A-share market closing review | The end of February! The Shanghai Composite Index rose by 0.39% with three consecutive monthly gains. The rising price theme stood out.

A shares closed out in February! The Shanghai Composite Index rose by 1.09% this month, showing a trend of "narrow fluctuations after hitting a high", with three consecutive positive monthly performances. The Shenzhen Component Index rose by 2.04%, while the ChiNext Index fell by 1.08%. In terms of trading volume, "daily trading exceeding a trillion" has become the norm. After the Spring Festival, market trading remained active, with the trading volume in the Shanghai and Shenzhen markets exceeding 2 trillion for four consecutive trading days. On Friday, the market was volatile and divergent throughout the day, with the three major indexes showing mixed movements. By the close, the Shanghai Composite Index rose by 0.39%, the Shenzhen Component Index fell by 0.06%, and the ChiNext Index fell by 1.04%. In terms of market performance, non-ferrous metals continued to rise, with antimony, tungsten, tin, and other sectors leading the gains. More than ten stocks, including Guangdong Xianglu Tungsten, China Tungsten and Hightech Materials, and Hunan Gold Corporation, hit their daily limit. The rare earth permanent magnet sector saw gains, with China Rare Earth Nonferrous Metals hitting the daily limit, and Inner Mongolia BaoTou Steel Union nearing its limit. The power and power grid equipment concept strengthened and fluctuated, with stocks like China Southern Power Grid Energy Efficiency & Clean Energy and Chongqing Fuling Electric Power Industrial hitting the limit. Steel stocks were active, with Hang Zhou Iron & Steel hitting the limit. Gas stocks strengthened in the afternoon, with Shuifa Gas Co., Ltd. and Delong Composite Energy Group hitting the limit. The fiber optic concept fluctuated and rose, with Fiberhome Telecommunication Technologies and Hangzhou Cable hitting the limit. The photovoltaic concept rose, with Hainan Drinda New Energy Technology and Shuangliang Eco-Energy Systems hitting the limit. The computing power leasing sector saw upward fluctuations, with Yuntu Lifly approaching the limit. The fertilizer and pesticide sector strengthened again, with Sichuan Meifeng Chemical Industry hitting the limit. In terms of declines, most AI hardware stocks saw corrections, with sectors like optical modules, PCB, and fiberglass weakening. Grace Fabric Technology hit the daily limit. The paper concept weakened, with Hengda New Materials falling by over 9% and Wuzhou Special Paper Group falling by nearly 7%. Some semiconductor chip stocks adjusted, and the real estate sector exhibited weakness, with China Union falling by over 5%. In addition, sectors like insurance, automotive, and consumer electronics performed poorly. Looking ahead, Yang Delong, Chief Economist and Fund Manager of Qianhai Kaiyuan Fund, pointed out that technology and resources are expected to become the two main investment themes in the Year of the Horse. The current market has entered the middle stage of a slow bull market, which is the second stage of a bull market. Unlike the emotion-driven first stage, the second stage requires more in-depth research to uncover sectors with improving economic conditions or technological breakthroughs. Popular Sectors: 1. Non-ferrous metals sector remains active. 2. Power and power grid equipment sector remains active. 3. Space photovoltaic concept continues to strengthen. 4. Computing power hardware stocks mostly experience corrections. Institutional Views: - Orient: Market risk appetite is decreasing, but there is still potential for the stock index to rise. - Orient believes that the rotation in the market since the beginning of the year may lead to increased volatility. They suggest focusing on sectors with identifiable medium-term trends and sectors benefiting from cyclical price increases. - China Securities Co.,Ltd.: Bullish on cyclical sector market. - China Securities Co.,Ltd. sees opportunities in the reversal of heavy asset industries due to rising inflation expectations and profit recovery in industries such as chemicals, building materials, and power equipment. - EB SECURITIES: Carbon emission control transformation to drive carbon cost reassessment; bullish on non-electric applications of green electricity. - EB SECURITIES sees potential for assets with low or negative carbon attributes to receive green premiums as the focus shifts from energy consumption control to carbon emission control. They suggest looking into non-electric applications in sectors like shipping fuel ethanol, hydrogen storage carbon, and hydrogen metallurgy.