FX.co ★ Shanghai Composite Logs Nine-Session Win

The Shanghai Composite Index edged up by 0.04% to close at 3,965, sustaining a nine-day winning streak—the longest it has experienced in over a year. This rally is buoyed by a stronger yuan and new governmental initiatives aimed at boosting domestic consumption. Meanwhile, the Shenzhen Component dipped by 0.5% to settle at 13,537. According to China's finance ministry, fiscal policy in the coming year will become "more proactive," focusing on enhancing domestic consumption, fostering technological innovation, and strengthening social safety nets in an effort to counterbalance the tepid industrial profits recorded in November. Analysts have observed that policy support alongside the strengthening renminbi is injecting upward momentum into the stock markets, though the indices, now hovering near their annual peaks, could encounter technical barriers. The defense sector led the gains with a 1.1% increase, following military exercises conducted by China around Taiwan. The energy and banking sectors also saw rises of approximately 1%. However, sectors focused on new energy vehicles and batteries saw declines ranging from 1.7% to 1.9% due to anticipated weaker domestic demand for electric vehicles and a slowdown in exports.