A shares midday review | Shanghai index rose 0.29% again above 3400 points, more than 4400 stocks rose, military industry chain erupted.

The three major indexes collectively rose, with the Shanghai Composite Index rising by 0.29% to once again surpass 3400 points by midday. The Shenzhen Component Index rose by 0.68% and the ChiNext Index rose by 0.73%. In terms of the market, the military industry chain led the market with Sichuan Chuanhuan Technology and other stocks hitting the daily limit. Agricultural and farming related concepts also saw strength, with stocks like Shang Hai Ya Tong and Shandong Xiantan hitting the limit. Retail concepts continued to rise, with stocks like Fujian Dongbai and Wushang Group hitting the limit. Real estate and infrastructure chains rebounded, with stocks like Guangdong Xiongsu Technology Group and Zhengping Road & Bridge Construction hitting the limit. The AI glasses concept remained active, with stocks like Guoguang Electric and Zhejiang Biyi Electric Appliance hitting the limit. Brokerage and internet finance concepts rose in the last trading session, with stocks like Shanghai Wisdom Information Technology and Guolian hitting the limit. Concepts like low-altitude economy, digital economy, semiconductor, and smart grid all showed strength. In terms of stock declines, only a few concepts such as banks and WeChat small shops showed weakness. Overall, more stocks rose than fell in the market, with over 4400 stocks in the green. The total trading volume for the two markets was 890.3 billion in the first half-day, up 127.9 billion from the previous trading day. In terms of main funds, funds favored industries such as securities, optical optoelectronics, and aerospace equipment, while funds fled industries like banking, power, and communication equipment. Institutional viewpoints Looking ahead, China Securities Co., Ltd. believes that the continued strengthening of policy measures will support the stock market environment and the domestic economy, and investors can actively position for the upcoming year-end market. China Securities Co., Ltd.: Investors can actively position for the year-end market Looking ahead, despite ongoing disturbances both domestically and abroad, the market logic has fundamentally changed. The continued strengthening of policy measures will continue to support the stock market environment and the domestic economy. We still believe that investors can actively position for the year-end market, and structural opportunities will continue to evolve. CITIC SEC: The impact of the new delisting rules on the short-term market style is more reflected in sentiment CITIC SEC's research report stated that 2024 is the first year that the A-share delisting new rules will be implemented. The triggers for delisting risk warnings (*ST) involve four major directions: financial, trading, standard, and major violations, and failure to meet dividend standards may also trigger other risk warnings (ST), but not delisting risks. In response to the recent concerns regarding small and micro-cap stocks in the market, CITIC SEC analyzed all the penalty items imposed by regulators on listed companies this year and did not find evidence of regulatory tightening directed specifically at small and mid-cap companies. The impact of the new delisting rules on the short-term market style is more reflected in sentiment. The adjustment in pure small-cap styles has its own cyclical nature in trading. Since late November, the A-share trading impairment index has continued to worsen, with the TMT sector's trading volume as a percentage of overall A-share trading returns to a high, which may lead to spontaneous "circle-closing" behavior during the market's rotation of hot topics, bringing pressure for adjustment in the small-cap style. Tianfeng: Grasp the growth opportunities of new materials in the industries such as electronics and humanoid Siasun Robot & Automation Tianfeng's research report pointed out that materials empower the strategic development of emerging industries. In the new round of technological revolution and industrial change, there have been repeated emphasis on focusing on two major development trends: the enhancement of AI computing power and high-power density power devices, corresponding to the two highly prosperous industries of electronics and power. The demand for AI computing power is leading the direction of material transformation, with high power, high frequency, and high heat dissipation performance becoming the main demand. At the same time, AI empowers the iterative upgrade of consumer electronics, driving demand incrementally towards high-end products. Under the trend of high power density, high-performance semiconductor materials, magnetic materials, etc., have become preferred options. In addition, the expansion of AI applications is opening up new blue oceans, among which the trend of humanoid Siasun Robot & Automation industry is gradually taking shape, bringing opportunities for lightweight materials and rare earth permanent magnets. Grasp the growth opportunities of new materials emerging in the industries such as electronics, power, and humanoid Siasun Robot & Automation. Hot sectors 1. Military industry chain outbreak The military industry chain outbreak led the market, with stocks like Sichuan Chuanhuan Technology and Chengdu Lihang Technology hitting the daily limit. Comment: Sinolink pointed out that current national defense military orders are gradually recovering both in area and points, and may soon enter a period of intensive order distribution. As 2025 marks the end of the 14th Five-Year Plan and the beginning of the 15th Five-Year Plan, the prosperity of the national defense military industry has a high certainty, making 2025 a potentially great year for the national defense military industry. 2. AI glasses concept remains active The AI glasses concept remained active, with stocks like Guoguang Electric and Zhejiang Biyi Electric Appliance hitting the limit. Comment: On the news front, from January 7th to 10th of 2025, the International Consumer Electronics Show (CES) was held. (Note: Some parts of the text are generalized translations due to the specific content provided)The event will be held in Las Vegas, which is a major gathering of the consumer electronics industry. Kingnet Network's strategic investment companies, such as LeEco Technology (Dapeng VR) and THUNDEROBOT, along with other technology companies, will be launching new AI glasses.3. Concepts related to agriculture and animal husbandry collectively strengthened, with Shanghai Yatong, Shandong Xiantan and others reaching the daily limit. Comment: On the news front, the Party Group of the Ministry of Agriculture and Rural Affairs held an expanded learning session at the theoretical study center. The meeting emphasized that increasing per unit yield on a large scale is a key measure to achieve next year's grain production target.