At the midday close on December 23, the A-share market continued its pattern of sharp divergence. The Shanghai Composite Index reported 3,374.99 points, up 0.21%; the Shenzhen Component Index reported 10,619.52 points, down 0.25%; and the ChiNext Index reported 2,205.26 points, down 0.2%. The market showed that bank stocks led the gains strongly, with Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China reaching recent highs. The infrastructure and power sectors also performed impressively, while diamond cultivation concept stocks remained active.
In stark contrast, technology sectors such as AI applications, cross-border e-commerce, consumer electronics, and semiconductors generally experienced corrections, with humanoid robot stocks seeing more considerable declines and distinct differences in individual stock performances.
Divergent Capital Flows
In terms of main capital flows, the banking, utilities, and electrical equipment sectors attracted substantial inflows, recording net inflows of 1.348 billion yuan, 966 million yuan, and 935 million yuan, respectively. Notable individual performers were Luxshare Precision, Siyida, and Rizhao Port, which gained favor from investors.
On the other hand, the media, computer, and electronics sectors faced selling pressure. Visual China suffered a net outflow of 1.217 billion yuan, while ZTE and Cambrian reported net outflows of 1.02 billion yuan and 662 million yuan, respectively, becoming primary targets of capital sell-off.
Market Outlook
The current market style transition remains unclear, with large-cap stocks maintaining stability driven by defensive sectors, while the adjustment pressure on small-cap technology stocks has intensified. As afternoon trading opens, investors need to monitor further shifts in capital flows, particularly the sustainability of defensive sectors and whether tech stocks can shake off their adjustment state, which may determine the overall market trend for the day.
