A-share closing review: The ChiNext Index fell by 0.67%! Trading volume surpassed two trillion again, real estate stocks strengthened against the trend.

date
24/02/2025
avatar
GMT Eight
On February 24th, A-shares experienced a volatile adjustment, with trading volume breaking through 2 trillion yuan again, a decrease of 112.1 billion compared to the previous trading day. By the close of the market, the Shanghai Composite Index fell by 0.18%, the Shenzhen Component Index fell by 0.08%, and the ChiNext Index fell by 0.67%. In terms of the market, there was a clear switch between highs and lows, with high-level themes collectively adjusting and the AI industry chain experiencing a collective pullback, with AI medical, educational, and cloud computing sectors leading the decline. In a market downturn, real estate chains bucked the trend with companies like Norinco International Cooperation and Wolong Resources Group hitting their daily limit up. Agricultural stocks rose, with food planting and genetically modified agriculture leading the way in new agricultural productivity. The data center concept repeatedly strengthened, with the power and liquid-cooled server sectors leading the rise. Additionally, sectors such as aviation, liquor, and aquaculture were active. In terms of fund flows, primary funds flowed into industries such as liquor, insurance, professional engineering, automotive components, and glass fiber, while funds flowed out of software development, IT services, communication services, semiconductors, and communication equipment industries. Institutional viewpoints Looking ahead, CITIC SEC believes that theme-based sectors heavily reliant on fund switching have limited sustainability in the future, and the market is expected to focus more on the realization of clear industrial logic. 1. Goldman Sachs: A-shares expected to outperform H-shares in the next three months Goldman Sachs stated in a report on February 23rd that when the performance gap between A-shares and H-shares exceeds 15%, there is a 95% probability of a market leadership reversal. Based on this, Goldman Sachs believes that supported by valuation advantages and policy expectations, A-shares are likely to see a rebound in the next three months, with an expected excess return of 2%. Furthermore, the valuation premium of A-shares relative to H-shares has narrowed from 34% three months ago to the current 14%. If it rises to the average level of the past year, it indicates a potential 10% increase in A-share valuation. 2. China Securities Co., Ltd.: Spring offensive not yet over China Securities Co., Ltd. believes that the recognition of revaluing China's technology stocks is on the rise among global funds. While there are concerns about the weakening trend of the U.S. economy, asset trends are showing signs of a stronger China over the U.S. Despite the recent strong gains in the technology sector, the spring offensive is not over yet, with a clear focus on the AI+ theme. The current market's external environment is stable, with macro logic temporarily giving way to industrial trends. The tech stock market offensive is not expected to end even if there is a short-term overheated trading leading to a pullback; there will still be opportunities for repositioning and advancing, focusing on policy expectations and resonating industry trends. Industries to watch include the internet, communications, electronics, computers, media, and non-ferrous metals. 3. CITIC SEC: Strengthen industrial logic, focus on core assets CITIC SEC believes that theme-based sectors heavily reliant on fund switching have limited sustainability in the future, and the market is expected to focus more on the realization of clear industrial logic. The market rally since the beginning of the year is just the beginning of revaluing core assets. Popular themes have seen historically high levels of excess turnover and trading volume, with active fund positions reaching their highest level in the past five years. The sustainability of market rallies in sectors purely reliant on fund switching is limited. From an industrial logic perspective, the large-scale deployment and application of DeepSeek, as well as Alibaba's CAPEX significantly exceeding market expectations, indicate that domestic AI has moved from projection and thematic stages to a true industrial trend, and the market is expected to focus on high-quality leaders in the future. Traditional core assets with ample growth potential, long-term low bases, and relatively thorough institutional clearances, such as lithium batteries and innovative pharmaceuticals, are also worth paying attention to. Popular sectors 1. Agriculture sector surging The agriculture sector is on the rise, with food planting, genetically modified agriculture, and other new agricultural productivity sectors collectively strengthening, with multiple stocks hitting their daily limit up, such as Jiangsu Nonghua Intelligent Agriculture Technology, Thinker Agricultural Machinery, and Orient Group Incorporation. Comment: On the news front, the Central Committee's No. 1 document for 2025 was released on February 23rd, mentioning "new agricultural productivity" for the first time. Dongguan Securities pointed out that the document targets promoting comprehensive rural revitalization and building a strong agriculture nation from various perspectives. It emphasizes leading with technology, developing new agricultural productivity, and introduces new policy measures. Currently, the overall valuation of the agriculture sector is at historically low levels, and with policy support, it is expected to experience a rebound from oversold conditions. 2. Data center sector strengthening The data center concept repeatedly strengthened, with the power and liquid-cooled server sectors leading the rise. Tellhow Sci-Tech hit the daily limit for nine consecutive days, Weichai Heavy Machinery hit two consecutive highs, and companies like Kehua Data Co., Ltd., Zhejiang Yinlun Machinery, and Power HF Co., Ltd. hit their daily limit up. Comment: On the news front, Alibaba Group CEO Wu Yongming announced on February 24th that in the next three years, Alibaba will invest over 380 billion yuan in building cloud and AI hardware infrastructure, surpassing the total of the past decade. Sinolink stated that global AI data centers are rapidly expanding, leading to high growth in power demand. Gas turbines are expected to become an important solution for powering AI data centers in the future, with a positive outlook for long-term demand for gas turbines. This article is reposted from "Tencent Self-Selected Stocks," GMTEight Editor: Chen Xiaoyi.

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