A-shares opened higher and extended gains, with the Shanghai Composite Index strengthening in early trading, while the Shenzhen Component Index and ChiNext Index both rose nearly 1%. Retail, dairy, real estate, and autonomous driving sectors led the rally, while precious metals, insurance, and semiconductors bucked the trend. Newly listed Youxuan shares surged 345% on its debut.
By midday on December 19, the Shanghai Composite Index rose 0.59%, the Shenzhen Component Index gained 0.93%, and the ChiNext Index climbed 0.99%. Nearly 4,700 stocks across Shanghai, Shenzhen, and Beijing markets advanced, with half-day turnover reaching 1.1 trillion yuan.
Key highlights: - The consumer sector surged again, with retail and dairy stocks leading gains. Companies like Dongbai Group and Manor Dairy hit the daily limit. - Controlled nuclear fusion concept stocks rallied, with Wangzi New Materials and Snowman Group rising to the limit. - The smart driving sector continued its upward momentum, with Zhejiang Shibao securing its fourth consecutive limit-up and Luchang Technology also hitting the ceiling. - Commercial aerospace stocks remained active, with Huati Technology rising for a second straight session.
**Key Index Performance (Midday Close):** - Shanghai Composite: 3,899.31 (+0.59%) - Shenzhen Component: 13,175.13 (+0.93%) - ChiNext: 3,137.73 (+0.99%) - CSI 300: 4,580.64 (+0.61%) - STAR 50: 1,314.99 (+0.69%) - CSI 500: 7,180.16 (+1.12%) - CSI 1000: 7,348.77 (+1.05%)
Hong Kong stocks also rose in the morning session, with the Hang Seng Index up 0.65% and the Hang Seng Tech Index gaining 1.14%. Tech heavyweights like Meituan (+2%), Tencent, and Baidu (+1% each) lifted the market. Biopharma stocks rallied broadly, with innovative drug concepts leading on expectations of sustained growth by 2026. Brokerages, chipmakers, and copper-related stocks also advanced, while oil, film, and sportswear shares declined.
**Market Drivers:** - U.S. CPI unexpectedly eased, boosting overnight U.S. stocks and lifting Chinese ADRs. - The Bank of Japan raised rates by 25 bps to 0.75%, the highest in three decades, in line with expectations.
**Commodities & Bonds:** - Domestic futures mostly fell, with rapeseed oil (-2.51%), platinum (-2.28%), and fuel oil (-2.13%) leading declines. Nickel (+2.61%) and stainless steel (+2.26%) rose. - Government bond futures were mixed: 30-year contracts fell 0.26%, while 2- and 5-year contracts edged up.
**Notable Moves:** - Hang Seng Tech Index extended gains to 1%, with Horizon Robotics up nearly 7%. - Shenzhen and ChiNext indices both rose over 1%, with controlled nuclear fusion, commercial aerospace, and robotics sectors leading. - Commercial aerospace stocks like Guanglian Aviation and Ruihuatai surged over 10%.
**Early Trading Highlights:** - ChiNext Index rose over 1% at the open. - Controlled nuclear fusion stocks, led by Wangzi New Materials, jumped at the open. - The Shanghai Composite opened at 3,878.23 (+0.05%), while the Shenzhen Component started at 13,116.19 (+0.48%).
**Forex & Futures:** - The yuan midpoint strengthened to 7.0550 against the dollar. - Commodity futures saw gains in PX, palladium, stainless steel, and nickel, while polysilicon fell 3%. - FTSE China A50 futures edged up 0.07% in early trading.
Comments