A-share market closing review | A-share continues to rebound, trading volume breaks trillion for three consecutive days! TMT sector surges

On March 1st, A-shares continued to rebound, with the TMT sector seeing a large increase again, and strength in consumer electronics, AI, and the semiconductor industry chain. By the close of trading, the Shanghai Composite Index rose by 0.39% to 3027.02 points; the Shenzhen Component Index rose by 1.12% to 9434.75 points; and the ChiNext Index rose by 0.94% to 1824.03 points. According to the China Securities Journal, why is the TMT sector continuing to be active? The reasons are as follows: First, in past spring market trends, growth styles have generally been dominant, with the TMT sector benefiting the most. Second, the ongoing trend in the AI industry continues to catalyze, with overseas AI leaders experiencing significant increases leading to a mirroring effect. Third, there has been a continuous stream of news in the TMT sector recently, with reports of leading companies receiving orders yesterday and again this morning, leading to a surge in the consumer electronics sector. Fourth, the catalyst of leading companies' performance. Recently, Advanced Micro-Fabrication Equipment Inc. China in the semiconductor equipment sector, Zhongji Innolight in the optical module sector, and Dawning Information Industry in the server sector have all released good performance reports for 2023. On the market, the AI track strengthened across the board in the afternoon, led by liquid cooling, computing power, and optical modules. Stocks like Inspur Electronic Information Industry and Accelink Technologies hit the limit up; the consumer electronics sector rose, led by AI smartphone direction, with Sichuan Furong Technology hitting the limit up for the second consecutive day. The concept of new productive forces continued to be strong, with Guangdong Dongfang Precision Science & Technology hitting the limit up for the sixth consecutive day; the charging pile sector surged, with many stocks like Suzhou Industrial Park Heshun Electric hitting the limit up; securities stocks strengthened in the late session, with Founder hitting the limit up. On the decline side, large consumer stocks collectively fell, with pork, airport transportation, and duty-free shop sectors leading the declines; agriculture and insurance sectors had high declines; high-priced stocks continued to fall, with OURGAME and Xi'An Typical Industries hitting the limit down. Overall, more stocks rose than fell across the two markets, with over 3400 stocks rising. Market turnover exceeded 1 trillion yuan for the third consecutive trading day, with net sales of over 5 billion yuan from northbound funds. Looking ahead, a CICC research report believes that the Shanghai Composite Index has recovered to near the even number mark, and the technology growth trend is expected to continue. Popular Sectors 1. The consumer electronics sector rises The consumer electronics sector fluctuated higher, led by the AI smartphone direction, with Sichuan Furong Technology hitting the limit up for two consecutive days, Guangdong Suqun New Material up 20%, and multiple stocks like Xinya Electronic, Shenzhen Zowee Technology, and MeiG Smart Technology hitting the limit up. Review: On the news front, the 2024 World Mobile Communication Congress opened in Barcelona from February 26 to 29. Smartphones manufacturers like Xiaomi, Honor, and Tecno showcased their latest models, while Mediatek showcased its chip terminal AI computing capabilities and Samsung unveiled the design of its GalaxyRing smart device, showcasing the latest technological achievements and innovative products. BOC International's research report pointed out that the consumer electronics industry may see a revival, focusing on the equipment increment brought by new technologies. 2. Strong concept of new productive forces The concept of new productive forces continued to be strong, with Guangdong Dongfang Precision Science & Technology hitting the limit up for the sixth consecutive day, Guangzhou Tech-long Packaging Machinery hitting the limit up for three consecutive days, and Aishida Co., Ltd. hitting the limit up, followed by Zhejiang Yuejian Intelligent Equipment, Shanghai Kelai Mechatronics Engineering, Guangxi Oriental Intelligent Manufacturing Technology, and others. Review: On the news front, the Central Committee of the Communist Party of China held an important meeting on February 29, emphasizing the need to vigorously promote the construction of a modern industrial system and accelerate the development of new productive forces. CITIC SEC's research report believes that in general, new productive forces are innovative and high-quality advanced productive forces. It is recommended to focus on the theme of technology manufacturing opportunities catalyzed by policies related to new productive forces. 3. Computing power sector rises Stocks in the computing power concept fluctuated higher, with Inspur Electronic Information Industry, Unisplendour Corporation, People.cn Co., Ltd., Jwipc Technology, Annil Co., Ltd., Beijing Dynamic Power, and others hitting the limit up. Review: On the news front, on February 29, Guizhou issued the first batch of "computing power vouchers" to 72 companies from within and outside the province, to be used to offset a certain percentage of the cost when purchasing local computing power services or data trading products. Galaxy Securities believes that Sora is a milestone in the development of artificial intelligence, accelerating the arrival of the AGI era, and the demand for computing power will continue to explode. Continuous optimism about investment opportunities in the industry chain. Institutional views Looking ahead, Founder points out that during the time window near this year's "two sessions," it is a high probability event for the market to oscillate and gather energy between 3000 points and 3100 points. CICC: The Shanghai Composite Index has recovered to near the even number mark, and the technology growth trend is expected to continue. CICC Research ReportIt is believed that recently, domestic policies aimed at stabilizing growth, expectations, and the market have been actively introduced and implemented. Expectations for reforms in some areas have risen, leading to strong performance of Chinese assets since February, leading the global market. The Shanghai Composite Index has recovered to near the integer threshold. The technology growth trend is expected to continue. Since the beginning of 2024, high dividend assets and technology growth styles have alternated, with the potential for excess returns in the future coming from the technology growth track benefiting from China's industrial policy support and clear industry trends. High dividend assets as a core investment still stand out in terms of medium-term value, but short-term attention should be paid to the micro trading structure and pace of allocation in certain industries. In March, the following sectors were raised: high-end machinery, communication equipment, building materials, computers, software, defense industry, and papermaking; while the following sectors were lowered: power operation, coal, construction decoration, agriculture, forestry, animal husbandry, fisheries, pharmaceuticals, catering, hotels and tourism, and other chemical products.Founder: The stock market rebounded on Thursday, recovering from Wednesday's losses. Although trading volume has shrunk, market momentum remains strong. In the short term, it will continue to challenge the resistance at 3050 points. The monthly chart also shows a rare bottom pattern of "yang bao yin," laying the foundation for the market in March. It is highly probable that the market will continue to fluctuate between 3000 and 3100 points during the time window near the "two sessions." China Securities Co., Ltd.: The advantages of high prosperity and growth style are gradually becoming apparent, recommending focus on four directions The team at China Securities Co., Ltd., led by Chen Guo, stated that from the perspective of fund liquidity and market regulation, the overall investment environment of A-shares has seen a marked improvement compared to the previous period. Following the comprehensive reserve requirement ratio cut in February and the unexpected cut in the 5-year LPR interest rate, the counter-cyclical monetary policy has further improved liquidity and market sentiment. With the continuous rise of high dividend assets leading to a decrease in dividend yield, the advantages of high prosperity and growth style are gradually becoming apparent. It is recommended to focus on: 1. Cyclical industries benefiting from stable economic policies; 2. Technology growth sectors benefiting from improved liquidity and following industry trends and cycle improvements; 3. Core assets; 4. Industries with relatively high dividend yields still have good medium-term allocation value before the economy stabilizes. This article was reprinted from "Tencent Selected Stocks", edited by GMTEight: Huang Xiaodong.