A-share market midday report | Market suddenly plunges, Shanghai Composite Index and Shenzhen Composite Index both turn green! The lithium battery industry chain strengthens against the trend.

On December 26, the market opened high and then fell back in the morning, with both the Shanghai Composite Index and the Growth Enterprise Market Index plummeting and turning green; by midday, the Shanghai Composite Index fell by 0.19%, the Shenzhen Component Index rose by 0.17%, and the Growth Enterprise Market Index fell by 0.15%. Over 3900 stocks in the entire market declined, with a total turnover of 1.45 trillion RMB in the morning session in both Shanghai and Shenzhen, an increase of 251.3 billion from the previous trading day. On the market, the rotation continued, with hot topics being repeatedly active. The commercial aerospace concept remained strong, with over ten stocks in the sector hitting the limit up; the Hainan Free Trade Zone sector was once again active, with the non-ferrous metals and precious metals sectors across the board exploding, with Zijin Mining Group and CMOC Group Limited both rising over 4% and hitting historical highs; the photovoltaic concept fluctuated upwards, and the lithium battery sector strengthened significantly. In addition, Siasun Robot & Automation, storage chips, and the automotive industry chain all showed performance during the trading day. In terms of declines, the opto-module concept declined, with Suzhou Everbright Photonics falling by over 10%; the lithography machine concept went into adjustment, with Optowide Technologies falling by over 4%; the liquid cooling sector showed weak trends, and the papermaking concept fluctuated downwards; additionally, sectors such as liquor, diamond cultivation, brain-machine interface, and nuclear fusion performed poorly. Dabang Securities pointed out that A-shares are expected to continue the "slow bull" market in 2026. Looking ahead, Dabang Securities expects that technology growth will continue to be the main focus and become the "sharpest spear". Hot sectors: 1. Hainan Free Trade Zone concept rebounds. 2. The lithium battery sector experiences a significant increase. 3. The photovoltaic concept rises. 4. The commercial aerospace concept remains strong. Investment advice from various institutions is also provided in the article, suggesting focusing on different sectors such as commercial aerospace, AI applications, real estate stocks, etc.