Morning News

# Market Overview

Source: Wall Street CN

Ahead of Thanksgiving, tech stocks propelled the three major U.S. stock indices to a fourth consecutive day of gains. The S&P 500 and Nasdaq closed at two-week highs; Dell, which raised its full-year earnings forecast and AI server guidance, closed up nearly 6%; NVIDIA's supply chain rebounded, with NVIDIA rising over 2% and Coreweave jumping more than 4%; Google pulled back 1%, slipping from its record high, while Broadcom climbed over 3% to hit a new all-time high. Chip stocks led the gains in European equities, with ASML surging nearly 6%.

Chinese concept stock indices halted their three-day winning streak; Alibaba and Baidu saw intraday "flash drops" of 4.5% and 3.6% respectively.

The UK fiscal budget drew attention, with long-term UK gilt yields plummeting by over 10 basis points; after the release of U.S. unemployment data, U.S. Treasury yields refreshed their daily highs, but later the 10-year U.S. Treasury yield turned lower and fell back below 4.0%.

As expectations of interest rate cuts heated up, the U.S. Dollar Index dropped for three consecutive days to a one-week low; the British Pound rose for five straight days and hit a nearly one-month high after the announcement of the UK fiscal budget; offshore RMB gained over 100 pips intraday to a new high in more than a year, breaking above 7.07 intraday for the first time in 13 months; cryptocurrencies rebounded, with Bitcoin climbing nearly 5% intraday and breaking above $90,000 intraday for the first time in nearly a week.

Commodities rose generally. Crude oil moved away from its one-month low, gaining over 1% intraday. Gold futures recorded a fourth consecutive day of gains, closing at a nearly two-week high.

During the Asian trading session, the ChiNext Index rose over 2%, Zhongji Innolight hit a new high, Vanke bonds were suspended from trading, property stocks surged and then pulled back, and Meituan in Hong Kong stocks rose over 5%.

# Key News

- Six ministries including China's Ministry of Industry and Information Technology: Promote the orderly development of new business formats such as live-streaming e-commerce and on-demand retail, and drive the application of artificial intelligence (AI) in the entire industry, all fields, and the whole process of consumer goods.

- China's Ministry of Commerce: Urge the Dutch government to put forward a constructive solution for Nexperia as soon as possible to create favorable conditions for enterprises to conduct internal consultations.

- Vanke discussed bond extension for the first time in its history; the company announced plans to hold a meeting of bondholders for the 4th tranche of medium-term notes in 2022.

- The number of initial jobless claims in the U.S. last week unexpectedly decreased instead of increasing, falling to 216,000, a seven-month low; U.S. durable goods orders for September (initial value) increased by 0.5% month-on-month, in line with expectations, and the growth rate of core capital goods orders accelerated more than expected to 0.9%.

- Federal Reserve Beige Book: Over more than a month covering the government shutdown period, economic activity saw little change; tariff pressures squeezed corporate profits; AI restrained some recruitment demand; retailers reported that the government shutdown had a negative impact on consumption.

- UK Chancellor of the Exchequer announced a £26 billion tax increase plan; new stocks on the London Stock Exchange will be exempt from stamp duty for three years; the official budget watchdog unexpectedly leaked the budget in advance: the fiscal buffer doubled to £22 billion, and the 2026 GDP growth forecast was sharply lowered to 1.4%.

- Donald Trump stated that significant progress has been made in promoting peace talks with Russia, but there is "no deadline"; Assistant to the Russian President: U.S. Special Envoy Witkov will visit Moscow next week; Russian Presidential Spokesperson: The timing of contact with the U.S. has not been determined, and it is "too early" to talk about the end of the Russia-Ukraine conflict.

- Oracle rose over 6% intraday; "bottom-fishing" Wall Street institutions Deutsche Bank and HSBC predict that its stock price is expected to rebound by 90%.

- Apple may face a fine of up to $38 billion in an antitrust case in India.

- Li Auto swung from profit to loss: Q3 revenue fell 36% year-on-year, net loss reached 624 million yuan, and Q4 guidance was nearly 30% lower than expected; during the earnings call: Li Xiang announced a return to the entrepreneurial model and bet on embodied intelligence, with plans to deliver self-developed M100 chip AI system in 2026; Li Xiang said that an AI smart glasses will be launched.

- The race for the "first domestic GPU stock" is in the final stretch: following Muxi Threads, Muxi Semiconductor is also on the way.

# Market Closing Quotes

## U.S. and European Stock Markets

- S&P 500: Rose 0.69% to close at 6,812.61 points

- Dow Jones Industrial Average: Rose 0.67% to close at 47,427.12 points

- Nasdaq Composite Index: Rose 0.82% to close at 23,214.69 points

- Europe's STOXX 600 Index: Rose 1.09% to close at 574.21 points

## A-Share Market

- Shanghai Composite Index: Fell 0.15% to close at 3,864.18 points

- Shenzhen Component Index: Rose 1.02% to close at 12,907.83 points

- ChiNext Index: Rose 2.14% to close at 3,044.69 points

## Bond Market

By the end of the bond market session:

- U.S. 10-year benchmark Treasury yield: Approximately 3.99%, down about 1 basis point intraday

- U.S. 2-year Treasury yield: Approximately 3.47%, up about 1 basis point intraday

## Commodities

- WTI Crude Oil Futures (January contract): Rose 1.21% to close at $58.65 per barrel

- Brent Crude Oil Futures (January contract): Rose 1.04% to close at $63.13 per barrel

- LME Aluminum Futures: Rose approximately 2.1% to close at $2,861 per ton

- COMEX Gold Futures (February contract): Rose 0.6% to close at $4,202.3 per ounce

- LME Zinc Futures: Rose approximately 2.1% to close at $3,056 per ton

- LME Copper Futures: Rose nearly 1.5% to close at $10,975 per ton

# Details of Key News

## Global Highlights

### China's MIIT and Five Other Ministries: Orderly Develop New Business Formats and Promote AI Application in Consumer Goods Industry  

China's Ministry of Industry and Information Technology (MIIT) and five other ministries stated that they will promote the orderly development of new business formats such as live-streaming e-commerce and on-demand retail, and drive the application of artificial intelligence (AI) in the entire industry, all fields, and the whole process of consumer goods. In the *Implementation Plan on Enhancing the Adaptability of Consumer Goods Supply and Demand to Further Promote Consumption* issued by the six ministries, it is mentioned that by 2027:  

- The supply structure of consumer goods will be significantly optimized;  

- 3 trillion-yuan-level consumer sectors and 10 100-billion-yuan-level consumer hotspots will be formed;  

- A batch of high-quality consumer goods with rich cultural connotations and global reputation will be created.  

By 2030, a high-quality development pattern featuring positive interaction and mutual promotion between supply and consumption will be basically formed, and the contribution rate of consumption to economic growth will steadily increase.  

### Vanke Faces Critical Moment for Debt, Discusses Bond Extension for the First Time in History  

According to Shanghai Securities News, on November 26, the reporter learned from the official website of the National Association of Financial Market Institutional Investors that Vanke plans to hold a bondholder meeting for its 4th tranche of medium-term notes in 2022 to discuss matters related to bond extension, aiming to steadily advance the principal and interest repayment work.  

### U.S. Initial Jobless Claims Unexpectedly Fell to 216,000, a Low Since Mid-April  

In the week ending November 22, the number of initial jobless claims in the U.S. decreased by 6,000, contrary to economists' expectations of an increase of 3,000 month-on-month, dropping to 216,000—a seven-month low. Although initial jobless claims remained stable, the number of continuing jobless claims in the previous week rose slightly to 1.96 million, indicating that it is becoming more difficult for unemployed people to find new jobs.  

### U.S. Durable Goods Orders Rose 0.5% MoM in September (Preliminary), Core Capital Goods Orders Surpassed Expectations  

U.S. durable goods orders (preliminary value) increased by 0.5% month-on-month in September, in line with expectations. Core capital goods orders jumped 0.9% MoM, maintaining strong growth for two consecutive months and far exceeding market expectations, reflecting solid corporate willingness for capital expenditure. Although overall durable goods orders growth slowed to 0.5% due to drag from industries such as transportation, orders excluding transportation still rose 0.6%, exceeding expectations. Against the backdrop of manufacturing pressure, the upsurge in AI investment is driving some manufacturing sectors to strengthen against the trend, providing support for the economy.  

### Fed Beige Book: Economic Activity Little Changed Amid Government Shutdown; AI Restrains Hiring Demand  

The Beige Book pointed out that over more than a month covering the government shutdown period, economic activity saw little change. Tariff pressures squeezed corporate profits, and AI restrained some recruitment demand. Key findings include:  

- Overall consumer spending (excluding high-end consumers) declined further, becoming the main drag on economic stagnation;  

- Some retailers reported that the government shutdown had a negative impact on consumption;  

- Low-income groups were directly affected during the shutdown, with increased demand for food assistance and disrupted distribution of SNAP benefits;  

- Some enterprises noted that AI has replaced entry-level positions, and improved productivity has suppressed demand for new hires.  

### UK Gilts Rose as Budget Leaked Unexpectedly Early: Fiscal Buffer Doubled to £22 Billion, 2026 GDP Growth Sharply Cut to 1.4%  

The Office for Budget Responsibility (OBR) report showed that the fiscal buffer doubled to £22 billion, exceeding expectations. However, the OBR sharply lowered its 2026 GDP growth forecast to 1.4%. UK gilt yields fell as interest rate cut expectations heated up. The report confirmed the freeze of income tax thresholds and the introduction of a "mileage tax" on electric vehicles, while warning of tighter public spending in the future.  

### UK Chancellor Reeves Unveiled Fiscal Budget, Including £26 Billion Tax Hike Plan  

UK Chancellor of the Exchequer Jeremy Hunt announced a fiscal budget package, including a total £26 billion tax increase plan and a three-year stamp duty exemption for new stocks listed on the London Stock Exchange. However, before the official release, the OBR—the UK's official budget watchdog—accidentally leaked the content of the government's fiscal budget report on its official website in advance.  

### U.S. Envoys Shuttle Between Russia and Ukraine for Peace Talks; Trump Claims "Great Progress" Without Deadline  

Donald Trump claimed that "great progress" has been made in Russia-Ukraine peace talks, but the two sides have not yet reached an agreement on core terms such as territorial division and restrictions on Ukraine's military scale. Although the peace plan was reduced from 28 provisions to 19, and Europe's attitude has turned cautiously optimistic, Ukraine denied fully accepting the draft. Russia and Ukraine continue to engage in indirect negotiations through envoys, and Trump emphasized that there is "no deadline" for the talks.  

### Kremlin Spokesman: Timing of U.S. Contact Undecided; "Too Early" to Talk About End of Russia-Ukraine Conflict  

According to Xinhua News Agency, Kremlin spokesman Dmitry Peskov said on Wednesday, November 26, that the timing of contact between Russia and U.S. Middle East envoy Witkov has not yet been determined. He stated that it is "too early" to conclude that the conflict between Russia and Ukraine will end.  

### Russian Presidential Aide: U.S. Envoy Witkov to Visit Moscow Next Week  

According to CCTV News, on November 26 (local time), Russian Presidential Aide Yury Ushakov stated that Russia and the U.S. have reached a preliminary agreement, and U.S. Middle East envoy Witkov will visit Moscow next week.  

### How Did Google Achieve "AI Comeback"? CEO Pichai Talks About Gemini 3, Vibe Coding and Full-Stack AI Strategy  

Sundar Pichai said that Google's full-stack innovation from chips to applications is creating a multiplier effect, and Gemini has become the core link across all product lines. "Vibe Coding" is lowering the threshold for programming, enabling non-technical personnel to create applications—a capability comparable to the impact of blogs and YouTube on writing and video creation. He predicted that in about five years, people will be extremely excited about quantum technology, just as they are about AI today.  

### NVIDIA's Stock Price Dropped Over 10% This Month, Market Value Evaporated Over $700 Billion  

NVIDIA's stock price decline is mainly due to market concerns about the loosening of its monopoly in AI chips. Tech giants such as Google are accelerating the development of their own chips, while competitors like AMD are catching up. Nevertheless, NVIDIA's revenue is expected to grow by 63% this year, far exceeding that of its peers, and its price-to-earnings ratio has dropped to 25 times, lower than the average level of major tech companies. Among 80 Wall Street analysts, 74 still maintain a "buy" rating, remaining optimistic about its long-term prospects.  

### NVIDIA Responded to "Big Shorts" via Private Letter, Then Claimed "Leading Google"—Is It Panicked?  

NVIDIA's defensive moves failed to meet expectations, and some analysts believe that these responses have instead exposed its "dilemma". As a leading company in the industry, it should not need to respond to every question raised outside of earnings seasons; truly confident leaders speak through products and performance. NVIDIA's actions may have instead fueled existing concerns in the market.  

### Rise of Google's TPU Chips: Does NVIDIA Need to Panic in the Short Term?  

The "defection" of key customers means NVIDIA is no longer the only option. Citi believes that NVIDIA's position remains stable in the short term, but at the same time predicts that its market share in AI chips will gradually decline from 90% to 81% by 2028.  

### Oracle Rose Over 6% Intraday; Wall Street "Bottom-Fishers" Predict 90% Rebound  

Deutsche Bank argued that the reasons for investors' bearish views on Oracle should actually be seen as positive. Based on Oracle's current stock price of approximately $200, the market has barely given any valuation to its OpenAI-related business. HSBC pointed out that investors' concerns about Oracle's remaining performance obligations (RPO) exceeding $500 billion stem from insufficient information. The market "filled in the gaps on its own in the absence of specific information", causing unnecessary panic.  

### SoftBank Plummeted 40% Since Late October, Becoming a "Bellwether of the OpenAI Chain"  

SoftBank, which made heavy bets on OpenAI, has been exposed to AI valuation volatility, with its stock price plummeting by approximately 40% since late October. The strong launch of Google Gemini 3.0 has heightened market concerns about OpenAI's competitiveness, making SoftBank's huge investment seem far riskier. Although Masayoshi Son continues to increase investment in AI chips and infrastructure, market sentiment has shifted to caution.  

### OpenAI Co-Founder Ilya Sutskever Announced the End of the "Scaling Era"  

The renowned AI expert made a groundbreaking statement: "Scaling Law is dead".  

### Former a16z Partner's Heavyweight Tech Report: How AI Is "Eating the World"  

Benedict Evans, former partner at a16z, pointed out that generative AI is triggering another 10-15 year platform migration in the tech industry, but its final form remains highly uncertain. He cited the 1956 U.S. Congressional report on automation and the disappearance of elevator operator jobs as a reminder: when technology is truly implemented, it quietly becomes infrastructure and is no longer called "AI".  

### Li Auto Swung from Profit to Loss: Q3 Revenue Fell 36% YoY; Bets on Embodied Intelligence  

Li Auto reported a shift from profit to loss in Q3: revenue fell 36% year-on-year, net loss reached 624 million yuan, and Q4 guidance was nearly 30% lower than expected. During the earnings call, Li Xiang announced a return to the entrepreneurial model and a bet on embodied intelligence, planning to deliver the self-developed M100 chip AI system in 2026.  

Key financial data from the earnings report:  

- Overall gross profit margin in Q3 dropped to 16.3%, a 5.2-percentage-point decrease from 21.5% in the same period last year;  

- Vehicle gross profit margin fell to 15.5%, far lower than 20.9% in the same period last year;  

- Operating cash flow in Q3 was -7.4 billion yuan, compared with +11 billion yuan in the same period last year;  

- Free cash flow reached -8.9 billion yuan, a sharp contrast to the +9.1 billion yuan positive figure in the same period last year.  

Xie Yan, CTO of Li Auto, stated that the company's self-designed M100 AI inference chip is undergoing large-scale system testing and is expected to be commercialized next year. After collaborative design with the basic model compiler and software system, its performance-cost ratio will be more than three times that of current high-end chips. Li Auto is developing a vehicle basic model for physical AI, focusing on improving perception, understanding, and response capabilities, and the development of the next-generation platform and chips has been launched.  

Li Xiang released a video on social platforms, saying that Li Auto will launch AI smart glasses and is also evaluating AI speakers.  

### Race for "First Domestic GPU Stock" Heats Up: Muxi Semiconductor to Launch IPO After Muxi Threads  

Muxi Semiconductor will officially launch its IPO subscription on December 5. The company plans to issue 40.1 million shares and raise 3.904 billion yuan for R&D of three major GPU projects. Its new-generation C700 series products have performance comparable to NVIDIA's H100.  

## Wall Street's Outlook for 2026

### Goldman Sachs Launches "Most Important Trade for 2026": AI Productivity Beneficiary Portfolio  

Goldman Sachs recently launched a new portfolio named GSXUPROD, which includes a number of non-tech companies covering industries such as finance, retail, logistics, healthcare, and catering. These companies have clearly integrated AI into their workflows to reduce costs and improve profit margins. Goldman Sachs believes that the potential change in benchmark earnings per share (EPS) of the GSXUPROD portfolio, driven by AI adoption and labor productivity improvement, is higher than that of the Russell 1000 Index and the S&P 500 Index.  

### JPMorgan (Wall Street's "Most Optimistic Bull"): AI Super Cycle to Drive S&P 500 to Break 8,000 Points in 2026  

JPMorgan released the most optimistic forecast on Wall Street, setting a base target of 7,500 points for the S&P 500 Index by the end of 2026, with the potential to break 8,000 points if the Federal Reserve further eases policies. The core drivers of this optimistic expectation are the AI super cycle and the resilient U.S. economy. Although the report is bullish on the high profitability of AI stocks, it warns that the market may face extreme concentration of "winner-takes-all" and severe volatility.  

## China's Macroeconomics

### Yuyuantan Tian: China-U.S. Call Sends Signal—Resolutely Block Any Attempt to Revive Militarism  

According to an article by Yuyuantan Tian, on the evening of November 24, the heads of state of China and the U.S. held a phone call. The author noted that this was the first time in nearly a decade that "militarism" was directly mentioned in exchanges between the Chinese and U.S. heads of state. During the call, the two sides also mentioned the history of fighting fascism and militarism side by side, sending a clear signal: the emerging signs of the revival of Japanese militarism should be regarded as a common challenge facing the international community, and urgent joint responses from all countries are needed.  

The author sorted out that relevant statements have changed: from warning against "preventing the revival of the ghost of militarism" in the past to emphasizing "resolutely blocking any attempt to revive militarism" recently. This upgrade in wording directly corresponds to a series of actions taken by Japan in recent years.  

### Ministry of Commerce: Urge Dutch Government to Propose Constructive Solution for Nexperia  

China's Ministry of Commerce urged the Dutch government to put forward a constructive solution for Nexperia as soon as possible, creating favorable conditions for enterprises to conduct internal consultations.  

### Cyberspace Administration of China: Optimize Business Environment, Strengthen Management of Financial "We-Media" and MCN Accounts  

A meeting held by the Cyberspace Administration of China required that:  

- Cyber authorities at all levels should strengthen organizational leadership, promote implementation at a high level, maintain a high-pressure stance, increase efforts to deal with online infringements against enterprises, strengthen publicity and guidance, improve policy interpretation, and expose typical cases;  

- Online platforms should adhere to a problem-oriented approach, strictly fulfill their main responsibilities, improve the ability to detect and handle obvious enterprise-related infringing information, strengthen the management of financial "we-media" and MCN institution accounts, and continuously improve the accuracy of handling illegal information and accounts.  

### RMB Breaks 7.10 Again: What's Different This Time?  

The latest RMB appreciation occurred against the backdrop of a relatively strong U.S. Dollar Index (DXY). Currently, the DXY is hovering above the 100 mark, forming a "dual strength" pattern with the RMB. This round of RMB appreciation is driven by the consensus of "selling foreign exchange at high levels" and the mitigation of political disputes. Although the RMB may temporarily find it difficult to break through strong resistance from the perspective of the DXY, experience from previous consolidations shows that the general direction of appreciation is recognized by the market—only the pace varies.  

### "Paying to Process Copper Concentrates"? China Non-Ferrous Metals Industry Association: Firmly Oppose Irrational Behavior in the Industry  

Chen Xuesen, Vice President of the China Non-Ferrous Metals Industry Association, stated at an industry conference held in Shanghai on Wednesday that negative processing fees have seriously harmed the interests of the global copper smelting industry, including China. China is drawing on experience from the aluminum industry to take measures to manage copper smelting capacity, and has curbed overexpansion by halting approximately 2 million tons of illegal capacity. This is the first time that China's industry authority has publicly addressed the chaos in the processing fee market.

# Domestic Companies

## Why Did Alibaba's Stock Price "Open High and Go Low" After Earnings Report? Goldman Sachs: AI and Cloud Business Outperformed Expectations, but "Short-Term Volatility" Remark in Earnings Call Fueled E-Commerce Worries  

Goldman Sachs believes that the key reason for the reversal of Alibaba's stock price lies in the company's management warning during the earnings call that, due to intensified competition and reinvestment, the growth rate of e-commerce customer management revenue will slow down and profits will experience "short-term volatility". However, the bank still maintains a "buy" rating on the company, stating that "Alibaba's AI + cloud business will continue to maintain a leading position in China, while the basic profits of its e-commerce business will stabilize, and the losses of its on-demand retail business will narrow in the next few quarters".  

## Alibaba's "Growth Strategy 2.0": From "At All Costs" to "Efficient Growth", Q3 as Profit Inflection Point  

JPMorgan stated that Alibaba's comprehensive profits are expected to hit an inflection point in Q3 2025 and recover significantly in Q4. The core drivers come from a sharp narrowing of losses in the food delivery business, which is expected to narrow by 40% quarter-on-quarter to 21 billion yuan in Q4; at the same time, the cloud business will grow rapidly driven by strong AI demand, with an expected year-on-year growth of 37% in Q4.  

## Morgan Stanley: The Growth Logic of Alibaba Cloud Remains "Intact", and the Market Has Not Fully Priced It In  

Morgan Stanley said that Alibaba now represents a typical recovery story of "accelerated cloud growth + narrowing losses in on-demand e-commerce", and the current stock price has not fully factored in the explosive potential of the AI-driven cloud business. The cloud business is the core driver of the stock price in the future, and the tight supply-demand relationship will support revenue growth in the next few quarters. It is expected that the revenue growth rate in Q4 will accelerate to 36%.  

## Citi's Survey on Chinese Humanoid Robot Companies: Everyone Is Optimistic; the Industry May Achieve Exponential Growth in 2026, Doubling at Least!  

Citi's latest research report shows that the global output of humanoid robots will enter a phase of exponential growth in 2026, which is expected to be at least double that of 2025. The growth path of all links in the industrial chain is clear: upstream core components have high unit value and rigid demand; whole-machine enterprises are accelerating order acquisition and mass production progress. The industry is moving from technology verification to large-scale mass production, and has high-certainty long-term investment value.  

## More Assets of Xu Jiayin's Ex-Wife Ding Yumei Exposed: 500 Million Yuan Each in Two Banks in Canada and Singapore, and 400 Million Yuan in a Swiss Bank; Hong Kong High Court Approves: Evergrande Can Take Action  

According to National Business Daily, the Hong Kong High Court approved China Evergrande Group's application on November 26, allowing it to initiate judicial proceedings against Ding Yumei, Xu Jiayin's ex-wife, in four locations including Singapore to enforce overseas assets worth over 220 million US dollars. Earlier, the Hong Kong High Court had issued a global injunction on Xu Jiayin's assets, explicitly prohibiting him from disposing of assets worldwide with an upper limit of 7.7 billion US dollars (equivalent to about 55 billion yuan).  

## Laying Low for 23 Years: The Capital Layout of Duan Yongping's Elder Brother  

Duan Liping, the elder brother of Duan Yongping, once served as a professor at Nanchang Institute of Technology and is still active in the management of BBK-related enterprises. Together with his wife Wang Xiaomei and related party Liao Yannan, he holds a total of 1.64% equity in Guocheng Mining, with a market value that rose to a maximum of 573 million yuan. In February this year, he obtained control of Liyuan Co., Ltd. for only 38 million yuan through Jiangsu BBK Real Estate, entering the automotive industrial chain.  

# Overseas Macroeconomics

## Interest Rate Futures Positions Soared in the Past Three Days; the Market Is "Convinced" of the Fed's Rate Cut in December—Will the Market Be Wrong This Time?  

On Tuesday, the yield on the 10-year U.S. Treasury bond fell below 4% intraday for the first time in a month. JPMorgan's client survey this week showed that investors' net long positions in U.S. Treasuries have risen to the highest level in about 15 years. The probability of the Federal Reserve cutting interest rates by 25 basis points has reached as high as about 80%, compared with only 30% a few days ago.  

## "Trump Confidant" Hassett Leads the Race for Fed Chair; the Market Sees a Shadow of Bernanke  

Kevin Hassett, the White House Chief Economic Adviser, is leading the race for the next Federal Reserve Chair. Due to his identity as a "Trump confidant", the market once worried about damage to the Fed's independence. However, investors see a shadow of Ben Bernanke: Bernanke also held an important position in the White House before taking office as Fed Chair, but showed strong independence after taking office. The real test will be whether he can resist political pressure in the future and safeguard the Fed's reputation.  

## Hedge Funds "Flip from Short to Long": Net Buying of U.S. Stocks Hits a Six-Month High in Two Days; Tech Stock Shorts Cover Aggressively  

Hedge funds bought U.S. stocks heavily in the past two trading days, with the net buying scale reaching the highest level in more than six months, marking a reversal of the previous sustained deleveraging process. After the Federal Reserve released a more dovish signal, these institutions shifted from net selling to active long positions and covered short positions in tech stocks on a large scale.  

## Yen Has Fallen Too Much—Will the Bank of Japan Raise Interest Rates Next Month?  

The Bank of Japan is laying the groundwork for an interest rate hike as early as December, and its policy focus has shifted to addressing inflation risks caused by the weak yen. As Governor Kazuo Ueda and multiple board members have released hawkish signals, and political resistance from Prime Minister Sanae Takaichi has weakened, market expectations for a near-term interest rate hike have risen rapidly. The yen has recently fallen to the key level of 155, which may trigger official "intervention".  

## Sanae Takaichi: The Japanese Government Is Ready to Take "Necessary" Actions to Intervene in the Yen at Any Time  

Japanese Prime Minister Sanae Takaichi delivered a key speech in the Diet on Wednesday, emphasizing that the government is ready to closely monitor the nature of exchange rate fluctuations and is prepared to take "necessary" actions at any time. In response to questions, she clearly stated that the most important thing is to ensure Japan's fiscal sustainability and defended its economic stimulus plan, saying that the move is not "reckless spending". It is worth noting that the contraction of market liquidity caused by the U.S. Thanksgiving holiday has created a potential intervention window for Japanese authorities. The market is closely watching whether the Japanese government will shift from verbal warnings to substantive actions.  

To finance the economic stimulus plan, Japan plans to issue more than 1.15 trillion yen in new bonds.  

# Overseas Companies

## Apple May Face a Fine of Up to 38 Billion US Dollars in India's Antitrust Case  

This challenge is Apple's first lawsuit against India's antitrust fine law. Since last year, this law has allowed India's Competition Commission (CCI) to use global turnover, rather than just turnover within India, when calculating fines for companies that abuse their dominant market position.  

## Report: OpenAI Had 35 Million Paid Users as of July, Expected to Reach 220 Million by 2030  

According to a report by The Information, OpenAI's goal is to increase the weekly paid user conversion rate of ChatGPT from the current approximately 5% to 8.5% in five years. Strong growth expectations have pushed the company's valuation to 500 billion US dollars, surpassing giants such as ExxonMobil and Netflix. The company plans to replicate the successful path of enterprise software such as Slack and Zoom: attracting a large number of individual users through the free version, and then persuading their employers to purchase enterprise-level subscription services.  

## "MSTR May Be Removed from MSCI Index" Triggers Conflict; the Drama of "Crypto World Young Tycoon" vs. "Wall Street Veteran" Unfolds  

MSCI proposed to remove digital asset treasury companies from its indices, and JPMorgan immediately warned that MicroStrategy (MSTR) might face 8.8 billion US dollars in passive capital outflows. The cryptocurrency community strongly rebounded, calling for a boycott of Wall Street institutions and even shorting JPMorgan. The founder of MicroStrategy also insisted that the company is operation-oriented rather than a fund. According to MSCI rules, investment funds are usually excluded from stock benchmark indices.  

## Has the "Crypto Treasury" Myth Been Shattered? Stock Prices and Cryptocurrency Prices Plunge, Forcing Companies to Sell Crypto Assets  

Companies that once hoarded large amounts of cryptocurrencies are now facing a double decline in stock prices and cryptocurrency prices. The total market value of these companies has shrunk by 77 billion US dollars recently, and the stock prices of related companies have generally plummeted by more than 40%. To protect themselves, many enterprises are forced to reverse their strategies and sell cryptocurrency assets to repurchase stocks or repay debts, falling into a "vicious cycle" as described by analysts. However, MicroStrategy, a pioneer of the "crypto treasury" model, has chosen to increase its positions against the trend.  

## As Tesla's European Sales Deteriorate, Musk Accelerates Autonomous Driving Expansion; Plans to Double Austin Robotaxi Fleet  

Data shows that Tesla's European sales plummeted by 48.5% in October, with cumulative sales falling by about 30%, far underperforming the overall growth of the European electric vehicle market. Musk announced that the Austin Robotaxi fleet will be doubled and obtained an operation license in Arizona. This indicates that the company's strategic focus has shifted from traditional car sales to futuristic autonomous driving technology to cope with the severe challenges in its core business.  

## U.S. Medicare Announces Price Cuts for 15 Drugs: Semaglutide Cut by 71%, Average Price Cut of 44% for 15 Chronic Disease and Cancer Drugs  

The U.S. government reached a price reduction agreement with pharmaceutical companies in accordance with the Inflation Reduction Act. The monthly cost of semaglutide under Novo Nordisk was sharply reduced by 71% to 274 US dollars. This move is expected to save huge expenses for the government and insured individuals, but the market reaction was flat because the price is close to the actual net price and expectations have been digested. Pharmaceutical companies oppose government pricing and have filed lawsuits, indicating that legal confrontation between policies and the industry will continue. This move is a key measure of the Trump administration's "Affordable Initiative", aiming to ease the medical burden on the public and influence the direction of the midterm elections.  

# Industries/Concepts

1. **Silicone** | On November 25, Dow Chemical issued an announcement to its partners in the Greater China region, stating that its Consumer Solutions Silicone Business Line (Xiameter) will increase the prices of major products under its Xiameter business line by 10-20% starting from December 10 (or the date agreed in the contract). The price increase will vary according to different product lines. It is understood that this department includes products such as dimethyl silicone oil, D4, linear polymers, raw rubber, vinyl silicone oil, 107 rubber, and large-barrel rubber, and the price adjustment will vary based on different product lines.  

2. **DRAM** | According to the latest survey by TrendForce, in the third quarter of 2025, due to the increase in conventional DRAM contract prices, quarter-on-quarter growth in shipment volume, and the expansion of HBM shipment scale, the DRAM industry's revenue increased by 30.9% quarter-on-quarter to 41.4 billion US dollars. Looking ahead to the fourth quarter, as original equipment manufacturers (OEMs) generally see their inventories bottom out, the quarter-on-quarter growth in shipment bits will converge significantly. It is estimated that the final conventional DRAM contract price in the fourth quarter will increase by 45-50% quarter-on-quarter, and the overall contract price of combined conventional DRAM and HBM will also rise by 50-55%.  

3. **Flexible Manufacturing** | According to Beijing Daily, six ministries including the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Culture and Tourism, the People's Bank of China, and the State Administration for Market Regulation issued the *Implementation Plan on Enhancing the Adaptability of Consumer Goods Supply and Demand to Further Promote Consumption*. The plan proposes to actively promote flexible and customized models, implement the "Thousand Factories, Thousand Faces" transformation plan, and establish a full-chain digital system of "user demand - intelligent design - flexible production". Cultivate a number of flexible manufacturing factories in industries such as home appliances, furniture, shoemaking, luggage, textiles, and cosmetics.  

4. **Data Elements** | The National Data Administration recently stated that it supports data exchanges (centers) to accelerate the exploration and establishment of a full-chain service system for data circulation and transactions. Relevant responsible persons pointed out that data exchanges are China's original initiative and have played a positive role in incubating product services, compliance guarantees, standard setting, ecosystem cultivation, promoting the integrated development of the data market and financial market, and expanding international cooperation. The administration supports data exchanges to better identify their market positioning in promoting the release of data element value, improve comprehensive service capabilities, actively promote the circulation and transaction of public data products, improve the price discovery mechanism for data product services, and make greater contributions to prospering the data industry ecosystem.  

5. **Energy Storage** | According to China.com, recently, the Grid-Forming Energy Storage Application and Development Forum, with the theme of "Accelerating the Application and Verification of Grid-Forming Technology to Support the High-Quality Development of New Power Systems", was held in Changsha. Zheng Yue, President of Grid-Forming Energy Storage at Huawei Digital Energy, stated that Huawei Digital Energy has deeply integrated digital technology and power electronics technology, continued to innovate in the field of grid-forming technology, and after years of practical accumulation, has completed grid-forming performance verification and application implementation from off-grid to grid-connected, from new energy single-array level to large-scale station level, and from conventional environments to extreme environments. The intelligent string-type grid-forming energy storage solution has achieved four major technological breakthroughs, helping large-scale commercial application of grid-forming in all scenarios.  

6. **Smart Glasses** | On the evening of November 25, Li Xiang, Chairman and CEO of Li Auto, released a video on a social platform, stating that the company will launch smart glasses, and "Li Auto AI Glasses are the best artificial intelligence accessory of Li Auto". Li Xiang also revealed that Li Auto AI speakers are also under internal evaluation, and in the future, Li Auto's AI capabilities will reach users through a richer hardware matrix. This indicates that the company's "technology-driven" strategy is evolving from a single automaker to a multi-scenario intelligent solution provider.  

# Today's Key News Preview

- Profits of China's industrial enterprises above designated size in October.  

- U.S. markets closed for Thanksgiving.  

- Trump stated that November 27 is the deadline for Ukraine to accept the U.S. "28-point plan".  

- The European Central Bank releases the minutes of its October monetary policy meeting.  

- Alibaba's first self-developed flagship dual-display AI glasses are scheduled to be released on November 27.  

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