A-share closing review | The three major indices rose slightly, NVIDIA made a big move! The rise of the CPO concept.

The market opened high and then fell, with the three major indexes slightly up. The total turnover in the Shanghai and Shenzhen markets was 1.27 trillion, an increase of 85 billion from the previous trading day. In terms of market trends, hotspots rotated quickly, with more stocks rising than falling and over 3300 stocks in the market rising. In terms of sectors, consumer stocks collectively strengthened, with home appliances, retail, food, e-commerce, among others, performing actively. Marssenger Kitchenware and others hit their daily limit. Cyclical stocks also strengthened, with non-ferrous metals and oil and gas leading the way. On the downside, chip stocks collectively adjusted, with Juniper falling over 14% and Hygon Information Technology falling nearly 10%. Of note, the CPO concept strengthened in the afternoon, with Suzhou TFC Optical Communication, Shenzhen Gongjin Electronics, Founder Technology Group, and other stocks hitting their limit. In terms of news, according to the Taiwan Business Times, NVIDIA may launch a new CPO switch at the GTC conference in March 2025. Supply chain sources revealed that this CPO switch is in the trial production phase and could achieve mass production as early as August this year if progress goes smoothly. Furthermore, home appliance stocks collectively rose, with the Ministry of Commerce and three other departments issuing a notice about the "2025 Electrical Appliance Old-for-New Program," providing subsidies to individuals purchasing refrigerators, washing machines, televisions, air conditioners, computers, and other 12 electrical appliances with energy efficiency levels of 2 and above, with each subsidy not exceeding 2000 yuan. Funds inflow Main funds focused on industrial metals, engineering machinery, and general retail sectors, with top net inflow stocks including Sensteed Hi-tech Group, Founder Technology Group, Zhe Jiang Kangsheng, among others. Key news highlights 1. Sources: Details of new subsidies for purchasing cars to be released tomorrow According to several sources, details supporting new subsidies for purchasing cars and other areas are planned to be released this Friday. The Ministry of Commerce's Director of Market Operations and Consumer Promotion Li Gang stated that the Ministry of Commerce will issue implementation details to support new subsidies for the purchase of cars, home appliances, home decoration, electric bicycles, and digital products such as smartphones this week. 2. National Railway Administration: National railway passenger and freight volume hit record highs in 2024 The National Railway Administration announced that the national railway passenger and freight volumes saw stable growth in January to December 2024, reaching record highs. In terms of passenger transport, 43.12 billion passengers were sent by rail, an increase of 11.9% year-on-year, surpassing 43 billion for the first time. For freight transport, 51.75 billion tons were sent by rail, an increase of 2.8% year-on-year, with a freight turnover volume of 35861.90 billion ton-kilometers. Additionally, from January to December 2024, a total of 850.6 billion yuan was invested in fixed railway assets, an increase of 11.3% year-on-year, with 3113.4 kilometers of new railway lines, 2687.2 kilometers of new double-track railway lines, and 3935.8 kilometers of newly electrified railway lines completed. The construction of a modern railway infrastructure system is progressing. 3. Insiders say Biden administration considering allowing TikTok to continue operating in the US On January 15th local time, three sources revealed that the Biden administration is considering how to allow TikTok to continue operating in the US. An official stated that various options are being explored so that TikTok will not be banned this Sunday, January 19th. Market outlook 1. BOC International: Market stabilization depends on the resolution of external risk events Currently, there are still differences in the market regarding the recovery of the fundamentals, similar to January 2024. However, the market interest rates have risen slightly, but the overall interest rate level remains low, and the funding situation is still in a tight balance. Moreover, the uncertainty of tariff policies during Trump's term is one of the factors that the market is currently more concerned about. Looking at past market recovery experiences, we believe that the condition for short-term market stabilization depends on the resolution of external risk events. Trump's inauguration can be an important observation point for the recent change in domestic and foreign policy expectations: if he increases tariffs, there may be a greater focus on expanding domestic demand policies. Additionally, in the longer term, continued fiscal efforts are key factors for domestic demand and market expectations this year, and we need to closely monitor consumption during the Spring Festival and credit release in January and February. 2. Orient: Market is expected to exhibit a pattern of oscillation and rise in the medium term Orient pointed out that as the year-end approaches, the market sentiment seems to be weakening. In the medium term, under the environment of loose monetary and fiscal policies this year, the overall asset allocation is expected to favor stocks, and the stock market returns are gradually stabilizing and predictable. Long-term funds may become an incremental source of funds for the stock market, and the market overall is expected to exhibit a pattern of oscillation and rise. 3. Sinolink: Expecting a "spring rally," with a focus on small and medium-cap tech growth Sinolink believes that the resonance between the molecular end and molecular end of the domestic market will continue to support the start of the "spring market." At the molecular end, December's domestic manufacturing PMI continued to expand, and the non-manufacturing PMI exceeded expectations, confirming the trend of domestic fundamental recovery. At the molecular end, the remaining market liquidity continues to rebound, providing a basis for valuation expansion in the future market. The main reason for the increase in market volatility at the beginning of the year may be due to the large demand for funds at the beginning of the year, leading to a short-term increase in money supply. Therefore, we judge that the further implementation of "reserve requirement ratio cuts" is expected in the short term, which could be an important signal of the restoration of market risk appetite. The rotation of incremental funds will drive the market to launch a counter-attack. The end of the "spring market" in the future still emphasizes the need to pay attention to the "retreat" of the domestic fundamentals and the increase in overseas risks.Hey, como ests?This article is reproduced from "Tencent Stock Selection". Editor: Liu Jiayin.