Global Market Turmoil: US and Chinese Stocks Plunge, Monetary Policy Shifts to "Moderate Ease," and Multiple Major Events Analyzed

Global Market Turmoil: US and Chinese Stocks Plunge, Monetary Policy Shifts to "Moderate Ease," and Multiple Major Events AnalyzedRecent global financial markets have experienced heightened volatility. Major US indices have seen sustained declines, while Chinese stocks listed in the US (Chinese ADRs) have suffered significant losses, causing widespread market concern

Global Market Turmoil: US and Chinese Stocks Plunge, Monetary Policy Shifts to "Moderate Ease," and Multiple Major Events Analyzed

Recent global financial markets have experienced heightened volatility. Major US indices have seen sustained declines, while Chinese stocks listed in the US (Chinese ADRs) have suffered significant losses, causing widespread market concern. Simultaneously, China's monetary policy has shifted towards "moderate ease" aimed at boosting economic confidence. Furthermore, numerous noteworthy events have unfolded both domestically and internationally, including: the EU's concerns regarding the business environment for Chinese companies; the implementation of measures to improve teacher welfare in China; Shanghai's action plan to support mergers and acquisitions of listed companies; the issuance of 2025 Lunar New Year commemorative coins and banknotes; the burgeoning short-form video industry in Zhengzhou; the sentencing of several corruption cases; the ongoing investigation into the "disappearance and recovery of Mr. Bu"; various international news events; and announcements from numerous companies. This article will provide detailed analyses of these events and their potential impacts.

NO.1 Global Stock Market Slump: US and Chinese Stocks Fall, European Markets Diverge

Following yesterday's decline, the three major US stock indices the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 all fell again today. The Dow fell 0.35%, the Nasdaq 0.25%, and the S&P 500 0.30%. Chinese stocks listed in the US performed even worse, experiencing a collective downturn. The 3x Long FTSE China ETF fell nearly 13%, the Nasdaq China Golden Dragon Index dropped over 4%, and several large Chinese ADRs experienced significant declines: Tiger Brokers fell over 14%, FUTU Holdings over 11%, Bilibili over 11%, Nio over 7%, XPeng over 6%, Pinduoduo and Li Auto over 5%, NetEase, JD.com, and Baidu over 4%. Chip stocks also generally fell, with Micron Technology down nearly 5%, TSMC down almost 4%, and Nvidia and Qualcomm down nearly 3%. It's noteworthy that Oracle fell nearly 7% while Google rose nearly 6%.

European major stock indices showed divergence. The German DAX30 index closed up 12.55 points (0.06%) at 20366.65; the UK FTSE 100 index closed down 74.48 points (0.89%) at 8277.60; the French CAC 40 index closed down 85.36 points (1.14%) at 7394.78; the European STOXX 50 index closed down 33.91 points (0.68%) at 4951.55; the Spanish IBEX 35 index closed down 48.58 points (0.40%) at 11962.92; and the Italian FTSE MIB index closed down 33.83 points (0.10%) at 34526.00.

The cryptocurrency market also performed poorly, with Bitcoin falling below $95,000, a daily drop of 0.68%. Furthermore, major Microsoft shareholders opposed the company's Bitcoin investment proposal, further increasing market uncertainty.

NO.2 China Shifts Monetary Policy to "Moderate Ease," Sending Positive Signals

A commentary published by Xinhua News Agency noted that the meeting of the Political Bureau of the Central Committee of the Communist Party of China analyzed economic work for 2025, with the description of monetary policy drawing significant attention. After more than a decade, the monetary policy orientation has been changed to "moderate ease," reflecting a supportive monetary policy stance and conveying positive signals. This is expected to bolster confidence and contribute to China's economic recovery. The "moderate ease" monetary policy orientation for next year will better reflect the "supportive" monetary policy stance; the combination of the two will further maintain ample liquidity, reduce the comprehensive financing costs for enterprises and residents, and provide financial support for sustained economic recovery.

NO.3 Foreign Ministry Responds to EU Concerns, Urges Against Politicization and Overly Broad Security Concerns in Trade

The EU Chamber of Commerce in China's "Developing Business in China Report" noted that "uncertainty" is the keyword for Chinese companies operating in the EU. The report provided policy recommendations to EU institutions and member state governments to improve the business environment for Chinese companies in the EU. In response, Chinese Foreign Ministry spokesperson Mao Ning stated that they hope the EU will seriously listen to and address the reasonable concerns and legitimate demands of Chinese companies, avoid politicizing and over-securitizing trade issues, and provide a fair, transparent, and non-discriminatory business environment for Chinese companies investing and operating in the EU.

NO.4 Seven Departments Issue Document to Strengthen Teacher Welfare and Enhance Teacher Status

The Ministry of Education and seven other departments jointly issued "Several Measures to Further Strengthen Respect for and Benefits to Teachers," further strengthening teacher welfare and improving their political, social, and professional status. Measures include annual free physical examinations for teachers, regular mental health lectures and counseling services, establishment of health records for teachers, and discounts on public transportation, as well as including eligible teachers in urban housing security programs.

NO.5 Shanghai Releases M&A Action Plan, Aiming for 300 Billion Yuan in M&A Transactions by 2027

The Shanghai Municipal People's Government Office issued the "Shanghai Action Plan to Support Mergers and Acquisitions of Listed Companies (2025-2027)," aiming to complete a series of key industry mergers and acquisitions by 2027. The plan seeks to cultivate around 10 internationally competitive listed companies in key industries such as integrated circuits, biomedicine, and new materials, achieve 300 billion yuan in M&A transactions, activate total assets exceeding 2 trillion yuan, and conduct cross-industry mergers and acquisitions to upgrade industries and seek second growth curves, injecting high-quality assets to enhance investment value.

NO.6 2025 Lunar New Year Commemorative Coins and Banknotes to Be Issued

The People's Bank of China will issue the 2025 Lunar New Year commemorative coins and banknotes starting December 16, 2024, including bicolour copper alloy commemorative coins, banknotes, gold commemorative coins, and silver commemorative coins.

NO.7 Zhengzhou's Short-Form Video Industry Booms, Moving Towards Regulation, Diversification, and High-Quality Development

Zhengzhou's short-form video industry is rapidly developing, with hundreds of short videos being filmed daily. The local government aims to create a "creative center for micro-short videos." The industry is moving toward regulation, with diversification and high quality becoming development trends, and industry profits becoming increasingly transparent.

NO.8 Multiple Corruption Cases Sentenced, Demonstrating Determination to Fight Corruption

Tang Shuangning, former chairman of China Everbright Group, was sentenced to twelve years in prison for embezzlement and bribery. Qi Jun, former director of the Strategic Planning Department of the Chinese Football Association, was sentenced to seven years in prison for bribery. Zhang Jianchun, former vice minister of the Central Propaganda Department, was expelled from the Party and dismissed from public office for serious disciplinary violations.

NO.9 Criminal Charges Filed Against Those Involved in the "Mr. Bu Disappearance and Recovery" Case

Public security organs have launched a criminal investigation into the crime suspected in the "Mr. Bu disappearance and recovery" case, and have taken criminal coercive measures against those involved.

NO.10 International News: US Successfully Conducts Ballistic Missile Intercept Test, Provides Loan to Ukraine, South Korea's Political Turmoil Continues, Colombian Airport Body Case Update, Nobel Laureates Oppose Trump Nominee

The US successfully conducted its first ballistic missile intercept test in the western Pacific Ocean near Guam; the US Treasury Department announced a $20 billion loan to Ukraine; the South Korean National Assembly passed a resolution demanding the swift arrest of President Yoon Suk Yeol; Colombia denied claims of 20,000 bodies at an airport; 77 Nobel laureates jointly opposed Donald Trump's nomination of Robert F. Kennedy Jr. for Secretary of Health and Human Services.

NO.11 Corporate News: CATL and Stellantis to Establish Joint Venture, Xiaomi Driving School Opens, Alibaba Cloud Responds to Fire, WeChat Upgrades Group Call Function, Apple Responds to Watch Adhesion Issue, UnitedHealth Group Executive Murder Suspect Arrested, Hisense Responds to Layoff Rumors, Powerchina Responds to False Information, Yakult Closes Shanghai Factory, Meta Accused of Tax Evasion

CATL and Stellantis plan to jointly establish a joint venture in Spain with a total investment of 4.038 billion; Xiaomi's elite driver training program has opened registration with a fee of 9,999 yuan; Alibaba Cloud responded to the fire at its Heyuan park, stating that it did not affect cloud services; WeChat upgraded its group call function, allowing use without creating a group; Apple customer service responded to issues with Apple Watch adhering to glass, attributing it to screen protectors; the suspect in the murder of a UnitedHealth Group executive was arrested; Hisense responded to layoff rumors, calling them false; Powerchina responded to false