The market experienced a volatile adjustment yesterday, with the Shanghai and Shenzhen exchanges recording a combined turnover of 1.59 trillion yuan, down 280.5 billion yuan from the previous trading session. Sectors such as Fujian-related stocks, food, and pharmaceutical commerce led gains, while energy metals, non-ferrous metals, and film & cinema sectors lagged. By the close, the Shanghai Composite Index fell 0.42%, the Shenzhen Component Index dropped 0.68%, and the ChiNext Index declined 0.69%.

In today’s broker morning briefings: - **CITIC Securities** highlighted that December faces virtually no liquidity gap, with limited funding-side risks for the bond market. - **CITIC Construction Securities** noted Alibaba Cloud’s accelerating growth, leveraging open-source ecosystems and model performance to build B2B barriers.

**CITIC Securities: Minimal Liquidity Gap in December, Low Bond Market Risk** CITIC Securities’ analysis suggests December will see no significant liquidity shortfall, reducing funding-related risks for bonds. Historical data since 2021 shows year-end bond yields generally trend downward. Following November’s bond market correction, the 10-year government bond yield rebounded to the upper range of 1.75%–1.85%, presenting trading opportunities. However, CITIC expects limited upside for year-end performance and advises flexible strategy adjustments based on marginal market shifts.

**CITIC Construction Securities: Alibaba Cloud’s Momentum with Open-Source and B2B Barriers** CITIC Construction Securities emphasized Alibaba’s business transformation driven by its Qwen AI model, supported by open-source strategies and robust performance to strengthen B2B ecosystem moats. The firm is also ramping up capital expenditures to meet surging computing demand, with sustained high cloud revenue growth validating its “infrastructure investment–tech iteration–commercialization” cycle. Key focus areas include: 1) Alibaba ecosystem partners; 2) Early AI revenue realization in OA/ERP segments; 3) Faster AI monetization in niche verticals (e.g., AI-coding, multimodal); 4) Growing local inference adoption; 5) Edge AI developments.