The three major A-share indices opened collectively higher, with the Shanghai Composite Index rising 0.46% and the ChiNext Index gaining 0.84%. On the market, sectors such as brain-computer interface, commercial aerospace, and memory chips were among the top gainers, while humanoid robots, the duty-free concept, and the Hainan Free Trade Zone sectors led the declines. Looking ahead, China Securities Co., Ltd. asks: Why remain optimistic about the year-end rally? China Securities Co., Ltd. believes the A-share year-end rally has unfolded as expected; the liquidity environment and exchange rate environment facing the market around New Year's Day this year are significantly better than the previous two years, with multiple positive factors driving a sharp rise in Hong Kong stocks, suggesting A-shares are poised for a positive start. Industry focus primarily revolves around hotspots in semiconductors, AI, and future industries. Key industries to watch include: semiconductors, AI, non-bank financials, and new energy, alongside machinery and equipment; medium to long-term favorites are: non-ferrous metals (industrial metals, minor metals), innovative drugs, etc.; key thematic focuses include: commercial aerospace, nuclear power, humanoid robots, and Hainan (duty-free). China Galaxy Securities stated that the A-share market may continue its structural行情. China Galaxy Securities indicated that post-holiday, the strong performance of the Hong Kong market and the Renminbi exchange rate during the holiday period will help boost investor confidence, suggesting the A-share market may extend its structural trend. The pace of subsequent gains will still depend on observing policy expectations and breakthroughs in industrial trends; supported by the above factors, the Spring躁动行情 might commence earlier than usual. Simultaneously, attention must still be paid to short-term disruptions from uncertain factors such as overseas geopolitical risks. Looking towards 2026, the开局之年 of the "15th Five-Year Plan" is expected to strengthen reform policy expectations, while factors like an upward Renminbi exchange rate support improved liquidity, potentially boosting market confidence. Focus should be on technology leaders with proven earnings delivery capabilities under the profit recovery logic, and cyclical sectors benefiting from expectations of improving price levels. Huaan Securities believes the probability of a positive start for A-shares continues to increase. Huaan Securities argues that continuous macro-policy support, a significant improvement in the construction PMI pointing to anticipated stabilization and recovery in investment, increased likelihood of a RRR cut, currency appreciation, and mutual fund allocations nurturing micro-liquidity are all adding to the positive factors at the year's start, suggesting the Spring行情 may unfold gradually. In terms of allocation, prioritize elasticity and seek directions with "a compelling narrative" and "solid earnings." Specifically, the AI industry chain remains the strongest main theme, with accelerated gains in the growth style and new highs expected across various growth industries. Sectors with景气支撑 and popular themes, such as memory, the energy storage chain, defense military, and machinery equipment, also warrant attention.
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