A-share midday review | ChiNext Index rose more than 2%, copper cable high-speed connection concept stocks surged, stocks with expected increase in annual report strengthened.

On January 20th, after a strong opening, the three major indexes collectively fluctuated strongly. By the close, the Shanghai Composite Index rose by 0.48%, the Shenzhen Component Index rose by 1.3%, and the ChiNext Index rose by 2.08%. According to Securities Times, the market may be moving in a positive direction: In the morning session today, Contemporary Amperex Technology surged by 5%, leading to a rebound in major indexes. According to the latest news, global renewable energy and sustainable urban development leader Masdar announced recently that it has chosen Contemporary Amperex Technology as its preferred battery energy storage system supplier for its round-the-clock project in the United Arab Emirates. At the same time, there has been a key change in A-share market. The number of stocks in a bullish position in the overall market has turned from a decline to an increase from last Friday. Historical data shows that when this index falls to around 100, it often hits a bottom, and last Thursday the index had fallen to this level. Last Friday, although the major indexes did not rise much, the number of stocks in a bullish position showed an increase of over 20%. This often indicates that there will be positive changes in the market ahead. In the market, stocks related to high-speed copper cable connections opened with a strong increase, stocks with positive earnings forecasts frequently showed strength, and sectors like film and TV theaters and vocational education saw high gains. On the downside, the real estate sector declined, while industries like internet e-commerce and the Little Red Book concept went through corrections. In terms of main capital flow, funds favored industries like automotive components and leisure food, while funds exited industries like semiconductors and optoelectronics. Institutional viewpoints: Looking ahead, GF Securities points out that historically, the probability of index rises between the Spring Festival and the Two Sessions exceeds 90%. With the two major uncertainties being cleared, the "spring excitement" of this year is approaching. Industrial: Preparing for a new phase of uptrend Since the end of last year, the market has gone through a round of corrections. Industrial believes that it is time to drop pessimism and prepare for a new phase of uptrend around the Spring Festival: this correction since the end of last year is part of the market's digestion process. After the adjustments at the end of the year and the beginning of this year, the market has once again entered a high-cost-effective range with most industries having relatively low overcrowding. In addition, the economy exceeding expectations has helped repair the fundamentals. Lastly, looking at historical experiences, the period around the Spring Festival to the Two Sessions is a precious window for expectations-driven market dynamics and increased risk appetite. Looking back at the trends of major broad-based indices in the last ten years around the Spring Festival, the market has gradually entered an excited state in the days leading up to the festival, with the excitement continuing after the festival. This continues until the Two Sessions where economic targets are confirmed and early year data is released. GF Securities: The two uncertainties have been resolved The market performance in late 2025 and early 2026 largely conforms to the data patterns of the past fifteen years. The market is mainly concerned about two risks: firstly, under the new regulations of the New Nine Articles and new disclosure rules, there is a greater risk of earnings surprises in performance forecasts; secondly, with the formal inauguration of Trump, there is a risk of US-China trade tensions. Both of these worries will be resolved one after the other next week. Historically, the probability of index rises between the Spring Festival and the Two Sessions exceeds 90%. With the resolution of the two uncertainties, the "spring excitement" of this year is drawing near. Based on data patterns, industries that have shown good performance and have seen significant declines from mid-December to this week, such as computers, environmental protection, military industries, and agriculture, are worth paying attention to. Agriculture and environmental protection are also industries with good performance forecasts mentioned earlier. Huatai: Moderately positive, prioritize structure, two trading clues before the festival Huatai points out that last week, A-shares rebounded, with three observations. Firstly, investors seem to have a certain consensus on the "support level" of this current range of fluctuations. Secondly, there is ample off-market liquidity, and forming a money-making effect is crucial. Thirdly, there is a strong consensus on technology and innovation, but theme trading is predominant and sustainability is dependent on whether a positive loop can be formed with on-market liquidity. Looking ahead, there are two trading clues before the festival. Firstly, with Trump taking office, among the three mid-term trading strategies, focusing on autonomous controllable technologies might be key in the short term. Secondly, with the release of annual performance forecasts, industries with high forecasted positive surprises are mainly concentrated in the consumption chain, which might still offer opportunities for price increases. Huatai believes that currently, there is not much pressure from external variables to validate, so being moderately positive and prioritizing structure is recommended. Prosperity in technology and innovation remains key, with additional allocations to mainstream consumer goods and agriculture which have dividend enhancement potential and improvement in prosperity. In terms of operations, the underlying theme of market fluctuations may remain consistent in the short term. Hot sectors: 1. Stocks related to high-speed copper cable connections surged Stocks related to high-speed copper cable connections opened with strong gains, with Nanjing Huamai Technology hitting the limit up, Suzhou Recodeal Interconnect System rising by over 10%, Shenzhen Woer Heat-shrinkable Material, SHENZHEN JOVE ENTERPRISE LIMITED, YD Electronic Technology rising by over 5%, and Shenyu Communication Technology Inc., Broadex Technologies, Fullink Technology, Anhui Xinke New Materials, and others following suit. Comment: On the news front, NVIDIA CEO Huang Renxun recently stated, "We should continue to use copper technology as much as possible, and then if necessary, we can use silicon photonics technology, but I believe that will take a few more years." 2. Stocks with positive earnings forecasts gained strength Stocks with positive earnings forecasts saw frequent gains, with Hunan Sundy Science And Technology, G.Tech Technology rising by 20%, Guangzhou Wahlap Technology Corporation, Beijing Jiuzhouyigui Environmental Techno to be continued..."Logy and others are leading the gains."Review: On the news front, Hunan Sundy Science and Technology announced on January 17th that it is expected to achieve a net profit of 138 million to 152 million yuan in 2024, a year-on-year increase of 156.81% to 182.86%. 3. Vocational education concept stocks active in early trading Vocational education concept stocks were active in early trading, with China Reform Culture Holdings hitting the limit up, followed by gains in Beijing Shengtong Printing, Offcn Education Technology, Qtone Education Group (Guangdong), Shanghai Xinnanyang Only Education & Technology, Beijing Kaiwen Education Technology, etc. Review: On the news front, the Central Committee of the Communist Party of China and the State Council recently issued the "Outline of the Plan for Building a Strong Education Country (2024-2035)", which aims to enhance the key education capabilities of vocational schools; optimize the implementation of high-level vocational colleges and professional construction plans, and build a number of high-level vocational undergraduate schools with distinct educational characteristics. This article is sourced from "Tencent Self-selected Stocks"; GMTEight Editor: Wang Qiujia.