A-share trading at noon | differentiation in index trends, commercial aerospace concept surges again, and the consumer sector continues to rise

On December 18, the trend of the index diverged, with over 3600 stocks rising, and a trading volume of 1 trillion in half a day, an increase of 212 billion from yesterday. By the midday closing, the Shanghai Composite Index rose by 0.16%, the Shenzhen Component Index fell by 0.85%, and the ChiNext Index fell by 1.81%. In terms of the market, the commercial aerospace concept surged again, with Zhejiang Shengyang Science and Technology hitting the limit up for two consecutive days, and Shanghai Shunho New Materials Technology, Changshu Tianyin Electromechanical, China Spacesat, and others also hitting the limit up. The consumer goods sector strengthened, with the retail sector leading the gains, with Nanjing Central Emporium (Group) Stocks and Shanghai Join Buy hitting the limit up. The IP economy concept was active, with stocks like Guangbo Group Stock and Sanxiang Impression hitting the limit up. The AI medical concept fluctuated and rose, with Anhui Huaren Health Pharmaceutical hitting the limit up. On the decline side, the battery and securities equipment sectors posted significant declines. Looking ahead, BOC International believes that with the easing of geopolitical risks and the gradual implementation of Sino-US policies, the A-share market is expected to see a pre-Christmas configuration rally next year. Investors can focus on the two main themes of technology and "anti-entanglement." Hot Sectors: 1. Strong Performance in Commercial Aerospace Shares related to commercial aerospace surged, with China Spacesat hitting the limit up. Other stocks like Changshu Tianyin Electromechanical, Beijing Bei Mo Gao Ke Friction Material Co., Ltd., Western Metal Materials, and Chengdu Tianjian Technology also hit the limit up. Stocks like Hunan Aerospace Huanyu Communication Technology, Shaoyang Victor Hydraulics, and Xi'An Xice Testing Technology followed suit. Point of view: On December 17th, according to reports, the upcoming "15th Five-Year Plan for Accelerating the New Industrialization and Building a Modern Industrial System in Shanghai" is expected to focus on commercial aerospace. In addition, SpaceX has informed employees that the company has entered a "silent period" for IPO. 2. Active Trading in Pharmaceutical and Commercial Businesses Trading in pharmaceutical and commercial businesses was active, with Luyan Pharma, C.Q. Pharmaceutical Holding, and Anhui Huaren Health Pharmaceutical hitting the limit up. Stocks like Shu Yu Civilian Pharmacy Corp., Ltd. and Hunan Dajiaweikang Pharmaceutical Industry also saw significant gains. Point of view: According to data from the Chinese Center for Disease Control and Prevention, since November, as temperatures have dropped in many parts of the country, influenza activity has entered a rapid increase period nationwide. During the same period, demand for related drugs has also increased. In addition, the "AI Family Doctor" app from Ant Group has seen a surge in downloads and has risen to third place on the Apple app chart, with over 15 million monthly active users, driving the demand for digital health management and increasing the value of pharmacy services. 3. Continued Growth in the Consumer Goods Sector The consumer goods sector continued to rise, with retail, clothing, and food and beverage leading the gains. Baida Group Co., Ltd. has been trading limit up for six consecutive days, while Liqun Commercial Group has been trading limit up for three consecutive days. Stocks like Nanjing Central Emporium (Group) Stocks, Shanghai Join Buy, Joeone Co., Ltd., Royal Group Co., Ltd., and Sichuan Langsha Holding also hit the limit up. Point of view: According to relevant officials from the Central Finance and Economics Department, expanding domestic demand is the key task for next year, and attention should be paid to structural changes in consumption to stimulate consumption from both supply and demand sides. China Galaxy Securities believes that future economic work needs to promote the formation of an economic development model led by domestic demand, consumption-driven, and endogenous growth. Institutional Views: 1. EB SECURITIES: A-share Year-end Rally Expected with Policy Support EB SECURITIES believes that a new round of policy deployment will support the A-share year-end rally. On the one hand, domestic economic policies are expected to continue to exert force, with economic growth expected to remain in a reasonable range, further solidifying the foundation for the prosperous development of the capital market. On the other hand, the release of policy dividends is expected to boost market confidence, further attracting various funds to actively enter the market. Historically, A-share markets have performed well in the early years of the "13th Five-Year Plan" and "14th Five-Year Plan," and this positive performance in the early years is expected to continue in 2026. In terms of industry allocation, TMT and advanced manufacturing sectors should be focused on; in the case of short-term market volatility due to external factors, defensive and consumer sectors should be considered. 2. Huachun Securities: The Spring Rally May Depend on the Resolution of Real Estate Risks Huachun Securities believes that the appearance of the spring rally will inevitably be based on a low point, which implies a change in the core factors causing the decline, or that stock prices have been sufficiently digested. The fundamental reason for this round of retracement is still related to real estate and domestic demand drag. The retracement of the Hong Kong property chain is mainly due to the more significant impact of its performance drag compared to A-shares. The signal of de-stocking in real estate is clear, but the market's response is cautious, and substantive observation is still needed. The start of the spring rally may depend on the resolution of real estate risks, focusing on the bond redemption situation in 2026 and Vanke's extension progress. The trend of double-width continuity, the short-term focus of configuration is still on technology and strong performers, focusing on the expansion of the AI chain application side, and looking for tenfold stocks in tripled stocks. The Central Economic Work Conference has set the tone for transitioning from extraordinary countercyclical adjustments to countercyclical + cross-cyclical measures, indicating that the economy is moving away from strong stimulus dependence, and the stability of the valuation system is enhanced. 3. BOC International: A-shares are in the "Bull Market Continuation" Stage, Focus on Technology and "Anti-entanglement" Themes BOC International believes that looking ahead, the A-share market is still in an upward channel. Firstly, with a smooth transition from "bottom support" to "quality improvement" in domestic economic policies, a stable macroeconomic expectation environment has been created for the market. As policy expectations stabilize, market momentum will gradually shift from being primarily driven by policies and funds in the early stage to being driven by profit fundamentals. The A-share market is currently in the "bull market continuation" stage, with policies expected for the mid to long term in 2026, and the warming average price, 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 next Federal Reserve chairperson and the implementation of domestic monetary and fiscal policies are likely to be 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 Sino-US policy expectations, the A-share market is expected to see a pre-Christmas configuration rally next year, focusing on the two main themes of technology and "anti-entanglement." This article is reprinted from "Tencent Select Stocks," GMTEight editor: Wang Qiujia.