Core Viewpoint - The market is experiencing a mixed performance after stabilizing, with a focus on dividend stocks showing significant gains while technology indices are retreating, indicating a return to defensive strategies as year-end approaches [1] Market Outlook - Concerns over a potential interest rate hike by the Bank of Japan are leading to cautious market sentiment, with expectations of reduced trading activity as year-end approaches. However, the market has the potential for upward movement due to improved supply-demand conditions in the manufacturing sector by mid-2026, which could boost the earnings growth of A-share companies [2] - Key focus areas for December include the impact of the 14th Five-Year Plan on industries, event-driven dynamics in the technology sector, and price recovery driven by anti-involution trends, suggesting multiple sectors may act as catalysts for a sustained upward trend in the market [2] Hot Sectors - In December, sectors benefiting from dividends and price increases are expected to outperform, with short-term attention on banking, public utilities, coal, and non-ferrous metals. Consumer sectors may also gain traction due to event-driven factors [3] - Technology remains a primary focus for 2026, with particular attention on AI, lithium batteries, military industry, and robotics. The trend of AI hardware is solidifying, with increasing token usage indicating a peak in AI applications by 2026 [3] - The domestic production of robots is anticipated to grow, expanding from humanoid robots to quadrupedal and functional robots, creating opportunities in related sectors such as sensors and controllers [3] - The trend towards semiconductor localization continues, with a focus on semiconductor equipment, wafer manufacturing, materials, and IC design [3] - The military sector is expected to see a recovery in orders by 2026, with signs of bottoming out in the performance of various military sub-sectors [3] - The innovative pharmaceutical sector is entering a recovery phase after nearly four years of adjustment, with positive net profit growth expected to continue into 2026 [3]