The three major A-share indices collectively retreated today. By the close, the Shanghai Composite Index fell by 0.12%, closing at 3870.60 points; the Shenzhen Component Index dropped by 0.43%, closing at 12924.13 points; and the ChiNext Index decreased by 1.09%, closing at 3020.42 points. The total trading volume of the Shanghai and Shenzhen markets reached 25.209 billion, an increase of 83.2 billion compared to yesterday.
Sector performance was mixed, with non-ferrous metals, semiconductors, steel, real estate services, real estate development, small metals, and precious metals leading the gains, while insurance, banking, and securities sectors saw the largest declines.
The number of rising stocks exceeded 1900, with over 70 stocks hitting the daily limit. Storage chipconcept stocks surged against the trend,Jingzhidahit the daily limit at 20cm,Beijing Junzheng,Jiangbolong,Shannon Chip Creation,Puran Co., Ltd.,Dongxin Co., Ltd.all saw increases of over 10%.
Industry capital flow: 1.852 billion net inflowElectric motors
In terms of industry capital, by the close, electric motors,small metals,non-ferrous metalsranked high in net inflows, withcommunication equipmentnet inflow of 1.852 billion.
In terms of net outflows, communication equipment,securities,consumer electronicsranked high in net outflows, withcommunication equipmentnet outflow of 5.643 billion.
Today’s news highlights
Relevant departments are studying the tax-free consumption policy for inbound goods for residents of Hainan Island, planning a new round of optimization for offshore duty-free policies
With the approval of the Central Committee, the Hainan Free Trade Port is scheduled to officially start operations on December 18, 2025. According to exclusive reports from People’s Financial News, to enhance the sense of gain for residents on the island, relevant national departments are jointly conducting research on the tax policy for certain inbound goods for residents’ tax-free consumption. Due to the broad audience of the policy, supporting management measures will be formulated simultaneously and will be implemented promptly when conditions are ripe.
The three departments issued the “Stabilizing Growth Work Plan for the Power Equipment Industry (2025-2026)”
The Ministry of Industry and Information Technology, the State Administration for Market Regulation, and the National Energy Administration issued the “Stabilizing Growth Work Plan for the Power Equipment Industry (2025-2026).” It mentions that in recent years, the global energy structure’s green and low-carbon transition has accelerated, and China is speeding up the construction of a new power system, bringing strong demand to the power equipment industry. Overall, the growth situation of the power equipment industry is good. The main goals for 2025-2026 are: maintaining an average annual revenue growth rate of about 6% for traditional power equipment, with stable growth in revenue for new energy equipment; ensuring that the output of power generation equipment remains within a reasonable range, with effective supply guarantees, and achieving growth in the export volume of new energy equipment; strengthening the driving role of key regions and enterprises, with an average annual revenue growth rate of about 7% for national advanced manufacturing clusters in the power equipment field, and about 10% for leading enterprises; promoting breakthroughs and applications of a number of landmark equipment.
Institutional views
GalaxySecurities: 2026 may be a key year for the recovery of the foldable screen market
China Galaxy Securities’ research report indicates that the computing power sector is still in the performance realization stage, and with a relatively moderate valuation level, it remains optimistic about computing power-relatedPCBs, domestic computing power, IP licensing, chip inductors, etc. The year 2026 may be a key year for the recovery of the foldable screen market,with Apple’s rumored foldable products expected to drive overall category discussions and potentially bring new considerations in software interaction and hardware design, further invigorating market demand. Additionally, this year’s new wearable devices are also expected to drive market recovery. Through technological breakthroughs + ecological integration + market penetration, AR glasses manufacturers are pushing AR glasses from “niche geek toys” to “mainstream smart terminals,” and with the maturity of AI + AR technology, smart glasses are expected to become the next generation of mainstream computing terminals after smartphones.
CITIC Construction Investment: AI-driven growth, the electronics industry cycle is expected to continue upward
CITIC Construction Investment’s research report states that in the first half of the year,consumer electronicsandsemiconductorscontinued to recover, and under the further catalysis of AI computing power, it has entered a new round of dual prosperity resonance period, driving performance to continue upward. In the first half of 2025, the total operating revenue of 467 companies in the electronics sector reached 1.8578 trillion yuan, a year-on-year increase of 19.2%; the net profit attributable to the parent company totaled 85.9 billion yuan, a year-on-year increase of 29.0%. Looking ahead to the second half of the year and next year, the peak season for consumer electronics combined with the intensive release of AI new products at the edge, the guidance for capital expenditure related to AI from major domestic and foreign manufacturers is positive, driving the fundamentals of the electronics industry to improve, coupled with various favorable catalysts such as innovation upgrades, the industry cycle is expected to continue upward, highlighting the overall configuration value.
Guotai Junan: Suppliers are successively launching high-end AI chips, memory upgrades help DRAM volume and price rise
Guotai Junan released a research report stating thatNVIDIA‘s next-generation Rubin CPX has split the computational load of AI inference at the hardware level, and memory upgrades provide faster transmission. With the increase in computing speed, DRAM and NAND Flash in various AI extended applications, such as smartphones, servers, and laptops, have seen an increase in average capacity per unit, with the server field experiencing the highest growth, with an average annual increase of 17.3% in Server DRAM capacity by 2024. As demand for AI servers continues to rise, high-end AI chips such as NVIDIA’s next-generation Rubin and self-developed ASICs from cloud service providers (CSPs) are being launched or starting mass production, which will help DRAM products achieve simultaneous volume and price increases. It is recommended to pay attention to storage modules.
Jiaoyun International: Storage remains strong, demand for AI computing power investment continues to grow
Jiaoyun International released a research report stating that compared to the end of last year, the market visibility of the intensity of short- to medium-term investment in AI infrastructure construction has improved. The firm remains optimistic about global leading semiconductor companies based on AI computing power, storage, and communication as the logical main line, but believes that the current valuation levels of leading tech stocks are relatively high. For China’s semiconductor industry chain, the firm believes that fluctuating tariff policies may further accelerate domestic substitution, benefiting upstream equipment suppliers. Considering the current valuation levels of some stocks, the firm recommends appropriate diversification of investments.
Source: Dongfang Wealth Network
