**Market Overview** December kicked off with a positive start as Hong Kong’s Hang Seng Index rose 0.67% amid mixed sentiment. While optimism around potential Fed rate cuts buoyed markets—fueled by former U.S. President Trump’s remarks about replacing Fed Chair Jerome Powell—geopolitical tensions, including threats against Venezuela, lingered as a risk.

**Commodities Rally** Spot silver prices hit a record high above $57/oz, lifting shares like China Silver Group (00815, +5%) and Zijin Mining (02899, +4%). Copper futures also surged, with MMG (01208) and Jiangxi Copper (00358) both jumping over 10% on supply concerns.

**AI and Consumer Electronics Surge** ByteDance’s launch of its AI-powered "Doubao" mobile assistant, developed with ZTE (00763, +14%), sparked gains in consumer electronics. Huawei’s sold-out AI companion robot further boosted sector sentiment, lifting suppliers like Sunny Optical (02382, +6%). Apple’s rumored foldable iPhone also lifted supply chain stocks.

**Travel and Trade Boost** Russia’s visa-free policy for Chinese tourists propelled Tongcheng Travel (00780, +6%), while Macron’s upcoming China visit bolstered shipping stocks like COSCO Shipping (01138).

**Corporate Highlights** - **Sinotruk (03808)**: Strong Q1–Q10 performance with 25.9% YoY vehicle sales growth, driven by robust exports and新能源重卡 demand. - **Kingboard Laminates (01888)**: Raised product prices by 5–10% due to soaring copper costs, lifting shares 5%.

**Sector Focus: Shipping** The Baltic Dry Index’s 12-day rally signaled a shipping recovery, with歐線 freight rates up 5%. Analysts see a cyclical upturn, favoring COSCO SHIP HOLD (01919) and Pacific Basin (02343).

**Outlook** While Fed expectations and AI innovations offer tailwinds, geopolitical risks and commodity volatility warrant caution. Key themes: rate cuts, AI adoption, and export-driven industrials.