Monetary Policy - The People's Bank of China (PBOC) will continue to implement a moderately loose monetary policy in 2026, focusing on promoting stable economic growth and reasonable price recovery [2] - The PBOC plans to flexibly use various monetary policy tools such as reserve requirement ratio (RRR) cuts and interest rate reductions to maintain ample liquidity [2] - There is still room for RRR cuts and interest rate reductions this year, with an emphasis on managing interest rate policies to keep financing costs low [2] Structural Policies - The PBOC has introduced a series of structural monetary policies, including a 0.25 percentage point reduction in the interest rates of various structural monetary policy tools [3] - The PBOC has set up a dedicated 1 trillion yuan relending facility for private enterprises and increased the relending quota for agricultural and small enterprises by 500 billion yuan to 4.35 trillion yuan [3] - The PBOC aims to maintain stable financial markets and manage expectations, ensuring the RMB exchange rate remains stable [3] Real Estate Market - The real estate market in 2025 is expected to stabilize with four positive signals, including a noticeable stabilization in sales scale for new and second-hand homes [4] - There is increasing differentiation among cities and regions, with some core cities showing signs of activity in the real estate market [4] - Inventory levels have shown a certain degree of decline, contributing to the overall market recovery [4] Investment and Innovation - A strong domestic demand market is crucial for promoting technological innovation, as it attracts global resources, talent, and capital [5] - A domestic company with leading foundational model capabilities could benefit from a stronger consumer environment, enhancing subscription revenue and model investment interactions [5] AI and Technology Developments - Baidu has officially released the Wenxin large model 5.0, which supports various forms of information understanding and output [6] - Baichuan Intelligent has launched the Baichuan-M3 Plus, which significantly reduces the hallucination rate in medical scenarios and introduces evidence anchoring technology for verifiable medical judgments [8] Market Regulations - The State Administration for Market Regulation has prohibited certain gas companies from establishing joint ventures, marking a significant enforcement of antitrust laws in the public utility sector [15] - The Ministry of Commerce and other departments have issued opinions to promote high-quality development in the pharmaceutical retail industry, encouraging participation in centralized procurement [13] International Investment Trends - The Swedish largest private pension fund has sold a significant portion of its U.S. Treasury holdings due to concerns over the unpredictability of the U.S. government and rising debt levels [20] - Chinese enterprises are expected to maintain healthy and orderly development in foreign investments, with direct investments reaching $174.38 billion in 2025, a 7.1% increase from the previous year [14]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) has seen a significant stock increase of 75%, outperforming the S&P 500, highlighting its critical role in the semiconductor industry as a foundational supplier [1]. Group 1: Company Performance - TSMC's stock performance has been exceptional, with a 75% increase since the last coverage, indicating strong investor confidence [1]. - The company's role as a "pick-and-shovel" provider in the semiconductor sector emphasizes its importance in the technology supply chain [1]. Group 2: Investment Strategy - The investment approach focuses on identifying market asymmetries that offer a positive reward-to-risk ratio, particularly in high-quality companies with strong cash flow [1]. - The emphasis is on investing in companies that have a wide economic moat and trade at fair prices relative to their intrinsic value [1].

Key Points TSMC stock remains cheap despite its robust growth and strong outlook. Salesforce has been thrown into the bargain bin despite its agentic artificial intelligence (AI) opportunity. Meta Platforms is the cheapest of the big megacap tech stocks and is seeing strong AI-fueled growth. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Even with the market hovering near all-time highs, there are still bargain stocks to be found. And despite the run-up among tech stocks that ...

Key Points Taiwan Semiconductor is a key chip supplier to nearly every AI hardware company. The stock trades at a slight premium to the market but at a discount to its big tech peers. This chip foundry is an excellent way to take advantage of the massive AI spending spree 10 stocks we like better than Taiwan Semiconductor Manufacturing › Taiwan Semiconductor Manufacturing (NYSE: TSM) was one of the best stocks to own in 2025 -- it rose over 50%. But 2026 is a new year. None of the stock's success ...

Group 1 - The core viewpoint of the article is that the recent trade agreement between the US and Taiwan is perceived as detrimental to Taiwan's interests, with the Taiwanese government being criticized for prioritizing its own benefits over the welfare of the Taiwanese people [1][2][5] - The agreement includes a commitment from Taiwanese companies to invest at least $250 billion in the US, alongside a similar amount in credit guarantees from the Taiwanese government [1][4] - The US has reduced tariffs on Taiwanese imports from 20% to 15%, which some Taiwanese media have portrayed as a significant victory, despite the substantial investment commitments required from Taiwan [2][5] Group 2 - The Taiwanese economy is heavily reliant on exports to mainland China, and the new tariff structure may further strain Taiwanese businesses, which are already operating on thin margins [6][8] - The strategic importance of TSMC (Taiwan Semiconductor Manufacturing Company) is highlighted, as the US aims to relocate a significant portion of its semiconductor production to the US, which could undermine Taiwan's technological leadership [7][13] - The article discusses the potential long-term implications of Taiwan's increasing dependence on the US, suggesting that this relationship may not be mutually beneficial and could lead to Taiwan being treated as a disposable asset in US geopolitical strategies [13][16]

Core Viewpoint - Yunyinggu Technology Co., Ltd. is seeking to list on the Hong Kong Stock Exchange after a tumultuous journey, including attempts to list on the A-share market and a near acquisition by another company. The firm specializes in semiconductor design, particularly display driver chips for AMOLED and Micro-OLED technologies [1][2]. Company Overview - Established in 2012 and headquartered in Shenzhen, China, Yunyinggu focuses on the design and sale of display driver chips. The company has raised over 1.3 billion RMB through multiple funding rounds, with notable investors including BOE Technology Group and Qualcomm China [1]. - As of August 2024, the company's valuation reached approximately 8.33 billion RMB [1]. Product Portfolio - The company primarily offers two product categories: AMOLED display driver chips for smartphones and Micro-OLED display driver/backplane for AR/VR devices [1]. - In 2024, Yunyinggu ranked as the fifth largest supplier of AMOLED display driver chips globally, with a market share of about 5.7%, and the largest in mainland China with a 12.4% market share [2]. Financial Performance - Revenue for the years 2022, 2023, and 2024 was reported at 551.29 million RMB, 720.40 million RMB (30.7% YoY growth), and 891.30 million RMB (23.8% YoY growth), respectively, with a compound annual growth rate of 27.1% from 2022 to 2024 [4]. - The company reported net losses of 124 million RMB, 232 million RMB, and 309 million RMB for the respective years, totaling approximately 722 million RMB in cumulative losses [4]. Pricing and Margins - The average selling price of AMOLED display driver chips has decreased significantly from 25.7 RMB in 2022 to 15.9 RMB in 2024, reflecting a nearly 40% decline [5]. - The gross margin for AMOLED chips plummeted to 0.3% in 2024, with a negative gross margin of -1.4% in 2023 due to falling prices and inventory devaluation [5][6]. Market Strategy - To maintain market share amid fierce competition, the company adopted a pricing strategy that involved lowering the average selling price of its products [7]. - The shift from direct sales to a dealer-based sales model has increased the proportion of revenue from dealers from 4.8% in 2022 to 73.7% in 2024, aimed at improving cash flow management [8][9]. Supply Chain and Production - As a fabless company, Yunyinggu relies heavily on third-party foundries, with TSMC being a key partner. The procurement from TSMC accounted for a significant portion of total purchases [10]. - The company is gradually shifting towards domestic foundries like SMIC to mitigate supply chain risks amid geopolitical tensions [10]. Investment Outlook - Despite having a strong customer base and market presence, the company faces challenges in profitability and cash flow, necessitating funds from the secondary market to alleviate financial pressures and continue R&D investments [10].

Group 1 - Global stock markets experienced a slight increase following Trump's withdrawal of trade threats against Europe, alleviating concerns about a trade war [2][28] - As of the report, Dow futures rose by 0.35%, S&P 500 futures increased by 0.56%, and Nasdaq futures climbed by 0.83% [3][29] - The European Stoxx 600 index rose by 1.1%, with the automotive sector leading gains, particularly Volkswagen which surged by 5.2% [3][29] Group 2 - Gold prices remained stable near record highs, indicating that risk appetite in the stock market has not fully translated into a significant drop in safe-haven demand [4][30] - The market interpreted Trump's statements as a sign of easing geopolitical and trade tensions, leading to a renewed preference for stock assets [4][30] Group 3 - Semiconductor stocks strengthened, with Nvidia's CEO comments at Davos boosting enthusiasm for AI investments, leading to a 17% surge in Disco Corp. and a 2.3% increase in Samsung Electronics [6][31][32] - The Korean benchmark index, a tech stock indicator, reached a historical high [32] Group 4 - The VIX volatility index, known as the "Wall Street fear gauge," saw a significant decline, indicating a reduction in market panic [34] - Japanese government bonds rebounded for the second consecutive trading day, while Bitcoin traded around $90,000 [33] Group 5 - Focused stocks included Western Digital, which rose over 4%, Micron Technology up over 3%, and Seagate Technology increasing by 2.5% [40] - Moderna continued to rise by 5.6% following positive data on its mRNA cancer vaccine [41] - GE Aerospace saw a pre-market increase of over 5%, with adjusted earnings per share expected to be between $7.10 and $7.40 for 2026, exceeding market expectations [42]

Market Overview - Major U.S. stock index futures are showing positive movement, with Dow futures up 0.29%, S&P 500 futures up 0.49%, and Nasdaq futures up 0.74% [1] Storage Sector Performance - The storage sector is performing strongly in pre-market trading, with Western Digital up over 4%, Micron Technology up 3.8%, and Seagate Technology up 2.7% [2] Chinese Stocks Movement - Chinese stocks are experiencing a broad increase in pre-market trading, with Alibaba up over 5%, and Pinduoduo, Baidu, and JD.com each up 1.1% [3] Apple Developments - Apple is reportedly developing a wearable AI device called "Pin," which resembles a badge or brooch and is expected to be bundled with the latest Apple Watch or iPhone, potentially launching as early as 2027. Apple shares are up 1% [4] Greenland Pension Fund Considerations - Greenland's SISA pension fund is contemplating divesting from U.S. stocks, managing approximately 11 billion USD in assets, with about 50% currently allocated to U.S. equities. The CEO indicated that discussions on the pros and cons of this move are ongoing [5] SpaceX Plans - SpaceX plans to launch its second-generation Starlink satellite communication system by 2027, as indicated in recent filings with the FCC [6] Nvidia's Market Position - Nvidia has overtaken Apple to become TSMC's largest customer, accounting for approximately 13% of TSMC's total revenue, as confirmed by Nvidia's CEO [7] Price Target Adjustments - Mizuho Securities has lowered the target prices for several tech companies, including Atlassian from 245 USD to 225 USD, Cloudflare from 280 USD to 255 USD, and Microsoft from 640 USD to 620 USD, while maintaining an "outperform" rating for all three [8] Insurance Innovations - Lemonade, a U.S. insurance company, has introduced a "self-driving vehicle insurance" that offers a 50% discount for Tesla owners using Full Self-Driving (FSD) technology, citing lower accident rates and improved pricing models based on vehicle data. Tesla shares are up over 1% [9] Upcoming Economic Data - The U.S. is set to release the annualized final value of Q3 2025 GDP and the annualized final value of the core PCE price index at 21:30 Beijing time [10]

Key Points TSMC is set to increase capital spending once again in 2026 thanks to strong demand for its fabrication services. The rise in spending is good news for ASML, especially since TSMC plans to allocate a significant chunk of its 2026 capex to advanced process technologies. 10 stocks we like better than ASML › Taiwan Semiconductor Manufacturing (NYSE: TSM) is the world's largest semiconductor foundry, fabricating chips for several customers across multiple industries. This explains why Wall S ...

Key Points Taiwan Semiconductor is a key supplier to the chip industry. Nvidia is one of the company's biggest clients. 10 stocks we like better than Taiwan Semiconductor Manufacturing › The stock market is full of independent companies, but they are all intertwined. One may be a supplier, while another markets products. Another may be a designer, while another uses its products. As a result, investors can look for clues about one stock in other companies' earnings reports. Recently, I saw one su ...