**Daily Perspective** On December 3, the three major A-share indices continued their downward adjustment, with combined market turnover remaining below 1.7 trillion yuan. Overseas, recent data suggests the U.S. economy showed signs of deceleration before the government shutdown, increasing downside risks. The probability of a Fed rate cut in December has rebounded to over 80%, potentially leading to a "rate cut + hawkish stance" scenario at this month’s meeting. Domestically, the PBOC’s net liquidity injection in November via multiple tools signals a steady yet accommodative monetary policy stance. December marks a critical policy window for key meetings, though market expectations for incremental stimulus remain subdued. With the economy in a weak recovery phase, equities may stay range-bound in the short term, warranting a balanced allocation strategy.

**Key Developments** 1. **PBOC’s November Liquidity Operations**: The central bank reported a net injection of 290.4 billion yuan via open market operations and structural tools, including 50 billion yuan in treasury bond transactions, 25.4 billion yuan via PSL, 115 billion yuan through other targeted facilities, and 100 billion yuan via MLF. Despite net withdrawals in 7-day reverse repos, the PBOC maintained overall liquidity support by prioritizing medium- and long-term tools. *Analysis*: The emphasis on structural tools (40% of total injections) reflects precision easing to alleviate financing pressures on the real economy. This approach stabilizes market rates and fosters a conducive monetary environment for recovery, signaling a dual focus on aggregate and structural measures ahead.

2. **Fujian’s 12 Pro-Taiwan Measures**: On December 2, Fujian unveiled policies to deepen cross-strait integration, including allocating 1,200 mu of land for Taiwanese-invested zones, supporting precision machinery projects in Nanjing, and offering insurance subsidies for aquaculture firms. *Analysis*: These targeted measures bolster resource access and market expansion for Taiwanese businesses, reinforcing regional economic integration and signaling commitment to openness.

3. **New Credit Repair Rules**: China’s market regulator released updated credit repair guidelines, expanding eligibility and shortening processing timelines to encourage voluntary compliance. The 31-article framework takes effect on December 25, 2025. *Analysis*: This refinement of the credit system promotes self-correction and reduces long-term costs for firms with minor infractions, enhancing regulatory efficiency and business confidence.

**Market Recap** On December 3, the Shanghai Composite fell 0.51% to 3,878.00, the Shenzhen Component lost 0.78% to 12,955.25, and the ChiNext Index dropped 1.12% to 3,036.79. Sector-wise, transportation, non-ferrous metals, and coal led gains (up 0.69%, 0.63%, and 0.57%), while media, IT, and real estate lagged (down 2.86%, 2.26%, and 1.53%). Decliners outnumbered advancers 3,689 to 1,416.

**Liquidity Data** Turnover rose to 1.68 trillion yuan, with margin debt edging up to 2.49 trillion yuan.

*Source: Flush, data as of December 3, 2025. Investment involves risks; past performance does not indicate future results.*