On December 18, China's A-share market showed divergent index movements, with over 3,600 stocks rising. Half-day turnover reached 1 trillion yuan, up 21.2 billion yuan from the previous session. By midday, the Shanghai Composite Index rose 0.16%, while the Shenzhen Component Index fell 0.85%, and the ChiNext Index dropped 1.81%.
**Key Sector Highlights:** 1. **Commercial Aerospace Surge** The commercial aerospace sector rallied again, with Shengyang Technology securing two consecutive limit-ups, while Shunho Holdings, Tianyin Electromechanical, China Satellite, and others also hit the upper limit. Analysts attribute this to policy support, including Shanghai's draft plan to accelerate industrialization and modernize the industrial system, which emphasizes commercial aerospace. Additionally, SpaceX's regulatory quiet period announcement has drawn market attention.
2. **Pharmaceutical & Healthcare Activity** The healthcare sector remained active, with Luyan Pharma, Chongqing Pharmaceutical, and Huaren Health hitting limit-ups. Rising flu cases and increased demand for related medications, alongside Ant Group's AI-powered "Family Doctor" app gaining traction (ranking third on Apple's app chart with over 15 million MAUs), have boosted digital health management and pharmacy services.
3. **Consumer Sector Strength** The consumer sector extended gains, led by retail, apparel, and food & beverages. Baida Group notched six straight limit-ups, while Liqun Group rose for three sessions. Central Mall, Shanghai Jiubai, Joeone, Royal Group, and Langsha also surged. The Central Financial Office emphasized expanding domestic demand as a top priority for 2024, with structural consumption shifts driving growth. China Galaxy Securities noted the need for an endogenous, consumption-led economic model.
**Declining Sectors:** Battery and securities equipment sectors underperformed.
**Institutional Views:** - **Everbright Securities** expects a year-end rally, citing policy support, economic stability, and historical trends favoring strong starts to new five-year plans. It recommends TMT and advanced manufacturing, with defensive/consumer stocks as hedges during volatility. - **Huachuang Securities** suggests the "spring躁动" rally depends on resolving real estate risks, focusing on bond repayments and Vanke's debt extension. It advises short-term focus on tech leaders and AI applications. - **BOC Securities** sees A-shares in a "bull market interim," with tech and "anti-involution" themes key for 2026. Policy stability and earnings recovery may drive a broader uptrend, while Fed transitions and domestic policy execution remain near-term watchpoints.
Comments