The A-share market experienced a strong upward surge today. The Shanghai Composite Index reclaimed the 4,100-point level, while the Shenzhen Component Index once again rose above 14,000 points. The ChiNext and STAR 50 indices both gained over 2%. More than 4,600 stocks advanced across the market, with trading volume moderately increasing to 2.27 trillion yuan.
In terms of sector performance, artificial intelligence, semiconductors, energy storage, and photovoltaics led the gains. Only a few sectors, including forestry, oil services, desertification control, and white goods, experienced minor adjustments. Real-time Wind data indicated significant net inflows of main funds: the communications sector saw over 19.9 billion yuan, electronics attracted more than 18.2 billion yuan, power equipment received over 18.1 billion yuan, the computer sector gained above 12.6 billion yuan, and machinery and equipment had inflows exceeding 12.3 billion yuan. Only the textile and apparel industry recorded a small net outflow of 63.37 million yuan. Regarding individual stocks, Suzhou TFC Optical Communication, TFC Optical Communication, and Guangku Technology each saw net main fund inflows of more than 2 billion yuan. An additional 19 stocks, including Dongfang Electric, Sungrow Power Supply, Jieteng Holdings, and 360 Security Technology, also received net inflows exceeding 1 billion yuan.
Looking ahead, Haitong International expressed optimism for a Spring Festival rally, suggesting that Chinese markets (A-shares and H-shares) are likely to warm up and rise in the final week before the holiday. Historical trends indicate that if the market is weak before the festival, it often strengthens after the holiday as funds return and risk appetite recovers. China Aviation Securities pointed out that the 2025 annual report preview data further confirms that A-share corporate earnings have rebounded from their lows, providing fundamental support for the medium-term trend. With an important policy window approaching after the Spring Festival, the recent market fluctuations offer a good opportunity for positioning. Although overseas markets may still experience significant volatility, A-shares are expected to gradually transition into a phase of oscillating growth. In terms of structure, sector and style rotations may continue in the short term, suggesting a balanced allocation strategy is advisable.
In market highlights, energy storage concept stocks remained strong throughout the session, with the sector index rising over 2% on heavy volume. Suzhou GCL System Integration surged to the daily limit shortly after the afternoon session opened. Bichamp Energy Technology achieved its sixth limit-up in nine days, Hangzhou Energy also recorded its fifth limit-up in seven sessions, GCL System Integration secured its fourth consecutive limit-up, while Kesen International Technology and Shanshan Co., Ltd. both marked their second straight limit-up. Nearly 30 other stocks, including Tongxiang Advanced Materials and Tuori New Energy, also hit the limit-up or rose over 10%.
On the news front, the National Development and Reform Commission and the National Energy Administration recently issued a notice on improving the capacity price mechanism for the generation side. The document explicitly establishes a capacity price mechanism for independent new-type energy storage on the grid side. The Zhongguancun Energy Storage Industry Technology Alliance stated that 2026 will mark the first year of market-oriented development for independent new-type energy storage. The inclusion of independent storage in the capacity price mechanism will further incentivize its role in peak shaving and enhance revenue expectations for new energy storage projects. Furthermore, explosive growth in AIDC demand is driving rapid expansion in overseas energy storage markets. The China New Energy Storage Industry Innovation Alliance forecasts nearly 50 GWh of new installed capacity in the United States by 2026. Europe is expected to add approximately 50 GWh of new energy storage capacity, while the Middle East is projected to reach 40 GWh of new installations by 2026. Citic Securities believes the implementation of the national capacity price policy will help stabilize revenue expectations for energy storage, stimulate investment enthusiasm among project owners, and is significant for the investment decisions of state-owned enterprises. High growth in energy storage installations is anticipated for 2026, with a positive outlook for leading manufacturers in the energy storage industry chain.
Today, global memory interconnect chip leader Lanke Technology officially debuted on the Hong Kong stock exchange, surging 63.72% on its first day of trading. The sharp rise in Lanke Technology's H-shares spurred a broad rally in A-H share semiconductor concept stocks. The A-share chip sector witnessed a wave of limit-ups, with Guangli Technology hitting the 20% limit-up in the afternoon session. Yaxing Integrated and Litong Electronics also surged to the limit-up, while over 30 stocks, including Guangku Technology and Shenghui Integration, rose by the limit-up or over 10%. The Hong Kong China Semiconductor Chip Index opened higher and climbed significantly, gaining 3.64% on increased volume. Stocks such as QPL INT'L, GigaDevice Semiconductor, and Shanghai Fudan Microelectronics rose more than 10%. Cinda Securities noted that the rapid growth in demand for AI model training and inference is the core driver of the current memory industry recovery. Demand for high-performance memory products is exploding, and with the ongoing trend of supply contraction, memory price increases are expected to persist.
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