A Shares Open Lower; Consumer Electronics, NVIDIA Concept, and Nuclear Pollution Sectors Lead Gains

Stock News12-09 09:43

China's A-share market opened lower across the board, with the Shanghai Composite Index down 0.19% and the ChiNext Index falling 0.21%. Leading the gains were the consumer electronics, NVIDIA concept, and nuclear pollution sectors, while innovative drugs, precious metals, and robotics sectors lagged.

**Institutional Views on Market Outlook**

**GF Securities**: Large-cap stocks are expected to outperform small-caps in December, with dividend-focused strategies gaining temporary dominance. Financial sectors (non-banking financials and banks) are likely to lead in average gains. As year-end evaluation approaches, institutional investors such as insurers may rebalance their portfolios, boosting stable sectors like dividends and finance. Additionally, tighter year-end regulations could reinforce blue-chip dominance (e.g., restrictions on shell-resource speculation in late 2016 and the recent leverage-related risks in late 2023 to early 2024).

**Kaiyuan Securities**: Investors may consider positioning early for the "Spring Rally," focusing on a dual-driver strategy of technology and cyclical sectors. Key points include: 1. The rebound in technology and cyclical opportunities amid anti-internal competition trends. 2. Technology remains favorable for medium-to-long-term outperformance. 3. Some oversold growth sectors—such as defense, media (gaming), AI applications, Hong Kong-listed internet stocks, and power equipment—show emerging opportunities. Core blue-chip tech stocks may also recover.

**Sector Allocation Recommendations**: - **Technology**: Defense, media (gaming), AI applications, Hong Kong-listed internet stocks, batteries, and core AI hardware. - **Cyclicals**: Sectors benefiting from PPI improvements and anti-internal competition—photovoltaics, chemicals, steel, non-ferrous metals, power, and machinery. - **Long-term holdings**: Stable dividend stocks, gold, and optimized high-dividend plays.

**Orient Securities**: The mid-term trend remains consolidation, but TMT, upstream resources, AI chains, and aerospace-defense sectors warrant attention. The current market shows strong momentum for early positioning—driven by upcoming earnings season optimism in computing power and the global AI revolution. Short-term, the market is in a daily rebound phase, but the Shanghai Composite is likely to fluctuate between 3,850–3,950 this month.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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