This week, A-shares experienced a bottoming-out rebound, with the Shanghai Composite Index and the SSE 50 Index edging slightly higher on a weekly basis, while the Shenzhen Component Index, the STAR 50 Index, and the BSE 50 Index posted minor weekly declines. Weekly trading volume shrank to 8.8 trillion yuan.
In terms of leveraged funds, net selling exceeded 1.1 billion yuan this week. The basic chemicals sector saw net financing outflows of over 1.9 billion yuan, while nonferrous metals and food & beverages also recorded net outflows exceeding 1 billion yuan. Sectors like media, banking, and transportation also faced net selling of over 1 billion yuan. However, the electronics industry attracted net financing inflows of over 2.8 billion yuan, defense & military industry saw inflows exceeding 1.8 billion yuan, and non-bank financials gained over 1.2 billion yuan in net inflows. Sectors such as commercial retail, machinery, building materials, and utilities also secured net inflows exceeding 1 billion yuan.
According to Wind data, commercial retail saw five consecutive days of net inflows from major funds, totaling over 22.5 billion yuan for the week. Nonferrous metals also attracted net inflows exceeding 20.1 billion yuan, while seven sectors—including defense & military, automobiles, machinery, and communications—recorded net inflows of over 10 billion yuan each. Only electronics and power equipment experienced net outflows from major funds.
Looking ahead, Debon Securities noted that while trading volume has declined, market sentiment remains positive, with small and mid-cap stocks outperforming. Policy support remains evident, and the domestic substitution logic in sectors like semiconductor equipment and commercial aerospace remains intact. Heightened policy focus on domestic demand may further boost investor interest in consumer sectors. A balanced allocation across technology and consumer sectors is recommended.
Guotai Haitong Securities stated that after an extended period of sideways movement, China’s "transformation-driven bull market" is poised to regain momentum and reach new heights. The phase of profit-taking and position reduction is nearing its end, and year-end reallocation and institutional fund inflows are expected to improve market liquidity and trading activity, signaling the start of a year-end rally. The current period presents a crucial window for positioning in the spring market, with large-cap growth stocks benefiting from industrial trends likely to dominate before the Lunar New Year. Large-cap value stocks, favored by insurance capital allocations during the "New Year rush," may also rebound.
In terms of market trends, as the 2026 New Year and Lunar New Year approach, festive sentiment is growing, driving strong performances in consumer-related stocks. The general retail sector index surged nearly 12% for the week, hitting a yearly high. Companies like Baida Group, Liqun Co., and Shanghai Jiubai saw multiple daily limit-ups, with Baida Group hitting six limit-ups in seven days—its highest stock price in a decade.
Sectors like duty-free concepts, influencer economy, new retail, and supply and marketing cooperatives also rallied sharply. Shunho Holdings, Nanjing Commercial & Tourism Group, and Joeone Co. were among the top gainers, with multiple daily limit-ups.
On the policy front, the Ministry of Commerce and the Ministry of Finance issued a notice on pilot programs for new consumption formats, models, and scenarios in 50 cities, including Beijing. The Ministry of Agriculture and Rural Affairs also launched promotional activities for specialty products and festive consumption ahead of the 2026 holidays, urging local governments to implement measures to boost agricultural product consumption and meet holiday demand.
Huaxi Securities believes that expanding domestic demand has become a top-level consensus and is likely to be a key priority in 2026, with efforts on both supply and demand sides. Optimized leave policies and improved product and service offerings could drive new growth momentum in China’s cultural tourism and retail sectors, unlocking additional consumption potential.
The food and beverage sector is also benefiting from the upcoming holiday sales season, with related stocks posting consecutive gains. Snack food stocks were particularly active, with the sector index rising for six straight days. Companies like Yuanzu Group, Guifaxiang, Ligao Foods, and Toly Bread recorded five consecutive days of gains.
Sub-sectors like food processing, ready-to-eat meals, plant-based meat, and dairy also outperformed the broader market, with companies such as Hongmian Co., Xiwang Food, and Yasheng Group hitting daily limits on Friday.
According to iiMedia Research, snacks accounted for 49.23% of Chinese consumers’ holiday purchases, making them the second-largest category, with 40.23% of consumers choosing snacks as Lunar New Year gifts.
Guosen Securities highlighted that China’s per capita spending on snacks stands at 954.4 yuan—only a quarter of U.S. levels and half of Japan’s—indicating significant room for growth. Rising health consciousness is driving innovation in healthier snack options, such as low-calorie, high-fiber konjac-based products, which are gaining popularity.
Disclaimer: This article is reproduced from cooperative media, and the information is provided for reference only. It does not constitute investment advice. Investors should act at their own risk.
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