This week, A-shares experienced minor fluctuations, with technology and growth stocks performing strongly. The ChiNext Index, STAR 50 Index, and Beijing Stock Exchange 50 Index all posted gains for three consecutive weeks. Meanwhile, large-cap blue-chip stocks saw slight adjustments, with the Shanghai Composite Index consolidating around 3,900 points, the SSE 50 Index fluctuating near 3,000 points, and the CSI 300 Index repeatedly testing 4,600 points. Weekly trading volume expanded moderately to 9.77 trillion yuan.
Leveraged funds increased their buying activity, with net financing purchases exceeding 260 billion yuan for the week, pushing financing balances to a record high of 2.49 trillion yuan. Most Shenwan primary industries saw net financing inflows, with electronics leading at over 86 billion yuan, followed by defense and military (over 20 billion yuan), non-ferrous metals, basic chemicals, power equipment, and banking (each exceeding 10 billion yuan). Only the computer and automotive sectors saw minor net outflows.
According to Wind data, the electronics sector attracted over 428 billion yuan in net inflows from major funds this week. Communications, power equipment, and machinery equipment each saw inflows exceeding 200 billion yuan, while defense and military, as well as automotive, recorded inflows over 100 billion yuan. Retail, light industry manufacturing, and non-banking financials also saw inflows exceeding 50 billion yuan. In contrast, banking experienced net outflows of over 48 billion yuan, while food and beverages saw outflows exceeding 39 billion yuan. Oil and petrochemicals, coal, and basic chemicals each recorded outflows over 10 billion yuan.
Yingda Securities noted that A-shares in 2026 will continue to benefit from medium- to long-term capital inflows, macroeconomic recovery, and improved corporate earnings, showing a stable and positive trend. High-dividend, low-valuation blue-chips will attract steady capital allocations, cyclical growth sectors will benefit from price rebounds and macroeconomic recovery, and technology innovation sectors will gain from breakthroughs in core technologies and improved A-share liquidity. The market is expected to stabilize with an upward bias, with blue-chip sectors likely becoming a focal point for valuation increases.
In market highlights, defense stocks, after nearly four months of consolidation, showed signs of breaking upward this week, particularly in the commercial aerospace and controlled nuclear fusion sub-sectors.
The commercial aerospace sector index continued its upward trajectory after breaking through a key level last week, setting new historical highs five times in December. Daily trading volume surpassed 300 billion yuan for the first time, while weekly trading volume exceeded 1 trillion yuan.
Tianli Composite surged 30% for two consecutive days, gaining over 120% in December. Shunhao Holdings and Longzhou Group saw seven limit-ups in 11 and eight days, respectively, with cumulative gains exceeding 90% this month. Aerospace Power, Zaisheng Technology, and Western Materials also surged over 60% in December.
China's rocket launches intensified this month. On the 10th, the Lijian-1 Y11 carrier rocket successfully launched nine satellites. On the 6th, the Long March 8A lifted off from Hainan Commercial Space Launch Site. On the 5th, the Kuaizhou-1A rocket launched the VDES satellites A and B. On the 3rd, the Zhuque-3 Y1 rocket was launched from the Dongfeng Commercial Space Innovation Test Zone.
The controlled nuclear fusion sector index hit a record high on Friday, with over 20 stocks, including Zhongzhou Special Materials, China XD Electric, Jiangsu Shentong, and Hualing Cable, surging by the limit or over 10%.
Everbright Securities believes the controlled nuclear fusion industry has entered a capital expenditure expansion phase, with core companies in the supply chain set to benefit from project bidding. Companies directly involved in project construction or supplying high-value, high-tech components are particularly promising.
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