CSI 300 Up 1.95%
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The A-share market continues its upward trend. Current market conditions indicate that risk appetite remains in a relatively positive zone, providing a solid foundation for ongoing identification of structural investment opportunities. Major indices strengthened overall this week, though style and sectoral divergence persists. The SSE Index(000001) rose 1.88%, trading above its 5-day, 10-day, 20-day, and 50-day moving averages, and approximately 9.28% above its 200-day moving average, reflecting a healthy medium-term trend. CSI 300(000300) gained 1.95%, with heavyweight sectors showing steady performance, albeit with subdued trading activity—indicating institutional investors are favoring defensive and structural allocation strategies. The Shenzhen Index(399001) and ChiNext(399006) surged by 3.53% and 3.90%, respectively, significantly outperforming the main board. Both indices remain above their 200-day moving averages, with ChiNext more than 27% above its long-term average, underscoring a robust medium-term structure.
In overseas markets, U.S. equities remain within a medium-term uptrend but exhibit clear signs of elevated valuations. The S & P 500 Index(0S&P5) advanced 1.43% this week and hit a new annual high during the period. The Nasdaq Composite(0NDQC) rose 1.31%—not reaching a fresh peak but staying within 2% of its 52-week high—with its long-term moving average system maintaining a bullish alignment. Initial jobless claims in the U.S. for the week ending December 22 stood at 214,000, below the market expectation of 224,000, signaling continued labor market resilience. Meanwhile, some institutions note that while U.S. inflation is on a downward trajectory, data quality issues persist, and the risk of marginal economic slowdown has not been fully eliminated. Galaxy Securities forecasts approximately three rate cuts remaining in 2026, implying a dovish policy bias, though likely implemented cautiously. This expectation has led to growing valuation constraints in elevated U.S. markets—particularly in AI and high-end tech sectors—where demands for earnings realization have intensified.
On the domestic macro front, China’s total electricity consumption in November rose 6.2% year-over-year, down from the previous reading of 10.4% but still in positive territory, suggesting a stabilization in the pace of economic recovery. As a high-frequency indicator, electricity usage shows no significant weakening in industrial production or services activity. The National Bureau of Statistics’ final verified nominal GDP for 2024 stands at RMB 134.8 trillion, offering data-backed support for medium- to long-term economic resilience.
The policy environment remains generally stable. At its Q4 2025 meeting, the PBOC Monetary Policy Committee emphasized strengthening both counter-cyclical and cross-cyclical adjustments. However, multiple institutions believe the likelihood of reserve requirement ratio (RRR) cuts or interest rate reductions in Q1 2026 is low; instead, monetary policy will likely maintain reasonably ample liquidity through structural tools and open market operations. The PBOC conducted a CNY 400 billion Medium-term Lending Facility (MLF) operation this week—the 10th consecutive month of expanded rollovers—sending a clear signal of its commitment to funding stability. On the fiscal side, the push for a more proactive stance continues to strengthen. China International Capital Corporation (CICC) forecasts infrastructure investment growth of around 4.5% in 2026, providing medium-term demand support for infrastructure-related and manufacturing sectors.
On the currency front, the renminbi has become a key variable. Offshore RMB broke through the 7.0 mark—the first time since 2024. Huatai Securities notes that RMB appreciation supports revaluation of related assets, particularly benefiting consumption, financials, and high-end manufacturing sectors that are sensitive to foreign capital allocation. Huang Qifan’s view on the RMB’s medium- to long-term appreciation potential has also helped stabilize market expectations regarding capital flows and asset pricing conditions.
Structural reforms and industrial policies continue to advance. The Catalogue of Industries Encouraging Foreign Investment (2025 Edition) explicitly steers foreign capital toward advanced manufacturing and modern services—aligning closely with the current medium-term themes in the A-share market. Eight government departments jointly introduced financial measures to support the construction of the Western Land-Sea New Passage, which is expected to catalyze structural opportunities in infrastructure, logistics, and regionally linked economic sectors. In real estate, policies focus on stabilizing existing inventory and mitigating risks. Beijing has relaxed home-purchase eligibility for non-local households, and the “lead bank” system is being prioritized—both reflecting a bottom-up and structurally optimizing approach.
At the sector level, rotation this week brought new focal points, with telecom-driven communication sectors showing notable strength. Telecom-Cable/Satl Eqp(G4893IG.CN) surged 10.14%, with active trading across its 22 constituents, reflecting market recognition of resilient demand for communication infrastructure and related equipment. Close behind, Telecom-Infrastructure(G4895IG.CN) rose 10.05%, with significantly higher volume across its 10 stocks, indicating increased investor appetite for network construction and upgrades. Telecom Svcs-Cable/Satl(G4896IG.CN) gained 9.69%, with its 10 constituent stocks also delivering standout performance. These three sectors not only led in gains but also saw concentrated trading volumes, with rising industry rankings and heightened market attention—highlighting the stage-specific opportunity in communication-related assets under the current market rhythm.
The Top 33 Portfolio gained 4.59% overall this week. Among individual stocks, Guangzhou Haozhi Indl. ‘A'(300503)gained 30.03% . It belongs to the O’Neil industry group “Electronics – Components” and ranks 19th within the sector. The stock holds an RS Rating of 94, indicating strong relative price strength; an EPS Rating of 73, reflecting a relatively fast pace of earnings growth; and an O’Neil Score of 74, placing its comprehensive performance in the upper-mid range. Against the backdrop of sustained policy support for advanced manufacturing and high-end equipment, the sector trend and the stock’s technical pattern are exhibiting favorable resonance.
Overall, domestic policy guidance remains stable and moderately supportive. Improved RMB exchange rates, combined with active fiscal and industrial policies, provide a solid foundation for the A-share market’s medium-term trajectory. Meanwhile, U.S. equities remain elevated but face intensifying structural divergence, serving as an external reference for global risk sentiment.
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published on December 26, 2025