Today (December 11), A-shares experienced volatile consolidation, with the Shanghai Composite Index falling below 3,900 points and the ChiNext Index dropping under 3,200. The Beijing Stock Exchange 50 Index showed strong activity, surging over 6% in the afternoon session. Over 4,400 stocks declined across the market, with total turnover reaching 1.89 trillion yuan.
Sectors such as newly listed stocks, wind power equipment, commercial aerospace, and banking were relatively active, while communication equipment, Hainan Free Trade Port, West Taiwan Strait, and real estate lagged.
Wind data showed net inflows exceeding 5 billion yuan into power equipment and over 1.4 billion yuan into defense and military industries. Machinery, banking, building materials, and agriculture also saw net inflows above 100 million yuan. Conversely, electronics faced net outflows of over 8.5 billion yuan, computers over 6 billion yuan, and communications over 5.5 billion yuan. Media, non-bank financials, transportation, and real estate also recorded outflows exceeding 2 billion yuan.
Looking ahead, BOC International noted that A-shares may stabilize in the short term, setting the stage for a potential "spring rally." With silver prices hitting record highs, precious metal stocks could lead the next wave of capital rotation. Investors are advised to focus on non-ferrous metals, particularly small-cap precious metal plays.
Western Securities highlighted the Beijing Stock Exchange’s role as a hub for specialized and innovative firms. Despite short-term pressure from capital concentration in core tech sectors, long-term opportunities remain as policy support and valuation adjustments take effect. Key areas to watch include AI-related firms and liquidity-boosting policies.
Commercial aerospace stocks continued their strong run, with the sector index hitting record highs. Tianli Composite surged 30% intraday, while Tongguang Cable, Sinosteel Luonai, and others locked in 20% gains. Over 20 stocks, including Galaxy Electronics and China Aerospace Power, rose by the daily limit or over 10%.
Reports suggest SpaceX is accelerating its IPO plans, potentially raising over $30 billion—the largest in history—with a post-listing valuation target of $1.5 trillion. Domestically, China conducted multiple satellite launches in early December, including the successful deployment of 15 low-orbit internet satellites via the Long March 6 rocket.
CSC Financial pointed to the newly established Commercial Aerospace Department under the National Space Administration and its 2025–2027 development plan, signaling a ramp-up in launch frequency from 2026. Low-orbit satellite internet and rocket launch chains are expected to benefit most.
Banking stocks saw unusual late-session activity, with the sector index rebounding sharply. Agricultural Bank of China turned positive near the close, while Bank of China, ICBC, Bank of Communications, and Postal Savings Bank all ended at daily highs.
Galaxy Securities emphasized banks’ sustained mid-term dividends and early payout schedules, enhancing their appeal as dividend plays. Shareholder and executive buybacks further underscore long-term value, attracting steady capital inflows.
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