Zhitong Hong Kong Stock Exchange Unravels | CICC (03908) Resumes Trading, Big Financial Pioneer Giants Listed, AI Is Once Again Active

[Anatomy Dashboard]

After a continuous decline, the two markets finally rebounded. In particular, the A-share Shanghai Index was close to 3,800 points, which must be maintained. Furthermore, several factors mentioned yesterday are improving. Hong Kong stocks also rebounded positively today, closing up 0.92%.

First, let's take a look at the non-farm payrolls data. In November, 64,000 new jobs were added, higher than market expectations, but the October employment data was drastically revised, and the combined unemployment rate rose to 4.6%, the highest level since 2021. This is a typical mixed situation, which is in line with yesterday's “better or worse.” The reason is not complicated, because this is Wall Street's demand, and data from the Department of Labor must be coordinated.

As a result, 10-year US Treasury yields fell by more than 3 basis points. The US dollar fell 0.43% during the day. Meanwhile, the offshore renminbi continued to be strong yesterday, and once rose to a 14-month high of around 7.03. As a result, in terms of exchange rates, aviation stocks mentioned yesterday continued to rise. China Southern Airlines shares (01055), Air China (00753), and China Eastern Airlines shares (00670) all increased by more than 4%. The paper industry is also relatively strong, such as Nine Dragons Paper (02689) and Liwen Paper (02314).

Big finance is driving the market today. Recently, this sector has been mentioned repeatedly. Today, the volume of many A-share broad-based ETFs increased in the afternoon. Among them, Huatai Berry's Shanghai and Shenzhen 300 ETF, and E-Fangda's Shanghai and Shenzhen 300 ETF traded 5,079 billion yuan, 1,283 billion yuan, and 1,166 billion yuan respectively throughout the day, all increasing in turnover. These ETFs are clearly buying insurance categories such as China Taibao (02601) and China Life Insurance (02628), which are above 3%.

According to the latest news, CICC: It is planning to absorb and merge shares of Dongxing Securities and Cinda Securities to resume trading starting tomorrow. The plan is also proposed: every 1 share of Xing Securities A shares can be exchanged for 0.4373 shares of CICC A shares, and each share of Cinda Securities A shares can be exchanged for 0.5188 CICC A-shares. Let's see how high the relevant varieties will open tomorrow. Today, securities have taken the lead in collective changes, such as CITIC Securities (06030), China Merchants Securities (06099), Cathay Pacific Haitong (02611), and Jiufang Smart Investment (09636), which rose more than 2%.

Today, Technology Line welcomed Mu Xi Co., Ltd. to officially land on the Science and Technology Innovation Board, becoming another domestic GPU leader that went public after Moore Thread. On the first day of listing, the company's stock price skyrocketed. At the close, the increase reached 692.95%. Based on signing 500 shares in a single transaction, the first-day profit scale for new investors was nearly 362,600 yuan. The listing of these giants directly spurred a rise in capital expenditure requirements.

Various regions are also progressing. Chongqing: Promoting the construction of local high-performance intelligent computing power infrastructure, and continuing to improve the quality and expand the Chongqing (Xinjiang) computing power base. The main fermentation is optical cable. On December 16, shareholders of Changfei Optical Fiber Cable (06869) transferred shares from BNP Paribas to Citibank, with a market value of HK$447 million, accounting for 3.01%. Changfei Optical Fiber (06869) surged more than 21%; followed by optical modules, Light Counting predicts that the global optical module market is expected to exceed 37 billion US dollars in 2029. Among them, demand for 800G optical modules will peak in 2025, and global shipments are expected to reach 18-1990 million units, double the previous year; 1.6T optical modules will enter the first year of commercial use in 2025, and global demand is expected to reach 2.5 to 3.5 million units. Cambridge Technology (06166), the leader in optical modules, rose more than 4%.

There is also liquid cooling. The 5th International AIDC Liquid Cooling Supply Chain Thousand People Summit and the International Data Center Liquid Cooling Market Trend Analysis Conference will be held from December 18 to 19. Hongte Precision (06088) rose more than 7%. Sanhua Intelligent Control (02050) rose nearly 4%.

The price increase concept is also quite powerful. The “Lithium Capital of Asia” Yichun Natural Resources Bureau website recently published the “Notice Concerning the Proposed Cancellation of 27 Mining Rights”, which plans to cancel 27 mining licenses, including the Wuqiao Porcelain Mine in Gao'an City. The market is worried about supply-side tension. On December 17, the price of lithium carbonate futures rose sharply in the morning, and the main contract rose 8.5%, once again reaching the 100,000 yuan mark. Major varieties Tianqi Lithium (09696) and Ganfeng Lithium (01772) both increased by more than 5%.

On December 17, Chinatungsten Online data showed that today the price of tungsten powder rose 10,000 yuan/ton. The latest price reached 1 million yuan/ton, up 216.5% from the beginning of the year. In addition, the latest price of 65% black tungsten concentrate was 420,000 yuan/standard ton, up 193.7% from the beginning of the year; the latest price of ammonium paratungstate (APT) was 620,000 yuan/ton, up 193.8% from the beginning of the year. Jiaxin International Resources (03858): The Bakuta tungsten mine in Kazakhstan developed and operated by the company officially entered commercial production in April 2025. The company plans to produce 3638, 10,900, and 13,665 tons of tungsten concentrate (65% WO3 caliber) in 2H25, 2026, and 2027, respectively, which is up more than 9% today.

In addition to resource price increases, experimental monkeys are also rising in price. As a rigid resource for pre-clinical safety assessment, demand is increasing as pre-clinical CRO orders steadily pick up; moreover, it is difficult to expand production in the short term on the supply side. Some monkey farms indicated that production capacity has been scheduled until the first quarter of 2026. It is expected that supply and demand will remain tight, and short-term prices are expected to rise further. Zhaoyan Pharmaceutical (06127), which acquired the monkey farm, has benefited significantly. The agency predicts that the fair value will be included in the 2024 average price of experimental monkeys, and that the 2025Q4 price will increase to 140,000/dog. Assuming that the release rate of monkeys in the 2024 Q4 is 17%. According to estimates of the known 23,200 monkeys, Mao estimates (not considering the effects of newly added monkeys and young & elderly monkeys) will add about 220 million fair value in 2025. Today's increase is over 10%.

The main factors that are increasing in consumption include the trendy gaming category Gobble (09890), Connett Optics (02276), which uses AI glasses, and Li Ning (02331) in textile and apparel.

[Section Focus]

Recently, polysilicon futures have been extremely strong. On December 17, they rose to 61,235 yuan/ton. The main 2,605 contract rose 3.35%, and the price temporarily closed at 60,925 yuan/ton as of the 10th period.

The rise in polysilicon prices is the result of a combination of driving factors. The first is a contraction in supply. In November, domestic polysilicon production was about 115,000 tons, a sharp drop of about 14% from the previous month (the reduction was mainly due to active production cuts by leading companies such as Tongwei and GCL during the dry water period in the southwest). The second is rising costs. Due to the increase in electricity prices in Sichuan and Yunnan after entering the dry water period, the operating rate of local silicon plants declined. Two factors together provided support for prices.

Overall, this round of growth is not driven by downstream demand, but it can be included in the scope of observation on the left. The main varieties are: GCL Technology (03800), Xinte Energy (01799), Follett Glass (06865), and Xinyi Glass (00868).

[Individual Stock Mining]

Tongcheng Travel (00780): The core OTA business continues to grow, and the hotel management business is strong

As of 9 a.m. on December 15, the popularity of searches related to “Harbin Ice and Snow World” skyrocketed 5 times compared to the same period the previous day. Tongcheng Travel achieved year-on-year growth in revenue and net profit for the third quarter of 2025. Among them, the core OTA platform's revenue increased by 14.9% and net profit to mother increased by 23.0%.

Comment: As China continues to liberalize visa-free access to foreign countries, the overall tourism boom is increasing. Snow and ice tours are another highlight. The company's three-quarter revenue and adjusted net profit both increased 10.4% and 17% year over year, respectively. The revenue of core online travel platforms increased 15%. Among them, the transportation and accommodation reservation business showed outstanding performance, the international air ticket business grew rapidly, and the proportion of high-quality hotels at night increased. The hotel management business is strong. Nearly 3,000 hotels are in operation, and another 1,500 are in preparation. Although the vacation business saw an 8% drop in revenue due to security issues in Southeast Asia, the number of the company's paying users increased steadily, especially in non-first-tier cities.

The company is a leading one-stop travel service platform in China. It has now successfully ranked among the top three in the OTA industry, and has developed in-depth cooperation with the two major shareholders, Tencent and Ctrip. The company is actively expanding the wine bar, vacation business, etc., and is also gradually developing the international market, which is expected to increase its performance.

By business: core OTA platform revenue increased by 14.9%; 1) Accommodation reservation business: achieved revenue of 1.58 billion yuan, an increase of 14.7% over the previous year, leading the industry in growth rate. 2) Transportation ticketing services: Achieved revenue of 2.21 billion yuan, an increase of 9.0% over the previous year, and revenue from international air tickets and ancillary products grew rapidly. 3) Other business: Achieved revenue of 820 million yuan, an increase of 34.9% over the previous year, mainly benefiting from the rapid expansion of the wine management business. Wanda Liquor Management is expected to bring incremental space for the 4Q. 4) Self-owned app promotion: Daily active users have reached a record high, and the focus of user operations has shifted to increasing ARPU values. Backed by Tencent and Ctrip, Tongcheng Travel has outstanding competitive advantages in traffic and inventory resources, and domestic business competitiveness continues to improve. Benefiting from core OTA cost reduction and efficiency, there is considerable room for OTA business growth, and is expected to further contribute to the increase in performance.