Market Performance - Both Shanghai and Shenzhen markets experienced short-term fluctuations but closed higher, with the ChiNext and Sci-Tech 50 indices rising by 0.97% and 1.74% respectively, outperforming the Shanghai Composite and Shenzhen Component indices[1] - On December 12, the Shanghai Composite Index rose by 0.41%, the Shenzhen Component Index increased by 0.84%, and the ChiNext Index gained 0.97%[2] Capital Flow - On December 12, net inflows into the Shanghai Stock Exchange reached 257.53 billion yuan, while the Shenzhen Stock Exchange saw net inflows of 204.78 billion yuan[3] - The top three sectors for capital inflow were power grid equipment, semiconductors, and communication equipment, while the sectors with the highest outflows included general retail, energy metals, and batteries[3] Policy Insights - The Central Economic Work Conference highlighted eight key priorities for the upcoming year, emphasizing the importance of new productivity and the cultivation of new growth drivers, which are expected to attract market attention[1] - The People's Bank of China plans to maintain a moderately loose monetary policy to support stable economic growth and financial market stability[5][6] - The Ministry of Finance aims to implement a more proactive fiscal policy, ensuring policy continuity and strength, focusing on investments in both physical and human capital[7] Industry Developments - The Ministry of Culture and Tourism is promoting positive cultural economic policies to guide the healthy development of online literature, games, and audiovisual content[8][9] - The National Medical Products Administration has launched a three-year action plan to enhance the quality management systems of cosmetic companies, aiming to transition from a major to a strong player in the cosmetics industry[10] Fund Dynamics - Public fund distributions have increased significantly this year, exceeding 200 billion yuan, with equity funds enhancing their distribution efforts[13] - The total trading volume of ETFs across both markets reached 4,334.87 billion yuan, with stock ETFs accounting for 1,247 billion yuan and bond ETFs for 2,087.04 billion yuan[14]