On December 10, the three major A-share indices opened slightly lower. The markets remained weak in the morning session but rebounded sharply in the afternoon, driven by property stocks. The ChiNext Index, which had fallen over 2% earlier, turned positive, while the Shanghai Composite struggled due to banking sector weakness.
Sectors such as education, CPO, and semiconductors saw afternoon gains, while Hainan Free Trade Port and retail remained strong throughout the day. Solar energy, ultra-hard materials, servers, and banking sectors underperformed.
At the close, the Shanghai Composite fell 0.23% to 3,900.5 points, the STAR 50 Index dipped 0.03% to 1,346.7 points, the Shenzhen Component rose 0.29% to 13,316.42 points, and the ChiNext Index slipped 0.02% to 3,209 points. Wind data showed 2,433 stocks gaining, 2,841 declining, and 178 unchanged across the Shanghai, Shenzhen, and Beijing exchanges. Total trading volume shrank to 1.7785 trillion yuan from 1.904 trillion yuan the previous day.
**Property Stocks Lead Gains, Banks Drag** The real estate sector surged in the afternoon, with stocks like World Union (002285), Vanke A (000002), Nanyue Property (603506), Caixin Development (000838), China Fortune (600340), and Guangyu Group (002133) hitting the daily limit. Retail stocks also rallied, with Yonghui Superstores (601933), Central Department Store (600280), Red Star Macalline (601828), Maoye Commercial (600828), Dongbai Group (600693), and Zhongbai Group (000759) among the gainers.
Education stocks lifted the social services sector, with Offcn Education (002607) surging by the limit, while Caissa Tourism (000796), Xueda Education (000526), Douzone Education (300010), and China Hi-Tech (600730) rose over 4%.
Banking stocks led declines, with China Merchants Bank (600036), Agricultural Bank of China (601288), Bank of Hangzhou (600926), Qilu Bank (601665), and ICBC (601398) dropping over 1%. Power equipment also lagged, with Hyper Strong (688411) down over 7% and others like Hongxiang (300427), Jinhui (300619), Delijia (603092), and Huazi Technology (300490) falling over 3%.
**Market Outlook: Potential for Further Upside** Analysts suggest multiple factors support Chinese equities, maintaining an overweight stance on A/H shares. Expectations of fiscal expansion and accommodative monetary policies in 2026 could bolster sentiment.
November’s stronger-than-expected export rebound, supported by resilient demand and manufacturing recovery, may sustain momentum. However, December’s higher base could pressure year-on-year growth.
Domestic economic recovery remains gradual, but policy support and improving liquidity could drive further market gains. The Shanghai Composite may consolidate near 4,000 points, with cyclical and tech sectors rotating. Investors are advised to monitor macro data, global liquidity shifts, and policy signals.
Some brokerages anticipate a year-end rally, though delayed by subdued risk appetite. Lower interest rates may still attract household funds to equities, but stronger catalysts—such as earnings stabilization or policy clarity—may emerge in early 2026.
Despite short-term volatility, the long-term bullish case for A-shares remains intact, with potential for a pre-Spring Festival rally if geopolitical risks ease and Fed rate-cut expectations solidify.
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