On December 11, China's A-share market saw divergent index movements in the morning session, with over 3,200 stocks rising. The half-day turnover reached CNY 1.2 trillion, up CNY 79.96 billion from the previous day. By midday, the Shanghai Composite Index edged down 0.04%, while the Shenzhen Component Index rose 0.57%, and the ChiNext Index gained 0.6%.
**Sector Highlights** 1. **Precious Metals Strengthen Repeatedly** Precious metals stocks continued their upward trend, led by Xiaocheng Technology, with Zhongjin Gold, Western Gold, and Shanjin International following suit. Analysts attribute this to the Fed's expected 25-basis-point rate cut on December 10 and its new short-term Treasury purchase plan, reinforcing market expectations of liquidity easing and boosting safe-haven demand for precious metals. Additionally, low silver futures inventories and rising industrial demand from solar, AI, and new energy sectors have tightened supply-demand dynamics, pushing silver prices to record highs.
2. **Commercial Aerospace Concept Gains Momentum** The commercial aerospace sector remained active, with Hualing Cable and Zhongchao Holdings hitting two consecutive limit-ups, while Dongfang Communications and Great Wall Electric surged. Blue Arrow Aerospace, a key player, revealed that its supply chain spans over 600 suppliers across 90+ Chinese cities, with private firms accounting for 70% and state-owned enterprises 30%. The company is also accelerating the construction of its Wuxi Zhuque-3 assembly base, targeting completion by year-end for operations in 2026.
3. **Controlled Nuclear Fusion Concept Rallies** The controlled nuclear fusion sector saw gains, with Snowman Group securing two straight limit-ups, and CNR Heavy Machinery and China First Heavy Industries also rising. The International Energy Agency forecasts the global nuclear fusion market could approach USD 500 billion (CNY 3.5 trillion) by 2030.
**Notable Pullback** Moore Threads Technology Co., Ltd. retreated, with shares briefly falling below CNY 800. The company recently issued a risk warning, disclosing a net loss of CNY -724 million for January-September 2025 and projecting an annual net loss of CNY -1.168 billion to -730 million.
**Broker Views** 1. **China Merchants Securities** expects large-cap stocks to outperform post the Central Economic Work Conference, citing historical trends. Sectors like oil & gas, telecom, and electronics have higher post-conference upside potential. 2. **Guotai Haitong** anticipates a policy-liquidity-fundamentals synergy from December-February, favoring tech growth (AI, computing), financials (brokers/insurers), and cyclical consumer stocks. 3. **Kaiyuan Securities** maintains that the tech + cyclical sectors will drive the market, supported by global tech trends and policy-driven reflation expectations.
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