Zhitong Hong Kong Stock Exchange Unravels | Several Major Negative Impacts, Weak Sentiment, and Consumption Raises to a Strategic Height

[Anatomy Dashboard]

Market sentiment is weak now because last week's two major meetings and the Federal Reserve's interest rate cut did not cause much turbulence. Today, this slump continues. Both markets are adjusting, and Hong Kong stocks opened low and fell 1.34%.

There are quite a few questions. Overall, there is no major game between China and the US, but the chain reaction surrounding tariffs is showing negative. As the US Christmas season approaches, the rush to buy Christmas gifts is putting tremendous pressure on Southeast Asian manufacturers thousands of kilometers away. The December 15 report pointed out that US tariffs have affected low-cost exporters throughout Southeast Asia, making countries such as Malaysia, Vietnam, Laos, and Indonesia more deeply involved in the increasing structural competition between China and the US. Trade agreements signed between the US and East Asian countries have hidden consequences because “poison pill” clauses have been added.

Furthermore, the US government is betting on economic recovery to increase AI productivity to resolve the imbalance between federal debt and welfare promises. Well-known investment institutions warn that if AI fails to deliver on its promises, the US will fall into a deep recession and sovereign debt crisis, which is far more destructive than the 2008 financial crisis. Specifically, Oracle and OpenAI's latest GPT5.2 fell short of expectations, causing major problems with confidence in AI. As a result, chip stocks were dragged down, such as SMIC (00981) and Huahong (01347), which fell 4.4% and 6.4%. Changfei Optical Fiber (06869) also fell by more than 10%.

There are also robots. On December 14, local time, iRobot, the “originator of sweeping robots,” filed for Chapter 11 bankruptcy protection. It is expected that the procedure will be completed by February 2026, and it will reach a “restructuring support agreement” with the Chinese foundry Picea, which will receive 100% of the shares. iRobot was once the world's leading consumer robot company. Since 2022, its performance has declined, and many unsuccessful sales or financing attempts, now its lifeblood is in the hands of Chinese manufacturers. Robotic sentiment was ruined, and Sanhua Intelligent Control (02050) fell by more than 7% today.

Today, Elon Musk publicly sang about decaying nuclear fusion power generation on the social platform X. It bluntly stated, “Building a small nuclear fusion reactor on Earth is extremely foolish.” This statement is determined by the butt. In order to successfully launch Starlink SpaceX, of course, space computing power would have to be boosted, but it had a negative impact on individual nuclear fusion stocks in the stock market. For example, Shanghai Electric (02727) fell by more than 5%.

In response to the complex and changing international environment, capital once again chose gold as a safe haven. The strongest ones were Zijin Gold International (02259), which rose nearly 8%, and Chifeng Gold (06693), which rose more than 5%.

The Securities Regulatory Commission shouted: We must do our best to do our best at the end of the year and the beginning of the New Year. Firmly adhere to the bottom line of risk prevention and stability. As a result, types such as insurance securities continued to stabilize, and insurance fundamentals were stronger. The original insurance premium income of Xinhua Insurance (01336) was 18.885 million yuan in the first 11 months, up 16% year over year, and today it is up more than 4%. Other Chinese Taiping (00966) and China Taibao (02601) all rose more than 2%. The bottom of the securities category, China Merchants Securities (06099), rose more than 3%.

Currently, the main problems constraining the domestic stock market are real estate and consumption. Let's look at real estate. On December 15, the National Bureau of Statistics released real estate data for the previous month and changes in housing prices in 70 large and medium-sized cities. From January to November, the country invested 7859.1 billion yuan in real estate development, down 15.9% from the previous year; of these, residential investment was 6043.2 billion yuan, a decrease of 15.0%. It shows that the situation is not optimistic. The problem was mentioned earlier. One is to resolve it during development, and the other is to unblock it through policy guidance. I can't see a clear direction for now.

Therefore, the only interesting aspect is consumption. “Qiushi” magazine published an important article “Expanding Domestic Demand is a Strategic Move”, which raised consumption to a strategic level. In conjunction with news from the weekend, the National Health Insurance Work Conference was held in Beijing a few days ago. The conference called for active adaptation to population development strategies in 2026 to promote the development of maternity insurance and long-term care insurance. Promote the inclusion of flexible workers, migrant workers, and people with new forms of employment in maternity insurance coverage. Reasonably raise the level of coverage for medical expenses for antenatal examinations, and strive to basically achieve “no out-of-pocket payment” for individuals who give birth within the scope of the policy throughout the country.

Starting with population growth is indeed a good way to stimulate it. However, the performance of Jinxin Reproduction (01951) in assisted reproduction was not very strong; it only increased by less than one point because of its limited benefits. Instead, the performance of the dairy industry is outstanding. It is also a fundamental issue. The industry is basically close to the bottom. Currently, the decline in demand for liquid milk has narrowed, the decline in farm milk stocks is driving an improvement in supply and demand, and the pace of falling milk prices is slowing down. It is expected that milk prices may stop falling and rise in 2026, and the volume and price of liquid milk are expected to pick up at the same time. The related superior animal husbandry industry (09858) rose nearly 8%, modern animal husbandry (01117) rose nearly 4%, and the bottom Mengniu Dairy (02319) rose nearly 2%.

Three departments, including the Ministry of Commerce and the Central Bank, issued the “Notice on Strengthening Commercial and Financial Collaboration to Boost Consumption” on December 14, which emphasizes further stimulating consumption potential. According to several media reports, Kweichow Moutai recently introduced a volume control policy covering short-term burden reduction and medium- to long-term structural reforms. According to data from the third-party platform “Today's Wine Price”, on December 15, the wholesale reference price for the 53-degree 500ml Flying Maotai loose bottle had rebounded to 1,560 yuan/bottle in 2025, and the original box products were reported at 1,550 yuan/bottle, all returning above the official guide price of 1,499 yuan/bottle. As a major consumer leader, Maotai's price stabilization is of great significance.

On December 14, the Li Ning (02331) brand held the grand opening ceremony of the world's first Dragon store and the official launch of the new Honor Gold Brand product line in Taikoo Li, Sanlitun, Beijing's landmark business district under the theme of “Dragon Yao opens”. The launch of the Honor Gold Label series and the launch of the new store type Dragon Store will form a strong synergy. This is not only an important milestone in Li Ning's brand development, but also a key practice in retail channel upgrading. Li Ning (02331) rose by more than 5%; domestic textile and apparel brands already have the strength to compete with international brands; leading OEM Yuyuan Group (00551) rose more than 6%, while others rose by 361 degrees (01361) and TEP International (01368) by more than 2%.

According to the official WeChat account of Bruco (00325), recently, at the Sao Paulo Animation Exhibition in Brazil, Bruker debuted with many products, exhibiting nearly 60 products with more than 10 world-famous IPs, including Transformers, Saint Seiya, Evangelion, DC, and Jurassic World. Among them, nearly 10 new IP products such as Saint Seiya and Transformers were on display. If sales increase, Bruker (00325) is expected to break out of the bottom, rising more than 3% today.

[Section Focus]

Today (15th), the Ministry of Industry and Information Technology officially announced the entry permits for China's first batch of L3 conditional autonomous driving models. The two models, each adapted to urban congestion and highway sections, will be tested on the road in designated areas of Beijing and Chongqing, marking a key step in China's L3 autonomous driving from the testing stage to commercial application.

The two models announced this time are from two automobile manufacturers, one south and one north. The pure electric car produced by this automobile company in Chongqing can achieve an autonomous driving function with a maximum speed of 50 kilometers per hour in motorways and bicycle lanes on expressways and urban expressways in traffic jams. Currently, this function is only enabled on relevant sections of roads in Chongqing.

This all-electric sedan produced by this Beijing-based automobile company can achieve an autonomous driving function with a maximum speed of 80 kilometers per hour in motorways and urban expressways. Currently, this function is only enabled on relevant road sections in Beijing.

The main varieties of Hong Kong stocks: the mobility category My Little Pony Zhixing (09881), Wenyuan Zhixing - W (00800); the chip-based Horizon (09660), Black Sesame Smart (02533), and Nexteer (01316) for components.

[Individual Stock Mining]

Yihuatong (02402): Policy catalyzes the first overseas export of continuous power generation products

Recently, the company announced that its 100kW fuel cell generator set has been successfully delivered to an Australian customer for a distributed power generation project in Brisbane, Queensland. At the 2025 Tokyo Motor Show, Mitsubishi Fuso Truck and Bus unveiled the world's first liquid-hydrogen heavy truck equipped with a 260 kW high-power fuel cell system.

Comment: Policy catalysis continues, and support has been further strengthened. More than 10 provinces and cities have introduced high-speed toll reduction policies for hydrogen vehicles, and coverage continues to expand. The gradual formation of hydrogen energy high-speed networks has enhanced the economy and market potential for commercialization of hydrogen energy heavy trucks. This is the company's third mature power generation product. It is also the first time that overseas exports have been achieved, and hydrogen power generation solutions have taken the first step in globalization. At the Tokyo Motor Show, Yihuatong's newly developed 260kW liquid-hydrogen fuel cell system became the key to technological breakthroughs. The system is based on Yihuatong's own graphite plate electric stack development, and achieves a hydrogen supply pressure of as low as 5 bar and a high performance power output of 260 kW.

As a leading enterprise in China's hydrogen fuel cell industry, Yihuatong has established a business system covering R&D, production and collaborative development of the entire industry chain of fuel cell systems. In 2024, Yihuatong ranked first in fuel cell system shipments in China with a market share of 18.7%. The company has established in-depth cooperation with mainstream commercial vehicle companies such as Yutong Bus and Beiqi Foton. The world's first “hydrogen-electric hybrid” cruise ship was put into operation in the Pearl River, carrying Yihuatong's 80kW marine-grade electric reactor. “Streetcars” are clearly included in product application scenarios, and in the future, it is planned to develop high-power systems of 100 kW or more to meet the needs of heavy trains.

A breakthrough in cost control. Through material innovation and large-scale production, the company reduced the system cost from 12,000 yuan/kW in 2018 to 2,500 yuan/kW in 2025, a reduction of 79%. According to the current hydrogen price (35 yuan/kg), the gap between the TCO (total cost of ownership) of hydrogen energy heavy trucks and diesel vehicles has been reduced to less than 10%.