Pre-market report of A-share market | MSCI China flagship index adjustment, Apple and Alibaba collaborate on artificial intelligence.

Pre-market news 1. MSCI China flagship index adjustment: Jituan Express, Ccoop Group Co.,Ltd. included, Anjoy Foods Group removed Type: Market Sentiment impact: Neutral Morgan Stanley announced the results of its February index review. MSCI China Index included 8 stocks such as Bestechnic (Shanghai) Co., Ltd., Ccoop Group Co.,Ltd., CSI Solar Co., Ltd. and Jituan Express, while removing 20 stocks including Anjoy Foods Group, Autobio Diagnostics, Bloomage Biotechnology Corporation Limited, Asymchem Laboratories, and Shan Xi Hua Yang Group New Energy. The adjustment will take effect after the market close on February 28th. 2. Report: Apple and Alibaba to develop AI features for Chinese iPhone users, both stocks rise Type: Company Sentiment impact: Positive Reports suggest that Apple and Alibaba will collaborate to develop AI features for Chinese iPhone users. Sources reveal that this move is part of Apple's strategy to address declining sales in China, aiming to provide more appealing software features. Overnight, Apple's stocks rose by over 2%, while Alibaba's stocks closed up by 1.31%. 3. Contemporary Amperex Technology officially submits prospectus to HKEX, funds raised will focus on overseas capacity expansion Type: Company Sentiment impact: Positive Contemporary Amperex Technology officially submitted its listing application to the Hong Kong Stock Exchange, initiating its listing process in the Hong Kong capital market. The funds raised from this HK listing will primarily be used for overseas capacity expansion, international business development, and supplementing overseas operating funds to support the company's long-term internationalization strategy. 4. Semiconductor Manufacturing International Corporation's net profit declined by 20% last year, expects sales revenue to increase by over 6% quarter-on-quarter in the first quarter of this year Type: Company Sentiment impact: Neutral Semiconductor Manufacturing International Corporation released its performance report, with an unaudited net profit attributable to shareholders of listed companies of 3.7 billion yuan in 2024, a 23.3% decrease year-on-year. Semiconductor Manufacturing International Corporation's guidance for the first quarter is a sales revenue growth of 6%-8%, with a gross margin expected to be between 19%-21%. Investment Calendar US January CPI data released today Investment Tips Investment Tip: Risk control is the core of investment. Only by understanding risks can long-term stable returns be achieved. Howard Marks, The Most Important Thing in Investing Editor's View Market fluctuations and adjustments yesterday, with the ChiNext Index leading the decline and divergence in the AI sector. Minsheng Securities believes that the repair of some pro-cyclical sectors in China can be expected. Institutional Views 1. Galaxy Securities: With the new and old energy conversion background in China, A-shares will usher in an opportunity for structural valuation reshaping. 2. Minsheng Securities: AI is a focus but not the only answer to investment, repair of some pro-cyclical sectors in China can be expected. 3. Orient: Post-Spring Festival market trading volume has significantly increased, mainstream hotspots continue to emerge, and the spring market is expected to continue. Positive and Negative Outlooks 1. Multi-department published action plans to promote high-quality development in the copper industry, fostering global leading copper enterprise groups Type: Policy Focus EB Securities: Copper mine production growth is limited by the slowing capital expenditure of major copper companies globally, and the slowing growth rate after the digestion of scrap copper raw material inventory, with limited supply increment; overall demand is stable, optimistic about the upward trend in copper prices in 2025. 2. EU announces plans to establish a 20 billion Euro fund for building an artificial intelligence super factory Type: Market Debate CITIC SEC: With the deepening evolution of AI into industries, by 2025, model capabilities of AI companies will reach new heights, and in the next 1-2 years, Chinese AI companies and assets will bring better excess returns. 3. Multi-department issued action plans: increase the opening of silver-haired tourism trains, encourage diversified capital investment Type: Policy Focus Northeast: At present, the silver-haired economy market size continues to expand at a compound annual growth rate of over 10%. In the future, the elderly consumption industry will cover multiple areas including travel, leisure and entertainment, elderly e-commerce, health care products, nursing homes, etc., with specific long-term development potential. Announcement Express Slightly positive announcements 1. Anhui Zhongding Sealing Parts: Signed a strategic cooperation agreement with Zhejiang XCC Group to strengthen collaboration on humanoid Siasun Robot & Automation component products. 2. Anhui XDLK Microsystem Corporation: Net profit in 2024 was 220 million yuan, a year-on-year increase of 33.25%. 3. Lianhe Chemical Technology: Chairman proposed to repurchase company shares worth 40-80 million yuan. Slightly negative announcements 1. Hang Zhou Iron & Steel: The company is not related to the core technology development and application of the DeepSeek system. 2. Universal Scientific Industrial(Shanghai)Co.Net profit in 2024 was 1.652 billion yuan, a year-on-year decrease of 15.16%.3. Zhejiang Daily Digital Culture Group: There is no direct or indirect equity relationship with Deep Search. Overseas Market The three major stock indexes in the US fluctuated, with Powell stating that the Fed does not need to rush to further cut interest rates; most large technology stocks fell, with Tesla dropping more than 6%; most popular Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index falling by 1.66%. This article is reproduced from "Tencent Stock Selection", GMTEight Editor: Xu Wenqiang.