A-share closing review | The rhythm of the bull market changes! Multiple ETFs plummet.

Today, the market traded in a wide range, and by the closing bell, the three major indices all fell collectively. AI applications continued to adjust, commercial aerospace received a flow of funds, and sectors like semiconductors and power equipment performed strongly throughout the day. The market saw a total trading volume of about 3 trillion RMB, with a volume increase of over 1 trillion RMB compared to the previous trading day, and nearly 3,000 stocks in both markets experienced declines. Of note, in the afternoon, broad-based ETFs continued to see high trading volume, with the Huashang 300 ETF and other ETFs experiencing record-breaking trading volumes. According to a securities firm, the market weakening today may be attributed to changing market expectations. Factors such as the decrease in M1 growth in December and concerns about liquidity transmission persisting, as well as the structural "interest rate cut" implemented yesterday affecting market sentiment. Even though there was a moment of high sentiment, some brokerages believe that the possibility of an interest rate cut before the Spring Festival has decreased. Additionally, after the consolidation of emotions towards commercial aerospace and AI applications, investors' expectations for market profitability have also shifted. On the market front, it was announced that fixed asset investment in the power grid during the 14th Five-Year Plan period is expected to reach 4 trillion RMB, signaling a 40% increase from the 13th Five-Year Plan period. As a result, power grid equipment and power stocks performed strongly, with multiple stocks hitting the daily limit. The semiconductor and chip industry chains also saw a strong performance, with several stocks hitting the limit and Shenzhen Longsys Electronics reaching an all-time high. The Siasun Robot & Automation industry chain also saw gains, with Guangdong Rifeng Electric Cable and Hengong Precision Equipment leading in growth. The commercial aerospace concept rebounded, with Beijing Urban Construction Investment & Development hitting the daily limit. Additionally, consumer electronics and photovoltaic equipment sectors also showed some performance. In terms of declines, AI applications continued to retract, with stocks like Xinhuanet Co., Ltd. and Zhewen Interactive Group experiencing large declines. The oil and gas sector also saw some fluctuations, with declines in the lithium battery sector, tourism and hotel industries, and diversified financial sectors leading the way in losses. Looking ahead, Orient believes that in the short term, the spring market is not over, with a slow bull market continuing. It is predicted that the Shanghai Composite Index will continue to fluctuate between 4,000-4,200 before the Spring Festival, focusing on the growth style industries in the future. In terms of individual stocks, of the total of 4,344 stocks traded, 2,371 rose, 2,973 fell, and 128 remained unchanged. There were 67 stocks that hit the daily limit, while 62 stocks hit the downside limit. At the close, the Shanghai Composite Index fell by 0.26% to 4,101.91 points, with a trading volume of 1.338 trillion RMB; the Shenzhen Component Index fell by 0.18% to 14,281.08 points, with a trading volume of 1.671 trillion RMB. The ChiNext Index dropped by 0.20% to 3,361.02 points. In terms of fund flows, today, the main funds focused on the semiconductor, consumer electronics, and automotive parts sectors, with stocks like Foxconn Industrial Internet, JCET Group Co., Ltd., and Zhejiang Sanhua Intelligent Controls experiencing net inflows of funds. News Recap: 1. Recent advances have been made in the field of liquid metal flexible electronic manufacturing in China, showing application prospects in the aerospace field. 2. Major passive component manufacturer Yageo resistor raised prices by 15% -20%. 3. The recycling and comprehensive utilization of waste electric vehicle batteries will start full life cycle supervision. Market Forecast: 1. Orient: In the short term, the spring market is not over, and the slow bull market continues. 2. Shenwan Hongyuan Group: The current market is roughly in the high range of the "structural bull" stage, with some consolidation and setbacks likely in between. 3. CICC: It is expected that the growth rate of financial totals in the first half of 2026 may continue to slow down. This article was reprinted from "Tencent Stock Selection". GMTEight Editor: Feng Qiuyi.