A-shares midday report | Chinext Index fell 0.17% in the morning, commercial aerospace ignited a surge in space photovoltaic circuit breakers, and several broad-based ETFs saw increased trading volume.

On January 23, the A-shares traded narrowly in the morning, with the Shanghai Composite Index up 0.27% and the Shenzhen Component Index up 0.24% by midday. However, the ChiNext Index fell by 0.17%. Of note, the commercial aerospace industry is driving the space photovoltaic concept. Huaxi pointed out that space photovoltaics are the primary energy source and system-level cost inflection point for space computational data centers. The high sunlight efficiency and nearly zero marginal electricity price reduce the total cost of orbit data centers by an order of magnitude compared to ground-based ones. It has become a strategic frontier solution for commercial aerospace and high-end applications such as space computing power, data centers, and future lunar bases. Space photovoltaics are at a turning point. In addition, after 10 am, several broad-based ETFs saw significant trading volume, with Huatai Bairui CSI 300 ETF trading over 5 billion, Southern CSI 1000 ETF trading over 4.4 billion, Huaxia CSI 1000 ETF trading over 3.5 billion, and Jiashi CSI 300 ETF and Huaxia CSI 300 ETF both trading over 3 billion. In terms of market trends, the commercial aerospace industry sparked a surge in space photovoltaics. More than 10 stocks, including Hainan Drinda New Energy Technology, hit the limit-up. Simultaneously, the commercial aerospace industry chain continued to show strength, with Juli Sling Co., Ltd. hitting three consecutive limit-ups. The non-ferrous metals and precious metals concepts strengthened once again, with Baiyin Nonferrous Group hitting a four-day limit-up. The pharmaceutical business and innovative pharmaceutical concepts were strong, with Yifeng Pharmacy Chain hitting the limit-up. Media and AI application concepts continued to rebound, with Zhewen Interactive Group hitting two consecutive limit-ups. The power grid equipment concept rose, with San Bian Science & Technology hitting the limit-up. On the downside, the gas and coal sectors saw adjustments, with the insurance and semiconductor sectors leading the decline. Looking ahead, Debont Securities believes that the recent market turnover remains at historical highs, indicating continued active fund flows. With some popular sectors adjusting and releasing risks, there is potential for upward momentum in the future. Hot Sectors: 1. Solar energy sector outbreak The solar energy concept exploded, with space photovoltaics leading the way. Hainan Drinda New Energy Technology hit the limit-up for the second consecutive day, along with more than 10 stocks such as GCL System Integration Technology, Yingkou Jinchen Machinery, Ming Yang Smart Energy, and Shenzhen Topraysolar. Analysis: Shenwan Hongyuan Group's research report stated that China's application for over 200,000 satellite constellations signifies the beginning of the commercial aerospace entering a new stage of large-scale deployment, which will directly drive the long-term demand for space photovoltaics. The technological iteration path of space photovoltaics is progressing from efficient gallium arsenide to large-scale silicon-based HJT, and then to the future layered perovskite. 2. Pharmaceutical business concept activity The pharmaceutical business concept was active, with Yifeng Pharmacy Chain and HPGC Renmintongtai Pharmaceutical Corporation hitting the limit-up. Sichuan Hezong Medicine Easy-To-Buy Pharmaceutical, Anhui Huaren Health Pharmaceutical, Jointown Pharmaceutical Group, LBX Pharmacy Chain Joint Stock, and Shu Yu Civilian Pharmacy Corp., Ltd., followed suit. Analysis: On the news front, nine departments issued opinions on promoting the high-quality development of the pharmaceutical retail industry, supporting retail pharmacies to undergo mergers and reorganizations. The retail pharmacy industry is expected to accelerate clearance by quarters by 2025, with customer flow concentrating towards leading companies. Leading pharmacies, with their professional service capabilities and strong supply chain systems, will remain strong during the industry consolidation phase. 3. Power grid equipment concept rising The power grid equipment concept rose, with San Bian Science & Technology hitting the limit-up. China XD Electric, Henan Senyuan Electric, Beijing SOJO Electric, Shenzhen Clou Electronics, Chongqing Wangbian Electric (Group) Corp., and Newonder Special Electric followed suit. Analysis: Huatai's research report expressed optimism about the accelerated construction of a unified national electricity market. During the 15th Five-Year Plan period, grid investment will maintain a steady growth trend, with clear needs for inter-provincial power transmission channels and reinforcement of weak power grids in the western regions. Demand for ultra-high voltage construction remains high, and main grid investment is expected to continue to grow rapidly. Institutional perspectives: 1. EB Securities: Post-holiday expected to usher in a new upward momentum EB Securities believes that the market will gradually cool down and enter a period of volatility after the rapid upward trend recently. From a strategic perspective, it is recommended that investors adopt a steady allocation approach before the Spring Festival. Looking ahead to post-holiday, the market may see a new round of upward momentum. In terms of industries, focus on electronics, power equipment, and non-ferrous metals; and in terms of themes, continue to pay attention to commercial aerospace. If the market style is growth-oriented, industries scoring high in the Five Dimensions Industry Comparative Framework will be electronics, power equipment, telecommunications, non-ferrous metals, automobiles, and defense industry. 2. Debont Securities: Turnover remains at historical highs, market expected to continue upwards in a volatile manner Debont Securities believes that with policy and industry driving forces, attention should be paid to annual performance forecasts. Recently, the market turnover has remained at historical highs, indicating continued active fund flows, and with some popular sectors releasing risks after adjustments, strength is being built for future upward movements. The current market is in a structural market driven by both policy catalysts and industry trends. Areas such as commercial aerospace, AI computing power, and storage chips have dual support from policies and industries, strengthening the logic of domestic substitution and potentially having long-term tracking value. 3. Orient: Bull market consensus forms market bottom support Orient believes that recently, stocks that have continuously hit limit downs have shown signs of rebound. In the short term, liquidity has been released, pessimistic sentiment has eased, and it is favorable for active trading in the market. It is worth noting that large amounts of money continued to flow out in the mainstream broad-based index ETFs on Thursday, with frequent intensive sell-offs during trading, causing the three major indexes to fall multiple times during the session. However, once the pulse-style selling by large funds ends, the indexes often rebound and move higher again, indicating the market's resilience. Overall, the consensus for the bull market forms a bottom support, with the increasing accumulation of chips at current levels gradually enhancing the positive impact on the market, laying a volume foundation for future index gains.