Financial Morning Brief: A-Share IPO Returns Hit Record Highs; "Deposit Migration" Potential Underestimated | December 18, 2025

Deep News12-18 08:11

**Key Headlines** Hainan Free Trade Port Officially Launches Island-Wide Customs Closure The Hainan Free Trade Port commenced full-scale customs closure operations on December 18, 2025. Since the release of the "Overall Plan for the Construction of Hainan Free Trade Port" in 2020, Hainan has established a preliminary financial policy framework, becoming a leader in financial openness and innovation. The People's Bank of China has completed all financial preparations to support high-standard development.

From January to November 2025, cross-border fund flows in Hainan reached $101.6 billion, with an average annual growth rate of 55% since 2020. Cross-border RMB settlements expanded to 484.5 billion yuan, up 7.8% YoY.

**ETF Inflows Surge as "National Team" Steps In?** Amid recent market adjustments, funds are rapidly entering the market via ETFs. On December 17, multiple broad-based ETFs, including Huatai-PineBridge CSI A500 ETF (141.18 billion yuan turnover), hit record highs.

**A-Share IPO Bonanza: Muxi Shares Soars 693% on Debut** Muxi Shares, a domestic GPU leader, debuted on the STAR Market with a 692.95% surge, setting a new record for single-lot profits (up to 395,200 yuan). Quant hedge funds emerged as big winners, with investor Ge Weidong reportedly earning over 10 billion yuan.

**Vanke Proposes 3.7 Billion Yuan Medium-Term Note Extension** Vanke announced a plan to extend the maturity of its 3.7 billion yuan bond (22 Vanke MTN005) by 12 months to December 28, 2026, alongside enhanced credit measures.

**Mega Merger: CICC to Absorb Dongxing and Cinda Securities** CICC unveiled a merger plan with Dongxing and Cinda Securities, creating a financial giant with over 1 trillion yuan in assets. Trading resumes today.

**Precious Metals Rally: Silver, Platinum, and Palladium Hit Records** Shanghai silver futures surged 5%, while platinum and palladium contracts hit limit-up gains. Year-to-date, spot silver, platinum, and palladium rose 128%, 112%, and 80%, respectively, driven by supply tightness and macro expectations.

**"Deposit Migration" Potential Underestimated?** With declining deposit rates and rising equity market appeal, analysts project trillions in potential fund inflows. Over 60 trillion yuan in fixed deposits maturing post-2026 could redirect to capital markets.

**Gold’s Record Run: How to Anchor Long-Term Value** As gold prices scale historic peaks, "gold+" strategies gain traction among retail investors seeking stable allocations.

**Corporate Highlights** - **China Tourism Group Duty Free** expands duty-free offerings in Hainan, reporting strong sales for portable instruments and pet toys. - **Alibaba** reduced its stake in Huayi Brothers below 5%, exiting major shareholder status. - **CATL** deployed humanoid robot "Xiao Mo" for high-voltage battery testing, enhancing safety and efficiency. - **Oracle** shares halved amid AI bubble concerns, despite denying reports of a canceled $10 billion data center project.

**Sector Trends** - Lithium stocks rallied as carbonate demand surged; firms downplayed impact of Jiangxi mine closures. - Memory chip prices spiked, signaling consumer electronics price hikes.

**Market Strategy** Analysts argue the market underestimates the scale and speed of deposit shifts into equities. Morgan Stanley’s Wang Ying notes maturing 3%+ deposits may pivot to stocks, while Shenwan Hongyuan’s Zhao Wei highlights 9.4 trillion yuan in excess savings as potential fuel.

**Corporate Actions** - **CICC**, **Dongxing**, and **Cinda Securities** resume trading post-merger announcement. - **Wanlong Optoelectronics** plans to acquire Zhongkong Information for digital infrastructure expansion. - **Xiaorong Co.** sees control shift after a 9.25% stake sale. - **China Zhongye** unveiled a 10-20 billion yuan A-share buyback.

**Contracts & Deals** - **CRRC** secured 53.3 billion yuan in contracts, including 16.65 billion yuan for wind and energy storage equipment.

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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