**Market Overview** After consecutive declines, both mainland and Hong Kong markets rebounded, with the Shanghai Composite nearing 3,800 points—a critical support level. Improved factors discussed earlier contributed to the rally, lifting the Hang Seng Index by 0.92%.
The U.S. November non-farm payrolls added 64,000 jobs, exceeding expectations, but October figures were sharply revised down. Unemployment rose to 4.6%, the highest since 2021—a mixed signal aligning with market preferences. Consequently, the 10-year Treasury yield dropped over 3bps, and the USD dipped 0.43%. Offshore CNY strengthened to a 14-month high near 7.03, boosting airlines like China Southern Airlines (01055), Air China (00753), and China Eastern Airlines (00670), all up over 4%. Paper stocks such as Nine Dragons Paper (02689) and Lee & Man Paper (02314) also held firm.
**Financials Drive Momentum** Broad-based ETFs, including Huatai-PineBridge CSI 300 ETF, Harvest CSI 300 ETF, and E Fund CSI 300 ETF, saw amplified trading volumes (RMB5.08B, RMB1.28B, and RMB1.17B, respectively), lifting insurers like China Pacific Insurance (02601) and China Life (02628) over 3%.
CICC (03908) announced plans to absorb Dongxing Securities and Cinda Securities, offering 0.4373 CICC shares per Dongxing share and 0.5188 per Cinda share. Brokers like CITIC Securities (06030) and China Merchants Securities (06099) surged over 2% in anticipation.
**Tech and AI Rally** GPU leader Muxi’s科创板 debut soared 692.95%, with per-lot profits hitting RMB362,600, reigniting AI enthusiasm. Chongqing pledged to expand smart computing infrastructure, fueling optical fiber demand. Changfei Fiber (06869) jumped 21% after a major shareholder transferred shares to Citibank. Light Counting forecasts the global optical module market to exceed $37B by 2029, with 800G modules peaking in 2025. Cambridge Technology (06166) rose 4%.
Liquid cooling gained traction ahead of the AIDC Summit, lifting stocks like Hongteo Precision (06088) and Sanhua Intelligent (02050).
**Commodity Surge** Lithium carbonate futures spiked 8.5% amid supply concerns after Yichun revoked 27 mining licenses. Tianqi Lithium (09696) and Ganfeng Lithium (01772) climbed 5%. Tungsten prices hit RMB1M/ton, up 216.5% YTD, benefiting Jiaxin International (03858), up 9%. Lab monkey prices also rose, with Pharmaron (06127) surging 10% on projected RMB220M fair value gains.
**Sector Spotlight: Polysilicon** Polysilicon futures rallied 3.35% to RMB61,235/ton, driven by supply cuts (November output fell 14% MoM) and higher Sichuan/Yunnan electricity costs. Key players: GCL Tech (03800), Xinte Energy (01799), and Flat Glass (06865).
**Stock Pick: Tongcheng Travel (00780)** Core OTA revenue grew 14.9% YoY in Q3, with hotel bookings up 14.7% and air ticketing rising 9%. Backed by Tencent and Ctrip, its 3,000-strong hotel pipeline and international expansion bolster growth prospects.
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