U.S. CPI Data Unexpectedly Drops, Boosting Fed Rate Cut Odds in January

1. **CSRC Pushes for More High-Quality Listings in New Productive Sectors** China Securities Regulatory Commission (CSRC) Chairman Wu Qing emphasized enhancing the inclusiveness and adaptability of listing rules to attract high-quality firms in new productive sectors. Key measures include expanding long-term capital supply, revitalizing M&A markets, enforcing delisting mechanisms, and strengthening AI governance in capital markets.

2. **U.S. CPI Decline Fuels Fed Rate Cut Expectations** November U.S. CPI rose 2.7% YoY (vs. 3.1% forecast), while core CPI grew 2.6% (vs. 3% estimate). Following the data, Fed funds futures priced in a 28.8% chance of a January rate cut, up from 26.6%.

3. **China Responds to Rare Earth Export Controls & EU Investigations** China’s Commerce Ministry confirmed approving some rare-earth export licenses under its tightened controls. It also criticized the EU’s "discriminatory" foreign subsidy probes targeting firms like CRRC and Nuctech, urging fair treatment for Chinese investors.

4. **China Launches Pilot Programs to Boost Consumer Spending** The Commerce Ministry and Finance Ministry initiated "Three New" consumption pilots in 50 cities, focusing on new business models, formats, and scenarios to stimulate demand.

5. **Micron Technology Soars on Strong AI-Driven Earnings** Micron Technology (美光科技) surged 10% after beating earnings forecasts, fueled by AI data-center demand and tight memory-chip supply. Analysts called it one of the semiconductor sector’s most significant upward revisions.

6. **China Targets "Internal Competition" in Market Regulation** The State Administration for Market Regulation pledged to curb cutthroat competition, optimize platform economy oversight, and ensure product safety to maintain market order.

7. **China Tightens Tobacco and E-Cigarette Regulations** A State Council directive outlined stricter crackdowns on counterfeit tobacco, smuggling, and illegal e-cigarette production/sales to safeguard consumer rights.

8. **BOE Cuts Rates as ECB Holds Steady** The Bank of England lowered rates by 25bps to 3.75%, signaling gradual easing, while the ECB kept rates unchanged for the fourth consecutive meeting.

**Market Highlights**: - **Traditional Chinese Medicine (TCM)**: Hong Kong’s new TCM development blueprint spurred sector optimism. - **Steel**: 38 mills raised scrap procurement prices by ¥10–30/ton. - **Copper**: BHP warns of prolonged supply tightness and high prices.

**Corporate Updates**: - *Positive*: AMEC plans acquisition; Sichuan Roadbridge gets 5% stake from China Post Insurance. - *Negative*: Shandong Zhangqiu receives regulatory penalty; Nandu Power aborts ownership transfer.