000 to 191,000, the lowest level since September 2022, whereas economists had expected an increase to 220,000. The number of continuing jobless claims in the previous week fell to 1.939 million but remained close to the highest level since 2021. This reflects a situation where the slowdown in new layoffs in the job market coincides with the difficulty for long-term unemployed people to re-enter the workforce.

The yen rose sharply against the U.S. dollar. Reports indicated that the Bank of Japan may raise interest rates in December, and the government may tolerate this move. The Japanese bond market turmoil escalated, with long-term bond yields surging collectively to multi-decade highs.

According to Reuters, the Bank of Japan may raise its policy rate from 0.5% to 0.75%, which would be the first rate hike since January this year. The government's stance is that "if the Bank of Japan intends to raise interest rates this month, it may make its own decision", which is regarded as tacit approval for the central bank to take action. The yen traded around 155.37 against the U.S. dollar. Market focus has shifted from "whether to raise interest rates" to "how much more interest rates will be raised".

The yield on Japan's 30-year government bonds hit a record high of 3.445%. Demand for the auction of Japan's 30-year government bonds reached a high not seen since 2019, with a bid-to-cover ratio of 4.04 times, significantly higher than the average of 3.35 times last year. The strong demand stems from the attractiveness of high yields and expectations that the government may reduce the issuance of ultra-long-term bonds. Nomura Securities analyzed that the Bank of Japan's move aims to "test market resilience". Currently, the market has begun to guard against the risk of a recurrence of the "carry trade rout" at the end of the year, and its potential impact on global assets such as U.S. stocks should not be underestimated.

How did the Bank of Japan win over Sanae Takaichi to push for an interest rate hike? Kazuo Ueda released signals in advance, leading the market to price in an 80% probability of a rate hike. Senior government officials stopped opposing the move after multiple meetings with Ueda, and the weakness of the yen became a common pressure point for both sides. The central bank team drafted a speech overnight, striving to stabilize the political front by praising Abenomics and explaining the necessity of a gradual interest rate hike. Although the interest rate hike is almost certain, the wide range of the neutral interest rate and the differences between the market and the government on the future interest rate path will make subsequent communication more challenging.

Targeting 33 trillion euros in household savings! The European Union plans to break down national barriers in financial services and promote the establishment of a truly unified capital market. The European Commission has launched a new plan to eliminate financial barriers, aiming to integrate fragmented capital markets into a unified system that can compete with the United States. The core of the plan lies in strengthening the powers of the European Securities and Markets Authority (ESMA), simplifying cross-border transactions and advancing regulatory centralization. The EU aims to effectively channel 33 trillion euros of household savings into innovative enterprises instead of the 300 billion euros that flow overseas every year. EU officials warned that without a unified capital market, Europe will continue to lose ground economically and geopolitically.

Competing against Google's TPU and Amazon's Trainium? NVIDIA issued another statement to prove its strength: the GB200 NVL72 can boost the performance of open-source AI models by up to 10 times. Following its public claim of "leading the industry by a generation" and private refutation of short-sellers' views, NVIDIA recently released a technical blog post stating that its GB200 NVL72 system can improve the performance of open-source AI models by up to 10 times. Through the co-design of hardware and software, the system has solved the scaling challenges of Mixture of Experts (MoE) models in production environments and effectively eliminated performance bottlenecks in traditional deployments.

In a 10,000-word interview, Jensen Huang stated that there is no "finish line" in the AI race, and technological iteration is the key. He has felt that the company was on the verge of bankruptcy every day in the past 33 years. He pointed out in the interview that the AI race has no clear finish line, and the ability of continuous iteration is more important than a one-time breakthrough. Technological progress is gradual, and all participants will evolve together. AI computing power has increased 100,000 times in the past decade, but this computing power is used to make AI think more cautiously and verify answers rather than do dangerous things. Huang also recalled in detail NVIDIA's entrepreneurial experiences of being on the verge of bankruptcy multiple times, including the risky moments such as the wrong choice of technical route in 1995, and the company's survival relying on a 5 million US dollar investment from Sega and the trust of Morris Chang from TSMC.

Report: Jensen Huang's lobbying succeeded, and the U.S. Congress will veto the AI chip export bill. NVIDIA's intensive lobbying achieved a crucial victory. The GAIN AI Act, which aims to restrict its sales of AI chips to some overseas markets, has not been included in the U.S. annual defense bill so far. This turning point came after Jensen Huang personally went to Washington to meet with White House officials. He stated that the bill would pose great potential harm to the United States, and the Congress's decision was "wise". Donald Trump called Huang a "smart guy".

Will Google's "secret weapon" - TPU - support a 900 billion US dollar super track? Google's custom AI chip TPU is regarded as an important future source of revenue. The market expects that by selling TPUs to external customers such as Anthropic and Meta, Google is likely to seize a 20% share in the NVIDIA-dominated market, bringing nearly 900 billion US dollars in business opportunities. Google's stock price rose sharply by 31% in the fourth quarter, becoming the 10th best-performing component stock in the S&P 500 Index.

Targeting Anthropic's multi-billion-dollar market! Google entered the AI coding competition by reaching a multi-year cooperation agreement with Replit. The new cooperation is expected to strengthen Google's competitive position in the fast-growing field of "contextual coding". Under the agreement, Replit will expand the use of Google Cloud services, integrate more Google AI models into its platform, and provide AI coding solution support for enterprise customers. Google will continue to serve as Replit's primary cloud service provider.

Amazon's CEO disclosed that over 1 million Trainium chips are currently in production, generating billions of US dollars in annual revenue. For the first time, the CEO revealed that Amazon's self-developed AI chip Trainium2 business has achieved annualized revenue of billions of US dollars, and more than 1 million chips have been put into production. This is mainly due to its "cost-performance advantage" and the large-scale adoption by key customer Anthropic. Meanwhile, Amazon launched the next-generation Trainium3 chip with a 4-fold performance improvement.

A significant shrinkage of the former core strategy! Mark Zuckerberg plans to cut Meta's metaverse budget by up to 30%. Zuckerberg intends to reduce resources allocated to building the metaverse, a business he once positioned as the future of the company. Meta's senior executives have discussed a possible budget cut of up to 30% for the metaverse division next year, which may include layoffs as early as January 2026. After the news broke, Meta's stock rose as much as 5.7% intraday on Thursday and closed up 3.4%.

Report: The EU plans to launch a new antitrust investigation into Meta, focusing on AI functions in WhatsApp. According to media reports, the European Union will initiate a new antitrust investigation into Meta, focusing on WhatsApp's integration of AI functions, and the investigation is expected to be announced in the next few days. Italian regulators have taken the lead in launching an investigation, accusing Meta of integrating AI into WhatsApp without users' consent. This investigation is based on traditional antitrust laws rather than the Digital Markets Act.

## Domestic Macroeconomy

From a "side dish" to a "main course", the RMB dim sum bond market is facing significant development opportunities. A Deutsche Bank report suggested that the RMB dim sum bond market is evolving from a marginalized "niche market" into a mainstream asset. The core lies in the dual qualitative changes on the supply side (low interest rates attracting global issuers) and the demand side (real trade settlements and the introduction of mainland capital through the Bond Connect Southbound). Amid the global search for alternatives to the U.S. dollar and expectations of RMB appreciation, the market has entered a self-reinforcing virtuous cycle, opening a historic allocation window for investors.

## Domestic Companies/Industries

The end of "silence"? HF Quantitative makes a comeback to the center stage. This is the most impressive period for the performance of products raised by HF Quantitative to the public in the past few years. Its relatively stable performance even reminds people of the company's prime time. Back then, as the leader among the four major quantitative giants, HF Quantitative took the lead in exceeding the 100 billion yuan scale. However, it soon experienced a decline in both performance and scale, and did not stage a strong performance recovery until 2025.

A recommended national standard for the food delivery industry has been implemented: delivery riders will stop receiving new orders for 20 minutes after accepting orders continuously for more than 4 hours, and the average speed of electric vehicles shall not exceed 15 kilometers per hour. According to The Paper, the new national standard focuses on protecting the rights and interests of delivery riders. It stipulates that platforms should reasonably limit the daily order-receiving hours (principally no more than 8 hours), set up fatigue reminders and mandatory rest mechanisms after 4 consecutive hours of order reception, and prohibit forced overtime work through algorithms or incentives. Meanwhile, algorithms need to optimize routes. When calculating delivery time, food delivery platforms shall adopt an average speed of no more than 15 km/h for deliveries made by electric bikes.

## Overseas Macroeconomy

If Hassett becomes the Federal Reserve Chairman, Bescent may take overall charge of the Trump administration's economic policies. Citing sources familiar with the matter, media reported that if Trump decides to appoint Hassett as the next Federal Reserve Chairman, Bescent will lead the White House National Economic Council. If this plan is implemented, Bescent will become the chief arbitrator of the economic policy portfolio of the current administration, with authority spanning the Treasury Department and the White House.

What does it mean if the "loyal Hassett" becomes the Federal Reserve Chairman? Deutsche Bank believes that if Hassett takes office as the Federal Reserve Chairman, he will face numerous obstacles in implementing interest rate cuts. By the middle of 2026, the fundamentals of the U.S. economy may not support substantial interest rate cuts. Coupled with hawkish resistance within the Federal Reserve Board, it will be difficult to implement aggressive accommodative monetary policies. Investors should be wary of the market's excessive optimistic pricing of a "dovish turn", as the final policy path is likely to be much more moderate and neutral than expected.

Expert Gave warns: The convergence of the Federal Reserve and the Treasury Department is inevitable. U.S. bonds may collapse first next year, and the appreciation of Asian currencies will end the gold bull market. Louis-Vincent Gave, CEO of Gavekal Group, warned that the integration of the Federal Reserve and the Treasury Department is an established trend, and its long-term impact will be the collapse of the U.S. bond market. The prospect of gold depends on the trend of Asian currencies, especially the significantly undervalued yen. Anthropic's preparation for an IPO may indicate a turning point in the capital-intensive bull market and signs of a bubble. The market trend is shifting from "rewarding money-burning" to "rewarding asset liquidation".

PGIM warns: Even if Hassett leads the Federal Reserve, he will not be able to implement "rapid interest rate cuts" as Trump wishes. The co-chief investment officer of PGIM Fixed Income argued that Hassett lacks sufficient prestige to build a consensus within the Federal Reserve, making it difficult for him to promote rapid interest rate cuts alone. The bond market has also confirmed this point. He further emphasized that the independence of the Federal Reserve "remains a major concern for investors".

U.S. outstanding government debt has exceeded 30 trillion US dollars for the first time, doubling since 2018. The total amount of U.S. Treasury bills, notes and bonds increased by approximately 0.7% in November, reaching 30.2 trillion US dollars. The debt-servicing cost has soared to 1.2 trillion US dollars.

Commodities trading giant adds fuel to the fire: Mercuria was reported to plan to withdraw more than 40,000 tons of copper from LME Asian warehouses. Media reported that Mercuria canceled or marked more than 40,000 tons of copper for delivery from LME warehouses in South Korea and Taiwan, China on Tuesday. Based on recent prices, the value of the copper is about 460 million US dollars. Earlier analysis suggested that the number of canceled warrants at LME Asian warehouses surged to a 10-year high on Wednesday, mainly driven by expectations of U.S. tariffs and cross-market arbitrage opportunities.

Perhaps as early as next week, the term "RMP" will dominate the market and be regarded as the "new generation of QE". With the Federal Reserve halting its balance sheet reduction, the era of "quantitative tightening" has come to an end. The much-watched Reserve Management Purchase (RMP) is expected to trigger a new round of balance sheet expansion, potentially adding 20 billion US dollars in liquidity monthly. Whether the Federal Reserve can stabilize the volatility in the repo market and reshape the direction of monetary policy has become the most concerned focus on Wall Street.

# English Translation

International oil prices rebounded slightly. After Putin rejected parts of the "peace agreement", the Ukrainian delegation went to the United States for a new round of negotiations. It is reported that Putin stated that some contents of the U.S. peace plan are "unacceptable". The Ukrainian delegation will travel to the United States on Thursday to hold a new round of talks with the U.S. side. According to Xinhua News Agency, Putin held talks with U.S. special envoy Vitkov for nearly 5 hours on December 2, reviewing the key points of the agreement one by one. However, differences still remain on core issues such as territorial control. Putin insisted that Ukrainian troops withdraw from eastern regions. He also said that Russia and the United States still have differences on certain issues.

Nearly 5 hours of talks! Putin revealed the reason for the long negotiation with the U.S. special envoy: the need to review the "peace agreement" item by item. According to Huanqiu.com, Putin said that Russia and the United States still have differences on some issues. "Some issues can be discussed, but no agreement can be reached on others."

Ethereum launched the "Fusaka Upgrade" to continue "expanding capacity and improving efficiency" and strengthen on-chain settlement capabilities. Ethereum has activated the key "Fusaka" upgrade, which increases Layer-2 data capacity by 8 times through PeerDAS technology. Combined with the BPO forking mechanism and Blob floor price mechanism, it is expected to significantly reduce Layer-2 operating costs and ensure the long-term economic sustainability of the network. This will consolidate its position as a settlement layer and drive the evolution of Layer-2 competition towards user experience and ecological depth.

## Overseas Companies

"Contradictory" OpenAI? Anthropic CEO: Some AI companies take excessive risks. The CEO of Anthropic warned that some AI companies (such as OpenAI) are taking excessive risks due to "all-in" huge investments in infrastructure such as data centers. This reflects the industry's widespread concern about the contradiction between high investment and uncertain returns. While competitors are making trillion-dollar bets, Anthropic has adopted a more prudent expansion path and plans to invest 50 billion U.S. dollars in its first batch of data centers.

OpenAI's internal code leaked; its most powerful model "Emperor" is launched, with shocking zero thinking latency. OpenAI is secretly testing four new models codenamed "Penguin Family", among which the flagship model "Emperor" has the highest reasoning budget. At the same time, it is also developing a new "memory search" function for ChatGPT. These moves are regarded as the company's intensive countermeasures to cope with competition from Google, and the latest model may be released soon.

Altman to establish a rocket company to compete with Musk's SpaceX. Altman contacted rocket manufacturer Stoke Space last summer and plans to make a series of equity investments in Stoke to eventually gain control. This will put him in "comprehensive competition" with Musk. SpaceX dominates the rocket launch field, and Musk also operates the AI startup xAI. Altman recently founded the brain-computer interface startup Merge Labs to compete with Musk's Neuralink, and OpenAI is also building a social network that may compete with X.

Adding insult to injury for the storage market? Micron to exit "consumer storage business" and focus on AI storage chips. Micron announced that it will completely shut down its Crucial brand business, which has been in operation for nearly 30 years, and will continue to ship products through consumer channels until February 2026. Micron is the world's third-largest DRAM supplier and holds a 13% market share in NAND flash memory used in SSDs. Its exit will leave a huge gap in the consumer storage market. As analysts warn that memory shortages may last for several years, it is still unclear whether any company can fill this gap.

## Industries/Concepts

1. Gallium Nitride (GaN): According to the official WeChat account of Optics Valley of China, Jiufengshan Laboratory released a new scientific and technological achievement - the GaN power module. Installing 1 million "black boxes" the size of a fingernail into the cabinet of a super-large AI computing center with a capacity of 1 gigawatt (1 billion watts) can save nearly 300 million kilowatt-hours of electricity a year, equivalent to about 240 million yuan in electricity costs. Dr. Li Sichao, the leader of the team, said that the achievement has currently completed proof-of-concept and will soon start pilot-scale verification. Mass production is expected within 3-5 years, which will meet the demand of the 100-billion-yuan-level market at that time.

2. Tungsten: According to China Tungsten Online, on December 4, tungsten prices continued to rise. The price of 65% wolframite concentrate was 350,000 yuan/ton, an increase of 3,000 yuan/ton, up 144.8% from the beginning of the year; the price of 65% scheelite concentrate was 349,000 yuan/ton, an increase of 3,000 yuan/ton, up 145.8% from the beginning of the year; the price of ammonium paratungstate (APT) was 515,000 yuan/ton, an increase of 5,000 yuan/ton, up 144.1% from the beginning of the year.

3. Communications: According to Science and Technology Daily, China's first national major science and technology infrastructure in the field of information and communications - the Future Network Test Facility (CENI) - has officially passed national acceptance and been put into operation. This marks that China has entered the international advanced ranks in terms of network technology innovation, test verification and service application capabilities. CENI took the lead in proposing a service-customized network architecture globally and successfully developed the world's first distributed large-network operating system; it built the world's first wide-area deterministic network, independently developed a global integrated data-computing-network scheduling platform, and made breakthroughs in key technologies of optoelectronic integration. Up to now, the facility has supported more than 100 major innovation tests, covering scientific research institutions, operators, universities and leading enterprises, which carry out Internet theory, technology research and verification through the open Future Network Test Facility.

4. Industrial Internet: According to the WeChat account of the Ministry of Industry and Information Technology, on December 4, the Ministry of Industry and Information Technology held a theoretical study meeting. The meeting emphasized the need to accurately grasp the inherent laws of further promoting the innovative development of the industrial Internet. On the basis of the development of automation and informatization, it is necessary to promote the mutually reinforcing development of the industrial Internet with technologies such as artificial intelligence, 5G, big data and cloud computing. Integration is a fundamental requirement. It is necessary to accelerate the innovative development of the industrial Internet and promote in-depth integration of informatization and industrialization, the real economy and the digital economy, scientific and technological innovation and industrial innovation, and advanced manufacturing and modern service industries. The meeting required adhering to a systematic concept, actively planning work goals and key tasks for the new stage, organically integrating the industrial Internet with the digital transformation of manufacturing, intelligent manufacturing, and "AI + manufacturing", and strengthening inter-ministerial and intra-ministerial coordination.

5. Sports: The General Administration of Sport of China recently issued the "Opinions on Further Promoting the Reform and Development of Basketball". This document clarifies the overall goals, specific paths and key measures for the future development of Chinese basketball, aiming to promote the overall improvement of Chinese basketball through systematic reform and make basketball an important symbol of building a sports power. The "Opinions" propose expanding the supply of social basketball events, supporting qualified localities to carry out provincial leagues, city leagues and rural leagues, building brand events, and encouraging events to enter scenic spots, neighborhoods and business districts; improving support policies, and fully mobilizing the enthusiasm of all parties to "go global and bring in" through various means such as adjusting the competition rules of major domestic events, optimizing foreign affairs management services, and establishing reward and compensation mechanisms. The release of the "Opinions" marks that China's basketball reform has entered a new stage of systematic and all-round promotion.

6. Thionyl Chloride: On December 4, data from Baiinfo showed that the domestic price of thionyl chloride rose sharply, increasing by 9.87% compared with December 3 to 2,382 yuan/ton, and up 66.69% from the previous month.

7. Commercial Aerospace: According to CAS Space, on December 3, the long-duration test of the 110-ton "Liqing-2" engine - China's largest pintle-type liquid oxygen kerosene engine - was completed. The cumulative test time reached 140 seconds, with the longest single stable operation of 120 seconds, and all test indicators were met at one time. Following the successful ground verification of the engine, the company plans to launch the suborbital flight test mission of the "Lihong-1" Y1 vehicle in the near future at an appropriate time. This test will focus on verifying the re-entry deceleration and recovery technology of the returnable payload module, and at the same time verify the key technologies of the precise landing point control for the rocket stage return.

8. AI Phones: According to Blue Whale News, once Doubao Phone was announced, it caused a sensation in the market. The small number of engineering prototypes also triggered a price surge in the second-hand market. Supply chain sources said that ByteDance is indeed testing the water in the market this time, with a small stock of phones. The first batch of about 30,000 units has been sold out, and the project team has not added material investment. ByteDance and ZTE have started the research and development of the second-generation product, which is expected to be shipped by the end of 2026 if no other variables occur.

## Preview of Today's Key News

- U.S. September PCE and Personal Income Report

- U.S. December University of Michigan Consumer Sentiment and Inflation Expectations

- Eurozone Q3 GDP

- Moore Threads' listing on the Science and Technology Innovation Board (STAR Market)

- Subscription date for Muxi Semiconductor

- Huawei Mate X7 foldable screen goes on sale on December 5

- Samsung is expected to release its first triple-foldable smartphone Galaxy Z TriFold

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## Risk Warning and Disclaimer

The market is risky, and investment needs to be prudent. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinion, view or conclusion in this article is in line with their specific situation. Investment based on this article shall be at the user's own risk.