Market Overview - The Hong Kong stock market experienced a decline on December 3, with the Hang Seng Index closing at 25,760.73 points, down 1.28% [2] - The total market turnover for the day was 1,644 million HKD, with southbound funds net buying 22.79 million HKD [2] Southbound Capital Activity - Southbound funds have net bought Alibaba for 15 consecutive days, accumulating a total of 286.49 million HKD [6] - On December 3, net purchases included Xiaomi Group at 8.7 million HKD, Alibaba at 4.27 million HKD, and Meituan at 2.97 million HKD, while Tencent Holdings saw a net sell-off of 7.32 million HKD [6] Semiconductor Sector - Semiconductor stocks showed resilience, with notable gains including Huahong Semiconductor up 1.58% and Hard Egg Innovation up 1.02% [3] AI and GPU Market Insights - HSBC's investment management head for China and core Asia, Shen Yu, indicated that China's AI capital expenditure story is just beginning, with significant growth expected in domestic GPU and AI computing power over the next 12 to 18 months [5] - The domestic GPU replacement rate is projected to rise rapidly to over 50% in the coming years, potentially reaching 79%, which will drive the development of AI applications in China [5] Stock Index Changes - FTSE Russell announced the inclusion of companies such as CATL and China Hongqiao into the FTSE China 50 Index, effective December 22 [11] - The changes will also see the removal of companies like CITIC Securities and Great Wall Motors from the index [11] Regulatory Actions - The Hong Kong Securities and Futures Commission has instructed the Hong Kong Stock Exchange to suspend trading of Daxian Education shares starting December 3, 2025, amid ongoing investigations [12][15]