A shares midday report | Stock index wide earthquake, broad-based ETF turnover enlarged again! AI application sector continues to decline

On January 16, the A-shares opened higher in the morning but fell back, with the three major indices collectively turning green. By the close, the Shanghai Composite Index fell by 0.22%, the Shenzhen Component Index fell by 0.1%, and the ChiNext Index fell by 0.01%. The total turnover of the Shanghai and Shenzhen stock markets was 1.99 trillion yuan by midday, an increase of 117.1 billion yuan from the previous trading day. It is worth noting that the trading volume of several broad-based ETFs once again increased today, with trading volumes exceeding 10 billion yuan for Huatai Bairui CSI 300 ETF, Nanfang CSI 500 ETF, Huatai Bairui A500 ETF, and ChinaAMC MSCI China A 50 Connect ETF. In addition, Jia Shi CSI 300 ETF, Huaxia CSI 300 ETF, Guotai A500 ETF, CSOP FTSE China A50 ETF, and Huaxia SSE 50 ETF all had trading volumes exceeding 5 billion yuan. Core broad-based ETFs saw a significant net outflow in trading volume yesterday, with the top CSI 300 ETFs, Kechuang 50 ETF, and ChiNext ETF collectively experiencing a net outflow of funds exceeding 70 billion yuan. In terms of market performance, electric grid equipment and power stocks continued their strong performance, with multiple stocks such as Sieyuan Electric, Shanghai Guangdian Electric Group, and DaTang HuaYin Electric Power hitting their daily limit up. The semiconductor chip industry chain saw overall strength, with materials, equipment, and testing and packaging leading the gains, and stocks like Ningbo Kangqiang Electronics and Acter Technology Integration Group hitting limit up. The optical module concept once again saw a rise, with stocks like Suzhou Shijia Science & Technology Inc. and Suzhou K-Hiragawa Electronic Technology hitting limit up. The robotics and automation concept was active, with stocks like GuangDong Rifeng Electric Cable and Hengong Precision Equipment hitting limit up or rising by over 10%, and others following suit. The non-ferrous metals sector saw repeated activity, with Huludao Zinc Industry touching the limit at one point. On the downside, AI applications continued to pull back, with component stocks like Xinhuanet Co., Ltd., People.cn Co., Ltd., Inmyshow Digital Technology, and Zhewen Interactive Group experiencing widespread daily limit down. Oil and gas stocks saw a volatile correction, with stocks like Tong Petrotech Corp., KLGF falling by over 10%, and Shandong Molong Petroleum Machinery hitting the daily limit down. The lithium battery sector continued to decline, with stocks like Tonze New Energy Technology, Hunan Lead Power Technology Group falling by over 8%, and Chengxin Lithium Group falling by over 5%. The tourism and hotel sector saw a pullback, with UTour Group hitting the daily limit down, and the retail sector also saw declines, with Sanjiang Shopping Club hitting the daily limit down. Diversified financial and insurance sectors continued to decline, with Luxin Venture Capital Group hitting the daily limit down. Looking ahead, Orient stated that the spring market rally is not over in the short term, and the slow bull market is expected to continue. It is predicted that before the Spring Festival, the Shanghai Composite Index will continue to fluctuate within the range of 4000-4200, focusing on the growth style, especially in future industries. Popular Sectors: 1. Electric grid equipment and power stocks continued their strong performance. 2. The semiconductor chip industry chain saw overall strength. 3. The optical module concept saw another rise. 4. The robotics and automation concept was active. Institutional Views: 1. Orient: The spring market rally is not over in the short term, and the slow bull market continues. 2. Shenwan Hongyuan Group: The market is currently in a high-level phase of the "structural bull" market, with some adjustments and setbacks expected. 3. CICC: The total growth rate of the financial sector in the first half of 2026 may continue to slow down.