A-shares market closing comments | GEM index up 1%, commercial aerospace concept heats up again

On January 22nd, the A-share continued to rebound, with the Shanghai Composite Index up 0.14% at the close, the Shenzhen Component Index up 0.50%, and the ChiNext Index up 1.01%. It is worth noting that the two popular themes of commercial aerospace and AI applications rebounded. On the news front, there were reports in the market recently about the first public offering (IPO) plan of the American space exploration technology company SpaceX, which directly catalyzed the rebound in the commercial aerospace sector. In addition, recently, three commercial aerospace companies, StarRiver Power, Interstellar Glory, and Aerospace Hi-Tech Holding Group, updated their IPO guidance progress. Orient believes that there is still no rebound momentum in the stock market index in the short term, with the Shanghai Composite Index fluctuating around 4100 points, and a significant rebound in the stock index is expected after the Spring Festival. In terms of market performance, the two major popular themes of commercial aerospace and AI applications rebounded, with the former performing stronger and driving sectors such as defense industry and photovoltaic equipment higher, with more than 10 stocks like Western Metal Materials hitting the daily limit; cyclical resources were strong, with the oil and gas sector leading the gains, Geo-Jade Petroleum Corporation hitting the daily limit for two consecutive days; the coal sector surged, with Henan Dayou Energy hitting the limit; in addition, sectors such as controlled nuclear fusion, computing power, and Siasun Robot & Automation also showed some performance. On the downside, sectors like non-ferrous metals, precious metals, and semiconductors, which were strong the previous day, saw a pullback, with insurance and beauty care sectors leading the declines. In terms of individual stocks, Zhejiang Fenglong Electric hit the daily limit again with a streak of 17 consecutive daily limit increases, while there were over 2 billion yuan waiting to be bought on the daily limit board. On the morning of January 22nd, Zhejiang Fenglong Electric responded to questions on the investor interaction platform, stating that within the next 36 months, there is no plan or arrangement for Shenzhen UBTECH ROBOTICS Technology Co., Ltd. to go public through the restructuring of the listed company; and within the next 12 months, UBTECH ROBOTICS has no asset restructuring plan. Looking ahead, Huaxi believes that regulatory "counter-cyclical adjustment" will support the A-share "slow bull market," and the market trend is expected to gradually slow down and evolve into a healthy slow bull market. Popular sectors: 1. The commercial aerospace concept heats up again The commercial aerospace concept continues to heat up, with Jiangsu Jiuding New Material hitting the daily limit for 3 out of 4 days, Juli Sling Co., Ltd. hitting the daily limit for 2 consecutive days, and over 10 stocks like Western Metal Materials and Jiangsu Zhongchao Holding also hitting the daily limit. Comment: Recently, three commercial aerospace companies, StarRiver Power, Interstellar Glory, and Tianbing Technology, have updated their progress in listing guidance, adding to the approval of the Blue Arrow Aerospace IPO application and the completion of guidance record for China Aerospace Corporation, all positioning themselves to become the "first stock of commercial aerospace." Sinolink analysis believes that 2026 will be the "alpha year" of China's commercial aerospace, with the industry logic shifting from simple thematic mapping to fundamental investment based on the performance realization of the supply chain. 2. The entire oil industry chain is on the rise The entire oil industry chain has seen a strong uptrend in the morning, with the oil and gas sectors leading the gains, Geo-Jade Petroleum Corporation hitting the daily limit for two consecutive days, and several stocks like Shanxi Blue Flame Holding and Shandong Shengli also hitting the daily limit. Comment: On the news front, the cold wave in the United States has pushed up natural gas futures prices dramatically, with overnight NYMEX natural gas prices soaring more than 29%. Sinolink said that the probability of a La Nina event has increased, which could lead to a sudden drop in winter temperatures in the northern hemisphere. With current European natural gas storage levels at the median, a cold winter or rise in natural gas prices could be expected, and it is recommended to pay attention to upstream natural gas production-related stocks. 3. The coal sector sees a surge The coal sector has surged, with Henan Dayou Energy hitting the daily limit, and stocks like Sundiro Holding, Liaoning Energy Industry, Zhengzhou Coal Industry & Electric Power, Gansu Energy Chemical, and China Coal Energy following suit. Comment: According to data from Sublime China Information, as of January 19th, the mining price of Shanxi Datong Q5500 high-calorie coal was between 565-580 yuan/ton, up 12.5 yuan/ton from early January, a 2.23% increase. Institutional views: 1. Huaxi: Market moving towards a healthy slow bull market Huaxi believes that regulatory "counter-cyclical adjustment" will support the A-share "slow bull market." The market trend is expected to gradually slow down and evolve into a healthy slow bull market. Looking ahead, the overall valuation of A shares is still within a reasonable range, investor risk appetite remains high, and factors such as macro policy support, medium and long-term fund inflows, and moderate corporate profit recovery are expected to support the continuation of the bull market. As we enter the period of intensive disclosure of annual performance forecasts in late January, funds may once again focus on performance-related themes. In terms of industry allocation, 1) focus on the diffusion of the technology industry market: such as AI computing power, AI applications, Siasun Robot & Automation, and Hong Kong Internet stocks; 2) benefit from the direction of "anti-concussion" and price increases, such as chemical industry, non-ferrous metals, etc.; 3) high growth direction of annual performance forecasts: such as electronics, mechanical equipment, pharmaceuticals, etc. 2. CMSC: Emotions around performance disclosure intensifying CMSC believes that looking ahead, A-shares are expected to move into a oscillating trend after hitting previous highs. As we enter late January, emotions around performance disclosure will intensify, and it is important to focus on directions where performance exceeds expectations or where the shoe drops after performance disclosure. Overall, in terms of style selection, it is more recommended to choose large-cap growth stocks, with industry allocation mainly focusing on the spring excitement and forward-looking clues before annual reports, and key recommendations include focusing on the combination of cyclical and technological fields, typical industries such as power equipment, mechanical equipment, non-bank financials, electronics, non-ferrous metals, and basic chemicals. 3. Orient: Significant rebound in stock indices expected after the Spring Festival Orient believes that there is still no rebound momentum in the stock market index in the short term, with the Shanghai Composite Index fluctuating around 4100 points, and a significant rebound in the stock index is expected after the Spring Festival. Overall, under the strong empowerment of AI technology, multiple sub-sectors in the technology field maintain a high prosperity trend. Many enterprises in the upstream and downstream of the industrial chain have achieved steady growth in performance through technological iteration and demand release, making them the focus of market funds. Sub-sectors such as photovoltaics, liquor, and pig farming are affected by market environmental fluctuations, supply and demand structure adjustments, and pressure on corporate performance. The investment style of "liking new and disliking old" is expected to continue to prevail this year.