On December 18, the three major indices opened lower but later rebounded in volatile trading. At the time of writing, the Shanghai Composite Index turned positive.
In early trading, sectors such as securities, coal, and oil led gains, while CPO concepts, aquaculture, hotels & catering, semiconductors, and building materials lagged.
The healthcare commercial sector continued its strong performance, with Anhui Huaren Health Pharmaceutical Co.,Ltd. (301408) hitting a 20% limit-up. Other gainers included Luyan Pharma and Chongqing Pharmaceutical Holdings, with Dajia Weikang, Saili Medical, and Shuyu Civilian also rising.
On the news front, Ant Group’s AI health app "Ant Afu" saw a surge in downloads after its December 16 launch, climbing to third place on Apple’s overall app rankings. The app reportedly has over 15 million monthly active users, answering more than 5 million health-related queries daily.
CICC and Dongxing Securities opened at their limit-up prices, while Cinda Securities rose 6.8% before paring gains. The previous evening, CICC announced plans to absorb Dongxing Securities and Cinda Securities through a share swap. Trading in CICC’s A-shares, suspended since November 20, resumed on December 18.
The IP economy concept was active early, with Guangbo Holdings and Sanxiang Impression both hitting limit-ups. Others like Deyi Cultural Creativity, Chuangyuan Shares, Laishun Tongling, and Fengshang Culture also advanced.
Recently, China’s Ministry of Commerce and other departments issued a notice on strengthening business-finance coordination to boost consumption, emphasizing support for new consumption models such as IP-driven spending, green consumption, and AI-integrated consumption.
The IP economy’s potential is widely recognized. Data from iiMedia Research shows the collectibles market is shifting from niche to mainstream, with "merch economy" sectors growing rapidly. China’s merch economy reached ¥168.9 billion in 2024, up 40.63% YoY. Collectibles, leveraging unique IP designs and blind-box sales, cater to consumers’ desires for novelty and emotional value.
Notably, the retail sector surged in early trading, with Central Department Store hitting limit-up. Others like Baida Group, Dongbai Group, Liqun Commerce, Eurasia Group, and Yonghui Superstores also rose.
Dongwu Securities noted that 2025 is a pivotal year for retail transformation, with traditional retailers upgrading product and service quality. Policy support for retail upgrades remains a key focus, particularly in underserved lower-tier markets where offline consumption thrives.
Kaiyuan Securities highlighted that brick-and-mortar retailers are shifting from selling goods to offering experiences, leveraging offline advantages. Cross-border e-commerce firms may benefit from easing monetary policies and AI integration, further expanding market share. The firm favors innovative offline retailers and AI-powered e-commerce leaders.
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