A-share market closing review: Multiple stocks hit limit up for two consecutive days! Strong performance in the Little Red Book concept.

The market fluctuated throughout the day, with the ChiNext Index leading the decline. The total turnover of Shanghai and Shenzhen stock markets was 1.19 trillion yuan, a decrease of 161.9 billion yuan compared to the previous trading day. On the market, the hotspots were chaotic, with more stocks falling than rising, with over 3,500 stocks in the entire market declining. In terms of sectors, the Little Red Book concept stocks continued to rise significantly, with multiple stocks including Hangzhou Onechance Tech Corp. hitting the limit up. Photovoltaic concept stocks rebounded, with Flat Glass Group hitting the limit up. TikTok concept stocks were active, with Beken Corporation hitting the limit up. PCB concept stocks collectively adjusted, with Wus Printed Circuit falling by over 5%. Capital flow The main funds focused on grabbing semiconductor, photovoltaic equipment, and internet e-commerce sectors. The top stocks in terms of net inflows from main funds include Leo Group Co., Ltd., Innuovo Technology, Rockchip Electronics, and others. Key news recap 1. Six departments: By the end of 2027, the basic data circulation security governance system will be established The National Development and Reform Commission and other six departments issued the "Implementation Plan for Improving Data Circulation Security Governance to Better Promote the Marketization and Value of Data Elements." It mentioned that by the end of 2027, a clear, prosperous, and collaborative data circulation security governance system will be basically established. The mechanism for efficient and compliant data circulation will be further improved, with significant governance efficiency improvement to provide strong support for flourishing data markets and unlocking data value. 2. Guangdong plans to arrange 1,500 key projects with an annual planned investment of 1 trillion yuan by 2025 The 14th session of the Third Guangdong Provincial People's Congress opened on January 15th. The Guangdong Provincial Government Work Report shows that by 2025, Guangdong will arrange 1,500 key construction projects with an annual planned investment of 1 trillion yuan. In terms of transportation projects, the completion of projects such as the Guangzhou-Zhanjiang high-speed rail, Guangzhou-Foshan Donghuan intercity railway, Guangzhou Baiyun International Airport Phase III, and Shenzhen Airport Third Runway will be carried out, and the construction of Guangzhou's new airport and high-speed highways such as Pingyuan to Wuping, Zhanjiang to Nanning, and Huazhou to Beiliu will be launched. In terms of industrial projects, efforts will be made to promote the full production of phase one of the Exxon Mobil project in Huizhou and advance the construction of phase two, accelerate the construction of the third phase of China National Offshore Oil Corporation, and drive the completion and production of the integrated base of BASF in Zhanjiang. 3. National Grid investment will exceed 650 billion yuan for the first time this year By 2024, National Grid had completed and put into operation three extra-high-voltage projects. So far, 38 extra-high-voltage projects have been built. In 2025, China will focus on optimizing the main power grid, strengthening the distribution grid, and serving the high-quality development of new energy. Continue to promote the implementation of major projects, start construction on key projects such as the Shaanxi-Henan extra-high-voltage project, and the Zaozhuang, Shandong, and Tonglu, Zhejiang Pumped Storage Power Station projects. Actively expand effective investment, drive the upstream and downstream industrial chain, and it is expected that the total investment of the National Grid will exceed 650 billion yuan for the first time this year. Future market analysis 1. Galaxy Securities: Even if tariffs are imposed, the impact on the RMB will be weaker than in 2018 Galaxy Securities stated that looking ahead to 2025, the four factors affecting the RMB exchange rate with the US dollar show that the nominal economic growth rates of China and the US may be positive supporting factors, the monetary policies and the supply and demand relationship of currencies between China and the US have a neutral influence, and the central bank's exchange rate policy is a positive supporting factor. Before the substantial imposition of tariffs by the US, the RMB may fluctuate in the range of 7.1-7.3. The environment facing the RMB now is significantly different from the period of 2018-2019 when tariffs were imposed. Galaxy Securities believes that even if tariffs are imposed, the impact on the RMB will be weaker than in 2018. First, the US has entered a rate-cutting cycle, while in 2018, the US was in a rate-hiking cycle. Second, domestically, the timing of China's fiscal expansion may start earlier, with the current Chinese government's debt costs lower than economic growth rates, high efficiency in the use of government debt, and fiscal expansion supporting the exchange rate. 2. Orient: Predicts limited high points in rebound, structural themes remain the market's main features Orient pointed out that in the short term, the market rebounded under the stimulus of favorable policies, marking a strong rebound since the drop from around 3400 points to 3140 points at the end of last year, with 3140 points probably being the short-term bottom, in line with the previous judgment that the area around 3150 points was a phase bottom. However, limited high points in the rebound are expected, with the first target temporarily set at around 3300. After the general rise in sectors, differentiation will occur, and structural themes will remain the main feature of the market, allowing investors to seize the rare rebound opportunity before the Spring Festival. This article is reproduced from "Tencent Stock Selection" and edited by GMTEight: Liu Jiayin.