Breakfast | Foreign media reports that the U.S. is considering further regulations on chip exports to China, with measures expected to be announced as early as next week

Market Overview

The U.S. stock market was closed overnight for Thanksgiving, and will close early tonight.

The domestic budget crisis in France is putting pressure on the market, with an expanded decline in government bonds. The yield on France's ten-year government bonds briefly rose above 3.0%, matching Greek bonds for the first time in history. The French Finance Minister stated that concessions would be made on the budget proposal, leading to a rebound in French government bonds and a nearly 8 basis point drop in yields, halting two consecutive days of decline in French stocks and the pan-European index.

The U.S. dollar index has recovered from a two-week low; the Russian ruble rebounded nearly 4% the day after a sharp drop; the offshore yuan fell more than 100 points during the day, approaching 7.26, while Bitcoin briefly dropped $2,000, falling below the 95,000 mark.

Gold continued to rebound slightly, moving away from a one-week low. Crude oil turned positive during the day, with a strengthened rebound momentum.

In the Asian session, the ChiNext index fell nearly 2%, while the supply and marketing cooperatives surged in the afternoon. The Hang Seng Index and the Hang Seng Tech Index both fell over 1%, and government bond futures collectively rose.

Ruble Devaluation! A Drop of Over 10%, Rebounding Nearly 4% the Next Day

On Wednesday, the Russian ruble experienced panic selling, with the ruble to dollar exchange rate briefly dropping over 8.5%. In the week ending on the 27th, the Russian ruble plummeted 10% against the dollar, reaching as low as 113 rubles, the lowest level since March 2022. It has since rebounded.

Analysts pointed out that the main reasons for the accelerated decline of the ruble are related to the U.S. Treasury's announcement last week of sanctions against Russian financial institutions, and increased market concerns over the escalation of the Russia-Ukraine conflict.

On November 21 local time, the U.S. Treasury's Office of Foreign Assets Control (OFAC) issued a statement announcing sanctions against Gazprombank, over 50 small and medium-sized Russian banks, more than 40 Russian securities firms, and 15 Russian financial officials.

Putin confirmed that Russia launched a comprehensive strike in response to Ukraine's attacks, stating that if Ukraine acquires nuclear weapons, Russia will use all available means of attack.

Biden Administration Considers Further Regulations on Chips to China

According to Global Times citing U.S. media: The Biden administration is considering further regulations on chips to China, with measures expected to be announced as early as next week. The sanctions on Huawei suppliers have been reduced compared to previous plans, and Changxin Storage is not included in the list. The U.S. had previously considered sanctioning at least six suppliers of Huawei, but now plans to include only some suppliers in the list. The latest version of the regulatory measures may also include controls on high-bandwidth memory (HBM) chips.

Bloomberg reported that insiders indicated that the specifics and timing of the new regulations have been adjusted multiple times, and changes may occur before the announcement. The latest proposal has several key differences from earlier versions, primarily regarding which Chinese companies will be added to the trade restriction list. The U.S. had previously considered sanctioning at least six suppliers of Chinese tech giant Huawei, but now plans to include only some suppliers in the list. The report specifically mentioned that Changxin Storage, which is attempting to develop AI memory chip technology, is not on the list. The latest version of the regulatory measures may also include controls on high-bandwidth memory (HBM) chips.

U.S. media stated that these measures were formulated after months of deliberation by U.S. officials, negotiations with allies Japan and the Netherlands, and intense lobbying by U.S. chip equipment manufacturers. U.S. chip manufacturers had previously warned that stricter measures would have a catastrophic impact on their business For months, American companies have opposed the unilateral restrictions imposed by the U.S. on Chinese suppliers. The governments of Japan and the Netherlands have resisted recent U.S. pressure to adopt stricter chip export control measures. American companies are concerned that unilateral restrictions by the U.S. will put them at a disadvantage compared to their Japanese and Dutch counterparts. (Global Times)

ECB President Lagarde: Suggests EU procure more U.S. natural gas to avoid trade conflicts with Trump

European Central Bank President Lagarde emphasized that the EU should adopt a strategy of "negotiation" rather than "retaliation" to resolve tariff disputes with the Trump administration, warning that intense trade conflicts would harm global economic growth. She suggested that the EU purchase more U.S. goods, such as LNG, to reduce direct conflicts and promote cooperation. She stated that if the EU negotiates with the U.S. regarding potential trade tariffs instead of immediately taking countermeasures, it could put the EU in a more favorable position.

"Minister Ma" Musk reveals "layoff list," federal officials feel "threatened"

Without prior review, Musk exposed personal information of officials on social media, causing personal threats and leading to resignations. Analysts suggest that through this unconventional layoff method, Musk is sending a signal to all government agencies: either step back, or you might be the next one exposed.

Is BYD squeezing suppliers by demanding a 10% price cut?

One side believes it is just standard practice, and BYD's request for suppliers to lower prices is not inappropriate; the other side thinks that a 10% cut is a bit harsh, as price reductions typically range from 3% to 5%, and this demand may lead to a vicious cycle in the industry. In the current manufacturing environment, it is either survival or demise, and staying alive remains the ultimate challenge.

First U.S. stock exchange approved for 5 days of 23-hour trading, around-the-clock trading is getting closer

24 Exchange has become the first national securities exchange in the U.S. capable of trading 23 hours a day, 5 days a week. As interest in around-the-clock trading in the U.S. stock market continues to grow, NYSE Arca and Robinhood are also eager to participate.

Morgan Stanley outlook for China's stock market next year: Policy scale and speed determine upward potential, prioritize A-shares in the short term!

Morgan Stanley believes that if domestic re-inflation policies targeting consumption and real estate are implemented more swiftly, the stock market will rise significantly. Under baseline conditions, A-shares are expected to outperform offshore markets (MSCI China Index, Hang Seng Index, etc.).

General Office of the CPC Central Committee and State Council: Relax market access in the digital sector

Promote the orderly expansion of openness in telecommunications, internet, culture, and other fields, with the main goals being: by 2029, the scale of digitally deliverable service trade will steadily increase, accounting for over 45% of China's total service trade; by 2035, the scale of digitally deliverable service trade will account for over 50% of China's total service trade; a comprehensive, orderly, safe, and efficient digital trade governance system will be fully established, and the level of institutional openness will be significantly improved.

Ministry of Commerce: Solidly promote the replacement of old consumer goods with new ones and organize consumption promotion activities

From November 27 to 28, the National Market Operation and Consumption Promotion Work Conference was held in Beijing.

The conference pointed out that since the beginning of this year, business authorities at all levels have earnestly implemented the decisions and deployments of the Party Central Committee and the State Council, taking multiple measures to continuously expand consumption, providing strong support for the economic recovery and improvement