Analysis of Sustainability of Leading Gains in A-share Chemical Fiber, Aerospace & Defense, and Electronic Components Sectors and Sector Rotation Strategy

According to the market performance of A-shares on December 24, 2025 (UTC+8), the Shanghai Composite Index rose 0.53%, the Shenzhen Component Index rose 0.88%, and the ChiNext Index rose 0.77%. The chemical fiber, aerospace & defense, and electronic components sectors led the gains, while traditional sectors such as insurance, coal, and food ranked among the top decliners [0]. Combined with industry driving factor analysis:

1. Aerospace & Defense Sector
   : May be affected by the promotion of national defense modernization, growth in national defense budget, update of weapons and equipment, and geopolitical tensions [1].
2. Electronic Components Sector
   : Growth in demand for AI chips, promotion of domestic substitution policies, and expected growth in industry sales are the core drivers [1].
3. Chemical Fiber Sector
   : Decline in raw material prices and recovery in downstream demand driving improvement in industry profits support the rise [1].

1. Sector Rotation Mechanism
   : The current market rotation is in line with the trend of investors shifting from technology stocks to cyclical/industrial sectors [1]. Aerospace & defense and electronic components have both technology and cyclical attributes, while chemical fiber belongs to the raw material cyclical sector, which conforms to the logic of market style switching.
2. Sustainability Assessment
   :
   • Aerospace & Defense: Policy support and geopolitical environment have certain sustainability, but attention needs to be paid to the implementation rhythm of the national defense budget [1].
   • Electronic Components: AI demand and domestic substitution are medium-term trends, but need to track changes in chip supply and demand [1].
   • Chemical Fiber: Volatility in raw material prices and downstream demand may affect short-term sustainability [1].

1. Randomness of Sector Rotation: Market style switching may be affected by multiple factors such as liquidity and policy changes [0].
2. Industry Uncertainty: Volatility in raw material prices (chemical fiber), release of chip production capacity (electronic components), etc., may trigger sector adjustments [1].

1. Policy Dividend Sectors: Aerospace & defense and electronic components benefit from policy support and have long-term allocation value [1].
2. Cyclical Recovery Sectors: The profit improvement trend of the chemical fiber industry can be watched for short-term opportunities [1].

Investors can refer to the following strategies to grasp sector rotation opportunities:

1. Pay attention to policy benefits and industry data: Track national defense budget, domestic substitution policies, and downstream demand data [1].
2. Diversified Investment: Avoid over-concentration in a single sector, balance the allocation of technology, cyclical, and traditional industries [1].
3. Combine Technology and Fundamentals: Grasp short-term trends through technical analysis and evaluate long-term value in combination with fundamentals [1].
4. Pay Attention to Liquidity and Risk Tolerance: Adjust strategies according to changes in market liquidity and personal risk preferences [1].