Morning News

# Market Overview

Source: Wall Street CN

The U.S. House of Representatives is on the verge of ending the historic government shutdown. The Dow Jones Industrial Average (DJIA) has recorded four consecutive days of gains, hitting a new all-time high and surpassing the 48,000-point mark for the first time. However, tech stocks declined again, with the Nasdaq Composite Index and small-cap stocks underperforming for the second consecutive day. Over the past two days, the DJIA's outperformance relative to the Nasdaq has been the most significant since February. NVIDIA managed a narrow gain of 0.33% at the close. Meta led the decline among the "Magnificent Seven" tech giants, falling nearly 3%. AMD soared by 9%, leading the S&P 500 index. After releasing their earnings reports, Circle plummeted 12% while Cisco rose more than 7%.

Compared with Monday's closing levels, U.S. Treasury yields declined. The U.S. dollar surged initially but then reversed course to fall, dropping by as much as 0.3% from its daily high. Bitcoin experienced a "V-reversal" to the downside: it once rose above $105,000 but then plummeted sharply, falling more than 4% from its daily high and testing the $100,000 level again.

Gold posted four consecutive days of gains, rising 1.7% intraday and briefly climbing back to $4,200. Silver surged over 4%. U.S. crude oil prices slumped more than 4.2%.

During the Asian trading session, all A-share indices closed lower, with the photovoltaic sector leading the decline, while the pharmaceutical and banking sectors rose collectively. Hong Kong stocks were all in positive territory, with the new consumer sector continuing its upward momentum. Agricultural Bank of China's A-shares and H-shares hit new highs again, with its market value exceeding 3 trillion yuan.

# Key News

Li Ming, Vice Chairman of the China Securities Regulatory Commission (CSRC): We will resolutely prevent drastic fluctuations and sharp rises and falls in the market.

On Wednesday this week, Donald Trump will have dinner with CEOs from Wall Street.

Janet Yellen, U.S. Treasury Secretary: Trump mentioned providing a $2,000 tax rebate to households with an annual income of less than $100,000. She reaffirmed the "gradual" adjustment to U.S. Treasury issuance and emphasized that market stability is the top priority.

There have been new personnel changes at the Federal Reserve (Fed): the President of the Atlanta Fed, who advocated for "no interest rate cut in December," will retire in February next year. The "third-ranking official at the Fed" stated that the Fed may soon start restarting bond purchases to manage liquidity. The U.S. Supreme Court will hold a hearing on the case involving Fed Governor Lisa Cook, scheduled for January 21. AI has become a new variable affecting Fed policy, and a Fed Governor warned that AI has begun to weigh on employment growth.

The U.S. nonfarm payrolls report for September will be released as early as Friday, while the October nonfarm payrolls report may be "canceled." However, Goldman Sachs expects the September data to be "the worst since December 2020." A series of unofficial data indicates that U.S. inflation in October may cool sharply.

The Indian military has maintained a high level of alert, and Pakistan stated that it is "in a state of war." A bombing in the capital has escalated tensions between India and Pakistan.

Yang Zhilin (Kimi): When will the K3 be released? Before Sam Altman's trillion-dollar data center is completed.

Demand for AI servers remains strong. Hon Hai Precision Industry (Foxconn) reported a 17% year-on-year increase in Q3 net profit, exceeding expectations, and a 11% year-on-year growth in revenue.

A first for the U.S.: Waymo, a subsidiary of Alphabet, will provide autonomous driving taxis for highway travel.

Circle, a stablecoin issuer, reported a 66% year-on-year increase in Q3 revenue to $740 million, with profits far exceeding expectations. The circulating supply of its USDC stablecoin doubled year-on-year. However, due to investor concerns about declining interest rates, its stock price plummeted 12%.

CEO of Luckin Coffee: The company is preparing to restart its U.S. stock market listing, but there is no clear timeline yet.

OPEC lowered its global oil demand forecast, stating that the oil market shifted from "supply shortage" to "supply surplus" in Q3, leading to a 4% plunge in oil prices.

# Market Closing Quotes

U.S. and European Stock Markets:

- The S&P 500 Index closed up 0.06% at 6,850.92 points.

- The Dow Jones Industrial Average closed up 0.68% at 48,254.82 points.

- The Nasdaq Composite Index closed down 0.26% at 23,406.457 points.

- Europe's STOXX 600 Index closed up 0.71% at 584.23 points, continuing to hit a new all-time closing high.

A-Shares:

- The Shanghai Composite Index closed at 4,000.14 points, down 0.07%.

- The Shenzhen Component Index closed at 13,240.62 points, down 0.36%.

- The ChiNext Index closed at 3,122.03 points, down 0.39%.

Bond Market:

- The yield on the 10-year U.S. Treasury note fell by 4.47 basis points to 4.0713%.

- The yield on the 2-year U.S. Treasury note fell by 2.49 basis points to 3.5659%.

Commodities:

- WTI Crude Oil Futures for December delivery closed down 4.18% at $58.49 per barrel.

- Brent Crude Oil Futures for January delivery closed down 3.76% at $62.71 per barrel.

- COMEX Gold Futures closed up 2.15% at $4,204.90 per ounce.

# Details of Key News

## Global Highlights

### Li Ming, Vice Chairman of the China Securities Regulatory Commission (CSRC): Resolutely Prevent Drastic Market Fluctuations and Sharp Rises/Falls  

According to the Shanghai Securities News, Li Ming, Vice Chairman of the CSRC, stated that on the investment side, efforts will be made to continuously improve the market ecosystem for long-term capital and long-term investments, step up the implementation and effectiveness of plans to promote the entry of medium- and long-term funds into the market, continuously expand the scale and proportion of equity investments by social security funds, insurance funds, and annuities, deepen the reform of public funds, enrich index products suitable for long-term investment, and better leverage the role of medium- and long-term funds in maintaining stability and acting as a "ballast stone" for the market. In addition, efforts will be strengthened to build strategic reserve forces and market stabilization mechanisms, enhance the inherent stability of the capital market, and resolutely prevent drastic market fluctuations and sharp rises or falls.

### U.S. Government Shutdown Nears End: House to Vote on Interim Funding Bill Wednesday Night  

House Republican Leader Steve Scalise said a vote on the bill could take place around 7 p.m. ET on Wednesday, and he expects to secure sufficient support from Democratic lawmakers. The White House Press Secretary stated that the government shutdown could reduce fourth-quarter economic growth by 2 percentage points.

### Trump to Dine with Wall Street CEOs on Wednesday  

U.S. President Donald Trump is expected to host a dinner at the White House on Wednesday night with Wall Street executives, including the CEOs of Nasdaq and JPMorgan Chase. Analysts noted that the meeting aims to deepen the relationship between the Trump administration and the business community, and secure support for its economic agenda of strengthening the U.S. capital market and rebuilding key supply chains.

### U.S. Treasury Secretary Janet Yellen: Trump Mentioned $2,000 Tax Rebates for Households Earning Under $100k; Reaffirms "Gradual" Adjustments to Treasury Issuance, Emphasizes Market Stability as Top Priority  

Yellen reaffirmed that "large-scale" tax refunds will arrive in early 2026. She also revealed that the Trump administration will announce "substantial" tariff-related news in the coming days and plans to reduce tariffs on goods such as coffee and bananas. She expects U.S. real incomes to rebound in the first and second quarters of next year. She attributed the "minor setbacks" in the economy to the government shutdown, emphasizing that the economy was in good shape before the shutdown.  

Yellen stated that the scale of U.S. Treasury auctions will remain unchanged in the next few quarters, but the U.S. Treasury Department is "closely monitoring potential long-term changes in demand for specific U.S. Treasuries" and will make adjustments accordingly. She emphasized adhering to the principle of "regular and predictable" issuance, noting that considerations have begun to increase the scale of long-term bond issuance to diversify maturity dates, reduce refinancing risks, and avoid market disruptions.

### New Personnel Changes at the Federal Reserve! Atlanta Fed President Who Advocated "No December Rate Cut" to Retire in February Next Year  

Atlanta Fed President Raphael Bostic announced on Wednesday that he will retire when his current five-year term expires at the end of February next year. Analysts pointed out that Bostic’s departure will bring more uncertainty to the Fed, which is already experiencing other high-profile personnel changes and facing political pressure from President Trump to cut interest rates. On the same day, Bostic also stated that inflation remains a greater risk to the U.S. economy, and he tends to keep interest rates unchanged until there is clear evidence that inflation is moving toward the Fed’s 2% target.

### "Third-Ranking Fed Official": Fed May Soon Restart Bond Purchases to Manage Liquidity  

New York Fed President John Williams said that the Fed’s next balance sheet strategy will involve assessing when reserves reach a sufficient level. At that point, the Fed will begin gradually purchasing assets to maintain adequate reserve levels, as other Fed liabilities continue to grow and the potential demand for reserves increases accordingly. Fed Governor Michelle Bowman stated that the Fed cannot currently eliminate interest payments on reserves.

### U.S. Supreme Court to Hear Case Involving Fed Governor Lisa Cook on January 21!  

Additionally, in December, the U.S. Supreme Court will hear a case that could overturn a 1935 ruling protecting the leaders of independent agencies. The outcome may directly affect the direction of the Cook case and determine the scope of the U.S. President’s authority to dismiss heads of independent agencies.

### AI Becomes a New Variable in Fed Policy; Fed Governor Warns It Has Begun to Weigh on Job Growth  

Artificial intelligence is reshaping the U.S. job market and monetary policy. Fed Governor Michael Barr warned that AI has prompted companies to scale back hiring, potentially becoming a new main cause of slowing employment. Meanwhile, trillions of dollars in capital are pouring into data centers, which is expected to significantly boost productivity and bring unprecedented changes and challenges to the economy and policy-making.

### U.S. Government to Reopen; September Nonfarm Payrolls May Be Released as Early as Friday, October Data May Be "Lost" – But Goldman Sachs Expects It to Be "Worst Since December 2020"  

According to Goldman Sachs economists, the U.S. Bureau of Labor Statistics may release the delayed September nonfarm payrolls report this Friday, as data for the report was collected before the government shutdown. However, the October nonfarm payrolls data may be missing. Goldman Sachs expects U.S. official nonfarm employment to decline by 50,000 in October, marking the first negative growth in nearly three years.

### White House: U.S. October CPI and Employment Data May Never Be Released  

### Housing Rent Posts Largest Drop in 15 Years – Is U.S. October Inflation About to Collapse?  

A series of unofficial data shows that U.S. inflation may cool sharply in October. The core reason is a 0.31% month-on-month drop in housing rent, the largest decline in 15 years, which has shaken the biggest pillar of the CPI. At the same time, commodity prices have slowed significantly as merchants increase discounts. Although Goldman Sachs’ model predicts that core CPI will remain resilient, the weakening trend in rent and durable goods prices has led the market to begin expecting the Fed to adopt a more dovish stance.

### Indian Military on High Alert; Pakistan Says It Is "in a State of War" – Capital Bombings Escalate India-Pakistan Tensions  

According to the Global Times, a car bombing occurred near the Red Fort in New Delhi, India, on the afternoon of the 10th, killing at least 13 people and injuring 20. Police have arrested multiple suspects and launched an anti-terrorism investigation. The next day, a bombing also occurred in Islamabad, the capital of Pakistan, killing 12 people, with the terrorist organization "TTP" claiming responsibility. Tensions between the two countries have escalated sharply, and the India-Pakistan border has been placed on high alert. It is understood that there have been no casualties among Chinese citizens.

### Another "Shock" for Foreigners? Yang Zhilin (Kimi): When Will K3 Be Released? Before Sam Altman’s Trillion-Dollar Data Center Is Completed  

Is the $4.6 million training cost true? When will K3 be released? How far is AGI? Yang Zhilin’s team answered dozens of questions in one go.

### Strong Demand for AI Servers! Hon Hai’s Q3 Net Profit Up 17% YoY, Exceeding Expectations; Revenue Up 11%  

Driven by strong demand for AI servers, the company’s Q3 net profit reached NT$57.67 billion (approximately $1.89 billion), a year-on-year increase of 17%; revenue rose 11% year-on-year, in line with analysts’ expectations. This marks that the giant, known for being an iPhone contract manufacturer, is successfully developing a new high-growth business segment. Hon Hai’s chairman stated at the earnings conference that he is very optimistic about the prospects of artificial intelligence development in 2026 and will announce specific details of cooperation with OpenAI next week.

### Memory Upcycle "Far from Over"! Morgan Stanley: Investors Should Hold Memory Stocks Instead of "Timing the Market"; Be Cautious of Consumer Electronics and PCs Facing "Sharp Cost Rises"  

Morgan Stanley stated that the strength and duration of the AI-driven memory super cycle may far exceed market expectations. The core driving force has shifted from price-sensitive traditional customers to price-insensitive AI data centers. Recently, server DRAM quotation has soared by 70%, and spot prices have risen by 336%. The bank recommends that investors "hold positions" rather than trade based on market timing, and is optimistic about memory manufacturers with pricing power such as SK Hynix and Samsung. However, it warns that downstream consumer electronics sectors such as PCs and mobile phones will face severe cost pressures and profit squeezes.

### First in the U.S.: Waymo (a Subsidiary of Alphabet) to Offer Highway Self-Driving Taxis  

Waymo, a subsidiary of Alphabet, announced on Wednesday the launch of self-driving taxi services covering highway sections in San Francisco, Phoenix, and Los Angeles, becoming the first self-driving company in the U.S. to enter commercial operation on highways. Waymo stated that the highway service will be available 24/7 and plans to gradually expand to more cities. Analysts believe this marks a key turning point in Waymo’s commercialization and will enhance its competitiveness against ride-hailing and traditional taxi services.

### Stablecoin Issuer Circle’s Q3 Revenue Up 66% to $740 Million, Profits Far Exceed Expectations; USDC Circulation Doubles YoY  

Latest earnings reports show that Circle’s earnings per share (EPS) in the third quarter was 64 cents, 220% higher than the 20 cents expected by analysts. The company’s net profit from continuing operations was $214 million, indicating strong profitability of its core business. The significant growth in USDC circulation has become a key driver of Circle’s revenue growth. The circulation of the company’s stablecoin has more than doubled compared with the same period last year, reflecting sustained market demand for regulated stablecoins. However, investor concerns about falling interest rates outweighed the strong earnings report, leading to a 12% plunge in Circle’s stock price.

### Luckin Coffee CEO: Preparing to Restart U.S. IPO, but No Clear Timeline Yet  

Nearly five years after being delisted from Nasdaq due to an accounting fraud scandal, Luckin Coffee is preparing to return to the U.S. stock market. CEO Guo Jinyi confirmed the relevant plan but stated that there is no clear timeline yet, and the company’s current top priority is to focus on business operations and strategic implementation. Supported by Centurium Capital, Luckin has recovered and become China’s largest coffee retailer, and is currently accelerating its expansion into the U.S. market.

### OPEC Lowers Global Oil Demand Forecast; Q3 Shifts from "Supply Shortage" to "Supply Surplus" – Oil Prices Plunge 4%  

In its latest monthly report, OPEC stated that due to higher-than-expected U.S. production and increased supply from OPEC itself, the global oil market has shifted from a shortage to a surplus in the third quarter, with supply exceeding demand by approximately 500,000 barrels per day. The OPEC Secretariat raised its forecast for supply from non-OPEC+ countries by 890,000 barrels per day, more than half of which comes from the U.S.

## Domestic Macroeconomics

### Xin Shiping: Where Does China’s Market’s Strong "Magnetism" Come From?  

The "magnetism" of China’s large market stems from its scale advantages and open mindset. Open platforms such as the Canton Fair and the China International Import Expo demonstrate the strong vitality of China’s market. With a population of 1.4 billion and the world’s second-largest consumer market, China boasts super-large-scale advantages that attract global enterprises to participate in exhibitions and invest. China promotes development through opening up, providing development opportunities and a sound business environment for all countries. In the first nine months of this year, the number of newly established foreign-funded enterprises increased by 16.2% year-on-year, confirming that "investing in China is investing in the future."

### He Lifeng Meets with Heads of the National Committee on U.S.-China Relations, Stresses China and the U.S. Should Jointly Safeguard and Implement the Important Consensus and Outcomes of the Presidential Meeting to Promote Stable Development of China-U.S. Economic and Trade Relations  

According to Xinhua News Agency, He Lifeng stated that China and the U.S. have broad room for cooperation in the economic and trade fields. The two sides should work in the same direction, jointly safeguard and implement the important consensus and outcomes of the Busan meeting between the two heads of state, strengthen cooperation, manage differences, and promote the stable development of China-U.S. economic and trade relations. He expressed hope that the National Committee on U.S.-China Relations will make new contributions to promoting friendly cooperation between China and the U.S. He Lifeng also briefed the attendees on the relevant situation of the 4th Plenary Session of the 20th Central Committee of the Communist Party of China.

### High Tariffs on China? Domestic Opposition in Mexico Is Growing  

According to the Global Times, Mexico’s plan to impose high tariffs on China has been delayed again due to growing domestic opposition. Members of the ruling party and the manufacturing industry are concerned that this move will push up production costs and weaken industrial competitiveness. China responded by firmly opposing any coercive trade restrictions, emphasizing that it will safeguard its own interests and calling for joint efforts to defend the multilateral trading system.

### National Energy Administration: Study Supporting Eligible New Energy Integration Projects Through Local Government Special Bonds  

The administration mentioned optimizing the approval (filing), grid connection, and power business license application processes for new energy integration projects, and encouraging one-stop handling of relevant procedures for projects as a whole. It also encourages local governments to explore multi-party cooperation mechanisms for new energy and industry integration projects based on local realities. Additionally, it proposes studying the use of local government special bonds to support eligible new energy integration projects.

### Total Investment Exceeds $20 Billion – World-Class Simandou Iron Ore Mine Officially Put into Production; China Gains Greater Say in Global Iron Ore Pricing  

The world-class Simandou iron ore project was officially put into production on November 11, with reserves exceeding 4.4 billion tons and an iron grade of 65%. The project is led by Chinese enterprises, with deep participation from China Aluminum Group and China Baowu Steel Group. Its production will break the monopoly of the "Big Three" – Rio Tinto, BHP Billiton, and Vale. Analysts pointed out that "China has never had such a degree of pricing power in seaborne iron ore before."

### For the First Time, a Bank Eliminates Five-Year Time Deposit Products and Lowers Interest Rates for Other Tenures – What’s Happening?  

According to National Business Daily, pressure on banks’ net interest margins (NIM) is accelerating the transmission to the liability side. Inner Mongolia Tuyou Banner Mengyin Village Bank took the lead in eliminating five-year time deposit products, and many small and medium-sized banks have simultaneously lowered deposit interest rates. This liability-side reform driven by NIM pressure highlights that global financial institutions are optimizing their liability structures to cope with profit pressure.

## Domestic Companies

### A-Shares in the Midst of Style Rotation: Coal, Consumption, and Banking Sectors Surge in Turn – Who Will Be Next?  

Institutions believe that investors are shifting from pursuing "high future elasticity" to seeking "current certainty," and their investment philosophy is changing from simply "buying good assets" to "buying well" while considering valuations. A bull market will fill every "valuation gap," and it is expected that this round of market led by "traditional sectors" will continue throughout the fourth quarter.

### Valuation Recovery Rally Underway? Among the "Big Four" Banks, Why Did ABC’s PB Take the Lead in Surpassing 1x?  

TF Securities believes that Agricultural Bank of China’s (ABC) competitive edge lies in its outstanding performance in financial market business, with leading year-on-year growth in net other non-interest income in the first three quarters. Additionally, through a low proportion of TPL accounts, a duration control strategy, and accurate grasp of bond trading positions, ABC achieved floating profits during the bond market adjustment period. Furthermore, four fundamental factors – the potential for credit expansion driven by its deep cultivation in county-level finance, NIM resilience, and asset quality advantages – have also supported its valuation recovery. From a more macro perspective, the banking sector enters a seasonal "favorable period" from November to January of the following year.

### Rumors Trigger Plunge in the PV Sector; Industry Association and Related Companies Issue Urgent Denials – Secretary-General Vows: "We Will Not Stop Until We Eliminate Vicious Competition!"  

Online rumors claimed that the PV industry’s reserve purchase plan had "fallen through," triggering a sharp drop in the A-share PV sector, with the PV 50 ETF falling by more than 5% at one point. The China Photovoltaic Industry Association (CPIA) urgently denied the rumors, stating that relevant work is progressing steadily. Liu Yiyang, Executive Secretary-General of the CPIA, stated on his Moments that under the guidance of relevant ministries, the association will promote industry self-regulation and "anti-involution" efforts, drive the orderly exit of backward production capacity from both the supply and demand sides, and vowed, "We will not stop until we eliminate involution-driven vicious competition!"

### Huawei Unveils "Top 10 Inventions," Covering Technologies Such as Computing Power and Storage  

At the 6th Innovation and Intellectual Property Forum, Huawei released its "Top 10 Inventions," covering key technologies such as the Scale-up Super Node Computing Platform, next-generation ultra-high-capacity SSD storage, and short-range optical interconnection. These breakthrough inventions have doubled the performance of computing clusters and significantly increased the capacity of storage systems through full-stack architecture innovation, demonstrating Huawei’s core technological strength in the fields of computing infrastructure and storage.

# HSBC: Laopu Gold Expected to Break Free from Gold Price Cycles and Transform into a "Tiffany-Style" Luxury Brand  

HSBC stated that Laopu Gold’s growth logic is shifting from the "gold flywheel" (dependent on gold prices) to a "brand flywheel" driven by brand strength, which is expected to free it from the cyclical constraints of gold prices. Its market share in China’s high-end jewelry market has increased from 10% to 16%, and 77% of its customers overlap with those of Western luxury brands. HSBC believes Laopu Gold’s valuation system should be reshaped, and its brand attributes should align it with global luxury giants like Tiffany. Based on the Discounted Cash Flow (DCF) model, HSBC has set a target price of HK$973.70 for Laopu Gold.

## Overseas Macroeconomics  

### Multiple Positive Factors Converge; Wall Street Spares No Effort to Sprint for the U.S. Stock Market’s "Year-End Rally"  

Despite market volatility, the end of the government shutdown and expectations of Federal Reserve (Fed) interest rate cuts have provided solid support for the market. Investors are actively deploying call options to bet on the year-end rally. The resumption of corporate stock buybacks and inflows of retail capital have effectively offset systemic selling pressure. Combined with the upcoming earnings report of NVIDIA— which serves as a key indicator for the AI sector— multiple positive factors are driving a sustained recovery in market risk appetite.  

### "Young Deng Stocks" Underperform, "Old Deng Stocks" Take the Lead: A Rotation Signal Between "Growth and Value" in U.S. Stocks?  

The style of U.S. stocks has quietly shifted: the Dow Jones Industrial Average, represented by "Old Deng Stocks" (value stocks), has hit a new high, while the tech growth sector, represented by "Young Deng Stocks" (growth stocks), shows signs of fatigue. Analysts believe this rotation stems from concerns about the AI bubble and recognition of value stocks. This shift from "pure growth stocks" to "pure value stocks" has been ongoing since August and is currently accelerating.  

### Sentiment in the Crypto Market Remains Fragile; Bitcoin Fails to Stage a Decent Rebound Despite the End of the U.S. Government Shutdown  

After last month’s sharp decline, Bitcoin’s rebound has been weak. Although traditional risk assets rose due to the resumption of U.S. government operations, Bitcoin failed to break through key resistance levels, and ETF capital inflows have nearly dried up— highlighting insufficient market momentum. Technical indicators show Bitcoin is still suppressed by the 200-day moving average. Analysts have significant differences on whether the recent rebound is a "dead cat bounce" or a trend reversal, and market sentiment remains fragile.  

### Sharp Drop in Food Costs Pushes India’s October Inflation to a Record Low; Rate Cut Expectations Heat Up Again  

Driven by a record decline in food prices, India’s inflation rate rose by only 0.25% year-on-year in October, hitting a historic low. This figure is far below the central bank’s 4% target and latest forecasts, prompting the market to strongly expect an acceleration in India’s monetary easing. Analysts generally believe that sustained low inflation has paved the way for the central bank to cut interest rates consecutively in December and February next year.  

### Yuriko Koike’s Ambiguous Remarks Bolster Market Expectations of Rate Hikes: Central Bank Policy Is Crucial for the Economy and Inflation  

Japanese Prime Minister Yuriko Koike stated at a meeting of the government’s Economic and Fiscal Policy Council that monetary policy needs to balance a strong economy and stable inflation. Although she did not directly support interest rate hikes, she implied expectations for coordination between central bank and government policies. Her wording has shifted significantly to a more cautious stance compared to previous dovish positions. The market generally expects the Bank of Japan to raise interest rates by January next year.  

## Overseas Companies  

### Giants Explore "Creative" Off-Balance-Sheet Financing! These Three "Massive AI Financing Deals" Are So "Innovative" That All of Wall Street Is Watching  

Meta has designed a financing plan for its Hyperion mega data center that combines private equity, project financing, and investment-grade bonds. The core idea is to borrow money for the Hyperion project through "third parties." The interest rate on these bonds is as high as 6.58%, far exceeding the 5.5% yield of Meta’s similar corporate bonds. A financing vehicle established by Antonio Gracias— an ally of Elon Musk— raises funds by selling private equity and securing billions of dollars in leveraged debt financing from private credit funds, with the sole purpose of purchasing chips.  

### A Leading Indicator of the "AI Bubble": Bonds of U.S. Cloud Vendors Suffer Continuous Selling  

According to Bank of America data, the yield spread of a basket of bonds issued by "hyperscale vendors" (including Alphabet, Meta, Microsoft, and Oracle) relative to U.S. Treasury bonds has climbed to 0.78 percentage points— the highest level since the market turmoil triggered by Trump’s tariffs. This may be a "leading indicator" for the risk reassessment of the entire AI narrative.  

### Anthropic Plans to Spend $50 Billion on Data Centers; First Locations to Be in Texas and New York (U.S.)  

The first batch of data centers is scheduled to be put into use in 2026.  

### Meta Commits to Spending Over $1 Billion to Build a Data Center in Wisconsin (U.S.)  

The project is expected to be operational in 2027 and will create approximately 100 full-time jobs.  

### Wall Street Giant Enters the Fray: JPMorgan Launches JPM Coin, a U.S. Dollar Deposit Token Enabling 24/7 Trading and Seconds-Level Payments  

JPMorgan has officially launched JPM Coin, a U.S. dollar deposit token that enables 24/7 seconds-level settlement via blockchain— ushering in a new era of payment and settlement. The deposit token generates interest and has been accepted by mainstream institutions such as Coinbase, providing an innovative model for the integration of traditional finance and digital assets and accelerating competition among global giants.  

## Industries/Concepts  

### 1. PCB  

The Ministry of Industry and Information Technology (MIIT) has publicly solicited opinions on the "Standards for the Printed Circuit Board (PCB) Industry and Measures for Announcement Management (Draft for Comments)." The draft proposes strictly controlling new PCB projects with low technological levels that merely expand production capacity. It encourages the clustered development of the PCB industry and the construction of industrial parks with complete supporting facilities. Enterprises are encouraged to improve quality and strengthen competitiveness, enhance technological and management innovation, improve product quality and production efficiency, and reduce production costs. Efforts will be made to build a group of enterprises with international influence, leading technology, and characteristics of "specialization, refinement, differentiation, and innovation."  

**Commentary**: China Securities Journal points out that the PCB industry, as a basic pillar of the electronic information industry, has continued to expand in scale and accelerate transformation and upgrading driven by the global technological revolution in recent years. It is expected that the global market size will reach $96.8 billion by 2025. As the world’s largest producer, China contributes over 50% of the global output value and will maintain a compound annual growth rate of approximately 5.2% in the next five years. High-endization, intelligentization, and greenization have become the core development directions. With the extension of AI technology to the end-side and edge-side, and the continuous development of 5G communications, smart cars, and data centers, the application scenarios of PCB will continue to expand, and there will be sustained room for technological upgrading.  

### 2. Artificial Intelligence (AI)  

According to China Securities Journal, Tencent Holdings will release its Q3 2025 earnings report on Thursday, November 13. Institutions expect the company to achieve revenue of RMB 189.18 billion in Q3 2025, a year-on-year increase of 13.15%. Among its business segments, Tencent Cloud Services is expected to see the fastest growth, with a year-on-year increase of over 20%. Tencent Cloud has shown a clear recovery trend, and its growth momentum mainly comes from the explosive demand for AI computing power. Technically, the upgrade of Tencent’s Hunyuan 3D 3.0 generative model has further strengthened its advantages in the field of AI-native services, providing professional 3D content generation capabilities for industries such as games and e-commerce. At the same time, Tencent has optimized resource scheduling and utilization through AI technology, effectively improving the overall gross profit margin of its cloud business.  

**Commentary**: Reports indicate that since the acceleration of its AI strategy in the fourth quarter of last year, Tencent’s cumulative capital expenditure has reached RMB 83.16 billion. Currently, AI has become Tencent’s "new business DNA." Up to now, the scale of Tencent Cloud’s overseas customers has doubled year-on-year in the past year. Over 90% of China’s Internet enterprises and more than 95% of leading game companies choosing to expand overseas have selected Tencent Cloud. Against this background, Tencent Cloud service providers will benefit from the rapid development of Tencent’s cloud business.  

### 3. Sulfuric Acid  

According to Baichuan Data, the price of sulfuric acid has soared continuously recently. The current price of sulfuric acid is RMB 773 per ton— an increase of 111% compared to RMB 366 per ton on January 21 this year, 405% compared to RMB 153 per ton on January 31, 2024, and 740% compared to RMB 92 per ton on May 26, 2023— hitting a 10-year high.  

**Commentary**: Industry analysts believe that the skyrocketing price of sulfuric acid is the result of multiple overlapping factors, with the core logic being cost-driven and supply-demand imbalance. The new energy industry (lithium iron phosphate batteries, semiconductors) has seen a surge in demand for sulfuric acid, while the supply of traditional sulfur (as a by-product of petrochemicals) is restricted due to the "dual carbon" goals (carbon peaking and carbon neutrality), exacerbating the supply-demand mismatch.  

### 4. Electric Power  

On November 12, the National Energy Administration released the "Guiding Opinions on Promoting the Integrated Development of New Energy." The document mentions actively promoting the integrated and mutually reinforcing development of new energy and emerging industries. In conjunction with the construction of the "Eastern Data and Western Computing" project, it will coordinate the green power demand of computing facilities and the endowment of new energy resources, promote the coordinated planning of new energy bases and computing facilities, and explore the construction of computing facilities near offshore wind power bases. It will tap into the spatiotemporal adjustability potential of computing load by category, promote the integrated operation of power and computing networks, and provide green power support for accelerating the construction of a national integrated computing network. In regions rich in new energy resources and with solid manufacturing foundations, it will promote the coordinated layout and clustered development of emerging industries (such as new materials, high-end equipment manufacturing, and energy conservation and environmental protection) and new energy, accelerating the formation of a new "new-for-new" industrial ecosystem.  

**Commentary**: Guojin Securities believes that the urgent demand for electric power driven by AI computing power, combined with the global demand of most countries to reduce carbon emissions, will jointly drive a large cycle of clean energy and new power grid construction worldwide in the next 3-5 years.  

### 5. Artificial Intelligence (AI)  

The Baidu World 2025 Conference was held in Beijing on November 13. According to official information, the conference, themed "Efficacy Emerges | AI in Action," showcased Baidu’s latest achievements in AI applications, large models, AI ecology, and overseas expansion. Robin Li, founder of Baidu, delivered a speech at the main forum and is expected to announce multiple key updates. As AI enters a critical point of large-scale application, Baidu World 2025 focused on cutting-edge topics such as AI agents, digital humans, AI computing, and smart hardware, and set up multiple sub-forums to explore the next stage of technology-enabled applications together with users, developers, and corporate partners.  

**Commentary**: Huatai Securities stated that AI is reshaping Baidu’s long-term narrative. With the continuous iteration of AI large model capabilities and the increasing penetration of AI applications in the industry, it is expected that Baidu’s AI-related businesses will be revalued as their scale continues to expand.  

### 6. Robotics  

On November 12, Superstar Legend issued an announcement stating that its wholly-owned subsidiaries— Star Creative (Kunshan) Entertainment Co., Ltd. and Beijing Lingyi Technology Co., Ltd. (a wholly-owned subsidiary of Unitree Robotics)— have signed a joint venture cooperation agreement. The two parties agreed to jointly establish Yuxing Entertainment Technology Co., Ltd., with each holding a 50% stake in the joint venture. According to the announcement, the two parties will jointly develop globally influential interactive intelligent robots for performing arts and entertainment, provide users with entertainment and technology experiences, and plan, produce, and implement commercial concert performance services using robots.  

**Commentary**: Guojin Securities stated that humanoid robots, as the core carrier of new-quality productive forces, are driving industrial transformation and efficiency revolutions. It is recommended to focus on leading companies in niche segments with high technological barriers and increasing penetration rates.  

## Preview of Today’s Key News  

- U.S. Department of the Treasury auctions $25 billion of 30-year Treasury bonds.  

- Speeches by Mary Daly (President of the Federal Reserve Bank of San Francisco), Adriana Kugler (President of the Federal Reserve Bank of St. Louis), and Loretta Mester (President of the Federal Reserve Bank of Cleveland).  

- Release of the UK’s Q3 GDP data.  

- Earnings reports released by Tencent, JD.com, SMIC, and Bilibili.  

- Release of U.S. EIA crude oil inventory changes for the previous week.  

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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 status, or needs of individual users. Users should consider whether any opinion, view, or conclusion in this article is consistent with their specific situation. Investment decisions made based on this article shall be the sole responsibility of the investor.