Brokerage Morning Meeting Highlights | Chinese asset revaluation trends may further spread

Last Friday, the market saw a volatile increase, with the ChiNext Index leading the gains, and the Sci-Tech 50 Index rose nearly 6%, reaching a new high since April 26, 2023. The trading volume of the Shanghai and Shenzhen stock markets that day was 2.19 trillion yuan, an increase of 436 billion yuan from the previous trading day, breaking the 2 trillion yuan mark again since December 13, 2024. In terms of sectors, liquid-cooled servers, state-owned cloud, computing power, semiconductor and other sectors led the gains, while precious metals, banks, clothing, Chinese medicine and other sectors led the declines. By last Friday's close, the Shanghai Composite Index rose by 0.85%, the Shenzhen Component Index rose by 1.82%, and the ChiNext Index rose by 2.51%. At today's brokerage morning meeting, Guotai Junan believes that the next stage of the stock index will generally enter a sideways oscillation phase; Huatai stated that the re-evaluation of Chinese assets may further spread; GF SEC proposed that technology remains the main theme, and subsequent positioning can be carried out along two strategic lines. Guotai Junan: The next stage of the stock index will generally enter a sideways oscillation Guotai Junan pointed out that the rapid rebound in the market in the recent period is due to investors quickly incorporating optimistic expectations for the Two Sessions policies and industrial trends. It is expected that the market sentiment's local peak will form relatively quickly in the next stage, with the overall stock index entering a sideways oscillation phase. Investment theme in the Chinese stock market in 2025 is on technological growth. Theme recommendations: 1. AI applications: The deployment of DeepSeek large models locally is in high demand, with data-sensitive clients leading the way, and accelerating applications in areas such as government affairs and finance. 2. Domestic computing power: The explosive demand for domestic AI applications drives enterprise AI capital expenditure, and is optimistic about the server/AIDC industry chain benefiting from investments in data and network infrastructure. 3. Mergers and reorganizations: Acceleration of central SOE asset integration, optimistic about reorganization and integration in high-end manufacturing and energy resources such as defense industry. 4. Solid-state batteries: The Second Summit Forum on Solid-State Battery Innovation and Development was held, companies such as BYD Company Limited/Chongqing Changan Automobile announced mass production plans, optimistic about key materials benefiting from accelerated industrialization. Huatai: Chinese asset re-evaluation situation may further spread Huatai pointed out that the A-shares oscillated upwards last week, with Alibaba's earnings report exceeding expectations driving the continued upward trend of the technology sector in the second half of the week, and the re-evaluation of Chinese assets situation may further spread. Firstly, positive factors such as industries, real estate, private sector business environment, continue to emerge, Alibaba's earnings report exceeding expectations is expected to promote the transition of AI thematic investments to industrial tracks; secondly, global funds rebalance between Chinese and American equity assets, active allocation foreign investors' participation in this round of trend is still not high, if the long-term foreign capital inflows in the future, sectors preferred by foreign investors in China such as consumer electronics and high ROE assets may benefit. Thirdly, referring to past industrial cycle trends, the strengthening of industrial logic may bring an upward shift in the crowdedness center, and it may be appropriate to relax the tolerance for crowdedness. In terms of allocation, electronics, media and other sectors with high crowdedness, continue to cut within the technology sector, focus on pharmaceuticals, finance and other low-level sectors benefiting from AI. GF SEC: Technology remains the main theme, subsequent layout can be carried out along two strategic lines GF SEC pointed out that technology remains the main theme, and for the participation strategy in the technology industry, it can be developed along two strategic lines of "low-level growth branches" and "performance realization by 2025". Firstly, low-level growth can focus on military industry, cultural expansion, satellites, medical equipment, AI education, etc. Secondly, look for technology areas with a high probability of immediate fundamental performance realization in the first half of this year, currently mainly in end-side hardware, Siasun Robot&Aultomation/Intelligent driving, reasoning side computing power, etc. This article is reprinted from "Cailianshe", GMTEight Editor: Xu Wenqiang.