Zhitong Hong Kong Stock Exchange Unravels | The wave of interest rate cuts by the Federal Reserve is not alarmed, and the Central Economic Work Conference indicates the direction

[Anatomy Dashboard]

The Federal Reserve has cut interest rates. I didn't expect A shares to stretch out like this. Instead, it became a sharp decline. Hong Kong stocks were slightly normal, rushing higher and falling not much, and closed down slightly by 0.04%.

The Federal Open Market Committee (FOMC) lowered the benchmark federal funds target interest rate to a range of 3.5%-3.75% with a 9-3 vote on Wednesday. Three Fed policymakers opposed cutting interest rates by 25 basis points. The bitmap indicates a rate cut in 2026. Powell's tone at the press conference was mixed. He first started with “hawkish”, saying that policy interest rates are in a good position, and interest rates are within a neutral estimation range. However, he then “switched pigeons” and expressed his intention to cut interest rates further to boost the job market. A more critical sign is that it has surpassed expectations -- the Federal Reserve announced a restart and expansion: the Federal Reserve launched reserve-managed debt purchase (RMP) in December to buy $40 billion of short-term treasury bonds every month. Although RMP isn't exactly equivalent to QE back then, the nature is the same. This is also the reason why the three major US stock indexes can continue to rise.

On the other hand, on our side, after the Federal Reserve cut interest rates, it theoretically created conditions for us to move towards easing, but the core of our policy is still “centered on me”; in the end, we are looking at the state of the domestic economy. According to agency forecasts, in 2026, China may downgrade 1-2 more times, with a cumulative margin of 25-50BP. The central bank may leave limited room to cut interest rates at the beginning of the year. On the one hand, it can stimulate the economy in the first half of next year; on the other hand, it will also require monetary cooperation with fiscal debt issuance. Therefore, there are no big expectations for the end of the year. It can be seen that the interest rate cuts are someone else's, and the declines are all my own.

We talked about real estate yesterday. Logically speaking, if the Federal Reserve cuts interest rates, it makes sense to expect real estate here. However, I didn't see any feedback on the information released in the essay, indicating that if nothing happened, natural real estate stocks could not be seen to continue. However, real estate is always a problem, and there is always a way to solve it. Whether it is solved during development or through policy means, it is an issue that needs to be considered, so there is no need to be particularly pessimistic. China Cinda (01359), the leading financial debt company, bucked the trend and is still up nearly 4% today. Shell (02423), the leader in sales, also increased by more than 3% due to repurchases.

Latin America is still uneasy. US President Trump said on Wednesday that due to heightened tension with Venezuelan President Nicolas Maduro's administration, the US has seized an oil tanker near the Venezuelan coast. The Venezuelan government said in a statement that the current US seizure constituted blatant theft and international piracy. The real reason for America's long-term intervention in Venezuela has finally been revealed. Everything is related to Venezuela's natural resources, oil, and energy. These resources belong entirely to the Venezuelan people. Indeed, in the end, the series of actions carried out by the United States are all for all kinds of resources. It's almost as if they just started looting under the banner; it's really hard to say which step it went later.

ZTE (00763) is in trouble again. The company announced that the company is aware of recent news media reports on the company's compliance investigation involving the US Foreign Corruption Law. The company is communicating with the US Department of Justice on related matters and will resolutely protect its rights and interests through laws and other means. Things are always going wrong. It is said that later they faced sky-high fines, and all the money they had worked so hard to earn was surrendered. Today, it has plummeted by more than 13%.

The Central Economic Work Conference was held in Beijing from December 10 to 11. The conference decided that next year's economic work will carry out the following key tasks: 1. The first is to adhere to domestic demand leadership and build a strong domestic market. The main source of this fermentation is the automobile used car credit market. The leader is Yixin Group (02858), which has been mentioned repeatedly in recent days. Today, it continues to rise by more than 2%. There is also an education leader. China Oriental Education Group (00667) has reached a strategic cooperation with the Jicui Intelligent Manufacturing Research Institute. The Jicui Intelligent Manufacturing Research Institute is a professional intelligent robot and system solution provider, focusing on the application of collaborative robots and mobile unmanned vehicles in various innovative scenarios such as industrial intelligent manufacturing and lifestyle services. In the future, China Oriental Education Group plans to establish intelligent manufacturing and intelligent robot operation and maintenance majors in key regions such as Anhui, Nanjing, and Chengdu to accurately meet industry needs and cultivate much-needed industrial technical talents. Of course, in addition to the popular robotics field, the company also signed a cooperation agreement with Yamano Beauty College in Japan, etc., and there is plenty of room for development. Today, it has increased by more than 7%.

2. Adhere to the innovation drive and step up the cultivation and expansion of new momentum. The focus was on deepening the expansion of “artificial intelligence +”, which mainly includes AI+ advertising, Huiliang Technology (01860), which surged nearly 15%. Changfei Optical Fiber (06869) on the equipment side increased by more than 4%.

3. Adhere to the “double carbon” leadership and promote comprehensive green transformation. Among them, Wind Energy Goldwind Technology (02208) also has a superimposed theme: it holds 8.3% of Blue Rocket's shares, and the rise and fall of A-shares is based more on the space theme. Today, H shares have risen by more than 5%; CGN New Energy (01811) in the direction of nuclear energy has risen by more than 4%; there is also lithium batteries. See sector focus for details.

On the evening of December 10, Lansi Technology (06613) issued an announcement stating that it had signed an agreement of intent with an independent third party to acquire 100% of Pei Meigao International's shares in cash and other means. The latter holds 95.1164% of Yuanshi Technology's shares. Target Group is mainly engaged in the production and sale of server cabinets, structural components, and server liquid cooling modules. Through this acquisition, the company will quickly obtain mature technology and customer certification for specific customer server cabinet business at home and abroad, as well as advanced liquid cooling and cooling system integration capabilities, forming strong complementarity and high collaboration with the company's strong precision structural parts manufacturing and “material-module-complete” vertical integration capabilities, greatly enhancing the core competitiveness in AI computing power hardware solutions, and adding strong impetus to the company's development of new AI computing power infrastructure and accelerate transformation to a global AI hardware innovation platform. Today's increase is over 2%.

At the end of today's market, there was a sudden rise in large orders in the collective auction for bank stocks in the two places. The direct reason was that ETF positions were adjusted and exchanged for shares. After closing tomorrow (December 12), several core broad-based indices will adjust their constituent stocks, and trillion-level ETF funds will need to be laid out in advance to avoid the impact of position adjustments. In addition, many banks rush to raise funds in order to receive dividends on stock registration days.

[Section Focus]

According to reports, domestic lithium battery manufacturer Degas Energy recently issued a notice announcing that due to the continued rise in upstream raw material prices and rising battery production costs, the company decided to increase the sales price of its battery series products by 15% starting December 16. Funeng Technology also revealed to the market that the company is communicating with customers about price increases, and some products have already achieved price increases. It is worth mentioning that according to the December pre-production data for the lithium battery industry chain released by Xinyi Lithium Battery, the sample company produced 143.3 GWh of batteries, an increase of 2.3% over the previous month. At the same time, following the price increase of lithium battery materials such as lithium hexafluorophosphate and the electrolyte additive VC, wet diaphragms have also recently experienced sharp price adjustments.

Main varieties: Ningde Era (03750), Ganfeng Lithium (01772), Tianqi Lithium (09696).

[Individual Stock Mining]

Hanson Pharmaceuticals (03692): Sales growth is rapid, innovative drugs have entered the harvest period

Two new indications for the innovative drug Amelox® were successfully included in the new 2025 National Health Insurance Catalogue. 2025H1, the company's total revenue was 7.434 billion yuan, up 14.3% year on year; net profit to mother was 3.135 billion yuan, up 15.02% year on year.

Comment: The pharmaceutical industry is once again embracing policy catalysis. In the first half of 2025, sales revenue of Hanssen Pharmaceutical's innovative drugs and cooperative products reached 6.145 billion yuan, an increase of 22.1% over the previous year, accounting for 82.7% of total revenue. This figure is significantly higher than the industry average. Domestic replacement sales are growing rapidly. As the first third-generation EGFR TKI produced in China, sales are growing rapidly, and indications continue to expand. According to sample hospital sales data, from 18.41 million in 2020 to 1,784 billion yuan in 2024, the compound annual growth rate was 214%. In 2024, it accounted for about 28% of the total sales of the three generations of EGFRTKI, ranking first among domestic drugs. Ametinib is actively expanding indications related to NSCLC. Currently, four NSCLC-related indications have been approved. In 2025, additional adjuvant treatment indications after surgery and treatment of patients progressing after treatment with platinum-containing chemotherapy were added. The NDA for first-line treatment of NSCLC with combined chemotherapy is still under review. Ametinib was approved for marketing by the UK MHRA in June 2025, making it the first innovative drug approved by Hanson Pharmaceuticals to enter overseas markets. The company will continue to strive to obtain EMA's overseas regulatory approval.

As of 2025H1, the company has carried out more than 70 innovative drug clinical trials with more than 40 candidate innovative drugs; 2025H1 added 8 new innovative drugs into clinical trials, including HS-20122 (eGFR/c-Met ADC), HS-10510 (PCSK9), etc. Three new phase III clinical trials were added, namely the psoriasis trial of HS-20137 (IL-23p19) introduced from Quanxin Biotech, and the global phase III clinical trial for bone and soft tissue sarcoma and HS-20089 (B7-H4 ADC) ovarian cancer. Overseas rights for these two ADCs have been granted to GSK. HS-20093 B7-H3 Furthermore, the psoriatic phase III clinical trial of Hansen's TYK2 inhibitor HS-10374 is also continuing to advance, and the data shows that the risk of skin toxicity is low.

It is worth noting that recently, the company announced the licensing of its CDH17 targeted antibody-conjugate drug (ADC) HS-20110, which it is currently developing, to Roche for global rights outside of Greater China. This cooperation is another important example of China's innovative pharmaceutical companies being recognized by top international pharmaceutical companies for their R&D strength in the ADC field. In 2025, domestic innovative drug licensing transactions will explode. In the first three quarters of 2025 alone, the total amount of domestic innovative drugs authorized to foreign countries has exceeded 100 billion US dollars. The company's products, such as GLP-1/GIP biagonists, have also achieved value through overseas licensing.