A-share market closing review | Shanghai index regained 4100 points in one fell swoop, driven by three major factors! Stock indices collectively surged.

Today, the market surged on high volume, with the ChiNext Index rising nearly 3% and the Shanghai Composite Index recovering the 4100-point level. Funds focused on AI applications, space photovoltaics, computing power, and other thematic stocks. The market saw a total turnover of over 2.2 trillion yuan for the day, with trading volume exceeding a hundred billion more than the previous trading day, and over 4600 stocks in both markets rose. According to a Chinese securities firm, three major driving factors have emerged: first, the strong rebound of Nvidia last Friday sparked the AI-related sector; second, Tesla is evaluating multiple locations in the U.S. and plans to expand CECEP Solar Energy's battery manufacturing business, fueling the CECEP Solar Energy sector; third, Hong Kong property stocks continued to surge, leading the A-share real estate sector. In terms of sector performance, AI application concepts were hot, with stocks like COL Group Co., Ltd. hitting the daily limit. In recent news, an AI video generation model called Seedance 2.0 has been making waves in the domestic and international internet. According to official information, Seedance 2.0, launched by ByteDance, can create movie-level videos based on text or images. It uses a dual-branch diffuser transformer architecture that can generate video and audio simultaneously. Simply provide detailed prompts or upload a picture, and Seedance 2.0 can generate a multi-camera sequence video with original audio in 60 seconds. The space photovoltaic concept was also hot, with stocks like Shenzhen JPT Opto-Electronics and Shanghai Aiko Solar Energy hitting the daily limit. CITIC Securities research reports indicate that demand for space photovoltaics is expected to experience exponential growth. Musk's investment in photovoltaic manufacturing is paving the way for orbital computing power and AI. China's leading photovoltaic equipment manufacturers possess strong efficiency iteration and rapid response capabilities and are expected to enter the supply chains of companies like Tesla and SpaceX, securing high-value orders and opening up new growth opportunities. In other hot sectors, computing power hardware, such as CPO, was strong, with Suzhou TFC Optical Communication hitting a historical high; non-ferrous metal sectors were active, with stocks like Shenghe Resources Holding and Hunan Silver hitting the daily limit; while household appliances and petrochemicals were among the top decliners. Looking ahead, China Securities Co., Ltd. believes that external disturbances have had limited impact on China's industrial fundamentals and with the concentrated cooling measures now over, market sentiment has been fully released and the adjustment is more or less in place. The spring market rally is expected to continue after the Chinese New Year, and they recommend holding stocks over the holiday. In terms of individual stocks, 4612 stocks rose in the two markets, 759 stocks fell, and 108 stocks remained unchanged. Both markets saw 99 stocks hit the daily limit and 8 stocks hit the lower limit. At the close, the Shanghai Composite Index rose 1.41% to 4123.09 points with a turnover of 949.7 billion yuan; the Shenzhen Component Index rose 2.17% to 14208.44 points with a turnover of 129.98 billion yuan. The ChiNext Index rose 2.98% to 3332.77 points. Funds Flow Major funds today focused on grabbing communication equipment, photovoltaic equipment, and semiconductor sectors, with top net inflows into stocks like Eoptolink Technology Inc., Suzhou TFC Optical Communication, and Sungrow Power Supply. News Review 1. Shenzhen: Accelerate the construction of the world's leading AI city On February 9th, the 7th session of the 7th Shenzhen Municipal People's Congress opened at the Civic Center Theater. Shenzhen Mayor Qin Weizhong delivered the government work report. In the government work report, Shenzhen proposed to accelerate the construction of a global leading AI city, with the AI industry cluster's value-added growing by more than 10% by 2026. It aims to build high-standard innovation platforms such as Guangming Lab, Futian Lab, and Leading Edge Intelligent Open Research Institute, and construct a high-level Shenzhen River Bend College. It will strengthen the full-stack independent controllable AI software and hardware ecosystem, focusing on breakthroughs in algorithm theory, model architecture, intelligent computing chips, basic software, and intelligent Siasun Robot&Automation. 2. Institutions: Predict that the TOP100 mobile game revenue will further climb to about $53 billion by 2026 A recent report by SensorTower indicates that thanks to intensified operational activities of leading games and continued optimization of commercial strategies, the global TOP100 mobile game revenue saw steady growth from 2022 to 2025, reaching nearly $46.6 billion in 2025 and accounting for 57% of the total global mobile game revenue, up from 51% in 2022. It is predicted that the TOP100 mobile game revenue will further climb to about $53 billion by 2026, representing nearly 58% of the total global mobile game revenue. 3. BYD Company Limited's sulfide solid-state battery is expected to achieve small-scale production by 2027 According to the Investor Relations Department of BYD Company Limited, BYD Company has been exploring multiple paths in the field of solid-state batteries, with sulfide solid-state batteries as an important technological direction. It has made breakthroughs in battery life and fast charging, and is expected to achieve small-scale production by 2027. In the sodium battery field, it is at the development stage of the third-generation product technology platform and has developed sodium products with ten thousand cycles. The production milestone will be determined based on market conditions and customer demands. Market Outlook 1. China Securities Co., Ltd.: Limited impact of external disturbances, focus on economic layout The recent A-share spring market has undergone a phase adjustment, dominated by internal factors with external catalysts. Internally, active cooling and broad-based ETF sell-offs were experienced; externally, multiple disturbances from Trump's political actions, the change in the Federal Reserve chairmanship, geopolitical conflicts in Iran, and a drop in global tech stocks due to Anthropi's new tools were observed. The current external disturbances have not substantially impacted China's industrial fundamentals, and the concentrated cooling measures have ended. With market sentiment fully released and adjustment in place, the spring market rally is expected to continue after the Chinese New Year, and it is recommended to hold stocks over the holiday. In terms of industry allocation, the focus is on AI computing power, chemicals, power equipment and energy storage at the economic end; themes can be based on signals from local two sessions policies to strategically position in potential catalyzing sectors for the National Two Sessions. 2. GF SEC: Favorable timing, location, and conditions for a new round of upward cycle Historically, February and around the Spring Festival are the strongest phases of the spring market frothy calendar effect. The market has a high win rate, with small-cap styles taking the lead. Using small-cap indexes as an example, the probability of an increase from the Spring Festival to the two sessions is 100%, while in February, the probability is 87.5%. Timing: After the boot of the annual report forecast, the negative fundamental disturbances have subsided. Conditions: In a bullish trend, every time the Wande All-A Index falls below the 20-day moving average, it is often an opportunity to add positions about a week later. Therefore, against the background of "favorable timing, location, and conditions," although the recent market's correction has raised some concerns among investors, at the current level of around 4000 points, it is recommended to regain confidence, regroup, and prepare for the first wave of the Year of the Horse's upward cycle. 3. Huajin Securities: The spring market is not over, hold stocks over the holiday The spring market is not over, and risks may be limited during the Spring Festival, so holding stocks over the holiday is advisable. Before the holiday, it is recommended to allocate funds on dips into industries such as electronics (semiconductors, AI hardware), media (AI applications, gaming), computers (AI applications), defense, communications (AI hardware), machinery equipment (Siasun Robot&Automation), new energy, pharmaceuticals (innovative drugs), non-ferrous metals, chemicals, and other industries, which have policy and industry trends in their favor. Additionally, industries such as non-banking finance and consumer sectors (food, retail, social services) that may see catch-up rallies and marginal improvements in fundamentals should also be considered. This article was originally published on Tencent Self-selected Stocks, edited by Liu Jiayin.