On December 16th, the A-share market exhibited a volatile downward trend, with major stock index futures contracts declining across the board. The three major indices collectively adjusted, and the overall market sentiment became cautious, with more stocks falling than rising.
Performance of Stock Index Futures
Regarding stock index futures, the main contract of CSI 300 index futures (IF) fell by 0.83%, the main contract of SSE 50 index futures (IH) slightly decreased by 0.17%, while the main contract of CSI 500 index futures (IC) dropped significantly by 1.73%; the main contract of CSI 1000 index futures (IM) fell by 1.62%.
Collective Adjustment of the Three Major Indices
Market-wise, after surging in the morning session, the three major indices began to fall back, further declining in the afternoon. The Shanghai Composite Index turned to fall after volatility, the decline of the ChiNext Index gradually widened, and the overall market performance was weak, with investment sentiment receding. By market close, over 3500 stocks were down, with a clear pattern of more declines than advances.
Significant Divergence in Sector Hotspots
Despite the market's adjustment, some hotspot sectors showed impressive performance, especially the education, ice and snow industry, and retail sectors, which became market highlights:
- Education Sector: Maintained a strong performance throughout the day, with Ked Education hitting the 20% limit-up, while other stocks like Boe Culture and TAL Education surged to their limits during trading, leading the market overall.
- Ice and Snow Industry Concept: Boosted by market hotspots, the sector continued to rise, with shares like Snowman Co. and Iceberg Cool among those strongly sealed with limit-ups.
- Retail Sector: Driven by the initial economic concept, the entire sector strengthened, with stocks like Yimin Group, Dazzle Fashion, and Kaka Industry collectively hitting limit-ups.
In stark contrast, some sectors showed weak performance, dragging down the market's overall performance:
- Gaming Stocks: Fell further in the afternoon, led by Zhongqingbao, with the entire sector remaining weak.
- Semiconductor Sector: Showed weak performance, with Xingchen Technology and Espressif Systems among the biggest decliners.
- Consumer Electronics Concept: Declined along with the market, with significant drops in Tianjian Co., dragging the sector's performance down.
Market Summary and Outlook
From the market's perspective, sectors like hyperbaric oxygen chambers, education, and the ice and snow industry led the gains, displaying strong resistance to declines. Conversely, sectors like gaming, PEEK materials, and new sci-tech board stocks led the declines, indicating a noticeable market divergence. Overall, blue-chip stocks performed weakly, with considerable selling pressure on small and mid-cap stocks, reducing market risk appetite.
Analysts pointed out that the market is likely to maintain a volatile pattern in the short-term, and the sustainability of hotspot sectors needs further observation. Investors should remain cautious, control their positions, and focus on structural opportunities.
