A-share midday review | Index trend differentiation, power grid equipment continues to be strong, Moore's thread callback

On December 11th, the morning index trend was divergent, with more than 3200 stocks in the red, and half-day trading volume reaching 1.2 trillion, compared to the previous day's volume of 799.6 billion. By the midday close, the Shanghai Composite Index fell by 0.04%, the Shenzhen Component Index rose by 0.57%, and the Growth Enterprise Market Index rose by 0.6%. On the market, precious metals repeatedly strengthened, with Beijing Xiaocheng Technology Stock leading the gains. Zhongjin Gold Corp., Ltd, Western Region Gold, Shanjin International Gold, and others followed suit. Electric network equipment rose, with Changshu Fengfan Power Equipment and Lanzhou Greatwall Electrical hitting the limit up. The commercial aerospace concept was active, with Hunan Valin Wire & Cable and Jiangsu Zhongchao Holding both hitting consecutive trading limits. The controllable nuclear fusion concept saw a boost, with Fujian Snowman Group hitting consecutive trading limits and Sinomach Heavy Equipment Group and China First Heavy Industries hitting the limit up earlier. It is worth noting that Moore's law experienced a correction, with stock prices falling below 800 yuan at one point. On the news front, the company issued a risk warning for stock trading yesterday, indicating the risk of performance loss: from January to September 2025, the company's operating income was 785 million yuan, with a net loss attributable to the owner of the parent company of -724 million yuan. The company expects a net loss attributable to the parent company's shareholders of -11.68 billion to -7.30 billion yuan in 2025. In terms of decline, sectors such as retail and the Hainan Free Trade Zone saw a pullback. Looking ahead, CMSC believes that the overall tone of the Central Economic Work Conference remains relatively positive. Based on past market performance experience, the market style tends to be relatively advantageous in the 7 days after the conference. In particular, in the past 5 years, the market style has been relatively favorable in all 4 instances. Looking at industries, the probability of a rise in the 7 days after the conference is higher for industries such as petroleum and petrochemicals, communications, and electronics. Additionally, from an average excess return level, in the past 5 years, the social services, public utilities, coal, and media industries have had higher average excess levels. Based on historical experience, industries emphasized in the Central Economic Work Conference often become the focus of economic work the following year, with policies often increasing support. This needs to be closely monitored, such as the low-altitude economy in 2023 and the anti-internal consumption in 2024. Popular Sectors 1. Precious metals repeatedly strengthened 2. Commercial Aerospace Concepts active 3. Controllable nuclear fusion concept rising Institutional Views 1. CMSC: Market tend to be relatively advantageous after the Central Economic Work Conference 2. Guotai Haitong: Market may see a resonance period of policy, liquidity, and fundamentals from December to February 3. Open Source Securities: The main trend of technology + cyclical dual drive is expected to continue in this round of valuation bull market and spring restlessness period.