Morning News

**Source**: Wall Street Insights

### Market Overview

Ahead of the release of the pivotal jobs report, chip stocks capped the gains of U.S. equities. Among the three major stock indices, the Nasdaq ended its three-day winning streak, while the S&P 500 and the Dow Jones Industrial Average staged a rebound. The chip index closed lower for two consecutive sessions; NVIDIA dropped over 2%, and storage chip giant SanDisk fell more than 5%. Apple extended its losing streak to seven days, whereas Google closed up over 1% to hit a record high. Hinting at a substantial increase in military spending, Trump propelled a strong rebound in defense stocks—Lockheed Martin closed up over 4%, and three drone manufacturers including Kratos surged more than 10%. The U.S.-listed China ADR index rose over 1%, reversing its two-day decline, with Alibaba closing up over 5%, while Baidu slid nearly 4%.

U.S. Treasury prices retreated, and Treasury yields rebounded further following the release of U.S. unemployment data. The U.S. Dollar Index accelerated its ascent after the data, approaching the 99.0 mark intraday to hit a four-week high. Offshore RMB neared the 7.0 level intraday, touching a new year-to-date low before rebounding by over 100 pips. Bitcoin broke below the $90,000 threshold intraday, once falling more than 2% from its daily high.

U.S. crude oil inventories saw a larger-than-expected drop, triggering a sharp rebound in crude oil prices that reversed the two-day losing streak—crude prices once surged over 4%, with Brent crude hitting a two-week high. The decline in precious metals moderated: silver and platinum fell over 5% intraday before paring 70% of their losses, while gold turned positive after dropping over 1% during the session. LME nickel tumbled over 4%, and LME copper slid more than 1%, moving further away from its record high.

During the Asian trading session, the Shanghai Composite Index ended its 15-session winning streak, while the commercial aerospace sector continued to rally. The Hang Seng Tech Index fell 1%; **Zhipu AI**, dubbed the "first large-model stock", rose 13% on its debut. Metal prices declined across the board, with polysilicon hitting the daily limit down.

### Top News

- **Trump**: He expressed the hope to visit Venezuela in the future, stating that the U.S. will "manage" the country and exploit its oil reserves for years to come. The U.S. Senate passed a procedural resolution seeking to restrict Trump from further military actions against Venezuela.

- Trump instructed the purchase of $200 billion worth of U.S. mortgage-backed securities to reduce homebuying costs. The Director of the Federal Housing Finance Agency said the goal is to have Fannie Mae and Freddie Mac execute the purchases, and a decision on the two agencies' public listing may be made within one or two months.

- **Trump**: The U.S. must "own" the entire Greenland. Media reported that U.S. officials held talks with Denmark on Thursday, attempting to downplay remarks about "taking over" Greenland.

- **Lael Brainard**: The Federal Reserve should not delay interest rate cuts. The U.S. will lift sanctions on some Venezuelan entities, and Trump is expected to decide on the next Fed Chair in January. Trump stated that he has already made up his mind on the candidate.

- **Fed Governor Philip Jefferson**: He projected that the Fed will cut interest rates by approximately 150 basis points in 2026, noting that current interest rates are "significantly above the neutral level".

- The U.S. labor market showed no obvious signs of stress. Initial jobless claims edged up to 208,000 last week on a month-on-month basis, lower than the expected 212,000. U.S. Treasury yields rebounded, and the U.S. Dollar Index hit a four-week high.

- 1,000 enterprises "besieged" the White House, demanding a refund of $100 billion in tariffs. The Supreme Court may announce a ruling this Friday that will determine the fate of the tariffs. Lael Brainard said that even an unfavorable ruling will not affect tariff revenues.

- The rebalancing of major commodity indices kicked off on Thursday. Two leading investment banks predicted that "silver will correct within two weeks", with Goldman Sachs noting that "London remains the key".

- Domestic polysilicon prices hit the daily limit down, weighed down by weak short-term demand and stubborn inventory levels, as policy-driven factors give way to supply-demand fundamentals.

- **Vanke Official Announcement**: Yu Liang resigned due to reaching the mandatory retirement age.

- **MiniMax**: Ahead of its IPO, the retail investor subscription rate exceeded 1,800 times, with Baillie Gifford, GIC, and the Norwegian Sovereign Wealth Fund participating in the offering.

- **Sinopec & China National Aviation Fuel Official Announcement**: The two companies announced a restructuring plan focusing on integrated refining and chemical production, coupled with full coverage of terminal networks, aiming to build a low-cost, high-resilience aviation fuel supply system.

### Market Closing Quotes

- **U.S. & European Stock Markets**: S&P 500 rose 0.01% to close at 6,921.46; Dow Jones Industrial Average gained 0.55% to 49,266.11; Nasdaq fell 0.44% to 23,480.016. The pan-European STOXX 600 Index declined 0.19% to 603.83.

- **A-Share Market**: Shanghai Composite Index dropped 0.07% to 4,082.98; Shenzhen Component Index fell 0.51% to 13,959.48; ChiNext Index slid 0.82% to 3,302.31.

- **Bond Market**: By the end of the trading session, the yield on the 10-year U.S. Treasury note stood at around 4.17%, up about 2 basis points intraday; the yield on the 2-year U.S. Treasury note was approximately 3.49%, also rising 2 basis points during the day.

- **Commodity Market**: WTI Crude Oil Futures (February contract) closed up nearly 3.2% at $57.76 per barrel; Brent Crude Oil Futures (March contract) rose about 3.4% to $61.99 per barrel. COMEX Gold Futures (February contract) edged down 0.04% to $4,460.7 per ounce. COMEX Silver Futures (March contract) fell 3.18% to $75.144 per ounce. LME Copper closed down around 1.4% at $12,720 per ton; LME Nickel dropped about 4.1% to $17,155 per ton.

# Detailed Headlines

## Global Highlights

### Trump's Record $1.5 Trillion Military Budget: Preparing for a "World War"? Defense Stocks Surge, Drone Makers Soar by Double Digits

Intraday on Thursday, Lockheed Martin rose over 9%, and drone company Kratos jumped 20%. American media figures opine that Trump's proposed military spending hike signals the U.S. may be gearing up for a "world war," arguing that a $1.5 trillion budget of this scale "bears the hallmarks of a nation preparing for global or regional warfare". While uncertainties surround the final budget, analysts generally concur that the upward trajectory of U.S. defense spending is clear.

### Trump: Hopes to Visit Venezuela in the Future; U.S. Will "Administer" Venezuela for Years and Tap Its Oil Reserves

When asked about the specific timeline for the U.S. to act as Venezuela's "political steward," Trump responded, "It will last much longer". He stated that the U.S. will rebuild Venezuela in a "highly profitable manner," acknowledging that revitalizing the country's oil sector will take years, without providing a timeline for the U.S. to secure up to 50 million barrels of Venezuelan crude oil.

### U.S. Senate Advances Resolution to Restrict Trump's Military Actions Against Venezuela; Trump Vows Veto

The U.S. Senate passed a procedural vote on Thursday to advance a resolution seeking to limit Trump's continued use of military force against Venezuela. Trump has threatened to veto the resolution if Congress passes it. Venezuela's Foreign Minister reaffirmed the country's commitment to deepening economic and trade agreements with China. Colombia announced that its president will meet with the visiting Venezuelan interim president.

### Trump Directs $200 Billion Purchase of U.S. Mortgage - Backed Securities to Lower Homebuying Costs

On Thursday, Trump stated on social media that he is "directing my representatives" to purchase $200 billion in mortgage - backed securities, citing the ample capital positions of Fannie Mae and Freddie Mac, the two government - sponsored mortgage enterprises. He claimed that such purchases will reduce mortgage interest rates and monthly payments, marking his latest move to lower housing costs ahead of the November mid - term elections.

### FHFA Director: Fannie Mae and Freddie Mac to Execute Purchases; IPO Decision Possible in 1-2 Months

William Pulte, Director of the Federal Housing Finance Agency (FHFA), later said that Trump's goal is to have Fannie Mae and Freddie Mac carry out these purchase plans. He also noted that Trump may decide on the initial public offering (IPO) of Fannie Mae and Freddie Mac within the next one or two months.

### Trump: U.S. Must "Own" Entire Greenland

Trump declared that the U.S. must "own" the entire Greenland, not just exercise military and defense rights there under existing treaties, emphasizing that ownership itself holds strategic value unattainable through leases or treaties. Media reported that senior representatives from Denmark and Greenland met with White House officials in Washington on Thursday to discuss recent developments, with U.S. officials attempting to downplay Trump's remarks about "taking over" Greenland and sending more restrained signals to Denmark and Greenland.

### Brainard: Fed Should Not Delay Rate Cuts; U.S. to Lift Sanctions on Some Venezuelan Entities

U.S. Treasury Secretary Brainard stated that further interest rate cuts are "the only missing piece for stronger economic growth." The U.S. Treasury will oversee the sale of Venezuelan assets and return the proceeds to Venezuela as directed by the Secretary of State. She predicted that Trump will decide on the next Federal Reserve Chair in January, noting there are still four candidates, among whom only BlackRock executive Riddle has not been interviewed. Brainard also said that even if the U.S. Supreme Court rules to overturn Trump's tariffs, it will not impact tariff revenues, expressing confidence in offsetting losses through taxation authorized by other laws.

### Trump: Has Made Decision on Fed Chair Nominee

In an interview on Wednesday, Trump confirmed he has finalized his pick for the Fed Chair but has not formally announced it. When directly asked if Hassett is the nominee, Trump was vague yet complimentary, first saying "I don't want to say" and later adding that Hassett is "certainly one of my favorites."

### Fed Governor Jefferson: 150 Basis Points of Rate Cuts Expected in 2026

Fed Governor Philip Jefferson projected approximately 150 basis points of rate cuts in 2026, stating that current interest rates are "significantly above the neutral level." He argued that monetary policy remains notably restrictive, while underlying inflation has approached the Fed's target, creating room for further rate cuts.

### U.S. Labor Market Shows No Significant Stress; Initial Jobless Claims Edge Up

Initial jobless claims in the U.S. rose slightly to 208,000 last week from the previous week, below the expected 212,000, remaining in a historically low range. Continuing jobless claims increased by 56,000 in the prior week to 1.914 million, indicating rising difficulty for the unemployed in finding new jobs and accumulating long - term unemployment risks.

### 1,000 Enterprises "Lay Siege" to White House: Demand $100 Billion Tariff Refund; Supreme Court to Rule This Week

As the U.S. Supreme Court prepares to issue a final ruling on the Trump administration's tariff case, over 1,000 enterprises, from retail giant Costco to industrial leader Alcoa, have filed lawsuits seeking to overturn the policy and recover paid tariffs. The case not only involves potential refunds of up to $133 billion but also redefines the legal boundaries of the president's exercise of emergency powers, with far - reaching implications for global supply chains and trade policies.

### Precious Metals Extend Correction; Silver Falls Over 3%

The rebalancing of major commodity indices started on Thursday. Two leading investment banks predicted a "correction in silver within two weeks." The industry faces dual pressures of high inventories and a seasonal demand slump. However, constrained by an average total cost of 48,000 yuan/ton, Orient Futures expects silver prices to fluctuate between 42,000 and 80,000 yuan throughout the year.

### Changes Loom for Polysilicon Reserve Plan?

Recently, the Photovoltaic Industry Association and several leading polysilicon enterprises were interviewed by the State Administration for Market Regulation (SAMR). The meeting put forward rectification requirements, including prohibiting agreements on production capacity, capacity utilization, output - sales volume, and selling prices; banning market division, output allocation, and profit sharing in any form based on capital contribution ratios; and prohibiting communication and coordination on price, cost, output - sales volume, and other information now and in the future.

### All Industry Self - Regulation Promoted by China PV Industry Association Halted

SAMR determined that the China Photovoltaic Industry Association's organization of production restrictions and price - fixing in the name of "industry self - regulation" is suspected of monopolistic practices and ordered immediate and comprehensive rectification. The anti - monopoly rectification measures are consistent with the above - mentioned requirements.

### Vanke Official Announcement: Yu Liang Resigns Due to Reaching Retirement Age

Yu Liang, Executive Vice President of Vanke, submitted a written resignation report to the board of directors, resigning as a director and executive vice president due to reaching the mandatory retirement age. After 36 years of service at Vanke, including 17 years at the helm, the professional manager will no longer hold any position in the company after resignation.

### MiniMax Sees Over 1,800 - Fold Retail Subscription Ahead of IPO; Baillie Gifford, GIC, Norwegian Sovereign Wealth Fund Participate

A total of 1.27 million shares were allocated to Hong Kong retail investors in this offering, with a subscription multiple of 1,837.17 times. International investors were allocated 24.1 million shares, with a subscription multiple of 36.76 times, and institutional investors oversubscribed by more than 70 times. Long - term investors such as Baillie Gifford, GIC, and the Central Bank of Norway led the subscriptions.

### Sinopec and China National Aviation Fuel Announce Restructuring

Sinopec and China National Aviation Fuel announced a restructuring to build a low - cost, high - resilience aviation fuel supply system through integrated refining and chemical operations and full coverage of terminal networks. The core lies in establishing a "refining - chemical - airport" integrated system to reduce costs by cutting intermediate links and ensure energy security, directly competing with international giants like Shell to enhance the competitiveness of traditional aviation fuel. Meanwhile, the two parties will jointly tackle the decarbonization challenge in the aviation industry, integrating Sinopec's research, development, and production of Sustainable Aviation Fuel (SAF) with China National Aviation Fuel's terminal refueling network to build a complete SAF industrial chain and seize the strategic high ground in green aviation.

## Selected Research Reports

### a16z 2026 Outlook: Shortage Will Eventually Lead to Glut; AI Chips to See Capacity Surge and Price Collapse

The co - founder of a16z predicted that AI represents a more profound technological transformation than the Internet and is still in its early stages. He pointed out that the cost of intelligence is plummeting at a rate exceeding Moore's Law, and the current shortage of infrastructure will eventually result in overcapacity, which will benefit the application layer.

### Goldman Sachs CES Summary: Incremental Demand for AI Infrastructure from "Embodied Intelligence" and "Agents"

Goldman Sachs stated that demand for AI infrastructure is shifting from pure computing power to new hardware supporting "physical AI" and complex reasoning. NVIDIA's new platform has enhanced memory capabilities, directly boosting demand for NAND, while the supply of memory chips remains tight. Although inventories of analog chips have hit rock bottom, the recovery in market demand remains weak.

## Domestic Macro - Economy

### Standing Committee of the Political Bureau of the CPC Central Committee Holds Meeting

The meeting, presided over by the General Secretary of the CPC Central Committee, noted that the Party Central Committee's practice of hearing work reports from the Standing Committee of the National People's Congress, the State Council, the National Committee of the Chinese People's Political Consultative Conference, the Supreme People's Court, the Supreme People's Procuratorate, and the Secretariat of the CPC Central Committee is a crucial measure to uphold and improve the Party's leadership system and implement the centralized and unified leadership of the Party Central Committee in all fields, aspects, and links of national governance. During the 15th Five - Year Plan period, China will face profound and complex changes in its development environment and arduous tasks. It is essential to uphold, apply, and develop the greatest strength of the Party's leadership to provide a fundamental guarantee for advancing Chinese - style modernization.

### People's Daily: Central Government Mentions Housing Provident Fund; What Signal Does It Send?

For the first time in a decade, the Central Economic Work Conference mentioned "housing provident fund reform." The conference at the end of last year aimed to stabilize the housing market and improve housing quality. The housing provident fund reform is a key part of this package of measures, enabling people to access and use the fund smoothly to afford better housing.

### Wei Shaojun of China Semiconductor Industry Association on NVIDIA H200 Chips

According to the Global Times, NVIDIA CEO Jensen Huang revealed that H200 chips may be delivered to China soon. In response, Wei Shaojun stated that under the premise of complying with regulatory requirements, interactions conducive to industrial development are welcomed. While the moderate introduction of advanced computing power can ease short - term demand, China's industry must continuously enhance its core competitiveness through competition to gain the initiative in the technological game.

# Domestic Companies

**Zhipu AI, "China's First Large Model Stock", Narrowly Rises on Debut: Can Model Iteration & Ecological Flywheel Drive Growth?** Soochow Securities noted that as a Tsinghua University-affiliated unicorn, Zhipu AI maintains technological leadership through continuous upgrades (iterations) of its self-developed GLM architecture. It attracts millions of developers via open-source strategies and enhances user stickiness with an AI toolchain (the flywheel effect), thereby reducing customer acquisition costs and driving exponential growth in API call volume. This model aims to convert technological potential into cloud-based commercial monetization, underpinning high-growth expectations.

**First Statement from Zhipu AI Chairman After Becoming the First Large Model Stock: On Stock Code 2513, "Burning Cash vs. Generating Revenue"** Zhipu AI's stock code 2513 has a homophonic meaning of "AI is my life" in Chinese. Chairman Liu Debing stated that current AGI has reached the L3 stage, and Zhipu AI achieved a compound annual growth rate (CAGR) of 130% from 2024 to 2025. The company persists in pre-training investment, believing that MaaS (Model-as-a-Service) essentially "sells intelligence" rather than computing power, with low marginal costs. Despite facing substantial R&D investment and losses, demand for AI applications has exploded, with tender projects surging 390%. Driven by dual engines of localization and MaaS, Zhipu AI is committed to making AI an inclusive infrastructure.

**Upon Zhipu AI's Listing, Tang Jie's Internal Letter Calls for Full Return to Fundamental Model Research** In an internal letter, Professor Tang Jie from the Department of Computer Science at Tsinghua University, founder and Chief Scientist of Zhipu AI, announced the upcoming launch of GLM-5 and established a strategy to fully return to fundamental model research to counter the impact from DeepSeek. In 2026, the company will focus on three core technological directions: new architectures, general reinforcement learning (RL), and continuous learning, and set up X-Lab to explore disruptive innovations. Tang Jie predicted that 2026 will be a breakout year for AI to replace various types of jobs.

**HK$48 Billion Bet by "Luckin Coffee Architect" Li Hui: The Last of China's "GPU Four Dragons" Goes Public** DeepCompute Technology made its debut on the Hong Kong Stock Exchange, opening 31% higher on the first day with a market capitalization of approximately HK$48.4 billion and over 100 times subscription. As the last of China's "GPU Four Dragons" to go public, it achieved mass production earliest but gained late attention from capital. Its largest external shareholder, Primavera Capital Group, which once led Luckin Coffee's transformation, holds over 20% of the shares and has deeply influenced the company's development through early involvement and two management reshuffles.

**AI Reaffirms Strong Growth Trajectory! Wall Street Sharply Raises TSMC's Target Price: Revenue Expected to Grow 30% in 2026** JPMorgan Chase and Nomura Securities believe that TSMC's core growth logic is shifting entirely from past cyclical drivers to a track of sustained high growth defined by deep integration with AI demand, long-term capacity shortage, and technological monopoly. Its US dollar revenue is projected to grow by approximately 30% in 2026, while tight production capacity and strong pricing power will support its gross profit margin to remain stably above 60% in the long run.

**Multiple Automakers Launch Intensive Price Cuts and Promotions** At the start of the new year, a promotion wave swept across China's auto market. Automakers including Tesla, BMW, and Xiaomi rolled out low-interest financing schemes and car purchase subsidies to offset the cost pressure brought by the adjustment of the new energy vehicle purchase tax policy, striving to stimulate early-year consumption and stabilize market growth.

**Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA): The Intensified Price War in the Auto Industry Has Weakened Significantly, Easing Operational Pressure** In 2025, the price war in China's passenger car market cooled down markedly, with the number of price-cut models decreasing year-on-year, and market promotion activities becoming more rational. Supported by national policies such as the old-for-new replacement program, the industry's price system has stabilized, driving a rebound in the profitability of the auto industry and easing market operational pressure.

**93-Year-Old Hang Seng Bank Bids Farewell to the Hong Kong Stock Exchange** HSBC's privatization proposal for the bank was approved by shareholders at the extraordinary general meeting.

**Yuanxin Satellite's Financing "Explodes": Quotas Hard to Come By?** According to reports, Shanghai Yuanxin Satellite, a satellite operation company known as China's version of "Starlink", has launched a new round of financing with a scale of RMB 5-6 billion and a pre-investment valuation of over RMB 40 billion. By the end of the year, rumors spread widely in the market that Yuanxin's financing quotas were extremely hard to obtain. In fact, as of now, Yuanxin has not released any public information regarding the new round of financing.

# Overseas Macroeconomy

**Jeffrey Sachs Makes an Eloquent Speech at the UN: Humanity's Survival Depends on How the Security Council Responds to the Venezuela Crisis** "Major countries in the world failed to defend international law in the 1930s, ultimately triggering a new global war, from which the United Nations was born," Sachs said. "We are already in the nuclear age and must not repeat the same mistakes — otherwise, humanity will head towards destruction."

**Behind the Venezuela Crisis: Trump's Target Oil Price of $50 per Barrel** The Trump administration is advancing a long-term plan to dominate Venezuela's oil industry, which he believes will push oil prices down to $50 per barrel. Currently, the White House has confirmed the launch of global sales of Venezuelan oil and is actively negotiating with major oil companies such as Chevron to implement control and distribution of Venezuela's oil resources. As voters' dissatisfaction with living costs intensifies and polling pressure mounts ahead of the mid-term elections, the urgency of this agenda has increased.

**"A Single Tweet Can Change Foreign Policy — Who Dares to Invest in Venezuela?" U.S. Oil Companies: No Guarantees, No Investment** Despite pressure from the Trump administration urging U.S. oil giants to invest in Venezuela's energy sector, enterprises generally adopt an extremely cautious attitude, demanding clear legal and financial guarantees from Washington to hedge against risks of sudden policy changes and asset confiscation. The industry is concerned about policy continuity across presidential terms, and in the current environment of low oil prices and high risks, the lack of substantive safeguard mechanisms will severely hinder the actual injection of billions of dollars in capital.

**Gold Becomes the World's Largest Reserve Asset, Surpassing U.S. Treasuries for the First Time in 30 Years!** This structural shift stems not only from concerns about geopolitical risks and U.S. dollar credit but also marks a profound defensive adjustment in the global reserve system. Although there are divergences in the market regarding the future trend of gold prices, central banks' increased holdings of gold as a non-politicized core safe-haven asset have become an increasingly clear strategic direction.

**Introducing the "1/1000 Ounce Gold" Unit: Tether, the "Stablecoin Leader", Pushes for Circulation of "Gold-Backed Stablecoin"** Tether announced the launch of "Scudo", a new unit of measurement for its "gold-backed stablecoin" XAUT, where one Scudo equals one-thousandth of a troy ounce of gold. At current prices, one Scudo is worth approximately $4.48. Company CEO Paolo Ardoino claimed that Scudo lowers the threshold for trading access.

**Eurozone Unemployment Rate Falls for the First Time in Seven Months, Unexpectedly Dropping to 6.3% in November** The eurozone labor market demonstrated resilience, with the unemployment rate unexpectedly falling to 6.3% in November, the first decline in seven months, indicating that the job market remains tight. Despite the improvement in short-term data, the number of unemployed people has increased compared with the same period last year, and performance varies across different industries and core economies, suggesting that future employment recovery will remain uneven.

# Overseas Companies

**AI Search Battle Shifts: Gemini's Traffic Surges 24% Month-on-Month in December, While ChatGPT Drops 9%** Third-party data shows that in December, Gemini's average daily webpage visits reached 56 million, surging 567% year-on-year and 24% month-on-month; ChatGPT's visits rose 49% year-on-year to 178 million, but fell 9% month-on-month. Gemini's daily active users (DAUs) jumped 351% year-on-year to 62 million (up 17% month-on-month), while ChatGPT's DAUs increased 262% year-on-year to 392 million (up 2% month-on-month).

**Samsung's Profits Triple: Q4 Profit Expected to Hit 20 Trillion KRW, Revenue 93 Trillion KRW, Both Record Highs; AI Ignites "Uncontrolled" Price Hikes in Memory Chips** The company released its Q4 earnings guidance: operating profit is expected to reach as high as 20 trillion KRW, tripling year-on-year and surging 64% month-on-month, hitting a historical record; sales also soared to a record high of 93 trillion KRW. Boosted by the AI boom, Samsung is delivering "uncontrolled" volume and price increases, seemingly declaring to Wall Street the arrival of the strongest seller's market for memory chips. The company expects to release its full financial results later this month.

**Mass Production of HBM4 May Be Delayed to Late Q1 Due to NVIDIA's Temporary Specification Upgrade** NVIDIA has postponed the mass production schedule of HBM4, with mass production expected to start as early as late Q1 2026, due to upgraded specifications for HBM4 on the Rubin platform and stronger-than-expected demand for the Blackwell series. Among the three major suppliers, Samsung leads in verification progress by taking the lead in adopting the advanced 1nm process, but SK Hynix is expected to maintain its dominant position in supply volume in 2026 due to long-term contracts already signed.

**JPMorgan Chase's Micron Research: Even Early Mass Production of New Factory Can Only Meet Half of Demand; Context Window Storage Becomes New Growth Driver for NAND** Micron's management stated that the company can currently only meet 50% to two-thirds of key customers' medium-term demand, even if the newly built Idaho 1 wafer fab in Idaho will start mass production one quarter earlier in mid-2027. NVIDIA's new inference context window storage platform will open another channel for NAND bit demand growth, as the configuration rate of NVIDIA's systems based on Bluefield-4 is likely to be high.

# Industries/Concepts

1.  **Sodium-Ion Batteries** | According to Sina Finance, the China Chemical and Physical Power Sources Industry Association recently approved and released the group standard *Technical Requirements for Sodium-Ion Batteries for Energy Storage* (T/CIAPS0052—2026). The document specifies the terms and definitions, abbreviations, general requirements, test methods, inspection rules, marking, packaging, transportation, and storage of sodium-ion batteries, battery modules, and battery clusters for energy storage. Applicable to sodium-ion battery cells, modules, and clusters for energy storage, it marks that the application of sodium-ion batteries in the energy storage field has entered a new stage of standardization.

2.  **Commercial Aerospace** | According to the National Business Daily, the general assembly, integration, testing, and recovery & reuse base for medium-to-large liquid launch vehicles of Jianyuan Technology recently broke ground in Qiantang, with a total project investment of RMB 5.2 billion. This is China's first offshore recovery & reuse rocket production capacity base and the official launch of the first stainless steel rocket super factory. According to the plan, by the end of August this year, Jianyuan Technology will launch China's first rocket featuring "liquid oxygen-methane + stainless steel + offshore recovery" independently developed by the company. Analysts said that the recoverable and reusable rocket market is ushering in explosive growth, with 2026 expected to mark the "first year of rocket reusability", driving commercial aerospace from a "national project" to a "trillion-level market". Reuse technology will reduce launch costs to less than 1/10 of traditional solutions, completely breaking the "cost ceiling" of commercial aerospace.

3.  **Medical Care** | According to Xinhua News Agency, a core challenge has plagued global cancer research and treatment: some tumor cells can silently evade the immune system's "radar", as if wearing an "invisibility cloak". Faced with such tumor cells that lack "identity tags" and mix with normal cells, traditional immunotherapy is like a "sharp archer" lost in heavy fog, unable to find the correct target and even distinguish between friend and foe face-to-face, leading to treatment failure.

4.  **Water Conservancy** | The State Council Information Office is scheduled to hold a press conference at 10:00 a.m. on January 9, 2026, inviting Vice Minister of Water Resources Chen Min to introduce the progress of accelerating the construction of the national water network. Institutions expect the industry to maintain high-speed growth from 2025 to 2030, with a compound annual growth rate (CAGR) of 8.5% in market size, and the overall scale will exceed RMB 2.2 trillion by 2030.

5.  **Controlled Nuclear Fusion** | On January 15, 2026, the *Atomic Energy Law of the People's Republic of China* will come into formal effect. The law explicitly encourages and supports controlled thermonuclear fusion research, delineating boundaries and providing institutional guarantees for fusion energy innovation. CITIC Securities believes that nuclear fusion is hailed as humanity's ultimate energy source, with broad long-term growth potential. In the short term, both domestic and overseas markets have entered a period of intensive catalyst releases, and the industry is currently driven mainly by major events. Domestic capital expenditure (capex) is being implemented in an orderly manner, and overseas progress is expected to exceed expectations. From the perspective of great power competition, the industry's long-term growth trend has been established. With the accelerated construction of international and domestic devices, component companies are expected to see a full release of orders.

# Key News Preview for Today

- China's December CPI and PPI

- China's December financial data

- MiniMax's Hong Kong IPO

- U.S. December nonfarm payrolls report

- U.S. January University of Michigan consumer confidence and inflation expectations

- U.S. October housing starts and building permits

- U.S. Supreme Court may issue a ruling on the tariff issue

- Speeches by Federal Reserve Bank of Minneapolis President Neel Kashkari and Federal Reserve Bank of Richmond President Thomas Barkin

**End of Full Text**

# Risk Warning and Disclaimer

The market is risky, and investment requires caution. This document does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this document are in line with their specific circumstances. Investment decisions made based on this document shall be at the user's own risk.