Yesterday, the market rebounded after an early dip, with the Shanghai and Shenzhen exchanges recording a combined turnover of 1.78 trillion yuan, down 125.4 billion yuan from the previous session. Leading gainers included Hainan, precious metals, and retail sectors, while lab-grown diamonds, banking, and organic silicon lagged. At the close, the Shanghai Composite Index fell 0.23%, the Shenzhen Component Index rose 0.29%, and the ChiNext Index edged down 0.02%.

In today’s broker morning briefings: 1. **CICC** noted the Fed may hold rates steady in January, with the next potential cut in March. 2. **CSC** highlighted that future PCBs will increasingly resemble semiconductors, driving steady value growth. 3. **China Galaxy Securities** expects two-piece can price hikes to restore industry value.

**CICC: Fed Likely to Pause in January, Next Cut Possible in March** CICC observed that while the Fed cut rates by 25 bps in December as expected, dissent from two officials signaled higher hurdles for further easing. Chair Powell’s tempered stance and the Fed’s Treasury bill purchases eased market concerns. Earlier "hawkish cut" expectations reversed, amplifying volatility. With economic and labor market pressures persisting, CICC projects further rate cuts in 2026, albeit at a slower pace due to sticky inflation. A January pause is likely, with March eyed for the next cut.

**CSC: PCBs to Mirror Semiconductors, Fueling Value Growth** CSC argued that orthogonal backplane demand and Cowos process upgrades will make PCBs more semiconductor-like, lifting their value. Tech giants like Amazon, Meta, and Google—with weaker in-house chip designs than Nvidia—will demand higher-performance PCBs, boosting elasticity. Rising short-range data transmission needs will drive PCB upgrades, propelling upstream supply chains (e.g., CCL from M6/M7 to M8/M9). Domestic PCB firms’ growing global share will further localize upstream materials like high-end resins, glass fabrics, and copper foil.

**China Galaxy Securities: Two-Piece Can Price Hikes to Drive Value Recovery** China Galaxy Securities noted China’s two-piece can market, worth 44.7 billion yuan in 2023 (8.3% CAGR since 2018), may reach 77.6 billion yuan by 2030. Industry pricing hinges on capacity and downstream demand. Consolidation (Top 3 players now hold 70% share post-ORG’s acquisition of COFCO Packaging) and unified profit-recovery efforts could lift 2026 prices for beer and soft drink clients, improving margins.