A-share closing review | Shanghai Composite Index fell by 0.64%, the commercial aerospace track ebbing, and innovative drugs performing strongly.

Today, the market saw a volume adjustment, with all three major indices collectively closing lower, led by drops in the ChiNext Index and the ChiNext 50 Index. Market turnover exceeded 3.6 trillion for two consecutive days, with over 3,700 individual stocks in both markets falling. Currently, the market's biggest concern is the adjustment risk following the continuous increase in trading volume. Analysis shows that in the history of A-shares, instances of trading volume exceeding 3 trillion mainly occurred in October 2024 and August to September 2025. 1. After the record-breaking trading volume of 3.48 trillion on October 8, 2024, the market experienced intense fluctuations and corrections. 2. In August to September 2025, after the market hit 3 trillion in trading volume and the Shanghai Composite Index approached 3900 points, there was a high-volume plateau with intense long and short positions, leading to increased market divergence. Zhongtai stated that long-term funds are providing support, and the market may remain active under policy impetus; Orient believes that there may be a switch in popular sectors in the near term, which could cause significant market volatility but is considered a normal market behavior; Huaxi believes that with the market turnover exceeding 3 trillion, the A-share market's trading range has broken through again, and the bullish window in spring is expected to continue. On the market, the commercial aerospace sector is experiencing a downturn, with several stocks such as Shanghai Aerospace Automobile Electromechanical, Shaanxi Zhongtian Rocket Technology, and Aecc Aero Science And Technology hitting their downside limits. In terms of news, several companies in the commercial aerospace sector issued reminders on the 12th to investors to be cautious in identifying information and make rational investment decisions. However, several securities firms remain optimistic about the prospects of the commercial aerospace industry in 2026. Sinolink analysis predicts that 2026 will be the "Alpha Year" of China's commercial aerospace. In other hotspots, the innovative pharmaceutical concept was strong, with several stocks such as REMEGEN, R&G PharmaStudies hitting the 20% upside limit; the precious metals sector was active again, with Zhejiang Ming Jewelry hitting the upside limit; and the oil and gas stocks saw another rise, with Xinjiang Zhundong Petroleum Technology hitting the upside limit. Looking at individual stocks, there were 1622 gainers and 3729 decliners in both markets, with 119 stocks maintaining their gains. There were a total of 77 stocks with their price hitting the upside limit and 58 stocks hitting the downside limit. At the close, the Shanghai Composite Index fell by 0.64% to 4138.76 points, with a turnover of 148.16 billion yuan; the Shenzhen Component Index fell by 1.37% to 14169.40 points, with a turnover of 216.94 billion yuan. The ChiNext Index fell by 1.96% to 3321.89 points. Fund Movement: Today, the main funds focused on the medical services, energy metals, and chemical pharmaceutical sectors. The top stocks in terms of net inflows of main funds included Guangzhou Haige Communications Group Incorporated, Ganfeng Lithium Group, Yonyou Network Technology, etc. Major News Recap: 1. A Chinese research team made important progress in the development of high-performance sodium-ion battery cathode materials. 2. Guangzhou is striving to obtain support from the national integrated circuit industry fund for major projects. 3. The National Development and Reform Commission will lead the formulation of the "14th Five-Year Plan" for the development of the circular economy. 4. The Ministry of Civil Affairs is collaborating with relevant departments to develop support measures to promote the high-quality development of the silver economy. Market Outlook: 1. Zhongtai: Market long-term funds provide support, and under policy impetus, the market may remain active in trading. 2. Orient: The current market trend is relatively healthy, but the switch in popular sectors may lead to significant market volatility. This article was originally published on "Tencent Self-selected Stocks" and edited by Liu Jiayin at GMTEight.