A-share market closes higher, with all three major indexes rising collectively. The trading volume of both markets has surpassed one trillion for four consecutive days. Northbound funds have net sold over 7 billion yuan.

Today, the overall market hit bottom and rebounded, with all three major indexes closing up. The trading volume in the two cities exceeded one trillion for the fourth consecutive day, with a net sell-off of over 7 billion yuan of northbound funds. One thing worth noting is that as A-shares continue to see strong trading volume, a major change is occurring in the market: the coexistence of two styles, value and growth, in the market. The former mainly refers to high dividend assets, with the "Big Three Oil Companies" all rising today, with CNOOC Limited up by 7.32%, reaching a historical high, and the coal, power, and other sectors showing active performance. The latter refers to large-cap technology stocks, with AI continuing to surge and boosting market risk appetite, leading to sharp increases in sectors like liquid cooling servers, AI smartphones, and optical modules. Among them, Zhongji Innolight hit a historical high in intraday trading, while Foxconn Industrial Internet hit the limit-up. In terms of news, Foxconn has started testing AI servers for Apple, as Apple aims to expand its AI applications, providing an opportunity for Foxconn to increase its shipments. Recently, there have been frequent positive developments in the computing power industry, with departments such as the National Bureau of Statistics studying the establishment of a dedicated public transmission channel for national hub nodes, effectively enhancing the efficiency of the "digital calculation" network. Guosheng Securities pointed out that domestic computing power is gradually accelerating, and the demand for supporting "water sellers" is increasing. In the currently more clear profit segments, including computing power optimization, liquid cooling, domestic switches, and other areas, are all expected to benefit from the acceleration of the construction of domestic intelligent computing centers, further expanding future growth prospects. In addition, the contract research organization (CRO) sector was active all day, with the industry leader WuXi AppTec briefly hitting the limit-up. According to securities information from China, President Biden signed an executive order last week that may restrict the activities of genetic companies in the United States, but at the same time relieve legislative pressure from Democratic lawmakers in Congress supporting Chinese contract research and manufacturing enterprises (such as WuXi AppTec and WUXI BIO). CITIC SEC believes that short-term fluctuations in overseas policies do not affect the long-term fundamentals of Chinese CXO companies, and we still favor the leading position of global CRDMO companies. In other hot spots, the semiconductor sector fluctuated and rose, led by the HBM direction, with TongFu Microelectronics hitting the limit-up. In terms of news, Wuhan Newcore announced the development of HBM packaging technology and construction of production lines; the film and media stocks hit bottom and rebounded, with Shanghai Film hitting the limit-up; and the infant and child concept stocks surged, with Jinfa Labi Maternity & Baby Articles hitting the limit-up. Looking at individual stocks, there were 2044 gainers and 2964 decliners across the two markets, with 99 stocks maintaining the same level. A total of 88 stocks hit the daily limit-up, and 19 stocks hit the limit-down. At the close, the Shanghai Composite Index rose by 0.41% to 3039.31 points, with a turnover of 461.7 billion yuan; the Shenzhen Component Index rose by 0.04% to 9438.24 points, with a turnover of 614.8 billion yuan. The ChiNext Index rose by 0.59% to 1834.83 points. Capital Flow Northbound funds net sold 7.061 billion yuan throughout the day. Main funds focused on acquiring healthcare services, black home appliances, and housing construction sectors, with top inflows in individual stocks including WuXi AppTec, TongFu Microelectronics, and Foxconn Industrial Internet. News Recap 1. Reports: Foxconn's AI servers for Apple are in the testing phase Foxconn has started testing AI servers for Apple, with the opportunity to expand shipments as Apple focuses on AI applications. When asked if they had received new orders for Apple's AI servers, Foxconn declined to comment on individual customers or products. Supply chain sources revealed that Apple had conducted numerous AI function tests before, which were highly confidential, and that there were many ongoing projects and tests between Apple and Foxconn. 2. Reduction in memory production nearing completion, with factory capacity utilization rate back above ninety percent The memory industry has passed through the bottom of the cold winter, as the demand for high-bandwidth memory (HBM) and DDR5 driven by AI is increasing rapidly. The collective reduction in production by memory manufacturers is approaching completion. Supply chain sources point out that due to the reduction in output per unit area caused by new process upgrades and the increase in HBM demand, the factory capacity utilization rate has returned to over ninety percent. 3. CBN: Positive factors continue to be released after the holiday, recent strong uptrend in TDI market According to the CBN Commodity Market Analysis System, the domestic TDI market has been on a strong uptrend recently, with the average price on February 1st at 17,000 yuan per ton, and on March 1st at 17,900 yuan per ton, with an overall increase of over 5% during the period. Analysts at CBN believe that current TDI spot filling is still slow, with a strong supply market, considering the maintenance of a facility in Fujian by Wanhua in March, leading to tightening supply and possible price increases. However, with weak trading downstream, market demand is not as expected, limiting TDI purchases under supply-demand rivalry, and it is expected that the TDI market will consolidate in March. Future Forecast 1. CICC: Short-term repair trends are expected to continue The CICC strategy team led by Li Qiusuo stated that the index has been continuously rebounding and is still near key integer levels. While it is not ruled out that there may be disruptions caused by trading factors, the A-share market's valuation is still at historically low levels and is significantly lower compared to global markets. They believe that short-term repair trends are expected to continue, with the medium-term outlook depending on the policy environment, especially the coordinated efforts of fiscal and monetary policies. 2. Haitong: The pace of short-term market rise may slow down, with the possibility of temporary corrections The Haitong strategy team led by Wu Xinkun pointed out that the timing and space of this round of rebound may reference the first rebound after historical lows and the volatile spring market: looking back at the first rebound of past bottom formations, the rally often lasted about 3 months, with an increase of 25%-30% in the index; from a seasonal perspective, the current period is the spring frenzy period with data vacuum and frequent policy changes. Historically, the A-share spring market has lasted an average of over 2 months, with an average increase of over 20% for the Shanghai Composite Index and the CSI 300. Comparing the current rally to history, the rate of increase is significantly faster, and the market has accumulated some profit-taking pressure. Going forward, attention should also be paid to the possibility of the short-term market rising pace slowing down, or even temporary corrections.The pace of the rise may slow down, or even the possibility of a temporary adjustment cannot be ruled out.Huaxi: With the continuous verification of financial reports, the market situation in the future is bound to intensify in terms of volatility and differentiation. The Li Lifeng team of Huaxi Strategy also pointed out that the National People's Congress will be held next week. After the expectations of policies are implemented, the verification of economic data and corporate financial reports will become more important. Subsequent attention will be focused on the improvement of data such as February prices and inflation. It is worth noting that due to the continuous drag of negative PPI growth, the current A-share corporate profit expectations are slightly lacking in a "firm foundation" of basic fundamental resilience. Since the general rise in February, with the continuous verification of financial reports, the future market situation is bound to intensify in terms of volatility and differentiation. This article is reprinted from "Tencent Self-Selection Stocks", GMTEight Editor: Xu Wenqiang.