China's A-share market saw a broad decline, with the ChiNext Index dropping over 1%. Leading gainers included dairy, insurance, MLOps concepts, tax-refund stores, space station concepts, and commercial aerospace sectors. Meanwhile, CPO concepts, energy metals, recombinant proteins, optical communication modules, and lab-grown diamonds underperformed, leading the losses.
At midday, the Shanghai Composite fell 0.11% to 3,884.93, while the Shenzhen Component Index dropped 0.71% to 13,164.03. The ChiNext Index declined 1.29% to 3,153.07, the STAR 50 Index slid 1.3% to 1,331.33, and the Beijing Stock Exchange 50 Index dipped 0.36% to 1,442.51.
Market breadth showed 2,668 advancing stocks against 2,591 decliners, with 56 stocks hitting the daily limit-up. Half-day turnover reached 1.1842 trillion yuan.
On liquidity operations, the People's Bank of China conducted a 600 billion yuan six-month (182-day) reverse repo on December 15 to maintain ample banking system liquidity. Combined with the 1 trillion yuan three-month reverse repo on December 5, this brings December's total reverse repo operations to 1.6 trillion yuan. Against 1.4 trillion yuan in maturities, this results in a net injection of 200 billion yuan for the month.
In commercial aerospace news, SpaceX is reportedly selecting Wall Street banks for advisory roles in its potential IPO, with preliminary bids expected this week. Though unconfirmed, Elon Musk's recent social media hints and internal executive moves signal IPO preparations. The company could target a $300 billion+ raise at a $1.5 trillion valuation, potentially marking the largest IPO ever.
China's Ministry of Industry and Information Technology emphasized industrial upgrades for 2025, including advancing 6G R&D and accelerating satellite internet development.
Here are four companies highlighted in broker reports:
1. **Hangyu Micro**: A leader in satellite internet components, specializing in high-end aerospace processors and 3D packaging. Backed by Zhuhai's state-owned assets, its SOC/SIP chips are poised to benefit from satellite infrastructure expansion. (TF Securities)
2. **Shanghai Hanxun**: Developing key equipment for low-orbit satellite networks, including communication payloads and ground terminals. Part of Shanghai's G60 industrial cluster targeting 10 billion yuan+ annual output. (Zhongtai Securities)
3. **Yinbang Shares**: Through subsidiary Fei'er Kang, a top-tier 3D printing titanium supplier for aerospace (including 31 parts per C919 jet). Mass production could significantly boost revenue. (Pacific Securities)
4. **Sunway Communication**: Leveraging RF/magnetic materials expertise, it supplies LCP antennas and connectors for global satellite clients while expanding in domestic ground-terminal solutions. (Huachuang Securities)
Comments