A-share market closing review | New record within the year! Shanghai Composite Index hits nine consecutive gains, business aerospace concept remains hot

Today, the market was volatile and differentiated, with the Shanghai Composite Index stubbornly closing in the red, marking a ninth consecutive day of gains and setting a new record for the year. Prior to this, the longest consecutive gains for the Shanghai Composite Index this year were "8 consecutive gains," which occurred twice: once from April 11th to 22nd, and the other from August 4th to 13th. Total trading volume for the day was 2.1 trillion, with over 3300 stocks in both markets falling. It is worth noting that the precious metals market gave back gains after hitting historic highs, with gold falling below 4500, silver turning green, and spot palladium falling by over 11%. Domestic lithium carbonate, platinum futures also hit limit down. As a result, gold stocks on the A-share market collectively adjusted, with Shandong Gold Mining, Zijin Mining Group falling by over 2%, and lithium mining concept stocks plummeting, with Sunwoda Electronic falling by over 11%. In other hot spots, the commercial aerospace concept remains hot, with Anhui Shenjian New Materials hitting an 8-day limit up, China Spacesat hitting a 4-day limit up, and Addsino Co., Ltd. and other stocks hitting limit up. The oil and gas sector performed strongly, with Geo-Jade Petroleum Corporation, Hunan Heshun Petroleum and other stocks hitting limit up; the brain-machine interface concept was also active, with Siasun Robot & Automation and other concept stocks performing well. Looking at individual stocks, there were 1995 gainers and 3332 decliners in both markets, with 139 stocks remaining flat. There were a total of 90 stocks hitting limit up, and 26 stocks hitting limit down. At the close, the Shanghai Composite Index rose by 0.04% to 3965.28 points, with a turnover of 903.8 billion yuan; the Shenzhen Component Index fell by 0.49% to 13537.10 points, with a turnover of 1235.5 billion yuan. The ChiNext Index fell by 0.66% to 3222.61 points. Capital flows Today, major funds focused on the battery, photovoltaic equipment, and industrial metal sectors, with major net inflows into stocks such as Sungrow Power Supply, Addsino Co., Ltd., and BYD Company Limited. News review 1. The People's Bank of China has implemented the DIGIHUMAN RMB action plan, which will officially launch on January 1st next year. According to the People's Bank of China, the People's Bank of China has implemented the "Action Plan for Further Strengthening the Management and Service System of DIGIHUMAN RMB and Related Financial Infrastructure Construction." The new generation DIGIHUMAN RMB measurement framework, management system, operating mechanism, and ecosystem will officially launch on January 1, 2026. 2. Minister of Agriculture and Rural Affairs Han Jun: Vigorously cultivate agricultural technology leading enterprises. Minister of Agriculture and Rural Affairs Han Jun pointed out that compared with agricultural technology powerhouses in the world, China's agricultural technology still has relatively weak original innovation capabilities, some key core technologies are subject to restrictions, and in particular, the dominant position of agricultural enterprise technology innovation bodies is not yet stable. The number of leading agricultural technology enterprises and their own strength are not strong enough, and there is still a shortage of scientific and technological talents. It is extremely important for us to deeply understand the importance of vigorously cultivating agricultural technology leading enterprises, strengthen the dominant position of agricultural enterprise technology innovation bodies, and focus on achieving results. 3. The People's Bank of China publicly injected 415 billion yuan. The People's Bank of China conducted 482.3 billion yuan of 7-day reverse repurchase operations today, with an operation rate of 1.40%, the same as before. Due to 67.3 billion yuan in maturing 7-day reverse repurchase operations today, a net injection of 415 billion yuan was realized. Future market analysis 1. China Securities Co., Ltd.: The year-end market rally has started. The three major expectations have jointly driven the start of the year-end market rally: under the consistent optimistic expectations of institutional investors, the spring market frenzy is expected to start early next year; the adjustment of overseas AI models is over, the strategic focus of the United States is shifting westward, overseas liquidity and risks continue to improve; recently, the release of the 14th Five-Year Plan for industrial policies and events has raised investors' policy expectations. In terms of sector allocation for the year-end market rally, the focus should be on non-ferrous metals and AI computing power, and the market's hot spot remains commercial aerospace, with secondary hot themes including the Hainan Free Trade Zone, controlled nuclear fusion, and humanoid Siasun Robot & Automation. 2. Guosheng: Market likely to confirm direction before the holidays. Currently, the main reasons for the market's continued volatile adjustment are as follows: 1. Currently, only the Shanghai Composite Index and the Science and Technology Innovation 50 Index have confirmed daily declines in the scale index. Historically, the probability of other scale indices following a confirmed daily decline is high; 2. The Shanghai 50 Index, CSI 300, CSI 500, ChiNext, and Shenzhen Component Index have started to not hit new highs, forming a head and shoulders pattern, indicating a high probability of future declines; 3. Although there are 14 industries currently in a daily decline, half of the industries are still in a daily uptrend, and the non-ferrous, petroleum and petrochemical, chemical industry, building materials, light industry, electrical equipment and new energy are all in an oversold state. However, due to the recent confirmation of daily uptrends in the SME 100, non-banking, electronics, and communications sectors, as well as the Shanghai Composite Index being on the edge of confirming a daily uptrend, the market is likely to confirm its direction before the holidays; for investors in the medium term, they can still counter-trend in their layouts. 3. Huatai: A-shares may still be volatile in the short term. Huatai believes that although the overseas environment has improved compared to mid-November, considering that the market is still in a vacuum period of policies and performance, and various funds have not yet formed a joint force, A-shares may still be volatile in the short term. However, with contrarian inflows of funds, A-shares may have some support around mid-December. Looking ahead, the willingness of insurance funds and others to allocate assets is recovering, and there is still a foundation for a spring market rally, focusing on the disclosure of annual report forecasts in mid-January and the potential catalysis of reserve requirement ratio cuts in January. In terms of allocation, it is recommended to continue to lay out for the spring market rally, focusing on the improvement directions of batteries, some chemical products, military industry, and mass consumption, and making high cuts within themes, while exploring low positions with rising prices and policy logics. This article is reprinted from "Tencent Stock Selection", edited by GMTEight: Liu Jiayin.