A-share closing review | The index rose and then fell back! The market turnover reached nearly two trillion yuan, and the dividend style welcomed repair.

Today, the three major indices rose overall and then fell back, with funds switching between high and low in the afternoon. Siasun Robot&Automation and chip stocks, which were strong in the previous period, saw a significant decline, while dividend styles like steel saw a recovery. On the market, the steel sector rose, with many stocks like Hang Zhou Iron & Steel hitting the daily limit up; the photovoltaic and new energy sectors were strong throughout the day, with many stocks like Hainan Drinda New Energy Technology hitting the daily limit up; AI-related themes like computing power and DeepSeek were active, with many stocks like YOKEEDS hitting the daily limit up; the banking sector led the market decline. Overall, the market saw a significant increase in trading volume, with a total daily turnover close to 2 trillion, reaching a new high since December 13th, and over 4100 stocks rising in the two markets. Specifically, the steel sector fluctuated upwards, with stocks like Hang Zhou Iron & Steel and Bengang Steel Plates hitting the daily limit up. Zhongtai said that from the perspective of the calendar effect, February is the core time for spring excitement, with chemicals, steel, agriculture, forestry, animal husbandry, fishing, and building materials having historically high success rates and high odds. In the short term, attention can be focused on pulse-type recovery opportunities in these industries. The photovoltaic sector was active throughout the day, with stocks like Hainan Drinda New Energy Technology hitting the daily limit up. CICC pointed out that as a leading industry in China, the photovoltaic industry is expected to experience a fundamental turnaround by 2025 in the context of the dual carbon target, through the joint effects of market rules and industry self-regulation. The sector's valuation is still at a bottom stage, and we believe that there will be beta opportunities in 2025 for leading companies in segments like new technologies. Looking at individual stocks, 4169 stocks rose in the two markets, while 1088 stocks fell and 139 stocks remained flat. There were 93 stocks that hit the daily limit up and 2 stocks that hit the daily limit down. At the close, the Shanghai Composite Index rose 1.01% to 3303.67 points, with a turnover of 757.6 billion yuan; the Shenzhen Component Index rose 1.75% to 10576.00 points, with a turnover of 118.99 billion yuan. The ChiNext Index rose 2.53% to 2174.35 points. Funds Flow: Today, major funds focused on actively buying IT services, photovoltaic equipment, and liquor-related sectors. Stocks with significant net inflows from major funds included Inspur Electronic Information Industry, Wolong Electric Group, and Shijiazhuang ChangShan BeiMing Technology. Top News Recap: 1. Two Departments: Pumped Storage Energy Projects Should Be Evaluated First and Then Approved, Strictly Control Costs and Prices The National Development and Reform Commission and the National Energy Administration issued the "Interim Measures for the Development and Construction Management of Pumped Storage Power Stations." It proposes that pumped storage energy projects should be evaluated first and then approved, and the approval authority should commission a qualified engineering consulting firm to independently conduct a evaluation of the project application report, focusing on evaluating the necessity of the project construction, technical and economic feasibility, ecological environmental impacts, water resources, resettlement of migrants, risks to social stability, and grid access conditions, and strictly control costs and prices. 2. 70 Listed A500-related Funds' Latest Total Shareholding Exceeds 300 Billion Shares The number and scale of products tracking the CSI A500 Index have reached a new high. As of now, there are 70 listed funds tracking the CSI A500 Index, with a total shareholding of 302.435 billion shares. Among them, on-exchange ETFs dominate in terms of scale, with 27 CSI A500 ETFs having a combined shareholding of 281.205 billion shares, totaling 271.078 billion yuan. The Guotai CSI A500 ETF remains the largest with a scale of 29.2 billion yuan. Additionally, ETFs like those managed by Nanfang, GF, Huaxia, and Fuguo, have scales exceeding or approaching 20 billion yuan, and there are 13 CSI A500 ETFs exceeding ten billion yuan in assets. In terms of fund flow, the index continues to attract capital favor, with nearly 13 billion yuan of net inflows into CSI A500 ETFs so far this year. 3. Lei Jun Says Xiaomi Is Studying Ways to Increase Production Capacity for Xiaomi Cars Lei Jun, chairman of Xiaomi, stated on his personal Weibo account on the morning of the 7th, "I am in the R&D center of the automobile factory, and outside the window is the coating workshop. Today I will have a serious discussion with the manufacturing team on how to increase production capacity further while ensuring quality and production safety!" Market Outlook: 1. EB SECURITIES: The rebound is expected to continue, with tech stocks likely to continue to play a leading role EB SECURITIES pointed out that looking ahead, with the market seeing a significant volume surge and investors' sentiment heating up, funds flowing back, the market is expected to continue the rebound, with tech stocks likely to continue to play a leading role. Focus: AI computing power concept. Due to overloaded servers, DeepSeek announced on February 6th that it was temporarily suspending API service recharge. In this context, DeepSeek urgently needs to expand its computing power infrastructure to meet the access requirements of more users, which is expected to drive the construction of AI computing power. Companies involved in upstream algorithm construction related to DeepSeek will benefit. 2. Huatai: To Sustain the Rebound, Keep an Eye on the Sustainability of Increased Market Volume Huatai pointed out that in order to further sustain the rebound trend, it is necessary to observe the sustainability of the increased volume in the market. Furthermore, if the Shanghai Composite Index can break through and hold above the 60-day moving average, this could potentially open up more upward rebound space, breaking free from the adjustment trend. Looking ahead, expectations for the spring market rally are still present, with the upcoming Two Sessions and the market's anticipation of policy changes gradually heating up. Whether the hot topics emerging during the Two Sessions can create some thematic investment opportunities will be closely watched by the market. This article is reproduced from "Tencent Stock Picks," GMTEight editor: Liu Jiayin.