1. Report Industry Investment Rating - Morgan Stanley upgraded China stocks to "Overweight" [2] 2. Core Viewpoints - The main indices of the two markets fluctuated and declined on Tuesday, with some short - term profit - taking funds exiting. In the future, the capital side will be under pressure, and the market is expected to operate weakly. It is recommended to gradually exit long positions in stock index futures and wait for new opportunities, and not to participate in stock index call options for the time being [1][3] - In 2026, the profit growth rate of all A - shares is expected to rise from 6% this year to 8%. Multiple factors will help the valuation of the A - share market rise further. The risk of a sharp rise in the Chinese stock market in 2026 is much higher than that of a sharp decline [2][3] 3. Summary by Relevant Catalogs Market Review - On Tuesday, the main indices of the two markets fluctuated and declined, with the trading volume slightly increasing. The CSI 300 Index closed at 4598 points, down 23 points (-0.51%); the SSE 50 Index closed at 2997 points, down 21 points (-0.71%); the CSI 500 Index closed at 7121 points, down 51 points (-0.71%); the CSI 1000 Index closed at 7380 points, down 42 points (-0.57%). The net inflow of settled funds in CSI 1000 Index futures was 500 million yuan [1] - Among industry and theme ETFs, those with the highest gains were communication ETFs, 5G ETFs, etc., and those with the highest losses were gold stock ETFs, industrial non - ferrous ETFs, etc. Among the sector indices of the two markets, those with the highest gains were components, consumer electronics, etc., and those with the highest losses were forestry, industrial metals, etc. [1] Important Information - Domestic AI company Zhipu AI officially announced the open - source of its core AI Agent model - AutoGLM, which may be the "intelligent driving moment" for the mobile phone industry [1] - From January to September 2025, global gas turbine orders increased by 54% year - on - year in GW terms, with US orders surging by over 200% [1] - Dalio believes that the global economy will face risks in the next one to two years due to the overlap of debt, political conflicts, and geopolitical cycles. Attention should be paid to the catalysts for the bursting of the AI bubble [1] - AR glasses Project Aura deeply integrates Gemini AI, and its founder believes that the incremental data brought by glasses may be the only way for AI to reach AGI [1] - The explosion of AI computing power has led to a shortage of automotive storage chips, with the satisfaction rate in 2026 possibly less than 50% [1] - The US President has approved NVIDIA to export its H200 AI chips to China, which may help NVIDIA regain billions of dollars in business [2] - SoftBank and NVIDIA are in talks to invest in Skild AI, a robot basic model developer, and the financing may value Skild AI at $14 billion [2] - Goldman Sachs clients are withdrawing their bullish views on AI and the US stock market, and investors' expectations for the S&P 500 Index in 2026 have become more conservative [2] - Analysts expect the Fed's interest rate cut decision this week to be accompanied by a hawkish tone, and the global market expects many countries to restart interest rate hikes in 2026 [2] - Technology giants' extension of the depreciation period of AI chips and other equipment can boost book profits, but the market's focus is on the long - term return on investment [2] - Six conservative justices of the US Supreme Court questioned a 1935 precedent, while three liberal justices warned against overthrowing the long - term position protection mechanism [2] - The US President announced $12 billion in agricultural aid funds from tariff revenues, to be distributed by the end of February 2026 [2] Market Logic - The main indices of the two markets fluctuated and declined on Tuesday, with some short - term profit - taking funds exiting. The chairman of the CSRC emphasized the role of the capital market, and analysts believe that the A - share market's valuation will rise in 2026. International funds are flowing into the Chinese stock market, and NVIDIA's CEO believes that China will win the AI competition [1][2] Future Outlook - The Politburo will continue to implement a more proactive fiscal policy and a moderately loose monetary policy. Global funds are increasing their positions in Chinese stocks. The CSRC chairman supports technological innovation. Morgan Stanley is optimistic about the Chinese stock market in 2026. Industry insiders believe there is no AI bubble in the next three years. Google plans to increase AI computing power. The probability of the Fed cutting interest rates in December has exceeded 90%. The US has adjusted its economic relations with China, which will accelerate the flow of global funds to the Chinese capital market. The market is expected to operate weakly [3] Trading Strategies - For stock index futures directional trading, gradually exit long positions and wait for new opportunities [3] - For stock index option trading, do not participate in stock index call options for the time being [3]

Group 1 - The consumer electronics sector continues its recent upward trend, with notable stock performances including Pegatron reaching the daily limit and Transsion Holdings increasing by 8%, contributing to a 1.6% rise in the consumer electronics ETF, which has accumulated nearly 8% growth since November 25 [1] - The consumer electronics ETF has seen a net subscription of 12.8 million shares, with an estimated net inflow of 137 million yuan [1] - The gaming ETF also experienced a 1.14% increase, with a net subscription of 13.8 million shares and an estimated net inflow of 196 million yuan [1] Group 2 - The launch of the technical preview version of Doubao mobile assistant marks a collaboration between Doubao and mobile manufacturers in the AI assistant space [2] - Huawei's first AI emotional companion product "Hanhan" sold out immediately upon release, integrating Huawei's "Xiao Yi" large model for human-like voice interaction, positioned as an emotional "electronic partner" [2] - XREAL is set to release AR glasses Project Aura in collaboration with Google in December, highlighting the ongoing advancements in AI applications [3] Group 3 - The AI application sector is experiencing multiple short-term catalysts, with Google's launch of Gemini 3.0 accelerating AI application deployment and driving demand for computing power [3] - Domestic companies like Alibaba have officially released the public beta version of Qianwen, suggesting a bullish outlook on downstream AI applications as a "call option" for proactive investment [3] - The gaming ETF (159869) has a latest scale of 11.019 billion yuan, with a total net inflow of 3.8 billion yuan over the past 60 days, including major players like Gigabit, Kaiying Network, and Giant Network [3] - The consumer electronics ETF (159732) has tracked the National Consumer Electronics Index and has seen a total net inflow of 100 million yuan over three consecutive days, with key stocks including Luxshare Precision, Shenghong Technology, and Goertek [3]

Group 1 - The consumer electronics sector in the A-share market showed strong performance on December 1, with several companies experiencing significant stock price increases [1] - XREAL is collaborating with Google to launch AR glasses named Project Aura, expected to be released in December [1] Group 2 - Beilong Precision saw a 20% increase in stock price, with a total market capitalization of 4.005 billion [2] - Yitian Co. experienced a 13.85% rise, with a market cap of 3.869 billion [2] - Meige Intelligent's stock rose by 10%, with a market capitalization of 12 billion [2] - Desai Battery's stock increased by 7.74%, with a market cap of 11.1 billion [2] - Other notable performers include Yunjia Technology (6.92% increase), Zhihui Power (6.86% increase), and Tongxingda (6.69% increase) [2]

Group 1 - The consumer electronics sector in the A-share market is experiencing strong performance, with several companies seeing significant stock price increases [1] - Beilong Precision has reached a 20% daily limit increase, while Yitian shares have risen over 13% [1] - Other notable performers include Meige Intelligent with a 10% limit increase, Desai Battery up over 7%, and several companies like Yunjia Technology, Zhidongli, Tongxingda, and Transsion Holdings rising over 6% [1] Group 2 - XREAL is collaborating with Google to launch AR glasses named Project Aura, set to be released in December, with the exact date yet to be determined [1]

Group 1 - China's manufacturing PMI for November will be released on December 1, with the previous index at 50.6 indicating continued expansion but slowing growth, raising questions about the sustainability of the recovery [1] - The official reserve asset data for China will be published on December 7, with October's gold reserves reported at 74.09 million ounces, marking a month-on-month increase of 30,000 ounces and a 12-month consecutive increase in gold holdings [1] - The US Federal Reserve has entered a quiet period ahead of its meeting on December 9-10, shifting market focus to the delayed release of the September PCE report on December 5, with expectations of a slight decrease in core PCE month-on-month to 0.22% and a year-on-year growth rate steady at 2.9% [1] Group 2 - The US will release the ISM manufacturing index for November on December 1, with expectations of a slight increase from 48.7 to 49.0, still in contraction territory, but supported by improved employment and inventory factors [2] - The Bank of Japan's Governor will speak on December 1, with market attention on his assessment of the preliminary momentum of the "Shunto" wage negotiations and core inflation returning to 2%, which could signal a strong indication for a rate hike in December [2] - A total of 35 companies in the A-share market will have their restricted shares unlocked next week, totaling 3.591 billion shares, with an estimated market value exceeding 58 billion yuan based on the latest closing prices [2] Group 3 - The 2025 AI + Industry Ecosystem Conference will be held in Beijing from December 1 to 3, with the theme "Intelligent Empowerment and Ecological Resonance" [3] - The launch event for the Livis AI glasses by Li Auto is scheduled for December 3 at 19:30 [4] - XREAL and Google are set to release the AR glasses Project Aura in December, with the exact date yet to be determined [5] Group 4 - Samsung's first tri-fold smartphone, the Galaxy Z TriFold, is expected to be officially launched on December 5 [6] - A busy earnings report period for the AI industry is anticipated, with Credo disclosing its results on December 2, Marvell on December 3, and C3.ai and Salesforce on December 4 [6] - Other companies such as ZTE, Montreal Bank, Scotiabank, Canadian National Bank, Crowdstrike, and Huiyu Technology are also scheduled to release their earnings reports next week [6]

Economic Indicators - China's November RatingDog Manufacturing PMI will be released on December 1, with the previous value at 50.6, indicating continued expansion but slowing growth [6][8] - The US ISM Manufacturing Index for November is expected to rise slightly from 48.7 to 49.0, still in contraction territory, but regional Fed surveys suggest employment improvements may support the index [6][8] - The US PCE report and personal income report, key inflation indicators for the Federal Reserve, have been rescheduled to December 5 [7][8] Key Events - US-Russia talks are scheduled for the week of December 1, with President Putin confirming the US delegation's visit to Moscow [10] - Chinese Foreign Minister Wang Yi will visit Russia for strategic security consultations on December 1-2 [11] - The Bank of Japan Governor Kazuo Ueda will speak in Nagoya on December 1, with market expectations on his comments regarding inflation and wage negotiations [12] Company Announcements - Nvidia will attend the UBS Global Technology and AI Conference on December 2, with a financial call scheduled for February 25 [13] - Ideal Automotive will hold a launch event for its AI glasses, Livis, on December 3, aiming to integrate AI capabilities into daily life [14][15] - XREAL and Google are set to release AR glasses, Project Aura, in December 2025, featuring advanced AI technology [16] Financial Reports - A wave of earnings reports is expected, with Credo reporting on December 2, Marvell on December 3, and C3.ai and Salesforce on December 4 [26][27]

Economic Indicators - China's November RatingDog Manufacturing PMI will be released on December 1, with the previous value at 50.6, indicating a continued expansion but a slowdown in growth momentum [7][8] - The US will announce the November ISM Manufacturing Index on the same day, with expectations of a slight increase from 48.7 to 49.0, still within the contraction zone [8] - The US Bureau of Economic Analysis has postponed the release of the September PCE report and personal income report to December 5, which are critical for the upcoming Federal Reserve meeting [9][10] Corporate Events - Nvidia will participate in the UBS Global Technology and AI Conference on December 2, discussing its Q4 fiscal year 2026 performance [13] - Ideal Automotive will hold a launch event for its AI glasses, Livis, on December 3, which aims to extend its AI capabilities beyond the vehicle environment [14] - Marvell Technology, referred to as "Nvidia's alternative," will report its earnings on December 3, while C3.ai and Salesforce will release their financial results on December 4 [23] International Relations - French President Macron is scheduled to visit China in early December, which may have implications for international trade and relations [15] - The EU defense ministers will meet in Brussels on December 1 to discuss military support for Ukraine, reflecting ongoing geopolitical tensions [17]