A-share closing review | Index volatile fluctuation, Shanghai Index slightly dropped by 0.05%! Siasun Robot&Automation concept surged again.

On January 21st, the three major stock indices opened high and fluctuated throughout the day, closing with mixed gains and losses. By the close, the Shanghai Composite Index fell by 0.05%, the Shenzhen Component Index rose by 0.48%, and the ChiNext Index rose by 0.36%. Over 3200 individual stocks in the two markets fell, with a total turnover of 1.21 trillion yuan for the day, an increase of 22.3 billion yuan from the previous day. In terms of market performance, the hotspots were concentrated in the technology sector, with many technology heavyweight stocks soaring. Goertek Inc. hit the limit up at one point, while ZTE Corporation closed up by 5.9%. Concept stocks related to robotics and automation, such as Siasun Robot & Automation, surged again, with nearly 20 stocks hitting the limit up, including Dianguang Explosion-proof Technology. AI glasses concept stocks also showed strength, with Rockchip Electronics hitting the limit up. Chip stocks fluctuated and rebounded, with stocks like Allwinner Technology rising by over 10%. Real estate concept stocks were also active during the day, with Macrolink Culturaltainment Development hitting the limit up and China Vanke Co., Ltd. surging by 7.45% (hitting the limit up during trading). On the downside, photovoltaic concept stocks saw a correction, with Tongwei Co., Ltd. falling by nearly 5%. In terms of main capital flow, funds favored the real estate and consumer electronics industries, while funds fled from the photovoltaic equipment and components industries. Institutional Views Looking ahead, Orient believes that with the easing of external negative factors, the lackluster performance of the export chain in the previous period may benefit directly, as internal and external positive factors gradually accumulate, forming the basis for a rebound before the Spring Festival. Guotai Junan: The market is expected to gradually stabilize, industry allocation should focus on performance, valuation and economic conditions. Guotai Junan believes that the market is expected to gradually stabilize, and industry allocation should focus on performance, valuation, and economic conditions. At the current stage, the easing of the exchange rate stability requirements has delayed the expectations of monetary policy easing, historically, this stage is often at the bottom, and subsequent RRR cuts and interest rate cuts are expected to lead to a significant market rebound. This time is different because the decision makers' attitude towards the economy is clear, and high-frequency data from December, such as PMI, production, and consumption, help stabilize economic expectations, making the market more likely to stabilize faster. In terms of industry allocation, historical experience suggests focusing on three aspects: a) industries with low valuations, strong previous performance, and potential for continuation, such as machinery (engineering machinery/Siasun Robot & Automation), and household appliances. b) Industries with expected industrial recovery, such as military industry, mass consumption, and semiconductors. c) Anticipating non-banking institutions, with the expectation that subsequent monetary policy implementation will drive market rebounds. Huaxi: A-share "Spring Market" expected at the end of January and early February Huaxi believes that A-share "Spring Market" is expected at the end of January and early February. Following this week's oversold rebound in the A-share market, the main factors that have suppressed market risk appetite have been significantly alleviated: first, the friendly phone call between the leaders of China and the United States and the discussions by Trump's team on gradual tariffs have eased concerns about the big power game between China and the United States, stabilizing the Renminbi's exchange rate; second, this year's annual performance forecasts are being released earlier by companies, and the risks of performance have been adequately released. In addition, local two sessions show positive economic growth targets set by various regions, which also boost market confidence in growth-stabilizing policies. Looking ahead, the current A-share market is in a high-potential-value configuration range, with rising investor risk appetite, a new round of spring market is expected to gradually unfold, and proactive measures are recommended. BOC International: Growth presents a window for annual allocation BOC International believes that growth presents a window for annual allocation. BOC International has examined the market's funding situation and results of A-share movements before the Lunar New Year since 2017, finding that interest rate trends measured by DR007 or GC001 are not the decisive factor for A-shares before the holidays. A relatively loose funding environment can provide positive support for A-shares. In 2019, 2021, and 2024, when the interest rates decline, the main indexes of A-shares are highly likely to close higher; however, in 2023 and 2017, when the interest rates rise, the A-share market does not necessarily weaken completely, with incremental foreign capital from exchange rates and fundamental expectations becoming important supports for these two rounds of pre-holiday events of A-shares. Currently, there are many uncertainties in the pre-holiday market, and there may be strong wait-and-see sentiment. However, with the current path of robust monetary and fiscal policies unchanged, the market's micro liquidity is still good, the overall trend of A-shares is upward without change, but the magnitude and pace of the trend need to wait for confirmation of expansive measures at the total level and the expectation of domestic demand recovery. After undergoing adjustments since the fourth quarter, the growth style has strong short-term recovery momentum. Combined with the pre-holiday funding environment, growth stocks have a relatively prominent advantage in terms of value for money in the short term. Orient: The accumulation of positive factors forms the basis for the rebound before the Spring Festival In the short term, thematic investments are once again active, with some hotspots such as humanoid Siasun Robot & Automation, AI applications, showing strong continuity, and overall money-making effects are more apparent; in addition, the easing of external negative factors, the export chain's lackluster previous performance may benefit directly, and internal and external positive factors are gradually accumulating, forming the basis for a rebound before the Spring Festival. In terms of industry allocation, high-risk appetite sectors should focus on pharmaceuticals, non-ferrous metals, etc., and thematic investments should focus on central SOE mergers and acquisitions, technology themes, etc. Popular Sectors 1. The Siasun Robot & Automation industrial chain erupts again Humanoid Siasun Robot & Automation, gear reducer, and other Siasun Robot & Automation industrial chains led the two cities rally. Fibocom Wireless Inc., MH Robot & Automation, Shanghai Hajime Advanced Material Technology20CM hit the limit up, Shenzhen Zhaowei Machiner.Y & Electronics, Ningbo Tuopu Group, Jianshe Industry Group and other stocks have all hit their daily limit up.Review: On the news front, recently, Gong Wei, a member of the provincial CPPCC and vice president of Wuhan University, introduced to reporters that Tianwen is moving from the laboratory to the production line, with plans to begin mass production in 2025 and build a research and development manufacturing production line. Currently, some supermarkets and catering companies are actively seeking cooperation and eagerly anticipating the application of the humanoid Siasun Robot&Automation to the terminal. 2. Autonomous controllable concept rises Semiconductor, Semiconductor Manufacturing International Corporation and other autonomous controllable concepts are on the rise, with Beken Corporation hitting the limit up. Review: On the news front, on the evening of January 15th, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) revised the Export Administration Regulations (EAR), modifying the definition of advanced storage for DRAM, with the process node still at 18nm. Cinda pointed out that the upgrade of sanctions may accelerate the pace of domestic substitution, and the core links of the industry chain still have a lot of room for growth under the trend of autonomous controllable. 3. Education sector sees a big decline The education sector led the decline in the two markets, with China Reform Culture Holdings hitting the limit down, and Offcn Education Technology, Jiangsu Chuanzhiboke Education Technology, and Qtone Education Group (Guangdong) leading the decline. This article is reprinted from "Tencent Stock Selection", GMTEight Editor: Li Fo.