A-share mid-day review | Chinext index hit bottom and rebounded by 0.44%, with more than 4400 stocks in the market rising. Major financial institutions supporting the market, the semiconductor sector is strong.

On January 27th, the morning session of A-shares bottomed out and rebounded, with the Shanghai Composite Index and the Growth Enterprise Index both turning red. The major indices showed significant differentiation for two consecutive days, with over 4400 stocks in the market trading lower. The half-day turnover was 1.87 trillion yuan, a decrease of 367.4 billion yuan from the previous trading day. By midday close, the Shanghai Composite Index was up 0.03%, the Shenzhen Component Index was down 0.37%, and the Growth Enterprise Index was up 0.44%. Zhongtai believes that in the short term, the market differentiation pattern will continue, but may gradually converge in the medium term. Looking ahead, the disclosure of annual reports and first quarter reports of listed companies after the Spring Festival will gradually unfold, and the market pricing logic is expected to shift from risk appetite and valuation expansion to a focus on performance realization and profit growth. In terms of market performance, the insurance and banking sectors continued to support the market, with Agricultural Bank of China rising more than 2%. The precious metals sector remained strong, with China National Gold Group Gold Jewellery hitting a limit up for the third consecutive day. The semiconductor and computing hardware sectors strengthened, with storage chips and CPO leading the way, while Puya Semiconductor (Shanghai) Co., Ltd. hit a new high. The nurturing diamonds and superhard materials concepts saw a surge, with Henan Huanghe Whirlwind hitting the limit up. On the downside, pharmaceutical stocks saw a collective pullback, while coal, consumer goods, new energy sectors, and real estate were among the top decliners. Looking ahead, Orient believes that the recent proactive cooling of the market has changed the pace of market operations, but has not changed the overall market trend, which is conducive to maintaining a rational slow bull market. They consider "technology track + resource" to be the main investment route before the Spring Festival. Key Sectors 1. The precious metals sector remains strong The precious metals concept rebounded, with China National Gold Group Gold Jewellery hitting a limit up for the third consecutive day, and Hunan Gold Corporation, Zhaojin International Gold both hitting a limit up for the second consecutive day. Hunan Silver quickly turned red during the session after hitting a limit down. Analysis: On Tuesday morning, gold and silver experienced a sharp pullback after hitting historic highs, with spot gold falling below $5000 at one point. Spot silver surged by 14% at one point, but later pared back all the gains. However, Wall Street investment banks are generally optimistic about the future of gold. Among them, the JF Group is the most aggressive, predicting that the price of gold could reach $6600 per ounce this year. 2. The nurturing diamonds concept surged The nurturing diamonds and superhard materials concepts surged, with Henan Huanghe Whirlwind hitting a limit up, and Sf Diamond Co., Ltd., HFZS, Henan Liliang Diamond, Sinomach Precision Industry Group following suit. Analysis: Recently, the team from Xi'an Electronic Technology University and the National Space Science Center of the Chinese Academy of Sciences successfully developed a high-performance single crystal diamond radiation detector, which significantly improves the reliability of electrode bonding, radiation tolerance, and high-temperature stability, providing an innovative technological path to break through the performance bottleneck of traditional detectors in deep space environments. Institutional Views 1. Zhongtai: Short-term market differentiation pattern will continue Zhongtai believes that in the short term, the market differentiation pattern will continue, but may gradually converge in the medium term. Looking ahead, the disclosure of annual reports and first quarter reports of listed companies after the Spring Festival will gradually unfold, and the market pricing logic is expected to shift from risk appetite and valuation expansion to a focus on performance realization and profit growth. With the opening of the performance verification window, valuation anchors will return to the actual profitability and growth levels of enterprises, and the previous structural over-differentiation driven by risk appetite is expected to gradually converge. From the end of January to the Spring Festival, the hotspots in the technology sector may spread from main lines to segmented areas, with a focus on high elasticity directions that attract funds. 2. Sinolink: Asset allocation trends towards physical assets and Chinese assets Sinolink believes that last week, A-shares showed market resilience amidst overseas risks and regulatory signals. They recommend: First, the reassessment of physical assets as an attribute of asset allocation is still ongoing, and global investments are bringing physical consumption - copper, aluminum, tin, gold, lithium, crude oil and oil transportation; Second, the China equipment export chain with global comparative advantages and confirmed cyclical bottoms - power grid equipment, energy storage, lithium batteries, photovoltaics, engineering machinery, commercial vehicles, as well as domestic manufacturing industry reversal species - printing and dyeing, coal chemical industry, pesticides, polyurethane, titanium dioxide, and wafer manufacturing; Third, seize the channel of consumption recovery with capital inflows + easing balance sheet pressure + inflow trend of personnel - aviation, duty-free, hotels, food and beverages; Fourth, the non-bank financial sector benefiting from the expansion of the capital market and the bottoming out of long-term asset return rates. 3. Orient: The overall market trend remains unchanged Orient believes that the polarization pattern indicates that recent market changes are increasing: on one hand, external factors continue to occur, weakening the industry narrative logic of capital markets; on the other hand, related hot sectors have rapidly fallen from extreme strength to rapid decline, having a significant impact on risk appetite. In short, the recent proactive cooling of the market has changed the pace of market operations, but has not changed the overall market trend, which is conducive to maintaining a rational slow bull market. "Technology track + resource" is the main investment route before the Spring Festival, according to Orient. This article is reproduced from "Tencent Self-selecting Stocks", edited by Wang Qiujia from GMTEight.