A-shares closing review | A-share style changes again! Four major positives boost the rise of small and medium cap stocks.

Three major indexes traded narrow swings in the afternoon and closed collectively higher. As of the close, the Shanghai Composite Index rose 0.14%, the Shenzhen Component Index rose 0.67%, and the ChiNext Index rose 0.39%. It is worth noting that mid and small-cap stocks showed obvious improvement during the trading day. According to Securities China, there are four significant explicit benefits for mid and small-cap stocks: Firstly, in the morning, government bond futures fell across the board again, with the main contracts for the 30-year period dropping by 0.15%, the 10-year period by 0.02%, and the 5-year period by 0.01%. Recently, long-term bonds have been continuously decreasing, dividends have begun to adjust, which is beneficial for the performance of mid and small-cap stocks. Secondly, the low-altitude economy is being policy-driven. Nanjing Les Information Technology announced on its public account the successful implementation of the "Jiangsu Low-Altitude Flight Service Center Construction Project". Thirdly, following the gift-giving function in WeChat's internal testing, Douyin can now give away product gifts, supporting friends to send some products in the local life group buying and e-commerce fields. Fourthly, the State Council's General Office issued the "Opinions on Optimizing and Improving the Management Mechanism of Local Government Special Bonds", including computing equipment, auxiliary equipment infrastructure, etc., as project capital within the scope of special bonds. In terms of the market, the AI industry chain surged, with the copper cable high-speed connectivity concept leading the gains in the two markets. Many stocks in various sectors saw sharp increases, while certain sectors like the water electric power plant concept and the wind power and photovoltaic sectors experienced declines. Overall, there were more rising stocks than falling stocks in the market, with over 3600 stocks rising. Total transaction volume for the day was 1.27 trillion yuan, which was lower than the previous trading day by 8.8 billion yuan, marking a new low in trading volume. Institutional viewpoints: Looking ahead, China Securities Co., Ltd. believes that the policy blank period may be coming to an end, and the market can still maintain a strong and stable trading pattern. CICC: Optimistic about the continued release of enthusiasm for ice and snow tourism consumption and the potential development of top destinations. Guotai Junan: Byte humanoid Siasun Robot & Automation iterates a physical large model. Optimistic about the competition on the byte physical intelligent model algorithm.Close to one hundred people, with AMR (Mobile Siasun Robot & Automation) team members accounting for two-thirds of the total, and Universal Intelligent Possession accounting for one-third. Meanwhile, Byte is building up its hardware capabilities, with domestic supply chains expected to provide support in engineering capabilities.1. Hot sectors Copper cable high-speed connection concept leads the two markets up. The AI industry chain is in full swing, with Kingsignal Technology, Broadex Technologies, and Zhejiang Zhaolong Interconnect Technology all hitting the 20CM limit, while stocks like Anhui Xinke New Materials and Shenzhen Woer Heat-shrinkable Material are also on the rise. Comment: China Securities Co., Ltd. research report pointed out that both domestic and foreign large factories have maintained rapid upgrading and iteration of large models, with model capabilities quickly improving. The explosion of applications drives the demand for computing power infrastructure. It is expected that by 2025, major technology giants will continue to maintain high levels of capital expenditure. It is recommended to pay close attention to the overseas and domestic computing power industry chains. 2. WeChat mini stores, TikTok concepts strengthen WeChat mini stores, TikTok concepts are gaining strength, with Shanghai Kaytune Industrial hitting the 20CM limit, and stocks like Xi'an Global Printing and Shenzhen Sea Star Technology also on the rise. Comment: Guotai Junan Securities believes that the WeChat ecosystem has a huge social flow. With WeChat mini stores being unified as the e-commerce entrance, it is expected to integrate with various WeChat contents and user scenarios to form a diversified e-commerce model, such as WeChat mini stores + group multiplication for social e-commerce, WeChat mini stores + search for shelf e-commerce, WeChat mini stores + video accounts for short video/live streaming e-commerce, WeChat mini stores + official accounts for image-based sales, etc. This "gift giving" event is expected to become an opportunity for group multiplication, laying a good user foundation for the medium to long-term development of the WeChat e-commerce ecosystem. 3. Siasun Robot&Automation concept reactivates The Siasun Robot&Automation concept is active again, with Zhejiang Changsheng Sliding Bearings rising over 15% to hit a historical high, and Shenzhen Manst Technology hitting the 20CM limit. Comment: In terms of news, Yushu Technology recently released a stunt video of its industrial-level robot dog B2-W (an upgraded version of the B2 robot dog), unlocking more skills for its industrial walking feet. Musk also reposted Yushu Technology's new video of the B2-W robot dog on the social platform X. This article is reprinted from "Tencent Stock Selection", GMTEight Editor: Xu Wenqiang.