On December 1, the three major U.S. stock indexes closed generally lower: the Dow Jones Industrial Average fell by 0.88%, the Nasdaq Composite Index dropped by 0.38%, and the S&P 500 Index declined by 0.53%. The tech sector showed obvious divergence – leading stocks such as NVIDIA and Apple rose by more than 1%, while Google and Microsoft fell by over 1%, and Broadcom plummeted by more than 4%. This reflects divided market views on the profit prospects of tech companies. Meanwhile, U.S. economic data was mixed: the ISM Manufacturing Index for November stood at 48.2, lower than the expected 49, indicating continued contraction in manufacturing activities.

In contrast to the overall sluggish performance of U.S. stocks, Chinese concept stocks showed structural strength, with the Nasdaq Golden Dragon China Index rising by 0.87% and significant divergence within the sector. NetEase rose by over 5%, Alibaba by more than 4%, and Baidu by over 2%. Stocks such as Haitian Network and New Oriental also performed actively, while new energy vehicle stocks including XPeng and NIO fell by more than 2%. Market analysis suggests that this divergence is not only related to the direction of domestic policy support but also reflects the preference differences of overseas capital for different tracks.

The latest research report from Guotai Haitong points out that China’s capital market is in a period of great development. Factors that previously led to valuation discounts, such as concerns about China-U.S. conflicts and unclear economic prospects, have gradually dissipated. Since 2025, RMB-denominated assets have gradually stabilized. Combined with the resonance of policy, liquidity, and fundamentals from December to February next year, it is recommended to focus on investment opportunities in tech growth sectors such as AI and computing infrastructure, large financial sectors including securities firms and insurance companies, and consumer sectors such as food and beverages, hotels, and duty-free.