Top 5 Strongest Stocks: The strongest stocks in the HSCEI for 2025 include CHINAHONGQIAO (+177.4%), ZIJIN MINING (+152.2%), SMIC (+124.7%), POP MART (+109.4%), and INNOVENT BIO (+108.3%), with varying short selling ratios.

Top 5 Weakest Stocks: The weakest stocks in the HSCEI for 2025 are MEITUAN-W (-31.9%), LI AUTO-W (-31%), JD-SW (-17.9%), MENGNIU DAIRY (-15.1%), and HAIER SMARTHOME (-11.7%), also showing different short selling ratios.

Market Performance: The HSCEI index ended 2025 with a gain of 1,623 points, representing a 22.3% increase, closing at 8,913.

JD-SW Target Price Adjustment: HSBC Research has reduced the target price for JD-SW to $144 due to weaker-than-expected sales in the home appliance sector.

Retail Sales Decline: China's November appliance retail sales saw a YoY decline of 19%, worsening from a 15% drop in October, influenced by the early Double 11 event and high base effects.

Factory Shipments Drop: Domestic factory shipments of air conditioners experienced a significant YoY decrease of 40%, indicating ongoing challenges in the appliance sector.

Future Outlook: Goldman Sachs anticipates continued growth pressure in December due to high base effects, but expects potential improvement in 2026 with the continuation of the consumer good trade-in policy.

Stock Ratings: Goldman Sachs maintains a bullish outlook on MIDEA GROUP and HISENSE HA, both receiving Buy ratings, while also providing target prices for these stocks.

CMBI's Rating and Outlook: CMBI has assigned an Equalweight rating to China's discretionary consumption sector for 2026, predicting retail sales growth of about 3.5%, influenced by various economic headwinds and a cautious outlook.

Positive Factors and Stock Performance: Despite challenges, factors like the delayed Spring Festival and a recovering real estate sector may support stock prices, with expectations of pressure in the first half of 2026 and potential rebounds in the second half.

Investment Preferences: CMBI categorizes investments into survival, compensatory, and hedging/defensive consumption, recommending companies in these areas, such as LEPU BIO-B and YUM CHINA, all rated as Buy.

Large-Scale Consumption Outlook: The broker is less optimistic about large-scale consumption sectors, although favorable market conditions could enhance their performance, with companies like HAIER SMARTHOME and MIDEA GROUP also rated as Buy.

Implementation Plan for Consumer Goods: Six Chinese ministries have launched a plan to enhance the alignment of supply and demand in consumer goods, aiming to boost consumption amid pressures from insufficient purchasing power.

Government Subsidies: The Chinese government is allocating significant funds for trade-ins of old consumer goods, with RMB150 billion in 2024 and RMB300 billion in 2025, to stimulate short-term demand through national subsidies.

Retail Sales Growth: In October 2025, total retail sales of consumer goods increased by 2.9% year-on-year, although the growth rate showed a slight decline compared to the previous month, indicating ongoing challenges in the consumer market.

Stock Recommendations: China Galaxy Securities has recommended various stocks across sectors, including GUMING and DAMAI ENT in social services, ANTA SPORTS and XTEP INT'L in apparel, and TCL ELECTRONICS in technology, reflecting a focus on the new consumer track.

CICC H-Share Outlook: CICC released its H-share outlook report for 2026, highlighting top stock picks including Tencent, Alibaba, and China Mobile, with varying short selling ratios.

Stock Performance: Notable stock movements include Tencent's increase of 1.656%, Alibaba's rise of 0.937%, and significant declines in stocks like Netease and SMIC.

Short Selling Data: The report includes short selling data, with Tencent and Alibaba having high short selling ratios of over 21%, indicating investor caution.

Market Trends: CLSA anticipates a 21% year-over-year growth in Tencent's adjusted EBIT for Q3, reflecting positive expectations for the company's performance.