A-share Market Closing Report: A-shares hit bottom and rebound! Trading volume exceeds 2 trillion again, and the consumer sector is rising.

On February 27th, the market bottomed out and rebounded throughout the day, with the three major indexes showing mixed movements. The total turnover for the day exceeded 2 trillion yuan, with a volume of 66.2 billion higher than the previous trading day. By the close, the Shanghai Composite Index rose by 0.23%, the Shenzhen Component Index fell by 0.26%, and the ChiNext Index fell by 0.52%. In terms of market performance, the focus was mainly on defensive sectors, with the consumer goods sector leading the gains in food and retail sectors. Stocks such as Zhejiang Yiming Food and Haoxiangni Health Food surged by the daily limit. Brokerage stocks rallied again towards the end of the day, with China Galaxy hitting the limit up for two consecutive days, reaching a historical high. Concept stocks related to robotics and automation saw partial rebounds, with Shenzhen Zowee Technology hitting the limit up for six days. Stocks related to solid-state batteries surged, with several stocks like Shandong Sacred Sun Power Sources and Shanghai Emperor of Cleaning Hi-Tech hitting the limit up. On the downside, the technology sector saw a decline, with the computing power industry chain taking a significant hit. Photovoltaic, consumer electronics, semiconductor, and defense sectors led the losses. In terms of fund flows, main funds flowed into retail, battery, liquor, energy metals, and leisure food industries, while flowing out of IT services, semiconductor, software development, communication equipment, and consumer electronics industries. Institutional Views: Looking ahead, Huaxi pointed out that both A-shares and Hong Kong stocks may face a situation where bullish and profit-taking sentiments are intertwined. These two sentiments may continue to compete for pricing power, and the market may mainly fluctuate in the future. 1. CMSC: In late March, pay attention to the possibility of a drop in excess returns in the artificial intelligence sector. CMSC believes that April is a risky time for AI-related sectors in general. In the past two years, the AI sector has shown a significant drop in excess returns due to the arrival of the earnings season. This drop started on April 7th in 2023 and on March 22nd in 2024. Therefore, starting in late March, it is necessary to periodically focus on the possibility of a drop in excess returns in the artificial intelligence sector. 2. Huaxi: The future market of A-shares and Hong Kong stocks may be mainly characterized by fluctuation. Huaxi pointed out that A-shares and Hong Kong stocks may face a situation where bullish and profit-taking sentiments are intertwined, and these two sentiments may continue to compete for pricing power. The market may be mainly characterized by fluctuations in the future. The resilience of the technology sector is worth maintaining a bullish mindset. At the same time, the crowdedness of technology themes is also worth noting. If the crowdedness is too high and the trading volume significantly declines, themes may see a switch and short-term cooling pressure. 3. Zhongtai: Suggests maintaining the main line of dividend assets, bonds, etc. Zhongtai believes that in the medium term, it is advisable to maintain the main line of dividend assets, bonds, etc. Technology stocks will continue to be active, with increased volatility. In terms of short-term rhythm, the positive signals from private enterprise symposiums may drive strong market trends before the two sessions, with large internet companies benefiting the most. Along with the fermentation of policy expectations from the two sessions and the transfer of equity of central SOEs, it is expected that sectors such as central state-owned enterprises will also perform well in the near term. Popular Sectors: 1. Rise of the consumer goods sector The consumer goods sector rebounded against the trend, led by retail and duty-free sectors. More than 10 stocks, including Hainan Yedao, Hainan Development Holdings Nanhai, Chongqing Department Store, Shenzhen Seg, Haoxiangni Health Food, and Lanzhou Zhuangyuan Pasture, hit the daily limit up. Review: Xiangcai Securities pointed out that as the domestic policy of expanding domestic demand and stabilizing growth continues, offline consumption in China is expected to further recover by 2025. At the same time, many offline department stores and supermarkets have actively sought service model changes recently, bringing new performance growth stimuli to traditional retail businesses. It is recommended to focus on the recovery of domestic consumption, with a focus on retail formats with higher growth rates. 2. Rise of the solid-state battery sector The solid-state battery concept fluctuated and rose, with Shandong Sacred Sun Power Sources hitting the limit up for five consecutive days and stocks like Shanghai Emperor of Cleaning Hi-Tech, Power HF Co., Ltd., Guangdong Guanghua Sci-Tech, and Shanghai Zijiang Enterprise Group also hitting the limit up. Review: There have been continuous updates related to solid-state batteries, such as Mercedes-Benz recently starting full road tests for solid-state batteries. The China Solid-State Battery Technology Innovation and Industrialization Symposium is scheduled to be held from March 26th to 28th, 2025. In addition, the lithium battery industry has seen frequent large orders for Lithium Iron Phosphate, with leading companies confirming price increase news. CITIC SEC believes that with its outstanding performance, solid-state batteries are expected to expand the application scenarios of lithium batteries, and the global shipments of solid-state batteries are expected to exceed 600GWh by 2030. This article is reprinted from "Tencent Self-selected Stocks", GMTEight editor: Huang Xiaodong.