A-Shares Close: Shanghai Index Edges Down While STAR and ChiNext Rebound; Chip Sector Leads Rally

Today’s market saw mixed performance, with the ChiNext and STAR Markets rebounding collectively, though the momentum remained weak overall. The Shanghai Composite Index closed slightly lower. Sector rotations accelerated, with tech-related themes like semiconductors and humanoid robots gaining strength. The total market turnover reached 1.5 trillion yuan, shrinking by over 100 billion yuan from the previous session, while more than 3,800 stocks declined.

The robotics sector surged, with stocks like Huawu Intelligent and Rifa Precision hitting the daily limit. Catalysts included reports that the Trump administration is considering an executive order on robotics next year, and Tesla’s Optimus team releasing a video of its humanoid robot running. Separately, Zhongqing Robotics announced the official launch of its T800 general-purpose humanoid robot.

The commercial aerospace sector remained active, with China Satellite among the gainers. Shanxi Securities noted that China’s commercial aerospace industry could become a key focus in the 15th Five-Year Plan, with regulatory improvements driving high-quality growth.

Semiconductor and chip stocks also rallied, led by Hua Hong Semiconductor, AMEC, and Jingjia Micro. Guojin Securities highlighted opportunities in domestic semiconductor equipment amid AI-driven 3D storage advancements and capacity expansions by firms like CXMT and YMTC.

Elsewhere, sports-related stocks like Shuhua Sports rose, while Fujian-based Shengyuan Environmental gained over 10%. Decliners included consumer staples, basic chemicals, and coal mining.

At the close, the Shanghai Composite fell 0.06% to 3,875.79, while the Shenzhen Component rose 0.40% to 13,006.72, and the ChiNext gained 1.01% to 3,067.48.

**Fund Flows**: Major inflows targeted sectors like auto parts and specialized equipment, with top gainers including Sanhua Intelligent, Juilong Smart, and Tianfu Communication.

**Key Updates**: 1. **Sports Authority Expands Basketball Events**: The General Administration of Sport issued guidelines to boost grassroots basketball tournaments, encouraging integration with tourism and commerce. 2. **Home Sales Rebound**: First-tier cities saw 490,033 secondary home transactions in November, a 7-month high, with cumulative sales surpassing 510,000 units year-to-date—the first time in four years. 3. **Hubei’s Reform Push**: The province plans over 1.5 trillion yuan in new investments over five years to upgrade infrastructure and modern services. 4. **Urban Renewal Progress**: China renovated 25,100 old residential districts in the first 10 months of 2025, with 16 regions meeting annual targets.

**Outlook**: 1. **CICC**: Favors large-cap stocks in December, recommending coal, chemicals, and defense sectors amid potential policy easing. 2. **GF Securities**: Anticipates a "spring rally," with small-caps likely outperforming post-Lunar New Year. 3. **Orient Securities**: Expects limited index movement, with cyclical and consumer stocks offering relative strength.