**Market Overview** No immediate negative catalysts emerged as U.S. equities rebounded overnight. Hong Kong’s market edged up 0.07% amid mild volatility. On November 26, reports indicated former U.S. President Trump pressured Japanese Prime Minister Takaichi Sanae to avoid provoking China over Taiwan issues. TBS noted Takaichi refrained from detailing potential intervention in Taiwan during a parliamentary session, signaling moderated rhetoric. China’s Foreign Ministry emphasized that omitting contentious remarks differs from retracting them, rejecting Japan’s attempt to downplay the issue.
France’s Élysée Palace announced President Macron’s three-day visit to China starting December 3, following his April 2023 trip. Macron reportedly seeks China’s inclusion in next year’s G7 summit, reflecting pragmatic efforts to expand trade amid challenges. Improved China-France ties buoyed Stellantis-backed **ZEEKR Intelligent (09863)**, which rose nearly 5%.
The Fed’s Beige Book revealed hiring slowdowns in half of U.S. districts, with government shutdowns and AI adoption pressuring job seekers. Rising tariffs and healthcare costs may fuel inflation, reinforcing expectations of a December rate cut. The yuan strengthened to 7.0779 against the dollar, benefiting paper stocks like **Lee & Man Paper (02314)** (+7%) and **Nine Dragons Paper (02689)** (+4%).
**Consumer Sector Highlights** China’s State Council pledged to boost consumption, with Commerce Ministry official Yang Ye outlining reforms in auto circulation, used-car markets, and aftermarket services (e.g.,改装, rentals). **Yongda Auto (03669)**, a leader in auto aftermarket, surged over 10%. Other auto gainers included **Chery Auto (09973)**, **GAC Group (02238)**, and **BAIC Motor (01958)**, all up over 4%.
**Pop Mart (09992)**, a consumer discretionary leader, climbed nearly 7% ahead of Q4’s holiday-driven demand in Western markets. **Blue Moon (00325)** rose 7% post-HKD3.65M buyback, while **Lao Feng Xiang (06181)** gained 4% amid year-end sales optimism.
**Tech & AI Wearables** Apple’s iPhone outperformed Samsung with double-digit growth in China and the U.S., per Counterpoint. **Cowell E (01415)**, an Apple supplier, rose 4%. Alibaba’s Quark AI glasses launch, featuring its Qianwen AI assistant, drove **Conant Optics (02276)** (+4%). **TCL Electronics (01070)** advanced 6% as its RayNeo unit unveiled AI-powered AR glasses like the X3 Pro (world’s smallest MicroLED AR glasses) and V3 (with Tongyi Qianwen model).
**Insurance & Fire Incident** Insurers like **China Life (02628)** activated emergency claims after a Hong Kong apartment fire, spotlighting fire safety upgrades (e.g., drone/robot firefighting) and property insurance awareness.
**Sector Spotlight: Gold** Deutsche Bank bullish on gold, raising its 2026 target to $4,450/oz (range: $3,950–$4,950), citing structural demand shifts toward official purchases. Reports of crypto giant Tether’s covert gold accumulation further fueled upside potential. Watch **Zijin Mining (02899)**, **SD GOLD (01787)**, and **CHINAGOLDINTL (02099)**.
**Stock Pick: Hansoh Pharma (03692)** The firm’s RET inhibitor HS-10365 (for NSCLC) saw NDA acceptance in China. Pipeline highlights: - **HS-20093 (B7-H3 ADC)**: GSK-initiated global Phase III for bone/soft-tissue sarcoma. - **HS-20089 (B7-H4 ADC)**: GSK-planned Phase III for ovarian/endometrial cancer. - **CDH17 ADC**: Roche partnership for CRC, with $800M upfront + $1.45B milestones. H1 2025 innovation revenue hit RMB6.15B (+22.1% YoY), led by third-gen EGFR inhibitor Ameile (28% market share in China). Overseas expansion underway with UK approval for Ameile and EMA filings.
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