On December 26, the market surged in the morning session before retreating, with both the Shanghai Composite Index and the ChiNext Index plunging into negative territory; by the midday close, the Shanghai Composite Index was down 0.19%, the Shenzhen Component Index was up 0.17%, and the ChiNext Index had fallen 0.15%. Over 3,900 stocks declined across the broader market, while the half-day turnover on the Shanghai and Shenzhen exchanges reached 1.45 trillion yuan, a significant increase of 251.3 billion yuan compared to the previous trading session. Sector-wise, the market continued its rotational pattern, with hot thematic sectors remaining active. The commercial aerospace concept extended its strong performance, with more than ten stocks in the sector hitting the daily limit-up; the Hainan Free Trade Port sector was active again, while the non-ferrous metals and precious metals sectors saw a full-blown breakout, with Zijin Mining and CMOC both rising over 4% to hit fresh historical highs. The photovoltaic concept oscillated higher, and the lithium battery sector advanced sharply. Additionally, robotics, memory chips, and the automotive industry chain all showed some intraday strength. On the downside, the optical module concept weakened, with Changguang Huaxin falling over 10%; the lithography machine concept underwent adjustments, with Tengjing Technology dropping over 4%; the liquid cooling sector performed weakly, and the papermaking concept trended lower. Furthermore, baijiu, lab-grown diamonds, brain-computer interfaces, and nuclear fusion sectors underperformed. Debon Securities pointed out that the A-share market is expected to continue its "slow bull" trend in 2026. Looking ahead, Debon Securities anticipates that technology and growth will remain the main theme, acting as the "sharpest spear."
The Hainan Free Trade Port concept rebounded, with stocks like Hainan Mining and Hainan Development hitting the limit-up. Commentary: On the news front, during the first week after the full island customs closure in Hainan, sales at the Sanya duty-free shop increased by 50.3% year-on-year, exceeding the 100 million yuan mark for five consecutive days.
The lithium battery industry chain surged rapidly, with Tianji Stock achieving 3 limit-ups in 4 days, and Hongyuan Pharmaceutical, Yongxing Materials, among others, hitting the limit-up. Commentary: On the news front, the main lithium carbonate futures contract broke strongly through the 130,000 yuan level during the session, gaining over 8% intraday to reach a new high since November 2023. A GF Securities research report expressed optimism that demand from both power and energy storage sectors will jointly drive a cyclical reversal for lithium batteries, with both batteries and materials expected to usher in new development opportunities.
The photovoltaic concept saw a partial rally, with stocks like GCL System Integration and EGing Photovoltaic Technology hitting the limit-up, while Sungrow Power Supply and Jolywood Solar following the gains. Commentary: On the news front, it was reported that on the afternoon of December 25, four leading silicon wafer companies jointly significantly raised their prices, with an average increase of 12%. China International Capital Corporation (CICC) noted that leading companies across various segments of the photovoltaic industry are expected to return to profitability in 2026, presenting investment opportunities for a turnaround from distress.
The commercial aerospace concept remained strong and active, with Shenjian Stock hitting its 7th consecutive limit-up, Jiuding New Material its 4th, and Jiayuan Technology, Zhongchao Holdings also reaching the limit-up. Commentary: On the news front, at 7:26 AM on December 26, China successfully used a Long March 8A carrier rocket at the Hainan Commercial Space Launch Site to launch a group of 17 low-orbit satellites for satellite internet into space; the satellites entered their预定轨道 successfully, marking a complete success for the launch mission.
Debon Securities stated that the A-share market is expected to continue its "slow bull" trend in 2026. Stabilizing the index has sufficient support, as policy-wise the nation values capital market development, medium to long-term funds continuously entering the market act as a "ballast," and although the macroeconomy shows weak recovery, structural highlights are prominent; sector differentiation also provides a foundation for index stability through筹码 distribution. Looking forward, technology and growth are expected to remain the main theme, acting as the "sharpest spear."
Dongwu Securities suggested that participation in the commercial aerospace sector might become more difficult later on and recommended focusing on two main lines. As next year is the first year of the "15th Five-Year Plan," historical experience suggests the market often prices in high expectations for related industries in advance. As a branch of future industries where domestic and international industrial trends resonate during the 15th Five-Year Plan period, the commercial aerospace sector has shown strong sustainability and profitability since mid-to-late November. However, the sector has been actively traded for nearly 20 sessions, and its outperformance relative to the growth-style benchmark has also widened significantly. From the dimensions of time and space, subsequent participation may become more challenging, and recent signs indicate a switch to lower-positioned branches like nuclear power. It is recommended to focus on two main lines: 1) Lower-positioned application areas within the AI direction, emphasizing probability trades in spreading branches, and paying attention to AI healthcare, AI at the edge, intelligent driving, embodied intelligence, etc., in applications; 2) Key industrial branches involved in the "15th Five-Year Plan," focusing on commercial aerospace and 6G, nuclear power, hydrogen energy, quantum communication, brain-computer interfaces, etc.
Huatai Securities stated that the current period is a policy window and recommended focusing on property stocks around four main lines. A Huatai Securities research report noted that on December 24, the Beijing Municipal Commission of Housing and Urban-Rural Development, the Municipal Development and Reform Commission, and other departments jointly issued a notice on further optimizing and adjusting real estate-related policies in the city, refining purchase restriction policies, commercial loan, and公积金 policies. The new Beijing property policies are expected to accelerate the stabilization process of the local market and boost policy expectations in Shanghai and Shenzhen. The current period is a policy window, and it is recommended to focus on property stocks around the following four main lines, with key recommendations being: 1) Property stocks with "good credit, good city location, good products"; 2) Real estate enterprises that rely on operational capabilities to掌控 cash flow lifelines during market adjustments; 3) Hong Kong本地 property developers benefiting from the recovery of the Hong Kong market; 4) Property management companies benefiting from stable cash flow and having dividend advantages.
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