Amid expectations of short-term volatility from institutions, the Shanghai Composite Index closed below 3900 points on December 11, marking a three-day losing streak. The index settled at 3873.32, down 0.70%, while the Shenzhen Component and ChiNext indices fell 1.27% and 1.41%, respectively.
Despite the broader market retreat, trading volume expanded to ¥1.86 trillion, up ¥78.6 billion from the previous session. Historically, a three-day decline in A-shares is often seen as nearing a correction limit, with four consecutive drops being rare. While over 4,400 stocks declined, several bright spots emerged.
Moore Threads Technology Co.,Ltd. (688795) stole the spotlight as the day's top performer. Its shares surged 28.04% to close at ¥941.08, breaching the ¥900 mark and placing it 40% above fourth-ranked Yuanjie Semiconductor (¥663/share). The rally pushed its market cap above ¥440 billion, ranking it among China's top 30 listed firms between Hikvision and Wuliangye.
The rally followed Moore Threads' announcement of its inaugural MUSA Developer Conference (MDC 2025), where it will unveil next-gen GPU architecture and roadmaps. Analysts suggest that if the December 19 event reveals H200-competitive architecture, it could significantly boost confidence in China's AI sector. The conference aims to showcase full-stack capabilities and accelerate domestic GPU adoption across industries.
Meanwhile, GPU peer MX Chip attracted attention after disclosing its IPO results on December 10. With an issue price of ¥104.66/share—second only to Moore Threads' ¥114.68—it raised ¥1.01 billion from retail investors and ¥2.39 billion from institutions.
The Beijing 50 Index defied the downtrend, jumping 3.84% after an afternoon spike exceeding 6%. The move preceded a scheduled component adjustment effective December 15, adding stocks like Wuxin Tunnel Equipment and Bettery.
Banking emerged as the sole rising sector, while real estate, communications, and retail lagged. The Fed's expected 25-basis-point rate cut to 3.5%-3.75%—its sixth since September 2024—coincided with the World Bank raising China's 2025 growth forecast by 0.4 percentage points, citing fiscal stimulus and export diversification.
Analysts suggest limited downside potential. "The Shanghai Index is testing key support levels," noted securities analyst Li Xiaomeng, anticipating a rebound after consecutive declines. However, analysts caution that without stronger domestic fundamentals, external monetary easing may only fuel transient rallies rather than sustained gains.
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