On December 5, A-shares rebounded amid fluctuations, with accelerated rotation among theme stocks. By the midday close, the Shanghai Composite Index rose 0.08% to 3,878.99 points, while the Shenzhen Component Index gained 0.39%. The ChiNext Index advanced 0.47%, the Beijing Stock Exchange 50 Index climbed 0.47%, the STAR 50 Index inched up 0.05%, and the CSI A500 Index increased 0.25%. Half-day turnover reached 999.58 billion yuan.
On liquidity operations, the central bank conducted 139.8 billion yuan in 7-day reverse repos at a fixed rate of 1.40%, with full subscription matching the offered amount.
In policy news, the National Development and Reform Commission allocated 6 billion yuan in the fourth batch of 2025 work-relief central budget investments, bringing the annual total to 35.5 billion yuan. The program is expected to employ over 1.1 million low-income workers locally while promoting the work-relief model across other key projects, potentially creating jobs for more than 4 million workers this year.
JPMorgan noted that the release of DeepSeek V3.2 signals China's second wave of "DeepSeek impact" in the AI market, offering near-cutting-edge open-source inference capabilities at moderate domestic prices. This development benefits most stakeholders in China's AI ecosystem, including cloud operators, AI chipmakers, server manufacturers, agent platforms, and SaaS developers.
Sector-wise, computing hardware outperformed, led by CPO and high-speed copper cable connections, while superconducting concepts rallied.
Superconducting magnets show broad application prospects, particularly in commercial nuclear fusion. According to Ignition Research projections, the controlled fusion industry could become a $1 trillion market by 2050 if fully commercialized, implying a superconducting magnet market exceeding $100 billion. Beyond fusion, these magnets find applications in MRI, NMR, induction heating equipment, and monocrystalline silicon growth furnaces, indicating significant growth potential.
Here are four companies highlighted in broker research reports for reference:
1. Baosheng Co., Ltd. Leveraging its parent AVIC's strong R&D capabilities, the company continues breakthroughs in high-end products including ultra-high-voltage cables, nuclear-grade cables, high-speed rail cables, and aerospace wires.
2. Yongding Co., Ltd. Utilizing proprietary flux-pinning technology for superconducting thin films, the company has developed high-performance superconducting tapes for applications in nuclear fusion, induction heating, crystal growth, and MRI systems.
3. Zhongfu Industrial As an aluminum industry leader, the company's deep green aluminum power layout demonstrates resource and cost advantages. Overseas expansion and vertical integration may drive leapfrog growth amid current capacity realization and cost-efficiency competition.
4. Western Metal Materials Specializing in high-performance metals for aerospace, defense and strategic emerging industries, the company provides critical materials for equipment localization and remains a core supplier in China's rare metal processing sector.
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