A-share market closing review | Witness history! The Shanghai Composite Index has rarely seen 14 consecutive gains! Trading volume has exceeded 2.8 trillion for two consecutive days.

On January 7th, the three major A-share indexes collectively closed higher, with the Shanghai index seeing a rare 14-day increase and trading volume exceeding 2.8 trillion for two consecutive days. Nearly 3200 stocks in the market were trading lower. By the close, the Shanghai Composite Index rose by 0.05%, the Shenzhen Component Index rose by 0.06%, and the Growth Enterprise Index rose by 0.31%. In terms of market performance, there was rapid rotation of hot spots, with the commercial aerospace concept becoming active again, with over a dozen constituent stocks hitting the limit up. Stocks in the coal sector continued to rise, with Henan Dayou Energy and Shaanxi Heimao Coking reaching the limit up. Semiconductor equipment stocks continued to be strong, with Advanced Micro-Fabrication Equipment Inc. China and NAURA Technology Group reaching historical highs. The photoresist concept was active, with Anhui Guofeng New Materials hitting the limit up for 3 days in 2 days, and Jiangsu Nata Opto-electronic Material and Red Avenue New Materials Group also hitting the limit up. The controllable nuclear fusion concept was volatile and strong, with China First Heavy Industries and China Nuclear Engineering Corporation hitting the limit up. Looking ahead, Orient believes that from a technical perspective, after a two-day significant rebound, the Shanghai Composite Index is approaching the 4100 level. It is expected that the upward momentum will slow down in the future, and a significant volatility may not be ruled out. The focus will still be on future industries, but caution is needed as there may be risks of substantial corrections after some stocks are significantly speculated, and understanding the switch between sectors is crucial. Hot sectors: 1. Semiconductor Industry Chain Breakout Lithography machines, photoresists, storage chips, and other semiconductor-related stocks were surging, with many stocks hitting the limit up. 2. Controlled Nuclear Fusion Concept Rises Companies related to controlled nuclear fusion saw gains, with several stocks hitting the limit up. 3. Non-ferrous Nickel Concept Surges Stocks related to non-ferrous nickel were rising, with several stocks following the trend. Institutional viewpoints: 1. Goldman Sachs: Overweight A shares and H shares in 2026. Expect MSCI China index to rise by 20% this year. Goldman Sachs released its report on the outlook for Chinese stocks in 2026 on January 7th, recommending overweight positions in A shares and H shares. The report predicts that the MSCI China index and the Shanghai and Shenzhen 300 index will rise by 20% and 12% respectively this year, driven mainly by the fact that the earnings per share of listed companies can still maintain double-digit growth, moderate valuations, and the fact that global investors generally have low holdings in Chinese stocks. 2. Huaxi: Early Spring Excitement, Bull Market Still Unchanged Huaxi believes that the early excitement of spring has started, and the bull market situation remains unchanged. 3. Shenwan Hongyuan Group: Spring Market Still Has Room for Growth Shenwan Hongyuan Group Securities believes that the structure judgment in spring remains unchanged, the theme market has more elasticity, and the opportunities lie in AI chain computing and cyclical opportunities. 4. Orient: Shanghai index approaching 4100 points, expected to slow down in the future Orient believes that after a significant rebound, the Shanghai Composite Index is approaching the 4100 level, and it is expected that the upward momentum will slow down in the future, with the possibility of significant volatility. The focus will still be on future industries, but caution is needed as there may be risks of substantial corrections after some stocks are significantly speculated. Solid-state battery sector is showing signs of rebound, and with the acceleration of commercialization this year, it is worth investors' attention.