A-share market closing report: Three major indexes fluctuated weakly, commercial aerospace is hot! Leading stock has surged for 9 consecutive days.

Today, the three major stock indexes were weak and fluctuated, with the Shanghai Composite Index falling below 3900 points again. The market was scattered with hot spots, and active funds were speculating on high-yielding stocks. The 3x bull stock Cowealth Medical China hit the limit up again, while JinFu Technology had 7 consecutive limit up days, Shenzhen Neptunus Bioengineering had 5 consecutive limit up days, and Daoming Optics&Chemical and Tongyu Communication Inc. had 4 consecutive limit up days. The market turnover was nearly 1.6 trillion for the day, a decrease of nearly 300 billion from the previous trading day, with over 3700 stocks falling in the two markets. Focusing on the market, local stocks in Fujian surged again, with multiple stocks hitting the limit up, such as Zhongfu Straits. In terms of news, the proposal for the 15th Five-Year Plan for Fujian was released. The proposal mentioned accelerating the development of the Pingtan Comprehensive Experimental Zone, promoting a new round of island-wide closing operation, and building a cross-strait common market and a common homeland for compatriots on both sides of the strait. In addition, Fujian introduced 12 more measures to benefit Taiwan, including supporting the development of Taiwan-funded enterprises and optimizing tax services for Taiwan compatriots and enterprises, and promoting trade, commerce, tourism, and cultural exchanges with Taiwan. In other hot spots, the commercial aerospace concept was partially active, with Addsino Co., Ltd. hitting 9 limit up days within 13 days; the computing power hardware stocks had a late surge, with Shenzhen Phoenix Telecom Technology hitting a 20% limit up; consumer stocks continued to strengthen, with Anji Foodstuff and Shandong Huifa Foodstuff hitting the limit up in the afternoon; the real estate and home furnishing sectors were volatile and strong, with Guangzhou Seagull Kitchen And Bath Products hitting the limit up; the media, non-ferrous metals, and humanoid Siasun Robot&Automation sectors performed relatively weak. Looking at individual stocks, there were 1544 gainers and 3740 losers in the two markets, with 171 stocks holding steady. There were a total of 55 limit up stocks and 9 limit down stocks. By the close, the Shanghai Composite Index fell by 0.42% to 3897.71 points, with a turnover of 627.5 billion yuan; the Shenzhen Component Index fell by 0.68% to 13056.70 points, with a turnover of 960.9 billion yuan. The ChiNext Index fell by 0.69% to 3071.15 points. Fund Flows Today, major funds focused on consumer electronics, components, and passenger car sectors. The top stocks with the most net inflow of funds included Foxconn Industrial Internet, Victory Giant Technology, and Eoptolink Technology Inc. News Review 1. Fujian: Introduces 12 more measures to benefit Taiwan and promote trade and cultural exchanges with Taiwan Today, the Fujian Provincial Government Information Office held the 7th press conference on the implementation of the "Suggestions of the Central Committee of the Communist Party of China and the State Council on Supporting Fujian to Explore a New Path of Integrated Development across the Taiwan Strait and Building a Model Zone for Integrated Development across the Taiwan Strait." The Deputy Director of the Provincial Taiwan Affairs Office, Xu Xiaofei, announced the fifth batch of policy measures, totaling 12 measures in three aspects, including supporting the development of Taiwan-funded enterprises, optimizing tax services for Taiwan compatriots and enterprises, and promoting trade, commerce, tourism, and cultural exchanges with Taiwan. 2. MIIT's Electronic Information Department solicits opinions on the preparation of the China Artificial Intelligence Terminal Industry Association On December 1, 2025, the MIIT's Electronic Information Department organized a symposium in Beijing to solicit opinions on the preparation of the China Artificial Intelligence Terminal Industry Association. The participants unanimously agreed that the establishment of the China Artificial Intelligence Terminal Industry Association is of great significance and needs to accelerate the preparatory work of the association to create a truly representative and service-oriented organization for the industry, promoting the high-quality development of China's artificial intelligence terminal industry. 3. Tibet: Supports listed companies' industrial integration and controlling interests in out-of-province listed companies The "Several Measures of the Tibet Autonomous Region to Further Stimulate the Vitality of Operators and Promote Investment for High-Quality Development" was issued. It mentioned fully leveraging the role of government investment funds, improving management mechanisms, guiding the establishment of funds by lower-level governments, forming capital synergy through joint establishment of subsidiary funds or contributions to local funds, etc. Encouraging the establishment of M&A funds, building a "policy + capital + ecosystem" service system, supporting the integration of industries in listed companies in the region and controlling shares in out-of-province listed companies, and supporting companies to improve and strengthen and cultivate and upgrade industries. Encouraging the establishment of industry development sub-funds to support the development of nine major industries, formulating differentiated investment strategies based on the industrial chain investment map, focusing on early investment, small investment, and long-term investment, and giving priority support and policy preferences to key projects in line with the strategic direction. Formulating a list of key investment areas, introducing lead enterprises with the help of professional teams, promoting the "fund + industrial chain" model, and forming a full chain service of "pre-investment due diligencemid-investment introductioninvestment-support." Market Outlook 1. China Galaxy: A shares frequently switch styles, focus on defensive sectors for allocation opportunities China Galaxy Securities believes that in December, the market is still in a phase of frequent style switching, with structural trends dominating. On the one hand, as the most critical policy window at the end of the year, the Central Economic Work Conference will clarify the policy guidelines for 2026, focusing on areas such as technological innovation, expanding domestic demand, anti-internal circulation, and stabilizing the real estate market. On the other hand, a series of industrial conferences may become important catalysts for thematic trends, focusing on the upcoming 2025 "AI+" Industry Ecosystem Conference, Brain-Machine Interface Conference, and so on. However, there is still uncertainty in the external environment, and attention should be paid to the potential impact of the December FOMC meeting statement on global market liquidity. In the year-end style rotation, focus on defensive sectors for allocation opportunities and focus on next year's economic trend. 2. Shenwan Hongyuan Group: Effective rebound in attacking assets may occur, but upward breakthrough logic is difficult to realize Shenwan Hongyuan Group believes that an effective rebound in attacking assets (technology and pro-cyclical sectors) may occur, but the logic of upward breakthrough is difficult to realize, and the upper limit of the spring market is not high. The positioning of the spring market in the "two-stage bull market": the spring market may be a rebound in a high-volatility market (the overall market trend is more inclined towards this scenario); or it may be a rebound after the adjustment amplitude is in place, transitioning to a consolidation phase (the technology sector is more inclined towards this scenario). Focus on innovative drugs and national defense and military industries that have small contradictions in terms of cost-effectiveness + are expected to catalyze industry, as well as AI computing power, storage, energy storage, Siasun Robot&Automation, etc. Hong Kong stocks continue to have high beta characteristics, with the Hang Seng Technology undergoing a more comprehensive adjustment, and the rebound period will be more elastic. 3. Industrial: Focus on easing overseas disruptions and continue to allocate for the recovery of Chinese assets Industrial Group believes that looking ahead, as previous disturbances gradually pass, the market is expected to enter a new phase. Subsequently, from the perspective of calendar effects, the focus of the overall trend is whether the year-end market can start as planned. The end of the year and the beginning of the new year are important windows for breeding a bustling market, as the market is in a vacuum period of fundamentals, coupled with nearing important conference windows to raise policy expectations, while some years have seen the launch of reserve requirement ratio cuts and interest rate cuts at the beginning of the year, making liquidity relatively abundant, risk appetite increasing, etc., are important factors driving the year-end market frenzy. With year-end meetings making clearer deployments and directions for the economic and industrial development of the coming year, consensus can be further consolidated and the main trend can be guided. Maintain a bullish mindset and continue to allocate for the recovery of Chinese assets.