Galaxy Securities Releases December's Top 10 Stock Picks: Focus on Four Key Themes Including "Anti-Involution"

On December 1, Galaxy Securities released a research report stating that the A-share market remains in an upward trend in December, with short-term fluctuations expected. The Hong Kong stock market may experience a volatile upward trajectory influenced by signals from the U.S. Federal Reserve.

Key factors to watch include: 1. **Central Economic Work Conference in December**: As 2026 marks the start of China's 15th Five-Year Plan, the conference is expected to outline key economic policies, focusing on fiscal and monetary measures, domestic demand expansion, real estate stabilization, and "anti-involution" initiatives. 2. **Fed Policy Decision**: The U.S. Federal Reserve may adopt a "rate cut + hawkish guidance" approach in its December meeting. 3. **Industry Conferences**: Several high-profile events could drive investment opportunities, such as the 2025 "AI+" Industry Conference (Dec 1), Brain-Computer Interface Conference (Dec 4), 9th International Carbon Materials Conference (Dec 9), and 2025 Computing Power Industry Ecosystem Summit (Dec 11). 4. **Hainan Free Trade Port**: The full island customs closure on December 18 will impact duty-free retail, modern logistics, and trade services.

**Investment Themes**: 1. **"Anti-Involution" Theme**: Policies aimed at reducing excessive competition may improve industry performance, while a weaker U.S. dollar could boost commodity prices. Resource sectors benefiting from rising gold and copper prices are recommended. 2. **Global Expansion**: China's high-end manufacturing is poised to gain global market share, supported by stable trade conditions in 2026. Sectors like wind power equipment and home appliance exports are highlighted. 3. **High-Dividend & Defensive Stocks**: Companies with stable cash flows and strong dividend payouts are favored for risk-averse investors. 4. **Tech Innovation & Domestic Demand Recovery**: Semiconductor recovery and localization trends may benefit industry leaders, while policy-driven consumption growth could boost service sectors.

**Top 10 Stock Picks**: - Dajin Heavy Industry Co.,Ltd. (002487.SZ) - China Mobile Limited (600941.SH) - Longjing Environmental Protection (600388.SZ) - China Resources Mixc Lifestyle (1209.HK) - Barley Entertainment (1060.HK) - Zijin Mining Group Company Limited (601899.SH) - Inner Mongolia Dian Tou Energy Corporation Limited (002128.SZ) - Haier Smart Home Co.,Ltd. (600690.SH) - Gigadevice Semiconductor Inc. (603986.SH) - China Merchants Bank Co.,Ltd. (600036.SH)