A-shares closing review | Shanghai Composite Index surged by more than 1% on heavy trading volume! Leading stocks of the bull market China Galaxy (601881.SH) and CICC (601995.SH) both hit the daily limit up.

On February 26th, Chinese assets collectively rose, with the Hang Seng Tech Index soaring 5% during trading, reaching a new high since December 2021. Semiconductor Manufacturing International Corporation and Alibaba both rose over 6% at one point. In A-share market, the three major indexes opened high and closed higher collectively. By the end of the trading day, the Shanghai Composite Index rose by 1.02%, the Shenzhen Component Index rose by 0.93%, and the ChiNext Index rose by 1.23%. Over 4200 stocks went up, with over a hundred stocks hitting their daily limit. The total trading volume of the two markets reached 1.92 trillion yuan, an increase of 26.5 billion yuan from the previous day. According to a report released by Goldman Sachs, hedge funds have increased their focus on Asian stock markets from February 14th to 20th, reaching the highest level since 2016. A-shares and Hong Kong stocks account for nearly half of the inflow of funds. In terms of market performance, leading brokerage stocks surged at the end of the day with CICC and China Galaxy hitting their daily limit. Chip stocks also rose in the afternoon, with Chengdu Sino-Microelectronics Tech. attempting to hit the 20% daily limit. The steel sector strengthened, with stocks like Xinjiang Ba Yi Iron & Steel hitting their daily limit, and sectors like real estate, automotive supply chain, photovoltaic, and solid-state batteries showing strength. Only a few sectors like agriculture performed weakly. Looking at fund movements, main funds flowed into industries like securities, photovoltaic equipment, automotive components, semiconductors, and home appliance components, while flowing out of industries like IT services, consumer electronics, optics and optoelectronics, communication equipment, and gaming. Institutional viewpoints Looking ahead, Zheshang believes that the current spring offensive will continue along the path of "technology leading - consolidation on pullback - comprehensive rebound", further developing into depth. 1. Huajin Securities: Spring market in progress, growth style may be difficult to change in the short term Huajin Securities pointed out that external events are leaning towards positive and liquidity is abundant, so the growth style may be difficult to change in the short term. (1) Short-term external events tend to be positive. First, domestic policy easing is likely to continue in the short term. Second, external risks may further decrease: firstly, risks such as the Russia-Ukraine conflict may significantly decrease, and secondly, overseas constraints on domestic easing may decrease. Third, the trend in the technology industry continues to rise. (2) Fundamentals continue to weakly recover: first, post-holiday real estate sales still maintain relatively low absolute values; second, corporate profits continue to trend higher from a low level. (3) Domestic liquidity may remain loose in the short term. First, reserve requirement ratios may still be lowered in the short term. Second, the first quarter is traditionally a peak season for credit. 2. Zheshang: Expect the current spring offensive to deepen further Zheshang pointed out that looking ahead, the current spring offensive is expected to follow the path of "technology leading - consolidation on pullback - comprehensive rebound", further developing into depth. Of course, attention should be paid to possible two-way fluctuations in some over-rallied industries, sectors, and individual stocks. In terms of industry sectors, it is recommended to make certain adjustments to some over-rallied technology sectors, find targets for "high cutting and low holding" within the sector, or switch some positions to large financial sectors that have lagged in previous gains, making it possible to participate in catch-up gains while smoothing out the net asset value curve. In addition, the healthcare sector, which has experienced continuous declines in recent years, can focus on stocks with large declines, stable fundamentals, and increased shareholder holdings. Hot sectors 1. Steel sector sets off daily limit surge Steel stocks continued to rise, triggering a daily limit surge. Stocks like Bengang Steel Plates, Guangdong Zhongnan Iron & Steel, Hang Zhou Iron & Steel, Xinjiang Ba Yi Iron & Steel, Xinyu Iron & Steel, and Hunan Valin Steel all hit their daily limit. Review: Galaxy Securities pointed out that macro policies continue to show effectiveness, which is conducive to improving the concentration of the steel industry and correcting the long-standing supply-demand imbalance. Leading steel companies are expected to benefit. At the same time, as the manufacturing industry undergoes transformation and upgrades, demand for high-end special steels is expected to grow rapidly, further promoting the advantages of steel companies. 2. Siasun Robot & Automation sector takes a nosedive Concept stocks related to Siasun Robot & Automation surged and then fell back, with Wuxi Longsheng Technology dropping nearly 10% at one point, and Jiangsu Leili Motor, Zhejiang Sling Automobile Bearing, Jiangsu Smartwin Electronics Technology, and Zhejiang Changsheng Sliding Bearings all experiencing significant declines in the afternoon. Review: In terms of news, a new algorithm technology jointly released by institutions such as the Shanghai Artificial Intelligence Laboratory and Shanghai Jiao Tong University can enable human-shaped Siasun Robot & Automation to stand quickly and stably in various states. Guosen pointed out that human-shaped Siasun Robot & Automation is still at the stage of 0 to 1. By 2025, it may be the year of mass production, with a clear long-term direction and ample space. 3. Real estate sector strengthens The real estate sector showed strength in a fluctuating manner, with stocks like Greattown, Everbright Jiabao, Shenzhen Wongtee International Enterprise hitting the daily limit, while stocks like CCCG Real Estate, Gree Real Estate, Gemdale Corporation, and Poly Developments and Holdings Gro...Up is rising.Review: Huatai expresses that with the adjustment and bottoming out of the real estate industry, as well as the loosening of policies regarding equity financing and mergers and acquisitions of real estate enterprises, a new, more profound wave of transformation may be on the horizon. 4. Photovoltaic sector on the rise Stocks in the new energy sector rebounded, with photovoltaic and solid-state battery sectors leading the gains. Stocks such as Mcc Meili Cloud Computing Industry Investment hit the daily limit up, while Hangzhou First Applied Material, Jinko Solar, Arctech Solar Holding, Shanghai Hiuv New Materials Co.,Ltd, Trina Solar Co., Ltd. also saw increases. Review: Recently, the prices of photovoltaic components from major brands have risen by 2 to 5 cents per watt. A spokesperson from a top component manufacturer stated that the company has indeed implemented price adjustments recently; and with the impact of the rush to install new policies, the company's component production has increased recently. This article is reposted from "Tencent Stock Selection", edited by Chen Xiaoyi, GMTEight.