It has been many years since such a scene last appeared in Silicon Valley.
The financial sector continued to soar today, with the bull market flag bearers once again charging ahead!
Industrial Securities surged to the daily limit in early trading, closing up 6.94%; Ruida Futures achieved two consecutive limit-ups, while Northeast Securities, Huatai Securities, Guotai Haitong, and others followed closely with further gains.
Popular ETFs were active, with the Securities and Insurance ETF (512070) rising 2.27% and the Hong Kong Securities ETF (513090) climbing 1.75%.
The sudden surge in broker stocks this round stems from the convergence of three epic-level positive catalysts.
1. Regulatory easing for brokers: Regulators have clearly signaled optimizing risk control indicators for high-quality institutions, moderately expanding capital space and leverage limits, while implementing differentiated supervision for small and medium-sized as well as foreign-funded brokers to promote specialized development.
2. Expansion of insurance funds entering the market: With the reduction of stock investment risk factors, institutions estimate that this adjustment could directly increase stock investment scale by approximately RMB 150 billion, expecting insurance funds entering the market to reach RMB 2.15 trillion by 2026.
3. Strengthening of interest alignment through new fund regulations: The draft 'Guidance on Performance Evaluation Management for Fund Management Companies' has been issued, with a straightforward regulatory approach: Fund managers and executives must align themselves with investors. High performers can earn substantial salaries but must invest real money alongside them; underperformers will face salary cuts.
Specific requirements include increasing co-investment ratios for executives and fund managers, mandating that at least 30% of the chairman’s and executives’ annual performance-based compensation be invested in their own funds. Fund managers who have underperformed their benchmarks by 10% over the past three years and recorded negative profits will face a 30% pay cut.
With multiple policy benefits stacking up, the broader financial sector strengthened.
This year, Chinese assets have performed remarkably on the global asset leaderboard.
The MSCI China Index rose by 31.3%, outperforming U.S. stock indices, while the S&P 500 Index gained 16.8% during the same period. In terms of valuation, the MSCI China Index trades at a price-to-earnings (P/E) ratio of 13 times, compared to 29 times for the S&P 500.
Undervaluation, AI-driven growth, and capital inflows collectively form the backdrop of this market rally.
On the capital front, three forces are converging: insurance funds, household savings, and foreign capital are all flowing back into the stock market.
1. Insurance funds continue to accumulate stocks: As of September 2025, the balance of insurance fund investments reached RMB 37.46 trillion, representing a year-on-year increase of 16.5%. The proportion of insurance funds allocated to equities and funds stands at 9.7% and 5.3%, respectively. Equity investment allocation increased by 2.4% from the beginning of the year, while fund investment allocation rose by 0.2%.
(The content of this article consists solely of objective data and information and does not constitute any investment advice.)
2. Household deposits shift to stocks: Data from the central bank shows that non-banking deposits increased by RMB 6.66 trillion in the first ten months of this year. Huachuang Securities estimates that under an optimistic scenario, excess household savings could inject RMB 11 trillion of incremental funds into the stock market.
Investor enthusiasm for entering the market is surging. According to the Shanghai Stock Exchange, a total of 24.84 million new accounts were opened in the first 11 months of 2025, marking a year-on-year increase of 7.95%. In November alone, 140,700 new margin trading accounts were opened, reflecting an 8% month-on-month rise. The total number of margin trading accounts has now reached 15.5173 million.
Data indicates that equities and funds currently account for approximately 15% of household assets in China, highlighting significant demand and potential for asset management and wealth management services.
3. Foreign capital flows back against the trend: Morgan Stanley data shows that as of November this year, long-term overseas funds have net purchased approximately USD 10 billion worth of stocks in mainland China and Hong Kong, sharply contrasting with an outflow of approximately USD 17 billion in 2024, signaling a clear turning point.
The ETF market has become even more vibrant. The scale of ETFs surged from RMB 3.73 trillion to RMB 5.76 trillion this year, repeatedly hitting new highs.
Among these, the financial sector has garnered significant favor from ETF capital. For instance, the Hong Kong Securities ETF (513090) attracted a net inflow of RMB 21.703 billion within the year, with its latest scale surpassing RMB 31.1 billion. Its average daily trading volume reached RMB 9.976 billion, ranking first among equity-based ETFs in the entire market. It also supports T+0 trading with an annual fee rate as low as 0.2%.
In addition, the Securities and Insurance ETF (512070) has received a net inflow of RMB 7.567 billion so far this year, with its scale reaching RMB 16.349 billion. It tracks the CSI 300 Non-Bank Financials Index, with securities accounting for 61.4% of the constituent stocks and insurance making up 37.7%.
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Driven by the Google chain, global technology stocks have become exceptionally hot. In the A-share market, CPO surged again today! 'Yi Zhongtian' soared, while Zhongji Xuchuang, Tianfu Communication, and other stocks hit new all-time highs.
It has been many years since such a scene last appeared in Silicon Valley.
An unprecedented schism is occurring in the U.S. tech industry. Breaking away from reliance on NVIDIA, shedding the constraints of outdated algorithms, dismantling the traditional 'hardware + cloud' framework, and throwing itself into a more brutal new cycle.
This feels very much like when Apple abandoned Intel to shift towards Arm, or when Tesla completely overhauled its vehicle architecture to introduce Giga Press, or when Amazon internally incubated AWS out of its e-commerce platform.
It’s all part of that “I must first destroy myself to create the next version” approach.
Now, the entire U.S. tech supply chain is adopting this strategy.
The release of Google Gemini 3 not only represents an enhancement in model capabilities but also sends a significant signal: Google is no longer defining its future through NVIDIA's chips.
Many people think this is just Google tinkering within its own ecosystem, but new developments have emerged recently.
Media reports reveal that Microsoft is secretly in talks with Broadcom.
This is an extremely bold move.
What does Microsoft want to do? It intends to bypass its current partner Marvell and directly collaborate with Broadcom to develop custom chips.
Why choose Broadcom? Because currently, Broadcom is considered the only company capable of challenging NVIDIA's dominance in semiconductor design.
The underlying logic: tech giants are forming a tacit understanding, which can be described as 'de-NVIDIA-ization'.
In the past, everyone worked for Jensen Huang, buying cards, queuing up, and waiting for approval. Now, customers are becoming the biggest rivals. From the rise of Google’s TPU to Microsoft teaming up with Broadcom, and even Meta offering to waive upfront design fees to secure Marvell’s production capacity, all signs point to one fact — a 'fragmentation' at the hardware level has begun.
The entire U.S. tech industry seems to have triggered some internal mechanism: the computing power supply chain is beginning to crack.
And deep within these cracks lies the gateway to the next paradigm.
If the fragmentation at the hardware level is an undercurrent, then the fragmentation at the software level is akin to hand-to-hand combat, with every move drawing blood.
The most compelling drama unfolds in OpenAI’s response. What was OpenAI’s stance in the past? It stood alone at the pinnacle, teasing the release of Sora like squeezing toothpaste to build anticipation.
But this time, Google’s surprise attack has alarmed Sam Altman. Last week, OpenAI internally sounded a rare 'red alert'.
Gemini 3’s prowess in multi-modal understanding has sent chills down OpenAI’s spine. There are even rumors that if no action is taken, Claude 4.5 could soon overtake them.
Thus, a wild rumor spread among the public. Forget about waiting for Christmas or the original launch event. Reports suggest that OpenAI is planning a surprise release next Tuesday.
The GPT-5.2, originally scheduled for release at the end of December, has been abruptly moved up to next Tuesday, indicating that OpenAI is indeed under significant pressure to respond immediately.
According to comparison charts posted by netizens on social media, GPT-5.2 appears to comprehensively outperform Gemini 3 and Claude 4.5.
Behind this 'urgent advancement' lies an extreme sense of insecurity among industry giants.
To counter every move made by their competitors, they must tear apart their own products, rip up their roadmaps, and even dismantle their former selves.
For every move you make, I have to counter with two, even if my new strategies aren't fully developed—I must still unveil them to create an impact.
This near-frantic 'disruptive tearing apart' approach is breathtaking and even carries a hint of ruthlessness, yet it precisely demonstrates that technological evolution begins with disruptive innovation.
If GPT-5.2 truly arrives next Tuesday, this round of confrontation between tech giants may enter an intense phase.
This is a high-stakes gamble of 'suicidal evolution.'
Whether it's Microsoft backstabbing NVIDIA or OpenAI being forced to reveal its hand prematurely, for Silicon Valley's giants today:
The greatest risk may not be radicalism, but rather the established order. Any Silicon Valley giant attempting to preserve the existing order or resting on their laurels to reap dividends could easily vanish amidst this round of disruption.
But when will AI become your partner? When most people start treating AI as they would another person, it will truly change the world and transform behavior. Sometimes it feels scary to think about, but I see it happening.
