A-share market closing review | A-shares rise and fall, with the Shanghai Index closing up 0.06% again above 3400 points! Military stocks strong throughout the day

The three major indexes rose in the morning and fell back in the afternoon, with mixed gains and losses at the close. As of the close, the Shanghai Composite Index rose 0.06% to once again surpass 3400 points, the Shenzhen Component Index fell by 0.13%, and the ChiNext Index fell by 0.22%. On the market, the agricultural concept surged collectively in the afternoon, with multiple stocks such as ShanDongDenghai Seeds, Yuan Longping High-Tech Agriculture, and Gansu Dunhuang Seed Group hitting the limit up; the military industry chain was strong throughout the day, with Sichuan Chuanhuan Technology up by the limit, and Sichuan Chengfei Integration Technology Corp.Ltd., Chengdu Lihang Technology and other stocks also up by the limit; the real estate and infrastructure industry rebounded, with Guangdong Xiongsu Technology Group up by the limit, Anhui Fuhuang Steel Structure, Zhongtian Service and other stocks also up by the limit; the retail concept remained active, with Wushang Group, Gansu Guofang Industry & Trade and other stocks up by the limit; the power and smart grid concept rose, with Suzhou Industrial Park Heshun Electric up by the limit, and Xinjiang Lixin Energy, Shanghai Guangdian Electric Group and other stocks also up by the limit; brokerage, internet finance, and state-owned enterprise reform concepts all performed strongly. In terms of declines, the e-commerce concept led the two markets lower, with Qingmu Tec Co., Ltd. falling by over 10%; the AI industry chain including copper cable high-speed connection and optical module collectively corrected, with Ruijie Networks falling by over 10% and Shenzhen Deren Electronic hitting the limit down; the humanoid Siasun Robot & Automation concept declined; the semiconductor, Semiconductor Manufacturing International Corporation, and national big fund concept all trended downward; the new industrialization and consumer electronics concepts showed weakness. Overall, there were more stocks rising than falling in the two markets, with over 3500 stocks rising; the total turnover of both markets was 1.43 trillion, an increase from the previous trading day. In terms of main funds, funds favored the planting industry and maritime equipment industries, while funds fled the communication equipment and semiconductor industries. Institutional Views Looking ahead, China Securities Co., Ltd. believes that the continuous strengthening of policy measures will continue to support the stock market environment and the favorable cycle of the domestic economy, and investors can actively position themselves for the year-end market. CITIC SEC: The impact of the delisting new regulations on the short-term market style is more reflected in the emotional level CITIC SEC's research report states that 2024 is the first year for the A-share delisting new regulations to take effect, and the triggering conditions for delisting risk warnings (*ST) involve four main directions: financial, trading, compliance, and major violations. Failure to meet dividend standards may also trigger other risk warnings (ST), but does not involve delisting risks. Regarding the recent concern in the market about the performance of small and micro stocks, CITIC SEC analyzed all the penalties for listed companies imposed by regulators this year and did not find any recent tightening of supervision over medium and small market value companies. The impact of the delisting new regulations on the short-term market style is more reflected in the emotional level. The adjustment of purely small market value style has its own cyclical nature in trading. Since late November, the A-share trading loss index has continued to deteriorate, and the TMT sector's trading volume as a percentage of total A-share trading has returned to a high point, which may lead to spontaneous "circle closing" behavior during the rotation of market hot topics, bringing pressure on the adjustment of small market value style. Tianfeng: Seize the opportunity for the growth of new materials in emerging industries such as electronics and humanoid Siasun Robot & Automation Tianfeng's research report points out that materials empower the strategic development of emerging industries. In the new wave of technological revolution and industrial transformation, there have been multiple emphases on focusing on two major development trends: AI computing power enhancement 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 demands. At the same time, AI empowers the iterative upgrade of consumer electronics, driving demand increment in high-end development. Under the trend of high power density, high-performance semiconductor materials and magnetic materials have become preferred choices. Furthermore, AI applications have opened up new blue oceans, among which the trend of humanoid Siasun Robot & Automation industry is gradually established, bringing opportunities for lightweight materials and rare earth permanent magnets. Seize the opportunity for the growth of new materials in the industries of electronics, power, and humanoid Siasun Robot & Automation. Hot Sectors 1. The military industry chain was strong throughout the day The military industry chain was strong throughout the day, with Sichuan Chuanhuan Technology hitting the limit up, and Sichuan Chengfei Integration Technology Corp.Ltd., Chengdu Lihang Technology, and other stocks also hitting the limit up. Review:Sinolink pointed out that the current national defense industry orders are gradually recovering in both quality and quantity, and may soon enter a period of intensive order issuance. As 2025 marks the end of the 14th Five-Year Plan and the beginning of the 15th Five-Year Plan, the national defense industry is expected to be in a high state of prosperity, making 2025 a promising year for the industry.2. Agricultural concepts explode In the afternoon, agricultural concepts collectively exploded, with many stocks such as ShanDongDenghai Seeds, Yuan Longping High-Tech Agriculture, Gansu Dunhuang Seed Group hitting the limit up. Comment: According to the Ministry of Agriculture and Rural Affairs, China has identified three key tasks for grain production by 2025. The country will make every effort to improve grain and oil production. Localities will implement new policies such as special loans with interest subsidies for grain and oil planting, incentives for main producing areas, and compensation for horizontal benefits in production and sales areas to stimulate the enthusiasm of various entities for grain production. 3. Power sector rises The power sector rose in the afternoon, with Xinjiang Lixin Energy hitting the limit up, and Hunan Chendian International Development Co., Ltd., Ningbo Shimao Energy, Jointo Energy Investment, and Huadian Liaoning Energy Development all rising by more than 5%. Shenzhen Nanshan Power, Guangdong Meiyan Jixiang Hydropower, DaTang HuaYin Electric Power, and others followed suit. Comment: In terms of news, the National Development and Reform Commission has publicly solicited opinions on the "Opinions on Deepening and Improving the Level of 'Obtaining Electricity' Services and Building a Modernized Electricity Operation Environment" (draft for soliciting opinions). By 2029, China will have basically completed the construction of a modernized electricity operation environment characterized by convenient electricity access, high-quality power supply, green electricity consumption, universal service, and coordinated supervision. This article was reprinted from "Tencent Self-selected Stocks" and edited by GMTEight: Jiang Yuanhua.