A shares closing review | The Shanghai Composite Index fluctuated and adjusted, closing down 0.89%! AI hardware active against the trend, with Foxconn Industrial Internet (601138.SH), a billion-dollar leader, hitting the limit.

On January 22, the three major indexes opened low and remained low throughout the day. By the end of the trading day, the Shanghai Composite Index had dropped by 0.89%, the Shenzhen Component Index had fallen by 0.77%, and the Growth Enterprise Market Index had decreased by 0.54%. In addition, the BSE 50 fell by over 4% and the SSE 50 fell by over 1%. Over 4,200 stocks in both markets saw a decrease, with a total trading volume of 1.14 trillion yuan for the day, compared to a decrease of 69.4 billion yuan from the previous day. In terms of market performance, the market sentiment was extremely weak, with both weighted and thematic sectors experiencing a decline. AI hardware concepts such as optical modules, liquid cooling, PCB, and high-speed copper cable led the market throughout the day, with stocks like Foxconn Industrial Internet, Xinya Electronic, Nanjing Huamai Technology, and Delton Technology all hitting the limit up. Data centers, power equipment, and transformer concepts showed strong performance, while the insurance sector rose in the afternoon led by Hubei Biocause Pharmaceutical. A few themes like gold and industrial machinery also showed strength. On the downside, thematic concepts in both markets generally declined, with the red book concept leading the market down. The real estate industry chain had a one-day rally, while retail, dairy, and liquor consumption concepts all fell collectively. In terms of institutional views: - Huaan believes the market is at a turning point, focusing on high dividend stocks, consumer goods, and communication. - Industrial is preparing for a new upward trend, paying attention to new energy and military industry. - Orient continues to focus on structural opportunities in the technology sector before the Spring Festival. In terms of hot sectors: 1. AI hardware concepts led the market all day with stocks like Zhongji Innolight and Victory Giant Technology rising by over 10%. 2. Stocks related to the red book concept continued to adjust, with CHINA TOURISM AND CULTURE INVESTMENT GROUP and HuiZhou Intelligence Technology Group falling. This article was originally from "Tencent Stock Selection", edited by Chen Xiaoyi.