A Shares Midday Review: Indices Gain Strength, Consumer Sector Rises Again, Smart Driving Concept Remains Active

Stock News12-19 12:03

On December 19, the major A-share indices showed strength in the morning session, with all three benchmarks rising. Over 4,600 stocks advanced, and the half-day turnover reached 1.1 trillion yuan, up 42.1 billion yuan from the previous session. By midday, the Shanghai Composite Index rose 0.59%, the Shenzhen Component Index gained 0.93%, and the ChiNext Index climbed 0.99%.

Key sector performances: 1. **Controlled Nuclear Fusion Gains Momentum** Stocks like Prince New Materials and Snowman Group surged by the daily limit, while Changfu Co. led gains. Companies such as Aikosober, Hahan Huatong, and Zhongzhou Special Materials followed the uptrend. *Catalyst:* Reports indicate that Trump Media & Technology Group surged over 40% after agreeing to merge with TAE Technologies, a nuclear fusion energy firm, in an all-stock deal worth over $6 billion.

2. **Commercial Aerospace Continues Strength** Huati Technology secured its second consecutive daily limit, with firms like Xinke Mobile and Guanglian Aviation also rising. *Catalyst:* China’s commercial aerospace sector is entering a busy period for reusable rocket launches, with private firm Tianbing Technology’s Tianlong-3 and state-backed Long March 12A rockets nearing their debut launches between late 2025 and early 2026.

3. **Smart Driving Concept Stays Active** Zhejiang Shibao hit its fourth straight daily limit, while Haonen Auto Electric led gains. Companies like Wanji Technology, Suoling Co., and Beibu Gulf Auto followed suit. *Catalyst:* China’s MIIT granted the first batch of L3 conditional autonomous driving permits to Changan Auto and BAIC’s Arcfox, marking a key step toward commercial deployment in designated urban and highway zones.

4. **Consumer Sector Rallies** Retail, F&B, and "reward economy" segments performed well, with Deby Group, Dalian Friendship, Xiwang Food, and Dongbai Group hitting daily limits. Earlier, Sanxiang Impression had secured two consecutive limit-ups. *Catalyst:* New pilot programs for innovative consumption models were launched in 50 cities, per a joint notice by China’s commerce and finance ministries.

**Market Outlook Highlights** - **Industrial Securities**: Year-end rallies may unfold as policy tailwinds (domestic and global) foster risk-asset momentum. Consensus-building around growth and tech themes could drive the next phase. - **GTJA Securities**: The "transition bull market" is poised to regain momentum, with tech, financials (brokerages/insurance), and consumer sectors leading the charge. Mid-to-large caps may dominate pre-Lunar New Year, while small caps could outperform afterward. - **CSC Financial**: Despite recent corrections, structural opportunities and capital market reforms underpin the bull case. Key themes include non-ferrous metals, commercial aerospace, AI, humanoid robots, and biotech (notably in Hong Kong’s internet and pharma sectors).

*Sectors to Watch*: Non-ferrous metals, commercial aerospace, AI, robotics, nuclear fusion, biotech, and non-bank financials.

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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