A-share market closing review | The index surged and then fell back, with the ChiNext Index closing up by 1.81%! Collective surge in AI hardware sector.

On January 20, the three major indexes rose and fell throughout the day, all closing higher. By the end of the trading day, the Shanghai Composite Index was up 0.08%, the Shenzhen Component Index was up 0.94%, and the ChiNext Index was up 1.81%. Over 3600 stocks rose in the two markets, with total trading volume reaching 1.18 trillion yuan for the day, up 53.8 billion yuan compared to the previous day. In terms of market performance, AI hardware stocks collectively surged, with leading sectors such as copper connectors and PCB. Guangzhou Jinyi Media Corporation also saw gains. Lithium battery stocks rebounded, with Contemporary Amperex Technology rising over 5%. On the downside, stocks related to the Xiaohongshu platform continued to adjust. In terms of institutional views, GF SEC pointed out that historically, the probability of the index rising during the period from Chinese New Year to the Two Sessions is over 90%. With the two biggest risks passing, this year's "spring frenzy" is approaching. Industrial analysts believe that the market has experienced a round of corrections since the end of last year. They suggest that investors should discard pessimism and prepare for a new round of upward movement before and after the Chinese New Year. They point out that most industries are currently at a low point in terms of valuation and that the economy's performance in 2024 exceeded expectations. GF SEC also commented on the market, stating that the market performance at the end of 2025 and the beginning of 2026 largely followed historical patterns. Concerns over new regulations and potential trade tensions between the US and China are expected to be resolved soon, leading to a period of increased market activity. Hot sectors include copper cable and high-speed connector concepts, as well as stocks with positive annual report forecasts and Siasun Robot & Automation concepts. Overall, the market is looking positive as it enters the "spring frenzy" period, with various sectors showing potential for growth and expansion.