On December 19, A-shares showed strength in a volatile session, with the Shanghai Composite Index rising 0.59% to 3,899.31 points by midday. The Shenzhen Component Index gained 0.93%, while the ChiNext Index climbed 0.99%. The CSI 300, Beijing Stock Exchange 50, STAR 50, and CSI A500 indices advanced 0.61%, 0.92%, 0.69%, and 0.76%, respectively. Half-day turnover reached 1.1 trillion yuan.
In liquidity operations, the central bank conducted 56.2 billion yuan in 7-day reverse repos at a fixed rate of 1.4%, with full subscription. Additionally, 100 billion yuan in 14-day reverse repos were issued via multi-price bidding. Wind data showed 120.5 billion yuan in maturing reverse repos, resulting in a net injection of 35.7 billion yuan for the day.
Goldman Sachs strategists noted that potential Fed rate cuts amid resilient growth could extend the global economic cycle, supporting equities and emerging market assets while creating mild headwinds for the dollar. They cautioned that the next market phase may bring higher volatility amid dual risks—growth disappointment or overheating that reignites rate hike concerns.
Commerce Ministry data revealed a 9.1% year-on-year increase in national online retail sales for January-November. Key monitored platforms saw digital products grow 8.2%, with smart wearables and robots surging 22.1% and 19.4% respectively. Online service consumption jumped 21.7%, driving express delivery volumes to a record 180 billion parcels by November 30.
Sector-wise, retail stocks led gains, particularly in duty-free and tax-refund segments, with Central Department Store, Shanghai Jiubai, Dalian Friendship, and Dongbai Group posting significant advances. Intelligent driving concepts remained active, with Zhejiang Shibao, Haoen Auto Electric, and Luchang Technology showing repeated strength.
Hainan's island-wide customs closure, implemented on December 18, 2025, marks a new phase for its free trade port through institutional innovation centered on "open first-tier, controlled second-tier, and island-wide freedom" policies. This development positions Hainan's duty-free sector for fresh growth opportunities.
Analyst highlights on select companies: 1. China Tourism Group Duty Free: Stabilizing Hainan operations and new downtown duty-free policies could drive renewed growth. (AVIC Securities) 2. Xiamen Port: As Fujian Port Group's sole listed platform, potential injection of quality container assets may enhance profitability. (Huachuang Securities) 3. BBK: Successful supermarket restructuring with potential upside from department store reforms. (Zheshang Securities) 4. Wangfujing Group: Diversified retail ecosystem with resilient outlet stores and accelerating duty-free expansion. (SWS Research)
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