A-share market review | Index adjustment in tandem! AI intelligent body concept rises and falls, liquor rebounds against the trend.

Today, the market is volatile and adjusting, with the ChiNext Index leading the decline. Looking at the market, resource stocks are rising against the trend, with strong performance in the non-ferrous metals sector. Stocks such as Yunnan Luoping Zinc & Electricity, Zhuzhou Smelter Group, and Tibet Huayu Mining hit the limit up. The liquor sector rebounded in the afternoon, with Anhui Yingjia Distillery leading the gains. Military stocks were active, with Wisesoft Co., Ltd. hitting the limit up. The AI intelligent concept surged and then fell back, with stocks like Qingdao Kutesmart Co., Ltd. exploding. On the downside, the computing power sector suffered a heavy blow, with the leading company Talkweb Information System hitting the limit down. Major sectors such as finance, real estate, semiconductors, and photovoltaics recorded significant declines. Overall, the market traded slightly lower with a total turnover of 1.8 trillion RMB, and over 3500 stocks fell in both markets. Specifically, the liquor sector rebounded in the afternoon against the trend, with Anhui Yingjia Distillery leading the gains. Companies like Jiangsu King's Luck Brewery Joint-Stock, Luzhou Laojiao, Sichuan Swellfun, and Wuliangye Yibin followed suit. China Securities Co., Ltd. stated that the end demand for tobacco and alcohol is currently at a low level and the demand recovery will quickly transmit to the alcohol companies. Leading liquor companies still have good growth potential, and expectations for the full year may gradually improve. Resource stocks were active, with the non-ferrous metals sector leading the gains. Yunnan Luoping Zinc & Electricity, Zhuzhou Smelter Group, and Tibet Huayu Mining hit the limit up. According to China Securities Journal, there have been continuous catalytic factors in the non-ferrous metals sector recently: firstly, the prices of minor metals are rising, especially antimony; secondly, the largest cobalt-producing country in the world, the Democratic Republic of Congo, recently announced a 4-month suspension of cobalt exports; thirdly, March is the traditional peak season, and the market generally believes that industrial metal prices are expected to remain strong. Fourthly, after the continuous surge in technology stocks, some funds have a demand for switching between high and low, and the current value of cyclical varieties is evident. In terms of individual stocks, the computing power sector's popular stock Talkweb Information System hit the limit down in the afternoon. On the news side, the company previously issued a clarification announcement stating that it had noted that there were rumors circulating online that the company was planning to adjust its major asset restructuring plan. After confirmation by the board of directors, it was determined that the above-mentioned online rumors were false information. Looking at individual stocks, 1714 stocks rose in both markets, while 3556 stocks fell, and 125 stocks remained unchanged. There were 63 limit-up stocks and 13 limit-down stocks in both markets. At the close, the Shanghai Composite Index fell 0.25% to 3372.55 points, with a turnover of 687.9 billion RMB; the Shenzhen Component Index fell 0.50% to 10843.73 points, with a turnover of 1130.4 billion RMB. The ChiNext Index fell 1.31% to 2205.31 points. Funds Movement Today, the main funds focused on grabbing the industrial metals, liquor, and automotive parts sectors, with the top stocks in net inflows being Leo Group Co., Ltd., INESA Intelligent Tech Inc., Wuliangye Yibin, etc. News Review 1. Director of the National Health Commission, Lei Haichao: This year will distribute childbirth subsidies, and the operational plan is being drafted Lei Haichao, Director of the National Health Commission, stated on March 7th during the delegation meeting of the Jiangsu delegation to the 14th National People's Congress that population issues are still an important issue that requires in-depth and dynamic research. This year will distribute childcare subsidies, and the National Health Commission is working with relevant departments to draft operational plans related to childcare subsidies. It is necessary to further reduce the costs of childbirth, child-rearing, and education, vigorously develop integrated early childhood services, and provide more inclusive services to families in need of childcare services. 2. Manus responds to the freezing of the official X account: Actively cooperating with the X team to resolve the issue Yichao Peak Ji, co-founder and chief scientist of Manus, stated on March 7th in a statement on X: Our official X account (@ManusAI_HQ) was unexpectedly frozen yesterday. We are actively cooperating with the X team to resolve this issue. Preliminary observations indicate that this freeze may be related to third-party mentions of cryptocurrency fraud. Just to clarify: Manus has never been involved in cryptocurrency projects, token issuance, or blockchain initiatives. Any cryptocurrency company with a similar name that claims to be associated with us is fraudulent. We are taking legal action against these impostors and encourage users to report suspicious accounts. Market Outlook 1. UBS: It is expected that the earnings per share of Shanghai and Shenzhen 300 index constituent stocks will grow by 6% this year, and the index increase may be even higher Meng Lei, China strategy analyst at UBS Securities, stated in a video press conference that the earnings per share of Shanghai and Shenzhen 300 index constituent companies are expected to grow by 6% this year. If the A-share market rally continues, the Shanghai and Shenzhen 300 index increase is expected to be far higher than 6%. Overseas funds are further overweighting China, as the US stock market is volatile and China is the only emerging market with a high-quality artificial intelligence large model. The entry of long-term funds will help smooth out volatility in the A-share market, and A-share market is expected to be in a low-volatility stable state this year. It is estimated that by 2025, insurance funds, public funds, and social security funds will bring net inflows of 1 trillion RMB, 590 billion RMB, and 120 billion RMB respectively to the A-share market. The surge in trading volume is beneficial to small and medium-sized stocks in the A-share market, and we are optimistic about small and medium-sized stocks and growth stocks in the A-share market. 2. Minsheng Securities: Policy efforts will lead to marginal improvement in the demand-driven cyclical sector Minsheng Securities believes that looking ahead, the realization of earnings in Chinese technology stocks may lead to a divergence in the market. Currently, the inventory level of domestic industrial enterprises has fallen below the central level in the past 5 years, and the operating rate has increased. The "Two New Two Heavy" policy efforts will lead to greater marginal improvements in domestic demand-driven cyclical sectors.Recommendations: First, downstream consumption related to the stabilization of "quantity" (brand clothing, food, drinks, appliances, tourism, etc.) + midstream supply pattern with better or positive changes (engineering machinery, steel, chemical products, lithium batteries, etc.) + non-ferrous metals (copper, aluminum); Second, under inflation risk, commodities are reassessed: gold, crude oil, the launch of gold stocks may depend on confirmation of the upward movement of the gold price center after the slowing trend of gold price; Third, low valuation + dividend, while also having a decline in macro risks in China: banks, insurance.3. Industrial: The market will gradually enter a more "realistic" stage Industrial believes that the market will gradually enter a more "realistic" stage in March-April, and will consciously seek out some low positions that have policy support and performance backing. The previous growth style in technology, represented by AI, continues to evolve. In addition to industrial trends catalyzing, market risk appetite is also boosted by the absence of fundamentals and policy vacuum. As we enter March, with a series of important milestones approaching, the market will also enter the traditional window of improving the effectiveness of fundamentals and policy factors. Therefore, the market is consciously spreading towards some low positions benefiting from policy support and marginal improvement in the economy. This article was reprinted from "Tencent Stock Selection". Editor: Liu Jiayin.