A shares morning stock market express | Index weak shock! Retail sector active again Dairy concept strong again

On December 16th, the index was weak and volatile. As of 9:38, the Shanghai Composite Index fell by 0.51%, the Shenzhen Component Index fell by 0.58%, and the ChiNext Index fell by 0.66%. In terms of the market, the retail concept was actively trading, with Baida Group Co., Ltd. up for four consecutive trading days, Chengdu Hongqi Chain, Fujian Dongbai, and other related stocks also rising. The dairy industry concept also strengthened, with Royal Group Co., Ltd. hitting the daily limit up for the second consecutive day, Huanlejia Food Group leading the gainers, and Jiangxi Sunshine Dairy also rising. On the downside, the military industry and the film industry sector saw significant declines. Looking ahead, Orient believes that in the short term, the market's volatile structure towards the end of the year will continue, with sector rotation occurring quickly. Hot Sectors: 1. Retail concept actively trading The retail concept was actively trading, with Baida Group Co., Ltd. up for four consecutive trading days, and related stocks such as Chengdu Hongqi Chain, Fujian Dongbai, Guangzhou Grandbuy, and Xinjiang Winka Times Department Store also rising. Commentary: Recently, three departments jointly issued the "Notice on Strengthening the Coordination of Commerce and Finance to Boost Consumption with Greater Efforts," proposing precise measures to promote welfare and consumption, forming a greater work force to boost and expand consumption. Institutional Views: 1. EB SECURITIES: New policy deployment to support A-share year-end rally EB SECURITIES believes that with the new policy deployment providing support, the A-share year-end rally is anticipated. On the one hand, domestic economic policies are expected to continue to exert efforts, promoting economic growth to remain within a reasonable range and further solidifying the foundation for the prosperity of the capital market. On the other hand, the release of policy dividends is likely to boost market confidence, attracting various funds to actively enter the market. Additionally, historically speaking, A-share market performance in the first years of the "Thirteenth Five-Year Plan" and "Fourteenth Five-Year Plan" has been good, with the positive performance expected to continue in 2026. In terms of industry allocation, attention should be paid to the TMT and advanced manufacturing sectors. In case of short-term market volatility due to external factors, defensive and consumer sectors can also be considered. 2. Huaxi: Market risk preference supported, focus on the anti-insular direction of CKH HOLDINGS Huaxi believes that with the recent overseas Federal Reserve interest rate meetings and domestic high-level meetings falling in line with market expectations, the equity market's risk preference is supported. After a month, the A-turnover rate has marginally risen, indicating a moderate increase in trading activity, with expectations of multiple incremental funds entering the market, suggesting consideration for next year's economic industrial policy direction and the layout of the "Fifteenth Five-Year Plan". Recommendations include focusing on: 1) Growth directions benefiting from industrial policy support, such as domestic substitution, Siasun Robot & Automation, aerospace, innovative drugs, energy storage, etc.; 2) Cyclical sectors benefiting from the "anti-insular" policy, such as chemical industry, energy metal, resources, etc.; 3) Deepening of consumer-stimulating policies or bringing about phase opportunities for the consumer sector. 3. Orient: Continue to focus on core technology categories with upward industrial trends Orient believes that in the short term, the market's volatile structure towards the end of the year will continue, with quick sector rotations and a lack of core leading stocks. Technically, the Shanghai Composite Index continues to test support near 3850 points, which is still part of the range volatility that we emphasize. The focus should continue to be on core technology categories with upward industrial trends. This article is reprinted from "Tencent Self-selected Stocks", GMTEight Editor: Li Fo.