Morning News

# Market Overview & Key News

Source: Wall Street CN

## Market Overview

Last Friday, U.S. economic data reinforced expectations of an interest rate cut next week while casting doubts on next year's outlook. The three major U.S. stock indexes all rose, with the S&P 500 approaching a record high and the Nasdaq securing a four-day winning streak. Nvidia pulled back 0.5% but gained over 3% for the week, while Tesla jumped nearly 6% weekly. Netflix closed down nearly 3% after agreeing to acquire Warner Bros. Chinese concept stocks advanced over 1%, outperforming the broader market and reversing the weekly decline, with Baidu's U.S.-listed shares surging nearly 6%.

Following the release of PCE data, U.S. Treasury yields accelerated to a two-week high, with the 10-year Treasury note posting its worst weekly performance in nearly eight months. The U.S. Dollar Index turned higher and hit a daily peak, while gold also touched a daily high with an intraday gain of over 1%. Both the dollar and gold later gave up their gains.

Cryptocurrencies fell for the second consecutive day, with Bitcoin dropping nearly 5% at one point to below $89,000.

Silver and copper hit record highs for the second straight day this week. Silver reached a new intraday high, with COMEX silver futures rising over 4% intraday. LME copper rebounded over 1%, closing at a fresh high for the third day this week. Crude oil rose for three consecutive days to a two-week high, with WTI crude futures closing above $60 a barrel for the first time in two weeks.

During the Asian session, A-shares and Hong Kong stocks moved higher. The ChiNext Index and Shenzhen Component Index rose over 1%, Baidu gained more than 5%, insurance and securities sectors led the gains, while CPO and commercial aerospace sectors strengthened. Muxi Threads soared on its debut, and rare earth stocks rallied.

## Key News

He Lifeng held a video call with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai.

China's Ministry of National Defense responded to Japan's hype about radar illumination by Liaoning ship-borne aircraft: expressed strong dissatisfaction and firm opposition to Japan's provocation and misleading public opinion. The People's Liberation Army Navy stated that the Liaoning aircraft carrier strike group's normal far-sea training was repeatedly harassed by Japanese aircraft approaching, and Japan's relevant hype is completely inconsistent with the facts, demanding an immediate stop to smearing. Wu Jianghao, Chinese Ambassador to Japan, lodged solemn representations and strong protests with Japan.

Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC): Appropriately expand the capital space and leverage limits for high-quality securities firms, and resolutely refrain from unclear businesses such as crypto assets.

China's first administrative regulation on listed company supervision is here. The CSRC issued a draft for comments, strengthening restrictions on "key minorities" such as directors and senior executives, and establishing a full-chain mechanism targeting illegal acts such as financial fraud.

A-share insurance sector surged, with risk factors lowered again. The expansion of "patient capital" further opens up space for insurance funds to enter the market.

China's foreign exchange reserves increased by 0.09% month-on-month in November, and the central bank has increased its gold holdings for 13 consecutive months.

2025 China National Reimbursement Drug List announced: 114 new drugs added, including medications for pancreatic cancer and lung cancer.

The Fed's preferred inflation indicator, the core PCE index, rose 2.8% year-on-year in September, roughly in line with expectations, while real personal spending stagnated. University of Michigan survey: U.S. consumer confidence ended a four-month consecutive decline, and short-term inflation expectations fell to the lowest level at the beginning of the year.

Kevin Hassett, the "Shadow Fed Chairman": Now is a good time to cut interest rates cautiously again, and it is expected that the Federal Reserve will take such action next week. He supports Yellen and proposes residency requirements for regional Fed presidents.

The White House released the 2025 National Security Strategy, marking a major shift: proposing "Western Hemisphere First", abandoning global hegemony, adjusting economic relations with China based on the principle of "mutual benefit and equality", and acknowledging that China and the U.S. are "nearly equal". U.S. Defense Secretary stated that the Monroe Doctrine is "stronger than ever".

Muxi Threads, the "first domestic GPU stock", made a brilliant debut, closing up over 425%. Investors who won one lot made a profit of 280,000 yuan, and early investors reaped a 6,200-fold return.

Baidu Kunlunxin is reported to plan an IPO in Hong Kong with a valuation of nearly $3 billion. It once considered an A-share listing, with annual revenue exceeding Cambricon and Muxi Threads.

Vanke seeks an extension of two medium-term notes totaling 5.871 billion yuan, waives the redemption right of 1.1 billion yuan in bonds, and terminates cooperation with two rating agencies.

Wuliangye responded to its first price cut in a decade: the ex-factory price remains 1,019 yuan per bottle, and the "price cut" is a price change after subsidies.

Report: SpaceX's valuation may double to $800 billion, surpassing OpenAI to become the world's most valuable private company, and it plans to go public in the second half of next year.

Report: OpenAI "urgently advanced" the launch of a new model to cope with competition from Google Gemini 3, and GPT 5.2 is expected to be released as early as this Tuesday.

Nvidia released CUDA 13.1, hailed as the "biggest update in 20 years" since the launch of the CUDA platform.

Report: Microsoft is in talks with Broadcom on custom chip cooperation to reduce dependence on Nvidia.

Report: Apple is experiencing the largest-scale personnel upheaval in decades, with an executive exodus. Johnny Srouji, the chip chief, may leave, and Tim Cook's future has attracted much attention.

## Market Closing Quotes

U.S. and European Stocks: The S&P 500 rose 0.19% to 6,870.40 points; the Dow Jones Industrial Average rose 0.22% to 47,954.99 points; the Nasdaq Composite rose 0.31% to 23,578.13 points. For the week, they gained 0.31%, 0.5%, and 0.91% respectively. Europe's STOXX 600 index fell 0.01% to 578.77 points, with a weekly gain of 0.41%.

A-shares: The Shanghai Composite Index rose 0.70% to 3,902.81 points. The Shenzhen Component Index rose 1.08% to 13,147.68 points. The ChiNext Index rose 1.36% to 3,109.30 points.

Bond Market: By the end of the bond market session, the yield on the 10-year U.S. Treasury note was about 4.14%, up about 4 basis points intraday and 13 basis points for the week. The yield on the 2-year U.S. Treasury note was about 3.56%, up about 4 basis points intraday and 7 basis points for the week.

Commodities: WTI January crude oil futures rose 0.69% to $60.08 per barrel, with a weekly gain of about 2.6%. Brent February crude oil futures rose 0.77% to $63.75 per barrel, up about 2.2% for the week. COMEX February gold futures closed flat at $4,243 per ounce, down about 0.3% weekly. COMEX March silver futures rose 2.72% to $59.053 per ounce, with a weekly gain of about 3.3%. LME copper futures rose nearly 1.5% to $11,620 per ton, up nearly 3.9% for the week. LME cobalt futures rose over 1.4% to $52,220 per ton, with a weekly gain of about 7.5%.

# Details of Key News

## Global Heavyweight News

He Lifeng Holds Video Call with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai. According to Xinhua News Agency, the two sides conducted in-depth and constructive exchanges on implementing the important consensus reached by the heads of state of China and the United States at their Busan meeting and the November 24 call, as well as on conducting practical cooperation and properly addressing each other's concerns in economic and trade fields. Both sides positively assessed the implementation of the outcomes of the China-U.S. economic and trade consultations in Kuala Lumpur, stating that under the strategic guidance of the two heads of state, they will continue to give full play to the role of the China-U.S. economic and trade consultation mechanism, continuously expand the cooperation list, reduce the problem list, and promote the sustained, stable and sound development of China-U.S. economic and trade relations.

Zhang Xiaogang, Spokesperson of China's Ministry of National Defense, Answers Reporters' Questions on Japan's Hype about Radar Illumination by Carrier-Based Aircraft of China's Liaoning Aircraft Carrier Strike Group. We express strong dissatisfaction and firm opposition to Japan's provocation and misleading public opinion. Recently, Japan has intensified its reckless provocations in the field of military and security, and the world knows its true intentions. If Japan reembarks on the evil path of militarism, it will surely fall into an abyss of eternal perdition. We urge Japan to clearly recognize the situation, earnestly reflect on and correct its mistakes, completely abandon any malicious attempts, and not go further down the path of opposing the Chinese people and the international community.

PLA Navy Responds to Multiple Close Harassments of Liaoning Aircraft Carrier Strike Group's Far-Sea Regular Training by Japanese Planes. A Navy spokesperson stated that during the flight training of the Liaoning aircraft carrier strike group, Japanese Self-Defense Force planes repeatedly approached and harassed the maritime and airspace where the Chinese Navy was conducting training, seriously affecting China's normal training and endangering flight safety. Japan's relevant hype is completely inconsistent with the facts, and we solemnly demand that Japan immediately stop smearing and strictly restrain its frontline actions.

According to Xinhua News Agency, Wu Jianghao, Chinese Ambassador to Japan, lodged solemn representations and strong protests with Takehiro Funakoshi, Vice Minister of Japan's Ministry of Foreign Affairs, over the harassment of the Chinese Navy's aircraft carrier strike group training by Japanese Self-Defense Force planes.

China's November Foreign Exchange Reserves Rise 0.09% Month-on-Month; Central Bank Increases Gold Holdings for 13th Consecutive Month. As of the end of November, China's foreign exchange reserve scale stood at $3.3464 trillion, an increase of $3 billion from October; gold reserves reached 74.12 million ounces, an increase of 30,000 ounces month-on-month.

Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC): Appropriately Expand Capital Space and Leverage Limits for High-Quality Securities Firms; Resolutely Avoid Unclear Businesses Such as Crypto Assets. The CSRC will strive to strengthen classified supervision, support high-quality institutions and restrict inferior ones, appropriately ease restrictions on high-quality institutions, further optimize risk control indicators, moderately expand capital space and leverage limits, and improve capital utilization efficiency. Industry institutions need to base themselves on their own resource endowments and shift from price competition to value competition.

CSRC Issues Landmark Administrative Regulation on Listed Company Supervision. The "Regulations on the Supervision and Administration of Listed Companies (Draft for Public Comments)", China's first administrative regulation on listed company supervision, sets up a special chapter on corporate governance and investor protection, strengthening restrictions on "key minorities" such as controlling shareholders, actual controllers, directors and senior executives. For illegal acts such as financial fraud, it establishes a full-chain mechanism of "source prevention and control + process monitoring + post-event accountability", prohibits third parties from colluding in fraud and sets special penalties. It clarifies key elements such as the definition of acquisition and the qualifications of acquirers, improves the regulatory system for financial advisors, and requires companies voluntarily delisting to provide investor protection measures such as cash options.

A-Share Insurance Sector Surges; Risk Factors Lowered Again to Expand "Patient Capital" and Open Up More Space for Insurance Funds to Enter the Market. The National Financial Regulatory Administration issued a notice to lower the risk factors for relevant businesses of insurance companies, which means the capital use efficiency of insurance companies can be improved. Analysts believe that the reduction of risk factors will enable insurance companies to invest more funds in the capital market, further opening up space for insurance funds to enter the market.

Fed's Preferred Inflation Indicator: Core PCE Index Rises 2.8% YoY in September, in Line with Expectations; Real Personal Spending Stagnates. The U.S. PCE price index rose 0.3% month-on-month in September, consistent with expectations and the previous value; it increased 2.8% year-on-year, as expected, compared with 2.7% in the previous month. The core PCE price index rose 0.2% month-on-month, in line with expectations and the previous value; it climbed 2.8% year-on-year, versus the Bloomberg survey expectation of 2.8%, the Dow Jones survey expectation of 2.9%, and the previous value of 2.9%. U.S. personal income in September exceeded expectations, while spending was lower than expected.

University of Michigan Survey: Consumer Confidence Ends Four-Month Decline; Short-Term Inflation Expectations Drop to Early-Year Lows. Data from the University of Michigan shows that the preliminary consumer confidence index for December rose to 53.3 from 51 in November. The preliminary one-year inflation expectation for December fell to 4.1%, down from the expected and previous 4.5%; the preliminary five-year inflation expectation dropped to 3.2%, compared with the expected and previous 3.4%. Consumers' perceptions of personal finances and the job market have improved.

Kevin Hassett, "Shadow Fed Chairman": Now is a Good Time for Another Cautious Interest Rate Cut; Fed Expected to Act Next Week. Hassett Supports Yellen, Proposes Residency Requirements for Regional Fed Presidents.

Hassett said on Friday that the negative impact of the government shutdown on the economy was greater than expected, but the economy will rebound more strongly in the first quarter of next year. Against this background, now is a good time for the Federal Reserve to cut interest rates cautiously again. He stated that he has not discussed issues related to the Fed chairmanship with Trump. On Thursday, he predicted a 25-basis-point rate cut next week.

Hassett strongly supports reforms proposed by "his own people" and backs the new rules put forward by Yellen, which require candidates for regional Fed presidents to have resided in their respective districts for at least three years. He said that next year will be a golden year for the economy unless disrupted by "black swan" events, and productivity may increase by 4% next year "given the accelerated development of AI".

White House Releases 2025 National Security Strategy, Marking a Major Shift from the "Pivot to Asia" Strategy. The strategy abandons global hegemony, adjusts economic relations with China based on the principle of "mutual benefit and equality", and acknowledges that China and the U.S. are "nearly equal". The current U.S. government will abandon the previous concept of pursuing global hegemony and instead strengthen its dominant position in Latin America. The document also sharply criticizes European allies, warning that Europe faces the risk of "civilizational extinction" and must change course to remain a reliable ally of the United States.

Experts Interpret the White House's Low-Key 2025 National Security Strategy. The Asia chapter of the report focuses on "winning the economic future and preventing military confrontation", while the Taiwan issue is included in the section on "deterring military threats". Regarding Taiwan, the report states that the United States will maintain its long-standing existing policy, namely, it does not support any unilateral change to the status quo across the Taiwan Strait.

U.S. National Security Strategy Proposes "Western Hemisphere First"; Defense Secretary Says Monroe Doctrine is "Stronger Than Ever". U.S. Defense Secretary Pete Hegseth announced on Saturday that the "Monroe Doctrine" is now "in effect" and "stronger than ever", suggesting that the United States may increase troops, bases and military operations in the Western Hemisphere, and adjust its global military deployment to respond to tensions in the region.

"China's First Domestic GPU Stock" Makes a Brilliant Debut: Muxi Threads Closes Up Over 425%, Investors Earn 280,000 Yuan per Lot, Early Investors Reap 6,200-Fold Returns. On December 5, Muxi Threads was officially listed on the Science and Technology Innovation Board (STAR Market), with an opening price of 650 yuan, a surge of 468.78% from the issue price of 114.28 yuan. The stock hit an intraday high of 688 yuan, a gain of 502%, with a market value exceeding 270 billion yuan at one point. Based on the opening price, investors who won one lot (500 shares) had a paper profit of over 280,000 yuan, making Muxi Threads one of the most profitable new stocks so far this year.

Muxi Threads Leads, Asian AI New Forces Gather. The AI boom continues to heat up: Muxi Threads soared 425% on its debut; Kunlunxin is reported to have a valuation of about $3 billion after the latest round of financing and plans to submit a Hong Kong IPO application as early as the first quarter of next year; Hon Hai, a partner of Nvidia, achieved a record high monthly revenue in November, with a year-on-year increase of 25.5%, reflecting the sustained strong demand for AI servers.

Baidu's Kunlunxin Reportedly Plans Hong Kong IPO with Valuation of Nearly $3 Billion; Baidu's Hong Kong Shares Surge Nearly 8% Intraday. It is reported that Kunlunxin has started preparations for an IPO in Hong Kong and plans to submit an application to the Hong Kong Stock Exchange as early as the first quarter of 2026, aiming to complete the IPO in early 2027. The company's valuation in the latest round of financing has reached about 21 billion yuan (equivalent to $2.97 billion).

Kunlunxin Once Considered A-Share Listing; Annual Revenue Exceeds Cambricon and Muxi Threads. Earlier, Kunlunxin planned to list on the STAR Market, but decided to switch to Hong Kong in the second half of this year after communicating with multiple securities firms. In 2024, the company's revenue exceeded 1 billion yuan, surpassing Muxi Integrated Circuit (which has filed for listing), as well as listed companies Muxi Threads and Cambricon.

Vanke Issues Late-Night Announcements on Two Bond Extensions. Announcements show that Vanke is seeking an extension of two medium-term notes totaling 5.871 billion yuan, waiving the redemption right of 1.1 billion yuan in bonds, and terminating cooperation with two rating agencies. Creditor votes on December 12 and 22 will be key, requiring more than 90% approval for the extension. As of the end of the third quarter, Vanke had interest-bearing liabilities of 362.9 billion yuan, with monetary funds of only 65.7 billion yuan and a cash-to-short-term debt ratio of less than 1. Its revenue fell 26.61% in the first three quarters, with a net loss of 28.2 billion yuan.

Wuliangye Announces First Price Cut in a Decade. Market sources said that starting next year, the payment discount for the 8th-generation Wuliangye will be 119 yuan per bottle, making the opening price 900 yuan per bottle. Multiple industry insiders confirmed the authenticity of the news. Wuliangye responded that the ex-factory price remains 1,019 yuan per bottle, and the so-called "price cut" is a price change after subsidies.

Streaming King "Swallows" Century-Old Hollywood Studio: Netflix Agrees to Acquire Warner Bros. for $72 Billion. Netflix has agreed to acquire Warner Bros. for an enterprise value of approximately $82.7 billion, creating one of the largest mergers in Hollywood history. By divesting cable assets, it precisely acquires HBO and the top IP library including "Harry Potter". The merged company will have 450 million users, and despite facing harsh regulatory scrutiny, this move completely reshapes the Hollywood landscape and helps Netflix firmly secure its position as the absolute leader in the streaming industry.

Report: SpaceX's Valuation May Double to $800 Billion, Surpassing OpenAI as the World's Most Valuable Private Company; Plans IPO in the Second Half of Next Year. SpaceX is conducting a new round of internal share sales, and its valuation is expected to double from $400 billion in the summer to $800 billion, surpassing OpenAI's record of $500 billion. The company plans to go public as a whole in the second half of 2026, abandoning the previous plan to spin off Starlink for an independent IPO.

Report: OpenAI "Urgently Advances" GPT 5.2 Launch to Compete with Google's Gemini 3 After CEO's "Red Alert". It is reported that GPT-5.2 is scheduled to be released as early as Tuesday, December 9, significantly ahead of the original plan in late December. According to comparison charts posted by netizens on social media, GPT-5.2 almost comprehensively outperforms Gemini 3 and Claude 4.5. However, the authenticity of the pictures has not been verified, but they do reflect the market's high expectations for OpenAI's new model.

Nvidia Releases CUDA 13.1, Hailed as the "Biggest Update in 20 Years" Since the Launch of the CUDA Platform. The core highlight, the CUDA Tile programming model, breaks through underlying hardware barriers and reshapes the AI development paradigm. Combined with Green Context's refined resource management and Blackwell architecture support, Nvidia further strengthens its AI computing power moat, marking a milestone leap in its software ecosystem.

Report: Microsoft in Talks with Broadcom on Custom Chip Cooperation to Reduce Dependence on Nvidia. Microsoft's current supplier Marvell may be replaced by Broadcom.

Report: Apple Faces Largest-Scale Personnel Upheaval in Decades with Executive Exodus; Tim Cook's Future Attracts Much Attention. Several key figures at Apple responsible for chips, AI, design and legal affairs have resigned or are about to retire. The possible departure of chip chief Johny Srouji has raised the deepest concerns; at the same time, a large number of AI talents have flowed to Meta and OpenAI. As CEO Tim Cook turns 65 and his hand tremor health issue has sparked speculation, discussions about his successor have intensified.

## Domestic Macroeconomics

Joint Statement Between the People's Republic of China and the French Republic on Strengthening Global Governance. According to CCTV News, the two countries emphasize supporting the rules-based multilateral trading system with the World Trade Organization at its core, are committed to building a free, open, transparent, inclusive and non-discriminatory trade and investment environment, and support the necessary reform of the World Trade Organization. The two countries agree to strengthen cooperation under the framework of the G20 and promote the G20 to play its role as the primary forum for international economic cooperation.

Joint Statement Between the People's Republic of China and the French Republic on Continuing to Promote Cooperation in the Peaceful Use of Nuclear Energy. According to CCTV News, China and France agree that as a clean, low-carbon, stable and reliable baseload energy source, nuclear energy plays a uniquely important role in addressing global challenges such as climate change and energy security. The two sides welcome industrial and scientific cooperation under the framework of the Intergovernmental Agreement on Cooperation in the Peaceful Use of Nuclear Energy signed on May 15, 1997, and the Protocol on Cooperation in the Peaceful Use of Nuclear Energy signed on November 22, 1982.

State Council Executive Meeting: Discusses Further Promoting Energy Conservation and Carbon Reduction, Deploys Measures to Crack Down on Tobacco-Related Illegal Activities Throughout the Chain. The meeting discussed further promoting energy conservation and carbon reduction, listened to a report on the special campaign to standardize administrative law enforcement involving enterprises and reviewed and adopted the "Regulations on the Supervision of Administrative Law Enforcement (Draft)". It also discussed the "Draft Law of the People's Republic of China on National Fire and Rescue Personnel", emphasizing the need to strengthen grassroots fire and rescue capabilities, focus on weak links to intensify hidden danger inspections and rectification, enhance comprehensive drills such as preliminary disposal and evacuation, consolidate the foundation of fire safety governance, and resolutely prevent and curb major and extraordinarily serious fire accidents. Additionally, it deployed measures to crack down on tobacco-related illegal activities throughout the chain.

Seven Departments Including the National Internet Finance Association of China Issue Risk Alert on Preventing Illegal Activities Involving Virtual Currencies. The risk alert includes the following: Correctly understand virtual currencies, which are not legal tender of any country, do not have the same legal status as legal tender, and cannot be circulated and used as currency in China. Relevant institutions are prohibited from conducting businesses related to virtual currencies and tokens of real-world assets. Virtual currency prices are highly volatile and often used in illegal activities such as speculative trading, pyramid schemes and fraud. The public should effectively enhance risk awareness and identification capabilities.

2025 National Reimbursement Drug List Announced: 114 New Drugs Added, Including Medications for Pancreatic Cancer and Lung Cancer. Among the 19 drugs included in the first edition of the commercial insurance innovative drug list, there are not only tumor treatment drugs such as CAR-T, but also drugs for rare diseases such as neuroblastoma and Gaucher's disease, as well as drugs for Alzheimer's disease.

# Domestic Companies

Behind the Trillion-Trillion-Token Interactions Globally: Open-Source Models Shift from "Monopoly" to "Multi-Polarity", Chinese AI Enters the First Echelon. Data from OpenRouter's trillion-trillion-token interactions shows that the market share of open-source models has risen to 33%, breaking the monopoly of closed-source models. Chinese open-source AI has achieved a historic breakthrough, with its market share surging from 1.2% to a peak of nearly 30%, and models such as Qwen and DeepSeek have entered the global first echelon. The market structure has shifted from "single dominance" to multi-power governance, with medium-sized models (15B-70B) becoming the mainstream. Agent reasoning has surpassed text generation, and the proportion of programming applications has exceeded 50%.

Ren Zhengfei's Latest Speech: Computing Power Without Networks is an Information Island; AI Focuses on Application. Huawei attaches importance to AI, but currently, CT (Communication Technology) is more critical. This includes radio, optical communication, core networks, and data communication. Why? In the future, the perception and control of artificial intelligence will require transmitting data thousands of kilometers away, which must rely on an advanced network.

Is Doubao AI Phone Xiaomi's Fierce Rival? Goldman Sachs: AI "System-Level Integration" Faces Challenges, Which Further Validates Xiaomi's Long-Term Competitiveness. Goldman Sachs believes that although the Doubao AI phone is "popular", it faces numerous challenges in system permissions, data acquisition, and application connectivity, which instead highlights the structural advantages of mobile phone giants like Xiaomi. Leveraging its "human-vehicle-home" ecosystem, nearly 1 billion connected AIoT devices, and its AI assistant "Super Xiaoai Classmate" with a penetration rate of up to 71%, Xiaomi has built a strong moat. Xiaoai Classmate can already post Weibo notes, screen Taobao products, and more.

Doubao's Grab for Entry Point Stirred Up a Hornet's Nest. Essentially, it reveals the competition for the super entry point in the AI era. In the mobile internet era, Apps were the controllers of data and traffic. Entering the AI era, the "system-level AI Agent" that can dispatch everything and run through the entire process will become the soul of next-generation devices and a new "center of power". Whoever masters it will hold the greatest App recommendation rights and user minds.

Strong AI Demand Drives Hon Hai's November Sales Growth to Accelerate by 25.5% YoY; Q4 Visibility "Better Than Last Month". Hon Hai stated that shipments of AI cabinets continue to surge, ICT products have entered the peak season, and visibility for the fourth quarter is better than the previous month. The market expects its sales to grow by 14% in the three months ending December.

# Overseas Macroeconomics

Big Short Burry Warns US Stocks Will Repeat the "2000" Bear Market: Capital Expenditure Nears Peak, AI Bubble Will Burst in Two Years! Michael Burry warned that US stocks will face a long-term bear market similar to that in 2000 due to the dominance of passive investment. He bet that Palantir will plummet sharply within two years because the high-valuation company "hardly makes money but has created a bunch of billionaires". He believes that the high cost of AI will threaten Google's search business, and large model services will become highly commoditized. He said "we don't need the Federal Reserve" and revealed that he holds gold.

50,000 Tons of Warehouse Receipts Cancelled in One Day! JPMorgan: Marks Copper Prices Entering a "Mid-Stage with Higher Volatility and More Urgent Bullish Sentiment". JPMorgan pointed out that the massive cancellation of LME warehouse receipts marks the copper market entering a volatile "mid-stage". The core logic is that the US siphon effect has forced non-US buyers to snap up spot copper, pushing LME inventories below the 100,000-ton threshold and triggering copper prices to enter an asymmetric bullish channel. Its "bullish endgame" prediction states that LME prices must rise sharply enough to reverse the US-copper arbitrage window and force resources to flow out of the US to end this bull market caused by inventory mismatch.

K-Shaped Divergence in Asset Pricing and the Subsequent Evolution of "Fiscal Risk Premium". Southwest Securities believes that the current market is in a dangerous and divided period driven by "fiscal dominance", traditional macro logic has failed, and both US stocks and gold have become tools to hedge fiat currency credit risks. Southwest Securities' analysis points out that the market implies an interest rate gap of up to 600 basis points, and fiscal risks are temporarily priced by the extreme rise in gold prices; the future release of this risk will rely on the path of "gold falling, copper rising, and interest rates declining" for marginal mitigation, and investors should closely monitor the relative changes of these three.

Silver Pulls Back After "8 Consecutive Rises"—Will This "Silver Bull Market" "Crash After Hitting a New High" Like in 1980 and 2011? Analyst Craig Hemke believes that silver's current price pattern is more similar to gold's breakthrough process in 2023-2024 than the previous two silver bull markets. He expects silver's real breakthrough to occur in early 2026. "Like gold two years ago, silver is consolidating and building a bottom near historical highs." If a breakthrough is achieved next year, similar to gold's doubling since March 2024, silver may reach $100 per ounce in the mid-to-late 2027.

Copper Prices Hit a New High; Citi Sees Next Target at $13,000. Citi predicts that affected by US hoarding leading to supply shortages in other regions, copper prices will average $13,000 per ton in the second quarter of next year. Multiple bullish factors such as a more accommodative interest rate environment, US fiscal expansion, European rearmament, and energy transition will support the upward trend of copper prices until 2026.

EU Issues First Fine Under "Digital Services Act": Musk's X Fined €120 Million for Violating Content Laws. The European Commission imposed a €120 million fine on Musk's X platform under the Digital Services Act, marking the first penalty under the Act. The reasons include misleading users with paid blue badges, obstructing data access, and an incomplete advertising information database. X must rectify within 90 days, otherwise it will face additional penalties. The EU is continuously escalating supervision over US tech giants.

Reserve Bank of India Cuts Interest Rates by 25 Basis Points for the First Time in Six Months and Announces a Trillion-Rupee Bond Purchase Plan. The Reserve Bank of India will purchase bonds worth 1 trillion rupees ($11 billion) this month and conduct $5 billion in foreign exchange swap operations. The central bank governor stated that the move aims to address the threat of US high tariffs and support the rupee—the worst-performing Asian currency this year. After the news was announced, the rupee rose against the US dollar briefly but then pulled back into negative territory. India's 10-year benchmark government bond yield fell by 6 basis points to 6.45%, the largest drop since August 28.

# Overseas Companies

Broadcom's Earnings Report, the "Core of Google's Ecosystem", is Coming This Week. Reports from Citi and Goldman Sachs predict that driven by the opening of Google's TPU and the surge in AI spending, Broadcom's upcoming earnings report will exceed expectations again, and its AI revenue is expected to achieve triple-digit growth in fiscal year 2026. Although OpenAI's model of "capital expenditure far exceeding revenue" has been pointed out as showing signs of a bubble, Broadcom, as a core supplier, will continue to benefit from capital's pursuit of AI before demand cools down.

Oracle's Earnings Report, Linked to OpenAI, is Coming This Week! The Market Focuses on Two Key Issues. Analysts believe the earnings report may ease investor concerns in two key areas: first, the large-scale Stargate data center project co-built by Oracle and OpenAI . The project is progressing smoothly and will help the company release production capacity to meet a backlog of huge orders. Second, the company's management will provide more details on capital expenditure and financing needs, which may be lower than market consensus expectations.

Unprecedented "Burning Money"! Wall Street Calculation: OpenAI Will Accumulate Losses of $140 Billion Before Turning Profitable. Quoting data, Deutsche Bank predicts that OpenAI may accumulate losses exceeding $140 billion before turning profitable, with computing power expenditure far exceeding revenue expectations. To make matters worse, OpenAI's subscriber growth in major European markets is facing stagnation. Although the AI giant may continue to attract substantial capital, the market's scrutiny of its commercialization path is becoming increasingly stringent.

UBS Global Technology and AI Conference: AI Demand is "Insatiable"! AMD Proclaims This is Only the Second Year of a "Decade-Long Super Cycle". According to UBS meeting minutes, the AI industry is in the second year of a decade-long super cycle, with market demand being "insatiable and growing continuously". The core contradiction lies in supply bottlenecks rather than insufficient demand. Leading manufacturers represented by AMD and CoreWeave are aggressively expanding to meet future demand with tens of billions of dollars in orders and in-depth cooperation (such as AMD with OpenAI and Nebius with Microsoft). This indicates that the high prosperity of the industrial chain will last for several years.

Key Takeaways from Morgan Stanley's "AI Power Supply Summit": US Data Centers' Preference for "Off-Grid" Solutions Rises, Energy Storage Becomes Standard. Morgan Stanley stated that US data center developers face significant power shortage risks, with an expected supply-demand gap of 10-20% in 2027-2028. Affected by execution risks, demand for off-grid solutions has surged, and natural gas generators and energy storage systems have become standard configurations. Morgan Stanley emphasized that investors should "invest in the bottleneck links of AI deployment", as these constraints will become key determinants of stock price performance in 2026.

Report: Meta Delays Launch of "Phoenix" Mixed Reality Headset to "Polish More Details".

# Industries/Concepts

1. Securities Firms: Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), stated at the 8th Membership Congress of the Securities Association of China on December 6 that the CSRC will strive to strengthen classified supervision, support high-quality institutions and restrict inferior ones, appropriately ease restrictions on high-quality institutions, further optimize risk control indicators, moderately expand capital space and leverage limits, and improve capital utilization efficiency. Huachuang Securities believes that the securities industry has shifted from "defensive balance sheet contraction" in response to market volatility to "offensive balance sheet expansion" to seize business opportunities, opening up space for further improvement of subsequent ROE.

2. Hollow-Core Optical Fiber: China Telecom released the first cross-border hollow-core optical fiber and ultra-low latency commercial transmission system at the 2025 Digital Intelligence Technology Ecosystem Conference on December 5 . Latency is the core productivity in the AI era. To meet the needs of latency-sensitive businesses such as finance and intelligent computing, China Telecom has built the world's first cross-border commercial hollow-core optical fiber between Dongguan-Shenzhen-Hong Kong, with a total length of 110 kilometers. By optimizing the physical routing of the optical cable to take the shortest path, it has overcome the challenges of long-distance deployment and maintenance of hollow-core optical fibers, breaking the physical limits of traditional optical fibers. The optical signal transmission speed has increased by 30%, and the equipment processing latency has decreased by more than 40%.

3. Lab-Grown Diamonds: The 2025 Lab-Grown Diamond Industry Conference kicked off in Zhengzhou on the 6th, with 30 full-industry-chain projects signed on-site, involving a total investment of no less than 150 billion yuan. The conference also released the "2025 Lab-Grown Diamond Industry Development Report" and held activities such as industry dialogues and industry-education integration matchmaking meetings. Currently, the scale of China's lab-grown diamond market is about 14 billion yuan, and it is expected to exceed 102.5 billion yuan by 2030. China will become a 100-billion-yuan blue ocean with rapid growth in the lab-grown diamond market.

4. Cybersecurity: According to Xinhua News Agency, the Cyberspace Administration of China has drafted the "Measures for the Risk Assessment of Network Data Security (Draft for Public Comments)" and is now soliciting public opinions. The draft proposes that network data processors handling important data shall conduct annual risk assessments of their network data processing activities. If significant changes occur in the security status of important data that may adversely affect data security, a risk assessment of the changed part and its impact shall be conducted in a timely manner. Network data processors handling general data are encouraged to conduct risk assessments at least once every 3 years.

5. Agriculture: The Ministry of Agriculture and Rural Affairs will accelerate the construction of an agricultural and rural standard system adapting to high-quality development, and lead the high-quality development of agriculture and rural areas through standard upgrading. A relevant person in charge of the Ministry of Agriculture and Rural Affairs stated that standards are an important basic work to guide industrial transformation and upgrading and promote high-quality development. It is necessary to strengthen systematic planning, intensify work measures, improve management mechanisms, make standard formulation more scientific, the standard system more complete, and standard implementation more effective, so as to provide strong support for advancing the modernization of agriculture and rural areas and accelerating the construction of a strong agricultural country.

6. Hydrogen: According to Xinhua News Agency, the results conference on "thermally coupled direct seawater electrolysis for hydrogen production" was held in Rizhao, Shandong on December 6 . The conference revealed that China has successfully developed the first set of 110-kilowatt-class thermally coupled direct seawater electrolysis hydrogen production system, which has achieved continuous and stable operation for more than 500 hours. This marks a key breakthrough in China's direct seawater electrolysis for hydrogen production, moving from laboratory research to engineering application.

7. Innovative Drugs: On December 7, the National Healthcare Security Administration and the Ministry of Human Resources and Social Security issued the "National Basic Medical Insurance, Maternity Insurance and Work-related Injury Insurance Drug Catalog" and the "Commercial Health Insurance Innovative Drug Catalog" (2025 version). The 2025 national medical insurance drug catalog added 114 new drugs, including 50 Class 1 innovative drugs. At the same time, the first edition of the commercial insurance innovative drug catalog included 19 drugs, including tumor treatment drugs such as CAR-T, drugs for rare diseases such as neuroblastoma and Gaucher's disease, etc.

# Today's Key News Preview

- China's November import and export data.

- The Political Bureau of the Communist Party of China Central Committee meeting and the Central Economic Work Conference will be held in mid-to-early December.

- Kevin Hassett, the "Shadow Fed Chairman", will attend the Wall Street Journal CEO Council Summit, which runs until the 9th.

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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 and does not take into account the specific investment objectives, financial conditions or needs of individual users. Users should consider whether any opinions, views or conclusions in this article are in line with their specific circumstances. Investment based on this article is at the user's own risk.