CSI 300 Up 2.79%
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A-shares continue their upward trend, with market conditions indicating that risk appetite remains in a relatively active zone. Driven by policy expectations, liquidity environment, and fundamental data, the index’s operating center of gravity has risen, and structural opportunities are continuously emerging.
In terms of index performance, the SSE Index(000001) rose by 3.82% this week, hitting new highs for the year. The index is clearly trading above its 5-day, 10-day, 20-day, 50-day, and 200-day moving averages, having rebounded by 35.51% from its one-year low, indicating a stable medium-term trend. Trading volume increased by 31.3% relative to the 50-day average volume, reflecting enhanced participation from incremental funds. The CSI 300(000300)gained 2.79% for the week, with recovery in key sectors driving synchronous strength in the index, which stands 12.34% above its 200-day moving average. Growth styles showed more active performance, with the Shenzhen Index(399001) and ChiNext(399006) rising by 4.40% and 3.89%, respectively, leading in volume increases, indicating renewed interest in growth and high elasticity directions.
In overseas markets, US stocks maintained a pattern of strong fluctuations. The Nasdaq Composite(0NDQC) rose by 1.05% for the week, while the S & P 500 Index(0S&P5) gained 0.92%, reaching new annual highs, with major indices firmly above their 200-day moving averages. Macroeconomic data continues to show cooling characteristics; initial jobless claims for the week ending January 3rd were 208,000, up from previous values; December ISM Manufacturing PMI was 47.9, remaining below the demarcation line between expansion and contraction; ADP employment increased by 41,000, better than previous values but below expectations. In terms of energy, EIA crude oil inventories dropped sharply by 3.832 million barrels, providing short-term support for energy prices. Overall, employment and manufacturing data reinforce the judgment of economic slowdown without significant deceleration, providing a data foundation for the Fed to maintain a relatively mild policy stance.
Domestically, macro and policy levels have further clarified a loose orientation. The central bank repeatedly stated intentions to maintain ample liquidity and emphasized flexible use of multiple tools such as reserve requirement ratio cuts and interest rate reductions. Market expectations suggest there remains some room for interest rate cuts within the year, aiding in stabilizing financing costs and improving the valuation environment for equity assets. CPI’s year-on-year increase continued to expand in December 2025, with PPI’s year-on-year decrease narrowing to 1.9%, showing gradual repair on the demand side, marginal improvement in price signals, but overall still in a mild range, with relatively adequate policy space. Foreign exchange reserves reached USD 335.79 billion, with the central bank consecutively adding gold for the 14th month, supporting financial stability and long-term asset allocation.
Industrial and structural policies are advancing concurrently. The Ministry of Industry and Information Technology issued warnings about irrational competition in the lithium battery industry and highlighted potential monopoly risks in the polysilicon sector, shifting policy direction towards high-quality development, beneficial for improving long-term profitability structures. Additionally, the MIIT proposed promoting no less than 50,000 enterprises to implement upgrades of new industrial networks by 2028, reinforcing digitalization needs in manufacturing and communication infrastructure, resonating with the current strength in telecommunications sectors both in policy and market aspects. Central-level initiatives continuously signal expanding domestic demand and deepening reforms, with topics like reform of housing provident fund systems and improvements in capital market systems receiving high attention, and foreign institutions expressing positive expectations for China’s economic prospects.
On an industry level, this week’s strength concentrated in telecommunications and media-related areas, with Telecom Telecom Svcs-Cable/Satl(G4896IG.CN)gaining 7.775%. Its robust performance mainly benefited from the accelerated implementation of the national “East Data West Calculation” project, acceleration in low-orbit satellite internet construction, and in-depth deployment of broadcasting system operators in integrated communications. Media-Diversified(G2712IG.CN) saw a weekly gain of 7.7468%. This sector’s rebound not only stems from rapid penetration of AI-generated content (AIGC) technology in film, games, advertising, etc., but also benefits from rising expectations for Spring Festival content consumption. Telecom-Cable/Satl Eqp(G4893IG.CN) rose by 5.784% for the week. This subsector focuses on optical communication devices, satellite ground station equipment, RF components, and data center interconnection solutions, directly benefiting from increased investment in computing infrastructure.
Regarding portfolios, the TOP33 portfolio achieved an average gain of 6.08% this week, significantly outperforming major indices, with 24 stocks rising, maintaining a healthy internal differentiation. Guangdong Hec Tech Hldg ‘A'(600673), leading gains with a weekly increase of 31.61%, had an industry rating of 12, placing it in a strong position. The stock’s RS Rating is 94, EPS Rating is 86, and O’Neil Score reaches 88, forming a good match with fundamentals and price trends, securing concentrated funding underpinned by layouts in electronic new materials and high-value-added manufacturing.
Against the backdrop of sustained bottom-up policies domestically, a relatively friendly overseas monetary environment, and accelerated industrial structure upgrades, market operations lean more towards “trend unbroken, structure prioritized”. Fund allocation still favors high-quality stocks with top rankings in O’Neil industries, concurrent improvements in earnings and relative strength. The alignment between policy guidance and industry prosperity remains a critical variable in observing market sustainability.
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published on January 9, 2026