Chinese A-shares experienced narrow-range consolidation today, with major indices diverging. By the midday close, the Shanghai Composite Index rose 0.16% to 3,876.4 points, while the Shenzhen Component Index fell 0.85%, and the ChiNext Index dropped 1.81%. The Beijing Stock Exchange 50 Index gained 0.64%, whereas the STAR 50 Index declined 0.92%, and the CSI A500 Index dipped 0.44%. The half-day turnover for A-shares reached 1.06 trillion yuan.
On the liquidity front, the People's Bank of China (PBOC) conducted an 88.3 billion yuan 7-day reverse repo operation at a fixed rate of 1.4% through quantity bidding. Simultaneously, it carried out a 100 billion yuan 14-day reverse repo operation via fixed-quantity, rate-bidding, and multi-price auction methods. Wind data shows that 118.6 billion yuan in reverse repos matured today, resulting in a net injection of 69.7 billion yuan for the day.
In industry news, at Wuliangye's "29th 12·18 Consensus, Co-construction, and Sharing" conference, Song Shuyu, Chairman of the China Alcoholic Drinks Association, emphasized the importance of maintaining resilience and confidence during industry adjustments. He stated that the long-term growth fundamentals of the baijiu industry remain intact, with structural prosperity continuing and consumer demand for premium liquor unchanged. Capital market investors also retain confidence in the sector.
The National Development and Reform Commission (NDRC) released a document titled "Focusing on Expanding Effective Investment," outlining measures to further promote private investment growth. The plan aims to address challenges in private investment by expanding market access, removing bottlenecks, and strengthening safeguards. It also seeks to establish long-term mechanisms for private enterprises to participate in major projects, particularly in sectors like railways, nuclear power, and hydropower.
Sector-wise, commercial aerospace stocks performed strongly, with Changshu Tianyin Electromechanical Co.,Ltd. (300342), Hunan Aerospace Huanyu Communication Technology Co.,Ltd. (688523), and Xi'An Bright Laser Technologies Co.,Ltd. (688333) all surging over 10%. Photolithography machine concept stocks also saw gains, with Kaimeite Gases and Aoptek leading the uptick.
The newly established Commercial Aerospace Department under the National Space Administration marks a dedicated regulatory body for China's commercial space sector, signaling continued support for high-quality development across the industrial chain. The administration recently unveiled a three-year action plan (2025-2027) to integrate commercial space into national aerospace development, accelerate innovative productivity, and enhance overall efficiency to support China's aerospace ambitions.
Key company highlights from broker research reports include: 1. Changshu Tianyin Electromechanical Co.,Ltd. (300342): Its subsidiaries Xunxi Technology and Tianyin Star focus on satellite internet, with Xunxi delivering ground processing equipment for low-orbit internet satellites and developing drone monitoring solutions. 2. Hunan Aerospace Huanyu Communication Technology Co.,Ltd. (688523): The company aligns with national policies, intensifying R&D efforts in commercial aerospace, low-altitude economy, and aircraft manufacturing. 3. Xi'An Bright Laser Technologies Co.,Ltd. (688333): Specializing in high-margin aerospace applications, it is expanding into commercial space, consumer electronics, and robotics for future growth.
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