A-share Closing Review | Shanghai Composite Index closes higher with strong trading volume, non-ferrous metals surge.

On December 26th, the market opened high but then fell back, with both the Shanghai Composite Index and the Growth Enterprise Index plunging and turning green. In the afternoon, the indices rose slightly before falling back again. By the close, the Shanghai Composite Index rose by 0.1% for an eighth consecutive day of gains, the Shenzhen Component Index rose by 0.54%, and the Growth Enterprise Index rose by 0.14%. The total turnover on the Shanghai and Shenzhen stock exchanges exceeded 2 trillion yuan. In terms of market performance, there was continued rotation of sectors with hot topics becoming active again. The commercial aerospace concept remained strong, with over ten stocks in the sector hitting their daily limits. The Hainan Free Trade Zone sector once again became active, while the non-ferrous metal and precious metal sectors surged, with Zijin Mining Group and CMOC Group Limited both reaching historic highs. The new energy sector strengthened, with the photovoltaic concept showing an upward trend and the lithium battery sector surging. Additionally, companies like Siasun Robot&Automation, storage chips, and the automotive industry chain also performed well. In terms of decliners, the optical module concept declined, with Suzhou Everbright Photonics falling by over 10%. The lithography machine concept also faced adjustments, with Optowide Technologies dropping by over 4%. The liquid cooling sector showed weaker performance, while the paper concept fluctuated downward. Moreover, sectors like liquor, diamond cultivation, brain-machine interfaces, and nuclear fusion performed poorly. Debon Securities pointed out that the A-share market is expected to continue the "slow bull" trend in 2026. Looking ahead, Debon Securities predicts that technology growth will remain the main theme and become the "sharpest spear." Popular sectors: 1. Non-ferrous metals surged, with Zijin Mining Group and CMOC Group Limited leading the rally. 2. The Hainan Free Trade Zone concept rebounded, with companies like Hainan Mining and Hainan Development Holdings Nanhai hitting their daily limits. 3. The new energy sector strengthened, with the lithium battery industry chain rapidly rising, and the photovoltaic concept seeing significant gains. 4. The commercial aerospace concept remained strong, with companies like Anhui Shenjian New Materials and Jiangsu Jiuding New Material performing well. In terms of institutional views, Debon Securities predicts a "slow bull" market for A-shares in 2026, while Soochow recommends focusing on two main themes. Huafu Securities suggests a possible "wave-like" market trend, while UBS Wealth Management believes that China's stock market still has room for upward growth driven by AI and technology.