Market Overview
China's A-share market opened higher today, with the Shanghai Composite Index up 0.09% at 3968.73 points. Market sentiment was significantly lifted by macroeconomic data. China's official manufacturing PMI for December rose to 50.1, returning to expansion territory for the first time since April. The non-manufacturing PMI and composite PMI also climbed above the boom-bust line, indicating an overall improvement in economic activity.
Key Drivers and Sector Focus
- Macro Support: The better-than-expected PMI improvement, especially the recovery in production and new orders sub-indices, provides fundamental support for the market and helps stabilize investor expectations.
- Sector Rotation:
- Technology & Growth: The stellar debut of Hengdongguang in the optical communication sector, Arm's 2026 technology predictions, and Baidu's Robotaxi cooperation with Uber and Lyft have collectively heightened focus on tech-growth themes.
- Automotive Chain: The release of detailed subsidy rules for vehicle trade-ins in 2026 directly benefits the auto sector, with NEV makers like NIO, Li Auto, and XPeng leading gains in early trading.
- Liquidity Environment: The PBOC conducted a net injection of 502.8 billion yuan via reverse repos today, maintaining reasonably ample liquidity at year-end.
Market Observation and Outlook
Morning session turnover in Shanghai and Shenzhen exceeded 500 billion yuan. Although slightly lower than the same period yesterday, market activity was sustained against the backdrop of positive macro data. Looking ahead, the sustainability of the economic data improvement will be crucial. The policy tone of "seeking progress while maintaining stability" and the crackdown on "inward-rolling" competition are expected to create a better environment for real sectors like manufacturing. The short-term market may see trading around the economic recovery theme and industrial policy hotspots.
This article does not constitute any investment advice. The stock market involves risks, and investment requires caution!