Group 1 - The lithium battery electrolyte index experienced a strong surge, increasing by over 4% [1] - Among the constituent stocks, Tianji Co. saw a significant rise of 8%, while Haike New Energy increased by 5% [1] - Other companies such as Duofluorid, Dangseng Technology, and Jiangsu Guotai also reported gains exceeding 4% [1]

Market Performance - The A-share market showed a relatively flat performance, with the Shanghai Composite Index rising by 0.09%, marking an 11-day winning streak, which is considered an "unexpected" event historically [2][3] - The total market turnover was 20,659 billion, a decrease of 958 billion from the previous day, indicating a reduction in trading activity [3] - The average stock price across the A-share market also rose, reaching a new high for the year, with major indices recording double-digit gains, except for the defensive dividend index [3] Sector Highlights - The commercial aerospace sector saw a significant increase of 27.28% over the past 20 trading days, ranking second among recent popular concepts [6] - Recent government meetings emphasized the promotion of commercial aerospace development, which is expected to accelerate financing processes for quality companies in this sector [6] - Other sectors such as AI applications, including platforms like Xiaohongshu and Kimi, also showed strong performance, indicating a shift in market focus [7][8] Year-End Performance - The Hang Seng Index closed down 0.87% but achieved a yearly gain of 27.77%, marking its best annual performance since 2017 [10] - The overall A-share market recorded a cumulative increase of 27.65% for the year, with the average stock price rising by nearly 37.22% [10] - The micro-cap index outperformed with a rise of over 80%, while other indices like the ChiNext Index and CSI 500 also achieved gains exceeding 30% [12] Top Performing Sectors and Stocks - The optical module (CPO) index was the strongest performer for the year, with a cumulative increase of 181.28% [14] - In the first-level industry categories, non-ferrous metals and telecommunications sectors both saw gains exceeding 80% [16] - The top individual stocks for the year included Shangwei New Materials, which surged by 1820.29%, and Tianpu Co., which rose by 1645.35% [18] Future Outlook - Analysts suggest that the market is shifting focus from a singular narrative around AI to a broader range of opportunities, indicating a potential for a new investment theme emerging in 2026 [19] - Recommendations include investing in industrial resources that resonate with AI and global manufacturing recovery, as well as sectors like aviation, hotels, and non-bank financials that may benefit from market expansion [20][22]

Report Summary Core Views - Most institutions predict that the upward momentum of the market in 2026 will gradually shift from single valuation-driven to "profit + valuation" dual-driven. The 2026 economic policy will focus on encouraging consumption and optimizing consumption incentive policies, and may guide sustainable consumption areas such as service consumption. AI technology-related fields will continue to be the focus of the market, with consistent and long-term policy and growth expectations. [2] - The central bank conducted 59.3 billion yuan of 7-day pledged repurchase on the 23rd, with a net withdrawal of 76 billion yuan. The cross-year capital pressure is small this time, and the liquidity gap is small. The money market capital price is stable, and the OMO stock has dropped below 500 billion yuan, reaching a relatively low level this year. The current RMB exchange rate has generally appreciated significantly, and the offshore RMB exchange rate has continuously hit new highs this year, which is related to the depreciation of the US dollar and the short-term release of residents' foreign exchange settlement needs at the end of the year. The current monetary policy has a large space. [2] A-share Market - On the day, the A-share market generally rose. The Shanghai Composite Index rose slightly by 0.07%, the Shenzhen Component Index rose by 0.27%, and the total trading volume of the two markets was 1,899.841 billion yuan, an increase of 37.9 billion yuan from the previous trading day. The ChiNext Index rose by 0.41%, and the Science and Technology Innovation 50 Index rose by 0.36%. [3] - The total A-share market capitalization was 1.0726 quadrillion yuan, an increase of 2.14 trillion yuan from the beginning of the year. The cumulative trading volume this year was 4.078 quadrillion yuan, with an average daily trading volume of 1,720.667 billion yuan. [16] Global Markets - Internationally, the Australian and US stock markets performed prominently on the day, while European stocks showed mixed trends. The Russian RTS Index rose by 1.28%, the Australian S&P 200 Index rose by 1.1%, the Swiss SMI Index rose by 0.6%, and the Nasdaq Index rose by 0.57%. The top decliners included the Indonesia Composite Index, which fell by 0.71%, the Hang Seng Technology Index, which fell by 0.69%, the French CAC40 Index, which fell by 0.21%, and the Hang Seng Index, which fell by 0.11%. [3] Interest Rates and Exchange Rates - The yield of the 10-year Chinese government bond at maturity was 1.8355%, a change of -0.7BP. The average prices of interbank R001 and R007 on the day were 1.3542% and 1.5028% respectively. [3] - The US dollar index closed at 97.9093, a decline of 0.36%. The US dollar to offshore RMB exchange rate was 7.0194, and the offshore RMB appreciated by 119 basis points. [4] Industry Performance - In terms of sectors, power equipment, building materials, electronics, and non-ferrous metals led the gains, with increases of 1.12%, 0.88%, 0.58%, and 0.42% respectively. The top decliners were social services, beauty and personal care, commerce and retail, and national defense and military industry. [3] - The top three industries in terms of daily net inflow of funds were power equipment, basic chemicals, and machinery. The top three industries with net inflow of funds at the end of the day were power equipment, national defense and military industry, and non-ferrous metals. [24] - The top three themes in terms of gains and losses were lithium battery electrolyte, glass fiber, and liquid-cooled servers. [24]

Group 1 - The lithium battery electrolyte index increased by 2% during intraday trading, indicating a positive market trend for the sector [1] - Notable performances among component stocks include Tianji Co., which hit the daily limit, and other companies such as Duofluoride, Haike Xinyuan, Huasheng Lithium Battery, and Shida Shenghua, which saw increases of 3.66%, 3.34%, 2.78%, and 2.37% respectively [1]

- The report does not contain any quantitative models or factors for analysis[1][2][3]

Market Overview - The overall market shows a "weak Shanghai, strong Shenzhen" pattern, with the Shanghai Composite Index slightly up by 0.07%, while the Shenzhen Component Index rose by 0.27%, the ChiNext Index by 0.41%, and the STAR Market 50 Index by 0.36%, indicating a preference for growth styles [2] - A-share trading volume reached 1.9 trillion yuan, with a cumulative annual trading volume exceeding 405 trillion yuan, marking a historical high, reflecting increased market activity and liquidity depth [2] Structural Analysis - The performance of the Shenwan first-level industry indices reveals clear capital flows, with leading sectors such as power equipment (+1.12%), building materials (+0.88%), and electronics (+0.58%) showing gains, while consumer sectors like social services (-2.07%) and beauty care (-1.65%) faced significant adjustments [3] - The leading sectors benefit from clear industrial policies, improved economic cycles, or expectations of valuation recovery, while the consumer sector's adjustment reflects a reassessment of short-term recovery strength and valuation [3] Focus on Lithium Battery Industry - The lithium battery supply chain has seen a comprehensive surge, with significant increases in sub-indices for lithium battery electrolyte, lithium hexafluorophosphate, and lithium battery separators, driven by solid underlying logic rather than speculative trading [4] Market Outlook - The index is likely to maintain a volatile trend, but structural opportunities will continue to emerge, supported by a friendly policy environment, ample liquidity, gradually recovering corporate earnings, and reasonable market valuations [4] - A forward-looking judgment suggests that the "spring excitement" market in 2026 may start earlier than expected, driven by strong policy expectations, improving economic fundamentals, and a favorable global liquidity environment [4] - Key market themes are expected to revolve around technology innovation (AI applications, semiconductors, robotics), cyclical recovery (improving supply-demand dynamics in non-ferrous metals and chemicals), and balanced allocation (low-valuation sectors benefiting from market activity) [4] Summary of Market Sentiment - The market has conducted a concentrated "vote" through clear sector differentiation, indicating that funds are currently favoring directions aligned with long-term policy guidance and improving economic conditions [5] - The central economic work conference has positioned new energy as a strategic emerging industry, with potential support from special government bonds, providing clear backing for long-term industry development [5] - In a context of ample market liquidity, growth sectors attract high-risk preference funds, as evidenced by significant trading volumes in related thematic indices, indicating institutional capital's collective layout rather than retail speculation [5] - Marginal improvements in the fundamentals are noted, with a stable trend in the penetration rate of new energy vehicles and signs of price stabilization for key materials after prolonged declines, correcting pessimistic profit expectations in the supply chain [5]

Group 1 - The three major indices rose significantly, with the Shanghai Composite Index increasing by over 1% and the ChiNext Index rising by more than 2.5%, leading to nearly 2,500 stocks in the market experiencing gains [1] - Sectors such as lithium mining, lithium battery electrolytes, and rare metals saw the highest increases, indicating strong market interest in these areas [1] - The Chemical 50 ETF (516120) rose by 3.53% in the afternoon session, with a cumulative increase of over 46% since April 8, 2023, and over 92% of its constituent stocks reported gains [1] Group 2 - Key stocks in the Chemical 50 ETF include Wanhu Chemical, Salt Lake Shares, and Tianqi Lithium, which have shown significant price increases, with Salt Lake Shares rising over 8% and Tianqi Materials over 7% [1] - The chemical industry is expected to enter a recovery phase, driven by global supply dynamics and AI demand, with specific growth anticipated in electronic chemicals and new energy materials due to technological advancements and policy support [1] - The Chemical 50 ETF closely tracks a comprehensive chemical index that includes leading stocks across various sub-sectors, providing investors with a means to access the overall opportunities in the chemical sector [2]

Group 1 - The lithium battery electrolyte index experienced a significant decline, with most constituent stocks falling [1] - Tianji Co. saw the largest drop, falling by 6.66%, while other stocks such as Duofluoride, Shida Shenghua, Haike Xinyuan, and Huasheng Lithium also dropped over 4% [1]

Group 1 - The lithium battery electrolyte index experienced a decline of 3% during intraday trading [1] - Most component stocks in the index showed downward movement, with Shida Shenghua dropping by 7.48% [1] - Haike Xinyuan fell by 5.17%, Tianji Co. decreased by 4.57%, and Duofuduo dropped by 4.17% [1] - Aok Co. saw a decline of 3.52% [1]

Core Viewpoint - The lithium battery electrolyte index experienced a decline of 2% on December 2, indicating a downward trend in the sector [1] Company Performance - Shida Shenghua saw a drop of 4.80% in its stock price [1] - Duofuduo's stock decreased by 4.32% [1] - Tianci Materials experienced a decline of 2.71% [1] - Tianji Co. reported a decrease of 2.46% [1] - Aoke Co. saw a reduction of 2.43% in its stock price [1]