A-share midday review | The ChiNext Index fell more than 1% in half a day! The AI smart body concept continues to be strong, and the commercial aerospace sector has once again sparked a wave of limit up.

On December 31st, the three major indexes collectively fell in the morning; by the midday close, the Shanghai Composite Index fell by 0.07%, the Shenzhen Component Index fell by 0.67%, and the Growth Enterprise Board Index fell by 1.10%. Over 3000 individual stocks fell in the two markets, with a trading volume of 1.31 trillion yuan in the first half of the day, an increase of 17.6 billion yuan from the previous day. On the market, there was rapid rotation of hot spots, with AI application side continuing to rise, leading to stocks like Hangzhou Wensli Silk Culture, Guangdong Tecsun Science & Technology, BlueFocus Intelligent Communications Group hitting the daily limit up; the commercial aerospace concept was actively trading again, with nearly ten stocks hitting limit up including Aerosun Corporation. The Siasun Robot & Automation concept was partially active, with Zhejiang Fenglong Electric rising for 6 consecutive days and Zhejiang XCC Group rising for 3 consecutive days to create new historical highs. On the downside, the Fujian sector fell, with Luyan Pharma hitting limit down. In terms of focus stocks, the new stock N Dongguang from the North Exchange opened over 1000% higher, closing up 919.31% at midday. Orient pointed out that today is the last trading day of the year, and it is expected that the market will not show significant volatility. The hot spots will continue to revolve around Siasun Robot & Automation, commercial aerospace, and energy metals in the recent core sectors, and will also continue after New Year's Day. Hot sectors: 1. The AI intelligent body concept continues to be strong AI marketing, AI intelligent body, multimodal, intelligent spectrum AI, and other AI application concepts were all strong, with stocks like BlueFocus Intelligent Communications Group, Hangzhou Wensli Silk Culture, Top Score Fashion hitting limit up. 2. The commercial aerospace concept is strong again The commercial aerospace concept was actively trading again, with Beijing LeiKe Defense Technology rising for 3 consecutive days, and stocks like Shanghai Shunho New Materials Technology, Beijing BDStar Navigation, Wuhan Yangtze Communication Industry Group hitting limit up. Institutional views: 1. Pacific Securities: The slope of the expected rise in the post-market is expected to be steep The cross-year market is expected to start with a general rise, and considering that the volatility of major stock index options is still at an extremely low position, the slope of the expected rise in the post-market is expected to be steep. In terms of sector selection, technology is still the main line that is expected to gain excess returns, with greater flexibility; commodities show signs of a significant shift to the upside recently, with precious metals, non-ferrous metals, chemicals, steel, and pig farming expected to enter into a cycle of simultaneous growth; large financials like insurance and banking, as stable weights, will continue to oscillate upwards; the consumer sector may become a new focus for supplementary growth as policy positioning deepens. In terms of popular concepts, the Siasun Robot & Automation concept has been strong in recent days, showing signs of relay hot concepts like commercial aerospace and the Hainan Free Trade Zone. Although commercial aerospace and the Hainan Free Trade Zone adjusted today, the overall trend remains, and investors can still pay attention. 2. Zheshang: Growth and value will continue to be balanced in January, with a slightly more advantageous small and medium-sized market cap style Beginning of the year is a vacuum period between policy implementation and earnings disclosure, the market's focus may be on next year's policy expectations and industry trends, and thematic investments with a leaning towards small and medium-sized growth styles may perform actively. Zheshang believes that the growth and value will continue to be balanced in January 2026, with a slightly more advantageous small and medium-sized market cap style. Building on the consensus of technology growth, it is recommended to marginally increase focus on the cyclical (consumption+cycle) and financial styles. In terms of industry allocation, it is recommended to focus on strong beta varieties in non-banking finance (insurance, securities), machinery (Siasun Robot & Automation), basic chemicals under the logic of rising prices, new energy (lithium carbonate), and electronics (semiconductors). 3. Orient: Market is not expected to show significant volatility on the last trading day The stock index still shows a stable performance, with the Shenzhen stock index noticeably stronger than the Shanghai Composite Index, indicating a strong performance in the technology sector. Today is the last trading day of the year, and it is expected that the market will not show significant volatility. The hot spots will continue to revolve around Siasun Robot & Automation, commercial aerospace, and energy metals in the recent core sectors, and will continue after New Year's Day.