A | IP A-share market opening express | Index weakly fluctuates! Lithography machine concept rises, IP economy active

On December 18th, the index showed weak fluctuations. As of 9:40, the Shanghai Composite Index fell by 1.13%, the Shenzhen Component Index fell by 0.68%, and the ChiNext Index fell by 1.31%. In terms of the market, the lithography machine concept saw a surge, with stocks such as Hunan Kaimeite Gases and Changchun Up Optotech hitting the limit up, while others like Kunshan Kinglai Hygienic Materials and Shenyang Blue Silver Industry Automation Equipment followed suit. The IP economy concept was active, with stocks like Guangbo Group Stock and Sanxiang Impression hitting the limit up, and others like Profit Cultural & Creative Group and Cre8 Direct (Ningbo) Co., Ltd. also rising. On the downside, sectors like Hainan and power grid equipment saw significant declines. Looking ahead, BOC International believes that with the easing of geopolitical risks and the gradual implementation of China-US policies, there is a possibility of the A-share market starting its year-end configuration rally early next year. Investors can focus on the "spring frenzy" layout, paying attention to the technology and "anti-inner loop" themes. Popular Sectors 1. Lithography machine concept sees a surge The lithography machine concept saw a surge, with stocks like Hunan Kaimeite Gases and Changchun Up Optotech hitting the limit up, and others like Kunshan Kinglai Hygienic Materials, Shenyang Blue Silver Industry Automation Equipment, Nanjing Wavelength Opto-Electronic Science & Technology, and Zhejiang Jinghua Laser Technology surging. Institutional Views 1. EB SECURITIES: New policy deployment to support A-share year-end rally EB SECURITIES believes that the new policy deployment will support the A-share year-end rally. They expect the domestic economic policy to continue to strengthen, keeping economic growth within a reasonable range and further consolidating the foundation for the prosperity and development of the capital market. The release of policy dividends is expected to boost market confidence and attract various funds. Historically, the A-share market has shown good performance in the initial years of the "Thirteenth Five-Year Plan" and "Fourteenth Five-Year Plan", and this positive performance is expected to continue in 2026. In terms of industry allocation, they recommend focusing on the TMT and advanced manufacturing sectors; in case of short-term market fluctuations due to external factors, defensive and consumer sectors should be considered. 2. Huachun Securities: Spring momentum may need to wait for real estate risks to be resolved Huachun Securities believes that the appearance of spring momentum will inevitably be based on a low point, indicating a change in the core factors of the decline, or that stock prices have been sufficiently digested. The fundamental reason for the current pullback still lies in the drag of real estate and domestic demand. The retreat of the Hong Kong real estate chain was more significant due to its performance being more affected compared to A-shares. The signal of destocking in real estate is clear, but the market remains cautious, and substantial observation is still needed. The launch of spring momentum may need to wait for the resolution of real estate risks, focusing on the bond repayment situation in 2026 and the extension process of Vanke. The trend of a dual-width extension continues, with short-term focus still on technology and strong performers, paying attention to the expansion of AI chain applications to the end side and finding tenfold stocks in threefold stocks. The Central Economic Work Conference has set a tone for transitioning from extraordinary countercyclical adjustments to countercyclical + cross-cycle adjustments, indicating that the economy is moving away from strong stimulus dependence and enhancing the stability of the valuation system. 3. BOC International: A-shares are in the "bull market continuation" stage, focusing on technology and anti-inner loop themes BOC International believes that looking ahead, A-shares are still in an upward channel. Firstly, the smooth transition of policies from "bottoming out" to "improving quality" has created a stable macroeconomic expectation environment for the market. With the stabilization of policy expectations, market momentum will gradually shift from being primarily driven by policy and funds to being driven by profit fundamentals. A-shares are currently in a "bull market continuation" stage, and the prospects for medium and long-term capital entering the market in 2026 are still expected, while a rise in the price central point, domestic demand recovery, and profit growth brought about by industrial innovation will help the market move towards a comprehensive bull run. In the short term, the selection of the new Federal Reserve chair and the implementation of domestic monetary and fiscal policies may become the focus of the market at the end of the year and the beginning of the year. With the easing of geopolitical risks and the gradual implementation of China-US policies, there is a possibility of the A-share market starting its year-end configuration rally early next year. Investors can focus on the technology and "anti-inner loop" themes. This article is reproduced from "Tencent Stock Selection". Editor: Xiao Yi Chen.