Market sentiment turned positive on Monday as major U.S. indices, led by strength in tech stocks, climbed to new closing highs. Investors largely shrugged off concerns sparked by a reported criminal investigation into Fed Chair Powell by the U.S. Department of Justice. Apple announced a major Siri upgrade by integrating Gemini, while Google's market capitalization surpassed $4 trillion for the first time. Space-related stock Planet Labs surged over 12% to a record high. The Nasdaq Golden Dragon China Index advanced 4.26%, with Alibaba soaring more than 10%.
Precious metals staged a powerful rally during Monday's New York session, driven by positive industry sentiment. Spot silver skyrocketed up to 8%, breaking through $86 per ounce, while spot gold jumped 2.4% to exceed $4,600 per ounce, both setting new records since December 2025. Analysts pointed to the "Trump administration's escalating attacks on the Federal Reserve" as a key catalyst, prompting investors to reduce exposure to U.S. assets and seek safe havens.
Company-specific sentiment turned negative as several high-flying stocks in the AI application and commercial aerospace sectors issued risk warnings on the evening of January 12. Gravitation Media, which had gained five limits in six days, along with Zhongke Star Map and China Satellite, all disclosed announcements highlighting risks that their share prices had deviated from fundamentals. Concurrently, nearly 30 listed companies, including Pingtan Development, a top performer in 2025, released preliminary announcements forecasting losses for 2025. Institutions generally agree that the A-share market will continue its slow-bull trend in 2026, but emphasize that returns will depend more heavily on profit growth, making earnings-driven performance the key investment focus.
Regarding industry sentiment toward China's rare earth exports to Japan, the response from the Ministry of Foreign Affairs was neutral. At a regular press conference on January 12, spokesperson Mao Ning addressed reports that China had suspended the review of export permits for rare earths to Japan, including for clear civilian use, and that some Chinese companies had notified Japanese firms they would not sign new rare earth contracts. Mao Ning stated that China's measures are taken in accordance with laws and regulations, and are entirely legitimate, reasonable, and lawful.
The investment almanac highlights the upcoming U.S. December CPI data and offers an investment tip: "It is better to have a good character than a good brain. Strictly control those non-rational emotions, remain calm and disciplined, be indifferent to losses and misfortune, and do not be carried away by euphoria." — Charlie Munger.
Huatai Securities suggests that with strong momentum effects, the spring rally may still have room to run, but the probability of the market shifting towards rotation is increasing. Huaxi Securities advises investors to seize the window for long positions, as the bull market may continue, with attention on the diffusion of tech-themed rallies. Orient Securities cautions that historically, a significant expansion in trading volume often leads to market volatility, warning of risks associated with a potential pullback in hot sectors.
In policy developments, Zhejiang Province plans to advance the construction of the fourth-generation Beidou system, indicating continued expansion of the industry scale. Guotai Haitong notes that the Beidou system, with its technological leadership and ongoing policy support, has already built scalable application potential across multiple sectors. They are optimistic about differentiated digital-intelligent enterprises built on "Beidou+" integrated innovation technologies in specialized fields.
The Lihong No. 1 aircraft successfully completed its first suborbital flight test, with its returnable payload capsule landing smoothly and being recovered. Guojin Securities comments that China's 15th Five-Year Plan proposal clearly identifies aerospace as a key strategic emerging industry cluster. With the recent intensive launches of reusable rockets, the commercial aerospace industry trend has reached an inflection point.
Reports indicate that Strong Brain Technology has submitted an application for a Hong Kong IPO, which a source close to the company confirmed as accurate. Guosen Securities states that brain-computer interface technology is at a critical juncture of transitioning from technological breakthroughs to commercialization, anchored by the triple drivers of "policy + technology + application scenarios." With expectations for Neuralik's mass production coupled with catalysts from domestic clinical breakthroughs, the market size is poised for explosive growth.
Positive corporate announcements include WuXi AppTec forecasting a 2025 net profit of 19.151 billion yuan, representing a year-on-year increase of approximately 103%. Shanghai Electric Power plans a $300 million investment in a high-density optoelectronic integrated circuit board project. Weiteou signed a strategic cooperation agreement with Qiteng Robot.
Negative corporate announcements include Junda Materials' controlling shareholder, Jindi Technology, planning to reduce its stake by no more than 3%. China Nuclear Engineering's shareholder, China Cinda, reduced its holding by 7.8666 million shares between January 7 and 9. Nanxing Co., Ltd.'s controlling shareholder, Nanxing Investment, had cumulatively reduced its stake by 3.669 million shares as of January 12.
In overseas markets, U.S. stocks closed higher on Monday, driven by strength in tech stocks and retail giant Walmart, with the Dow and S&P both setting new closing highs. Google Class A shares rose 1%, closing with a market cap above $4 trillion. The Nasdaq Golden Dragon China Index surged over 4%, with Alibaba skyrocketing 10%.
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