Market sentiment remains subdued as last week’s key policy meetings and the Fed’s rate cut failed to spark momentum. The Hang Seng Index fell 1.34% today amid broad declines across both mainland and Hong Kong markets. Several challenges persist: While U.S.-China tensions show no major escalation, ripple effects from tariffs are negatively impacting Southeast Asian exporters like Malaysia, Vietnam, and Indonesia as Christmas demand surges. Trade agreements with "poison pill" clauses further complicate the landscape.
The U.S. bets on AI-driven productivity to address fiscal imbalances, but warnings mount that failure could trigger a recession worse than 2008. Disappointing GPT-5.2 updates and Oracle’s struggles have dented AI confidence, dragging down chip stocks like SMIC (00981, -4.4%) and Hua Hong (01347, -6.4%). Fiber-optic firm Yangtze Optical (06869) plunged over 10%.
iRobot’s Chapter 11 bankruptcy filing further soured robotics sentiment, hitting Sanhua (02050, -7%). Elon Musk’s dismissal of nuclear fusion as "nonsensical" pressured related stocks such as Shanghai Electric (02727, -5%).
Gold emerged as a safe haven, with Zijin Mining (02259) surging nearly 8% and Chifeng Gold (06693) up over 5%. Insurers outperformed in financials; NCI (01336) gained 4% after reporting a 16% YoY rise in premiums.
Property remains a drag, with Jan-Nov investment down 15.9%. Meanwhile, consumption is gaining strategic emphasis. Policy support for maternity insurance and dairy’s supply-demand rebalance lifted Youran Dairy (09858, +8%) and Modern Dairy (01117, +4%). Kweichow Moutai’s price stabilization and Li Ning’s (02331, +5%) new flagship store underscored sector resilience.
Autonomous driving took a leap as China approved its first L3-compliant vehicles for pilot testing. Related plays include Pony.ai (09881) and WeRide (00800).
**Stock Spotlight: Sinohytec (02402)** The firm marked its first overseas export of a 100kW fuel cell generator to Australia. Its 260kW liquid-hydrogen system debuted at Tokyo Motor Show, cementing its lead in China’s hydrogen sector (18.7% market share). Cost reductions (79% since 2018) and expanding applications (e.g., maritime) bolster its outlook.