Market Update: CPO and Innovation Sectors Surge, Real Estate Weakens

Deep News12-09

On the morning of December 9, China's A-share market showed mixed performance across the three major indices. The Shanghai Composite Index edged down 0.13% to 3,918.83 points, while the Shenzhen Component Index rose 0.09%, and the ChiNext Index gained 1.07%.

Total turnover for the morning session reached 1.26 trillion yuan, shrinking by 34.7 billion yuan from the previous trading day. Market breadth was negative, with 1,738 stocks advancing (including 40 limit-up) and 3,555 declining.

Sector-wise, optical modules (CPO), innovative pharmaceuticals, consumer electronics, and commercial retail led gains, while precious metals and real estate underperformed.

In Hong Kong, the Hang Seng Tech Index fell over 1% to 5,600 points, with the Hang Seng Index down 0.63%. Baidu Group dropped over 3%, while SMIC, Bilibili, and Xiaomi each lost more than 2%.

**CPO Sector Extends Rally** The CPO concept continued its upward trajectory, marking four consecutive days of gains. Zhongji Innolight surged 6.94% to a record high of 609.58 yuan/share (market cap: 677.3 billion yuan). Eoptolink rose 4.42% to 422.4 yuan/share (market cap: 419.9 billion yuan), and TFC Optical climbed 1.29% to 239.96 yuan/share (all-time high; market cap: 186.5 billion yuan).

**Innovative Pharma Stocks Active** The sector gained momentum after China’s 2025 National Reimbursement Drug List added 114 new drugs—111 launched within five years, including 50 first-class innovations. The approval rate jumped to 88% from 76% in 2024.

**Consumer Electronics Boosted by Google-XREAL AR Glasses** Google’s "Android XR" event unveiled Project Aura, the first consumer AR glasses powered by Android XR and Gemini AI, slated for 2026 release.

**Retail Stocks Jump on Policy Support** Commercial retail stocks rallied after the Commerce Ministry pledged to accelerate new consumption formats and internationalized shopping environments.

**NVIDIA Supply Chain Rises on Export News** NVIDIA-related stocks soared as the U.S. reportedly greenlit H200 AI chip exports to China with a 25% tariff.

**Anji Food Hits Sixth Limit-Up** Fujian-based Anji Food extended its streak to six limit-ups amid local economic planning updates targeting trillion-yuan industrial clusters.

(Source: China Fund News)

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