A-share closing review | Index hits bottom and rebounds! Precious metals are active repeatedly, and power grid equipment strengthens

On December 12, the market hit bottom and rebounded, with all three major indices closing in the red. Over 2600 stocks rose, with a total turnover of 2.1 trillion for the day, higher than the previous day's volume of 2350.9 billion. As of the close, the Shanghai Composite Index rose by 0.41%, the Shenzhen Component Index rose by 0.84%, and the ChiNext Index rose by 0.97%. On the market, the commercial aerospace concept continued to be strong, with nearly 20 stocks including Chongqing Zaisheng Technology Corp. hitting the limit up; the controlled nuclear fusion concept strengthened, with stocks like Sinomach Heavy Equipment Group and Shanghai Zhongzhou Special Alloy Materials hitting the limit up; the power grid equipment concept quickly rose, with Ceepower Co., Ltd and Baoding Tianwei Baobian Electric hitting the limit up; semiconductor equipment stocks were active, with L&K Engineering hitting the limit up and reaching a historical high. It is worth noting that MoleThread saw a pullback with the stock price falling to 814.88 yuan. In terms of news, the company yesterday issued a stock trading risk reminder announcement, stating the risk of performance loss: for the period from January to September 2025, the company's operating income was 785 million yuan, and the net profit attributable to the owner of the parent company was -724 million yuan. The company expects the net profit attributable to shareholders of the parent company in 2025 to be between -11.68 billion yuan and -7.30 billion yuan. On the downside, sectors like retail, real estate, and Hainan saw corrections. Looking ahead, CMSC believes that the overall tone of the Central Economic Work Conference remains relatively positive. Based on past market performance, the market style in the 7 days after the conference tends to be relatively favorable. Popular sectors: 1. Precious metals are showing strength, with Beijing Xiaocheng Technology Stock leading the way, and stocks like Zhongjin Gold Corp., Ltd, Western Region Gold, and Shanjin International Gold following suit. 2. The commercial aerospace concept is active, with Hunan Valin Wire & Cable and Jiangsu Zhongchao Holding hitting limit up, and stocks like Eastern Communications and Lanzhou Greatwall Electrical also rising. 3. The controlled nuclear fusion concept is rising, with companies like Fujian Snowman Group and Sinomach Heavy Equipment Group leading the way. In terms of institutional views: 1. CMSC: Market style tends to be relatively favorable after the Central Economic Work Conference. 2. Guotai Haitong: The macroeconomic policy in 2026 is expected to maintain a positive tone. 3. GF SEC: The "inter-cyclical" characteristics of policies in 2026 will be more pronounced.