A-share market closing review: Shanghai Composite Index rose for the third consecutive day, with all indices rebounding! Reasons behind the rally emerge

Today, the market rebounded across the board, with the Shanghai Composite Index recording its third consecutive increase. On the market, themes continued to rotate, with the direction of large consumption continuing to strengthen, and sectors such as the Hainan Free Trade Zone, controllable nuclear fusion, and real estate leading in terms of gains. The market traded about 1.7 trillion yuan throughout the day, a slight increase from the previous trading day, with over 4400 stocks in the two markets rising. Analysts attributed today's overall increase in the index to the release of data including the US November non-farm payroll employment numbers and the US November Consumer Price Index (CPI). The Bank of Japan announced this morning an increase of 25 basis points to 0.75% in its target interest rate, in line with market expectations. With a series of "shoes" dropping, external uncertainties facing A shares in the short term dissipated, and market attention began to shift to the internal factors of A shares. In terms of the market, the direction of large consumption rose again, with retail, dairy, and reward economy concepts leading the way. The leading stock in the duty-free concept, China Tourism Group Duty Free Corporation, hit the limit up during trading and closed with an increase of over 8%; the Hainan sector saw an expanded increase in the afternoon, with multiple stocks including Hainan Haiqi Transportation Group, Hainan Development Holdings Nanhai, and Hainan Haiyao hitting the limit up; the real estate sector saw a rebound with Zhongtian Service leading with three consecutive limit up days, followed by Sanxiang Impression, China Union, among others; nuclear fusion concepts saw significant gains with multiple stocks including Shenzhen Prince New Materials and Sun Create Electronics hitting the limit up; AI healthcare concepts were active, with Zhejiang Wecome Pharmaceutical and CSPC Innovation Pharmaceutical leading; the automotive industry chain saw a fluctuating increase, with Zhejiang Shibao hitting four consecutive limit up days and Shenzhen Roadrover Technology hitting the limit up; on the downside, sectors including semiconductors, precious metals, and banks led the decline. Looking ahead, Industrial believes that the positive policy combinations laid out in recent major meetings at home and abroad have created a favorable environment for the development of risk assets, and the year-end market is expected to gradually unfold in the process of finding consensus. In terms of individual stocks, 4477 stocks rose, 905 stocks fell, and 79 stocks remained unchanged in the two markets. A total of 83 stocks hit the limit up, while 7 stocks hit the limit down. By the close of trading, the Shanghai Composite Index rose 0.36% to 3890.45 points, with a turnover of 738.1 billion yuan; the Shenzhen Component Index rose 0.66% to 13140.21 points, with a turnover of 974.9 billion yuan. The ChiNext Index rose 0.49% to 3122.24 points. Funds Flow Today, the main capital focused on the purchase of automobile parts, general equipment, and general retail sectors. The top stocks with net inflows of main capital included Fujian Snowman Group, Sensteed Hi-tech Group, Yonghui Superstores, among others. News Recap 1. National Medical Products Administration: Brain-Machine Interface Medical Device Work Promotion Meeting Held On December 18, the National Medical Products Administration held a Brain-Machine Interface Medical Device Work Promotion Meeting in Beijing. The meeting emphasized the importance of safety and effectiveness as the primary premise, innovating evaluation and supervision methods, constructing a standard system, and providing technical guidance services. It also called for strengthened cross-departmental cooperation to address key technical issues and improve the industrial supply chain. It emphasized the responsibility of enterprises to enhance product reliability and overall competitiveness by addressi... 2. Is Maotai stopping production and controlling quantity? Maotai distributor: Normal shipments, no reduction The news of Maotai controlling the quantity has been widely followed in the market recently, with a document on Maotai product supply and structural reform causing a stir in the industry. While Maotai responded to the document as "false," it clarified that market operations are demand-driven and focused on channel resilience, with products being released based on scientific and accurate understanding of end sales conditions and not making any blanket decisions. Interviews with several Maotai distributors revealed that 500ml Feitian Maotai has not reduced production and is being delivered normally, with only limited reductions in volume for aged Maotai (15 years), 1000ml Feitian Maotai, and zodiac Maotai products, with reductions ranging from 30% to 50%, and the complete cessation of supply for colored glaze deluxe products. 3. Bank of Japan raises interest rates by 25 basis points as scheduled The Bank of Japan raised its benchmark interest rate from 0.5% to 0.75%, in line with market expectations. This level represents a new high in 30 years, and marks the first rate hike by the Bank of Japan in 11 months after January 2025. Market Outlook 1. Industrial: Year-end market expected to gradually unfold in the process of finding consensus Industrial believes that the positive policy combinations laid out in recent major meetings at home and abroad have created a favorable environment for the development of risk assets, and the year-end market is expected to gradually unfold in the process of finding consensus. It was previously emphasized that with the easing of overseas disturbances, an increase in global liquidity expectations, and a boost in risk appetite, the year-end market has a solid foundation. As overseas easing direction is further confirmed and domestic conferences provide clearer deployment and guidance for next year's economic and industrial development, there is potential for market consensus to converge and guide the main trend, with the year-end market expected to gradually unfold in the process of finding consensus. 2. Guotai Haitong: Year-end offensive has begun, bullish on technology, securities and insurance, consumption Guotai Haitong believes that policy expectations may be revised upwards, leading to active market trading. After a long period of consolidation, the "transformation bull" in China is set to regain momentum, rise, and reach new heights. The year-end offensive has begun, with a bullish outlook on technology, securities & insurance, and consumption. The spring market style features the main board setting the stage and the small board taking the spotlight, with the time near Chinese New Year serving as a watershed. Before that, influenced by factors such as annual report forecasts and insurance asset allocation preferences, the main board style, represented by the CSI 800, dominates; after the Chinese New Year enters an economic and performance silence period, coupled with seasonal improvements in liquidity, the middle-small growth, represented by the CSI 2000, significantly outperforms. 3. China Securities Co., Ltd.: The underlying logic of the bull market remains, expecting a new wave of market trends at year-end China Securities Co., Ltd. notes that from early September to early December, both the A-share and Hong Kong markets have undergone a long period of adjustment, with investor sentiment becoming cautious. However, several key events and data releases have followed, overall in line with or slightly better than market expectations. China Securities Co., Ltd. believes that the underlying logic of the bull market remains, driven mainly by structural market trends and capital market reform policies. With the market having essentially completed its adjustment, and with the basic landing of fund rankings, a new wave of market trends is expected to emerge at year-end. In terms of mid-term industry allocation, the focus will be on non-ferrous metals and AI compute power with certain prosperity catalysts. The main themes will be commercial spaceflight, controllable nuclear fusion, and robotic automation alongside pharmaceutical innovation; Hong Kong stocks also present investment opportunities, with potential hot sectors mainly in internet giants and innovative pharmaceuticals. Key focuses will include non-ferrous metals, commercial spaceflight, AI, robotic automation, controllable nuclear fusion, pharmaceutical innovation, non-banking finance, among others. This article is reproduced from "Tencent Selection Stocks," GMTEight editor: Liu Jiayin. (Note: The translation may not be completely accurate due to the technical financial vocabulary used in the text.)