Today, the two major stock exchanges experienced significant declines, with the Shanghai Composite Index approaching the 4,000-point mark. The Shanghai Composite Index fell 2.48% to close at 4,015.75 points, while the Shenzhen Component Index dropped 2.69% to close at 13,824.35 points. The combined turnover for the two markets was 2.6 trillion yuan, slightly lower than the previous day. All major sectors were in the red, with the precious metals sector almost entirely hitting the daily downside limit; only the food and beverage industry saw a slight increase. On the news front, US President Trump nominated Kevin Warsh to replace Powell as the next Federal Reserve Chair. As Warsh has historically been viewed as a more hawkish figure with a tougher policy stance, this news raised market concerns that interest rates would remain elevated for longer, leading to a significant decline in risk appetite. The A-share market followed the global market adjustment and is currently in a deleveraging phase, potentially leaving some room for further correction. However, as valuation pressures gradually ease, new allocation windows are expected to emerge.
Recently, the pharmaceutical and biotechnology sector has demonstrated strong capital attraction capabilities in the capital markets, with market sentiment noticeably warming up. Data shows that as of January 30, 2026, the GTJA CSI Shanghai-Shenzhen Innovative Pharmaceuticals ETF (589720) has seen net subscriptions for 10 consecutive trading days, with a cumulative net inflow of 667 million yuan during this period. Behind this capital flow is a dual resonance of improving industry fundamentals and supportive policies. In late January, the sector was frequented by news of mergers and acquisitions and overseas licensing agreements; for instance, Sino Biopharmaceutical announced a full acquisition of Hejiya Biotech for 1.2 billion yuan, and Rongchang Biologics entered into an exclusive licensing agreement with AbbVie involving an upfront payment of up to $650 million. These significant events have not only boosted market confidence but also marked solid progress for Chinese pharmaceutical companies on their paths towards innovation and internationalization.
A deeper analysis reveals that the current investment logic for the pharmaceutical sector is primarily supported by two pillars: "realization of innovation" and "valuation repair." Firstly, from a fundamental industry perspective, domestic innovative drugs are entering a period of commercial explosion and international harvest. The several large-scale Business Development transactions at the beginning of 2026 demonstrate the global competitiveness of domestic innovative drugs, and the cash flows of leading pharmaceutical companies are expected to improve significantly as a result.
Secondly, policy signals continue to be warm. The "Opinions on Promoting High-Quality Development in the Pharmaceutical Retail Industry," jointly issued by the Ministry of Commerce and other departments, explicitly supports mergers, acquisitions, and high-quality development in the pharmaceutical retail sector. Policies encouraging consolidation and horizontal mergers, combined with measures such as equal treatment for medical insurance designated pharmacies and primary medical institutions, and family sharing of medical insurance personal accounts, will accelerate the exit of single-store pharmacies, and industry concentration is expected to increase further. Furthermore, the implementation of policies supporting the development of innovative drugs across the entire chain has laid an institutional foundation for a long-term bull market in the sector. The GTJA CSI Shanghai-Shenzhen Innovative Pharmaceuticals ETF (589720) closely tracks the CSI Innovative Pharmaceuticals Index, focusing on leading companies, with innovative pharmaceutical firms accounting for over 90% of its holdings. Interested investors may consider it.
Today, the photovoltaic sector showed strong momentum in early trading, with the Photovoltaic Industry Index rising over 2% intraday before retreating with the broader market in the afternoon session, but still outperforming. On the news front, Tesla CEO Elon Musk recently proposed a grand vision for "space-based photovoltaics" – planning to deploy a 100GW solar array to power space data centers – opening up new imaginative space for the industry. Chinese photovoltaic companies, with their comprehensive leading advantages in equipment and core raw material supply, capacity construction, and commissioning, are poised to benefit significantly. The investment logic for the photovoltaic sector is shifting from a simple "oversold rebound" to a deeper game of "reshaping the supply-demand dynamics."
Since 2025, the photovoltaic industry chain has experienced a brutal price war, with the average price of polysilicon dense material once falling below the industry's average cost line, leading to forecasted losses of tens of billions or even over a hundred billion yuan for industry leaders like LONGi Green Energy Technology and Tongwei Co., Ltd. in 2025. On January 28, 2026, the Ministry of Industry and Information Technology once again held a symposium on "anti-internal competition" in the photovoltaic industry, clarifying that it would use methods such as mergers and acquisitions and standard-setting to break the "internalized" competition. Coupled with the policy cancelling export tax rebates for photovoltaics set to take effect on April 1, the pace of phasing out outdated capacity in the industry is expected to accelerate significantly, and the market share and pricing power of leading companies will be further consolidated.
After a prolonged period of valuation digestion, the allocation appeal of the photovoltaic sector has become prominent. The GTJA CSI Photovoltaic Industry ETF (159864) closely tracks the CSI Photovoltaic Industry Index, which selects leading listed companies from the upstream, midstream, and downstream segments of the photovoltaic industry chain in the Shanghai and Shenzhen markets. Its constituent stocks not only cover traditional manufacturing leaders like LONGi Green Energy Technology and Sungrow Power Supply Co., but also include high-elasticity sub-sectors such as inverters and photovoltaic equipment, comprehensively reflecting the overall performance of the photovoltaic industry.
Looking ahead, as "anti-internal competition" policies take substantial effect and AI computing drives energy demand, the photovoltaic industry is expected to usher in a recovery cycle characterized by "volume and profit growth." The sector's valuation remains at a relatively low historical level. For investors optimistic about the energy transition and a sector turnaround from difficulties, the current period might represent a window worth appropriate attention for positioning.
The Grid ETF (561380) rose 1.06% today. Regarding domestic demand. According to a CCTV Finance report, many transformer factories in Guangdong, Jiangsu, and other regions are already operating at full capacity, with some orders for data center-related business scheduled until 2027. During the "16th Five-Year Plan" period, the fixed asset investment of State Grid Corporation of China is expected to reach 4 trillion yuan, a 40% increase compared to the investment during the "14th Five-Year Plan," focusing on three core areas: ultra-high voltage, distribution networks, and digitalization-intelligentization, aiming to drive high-quality development of the new power system industry chain and supply chain through expanding effective investment. The demand for cross-provincial power transmission channel construction and reinforcement of weak grids in western regions is clear, demand for ultra-high voltage construction remains high, and investment in the main grid is expected to maintain relatively rapid growth. Furthermore, distribution networks also have significant room for reinforcement, presenting certain structural investment opportunities.
In terms of fundamental performance, leading power grid equipment companies have released performance forecasts:预计实现营业总收入212.05亿元，较去年同期增长37.18%；预计实现归属于母公司所有者的净利润31.63亿元，较去年同期增长54.35%. The impressive performance provides fundamental support for the sector, further driving its upward trend.
Internationally, the ongoing global energy transition creates demand for integrating renewable energy into the grid, urgently requiring grid construction to ensure renewable energy consumption. Underdeveloped regions have relatively落后的 infrastructure, indicating significant development potential, and the global grid sector is entering an upward investment phase. Additionally, Trump's requirement for data centers to build their own power supply systems, and the ongoing power shortage for AI data centers in North America, continue to unfold. China's grid industry chain is complete, delivery efficiency is leading, and it has rich overseas experience, positioning it to be a major supplier to fill the gap. The Grid ETF (561380) provides one-click coverage of the entire industry chain, including power generation, transmission, distribution, and consumption. Grid equipment accounts for about 70% (comprehensively covering leaders in transformers, converter valves, switches, etc.), and communication equipment accounts for about 13% (covering essentials for grid construction like cables; benefiting from strong AI demand, the communication cable industry trend is positive, showing a supply shortage). Investors can continue to monitor it.
Today, the precious metals sector continued its sharp adjustment, with COMEX gold falling below $4,500 intraday. Regarding short-term events, last week's nomination of Warsh as the next Fed Chair, whose historical remarks lean towards a combination of "interest rate cuts + balance sheet reduction," heightened market concerns about monetary policy tightening. The market worries that after he takes office, he will push for a stronger US dollar, suppressing gold, triggering a stampede by longs and the withdrawal of highly leveraged funds.
In terms of trading structure and sentiment, the previous rapid rise in gold prices had built up substantial profits in the market. After consecutive sharp increases, spot London gold once approached $5,600 per ounce. The CME raising margin requirements for futures further squeezed short-term leveraged funds, making the market exceptionally sensitive to negative news. The sharp adjustment is a resonance release of sentiment and trading structure.
Looking ahead, in the short term, after the concentrated selling pressure is released, an oversold condition might反而 lead to a rebound and recovery window. Long-term, regarding Fed rate cuts. Market expectations for the Fed's rate cut path have not fundamentally reversed. CME FedWatch data still shows stable expectations for two rate cuts within the year, meaning the support from financial attributes has not collapsed. Geopolitically, risks remain tense. Events such as tensions in Iran, repeated US sovereignty claims over Greenland, and the stalemate in the Russia-Ukraine conflict continue to disturb the market, boosting safe-haven demand and providing long-term support for gold prices.
In summary, the gold market is currently experiencing an emotional and technical adjustment amid high volatility. From a medium to long-term perspective, the logic supporting gold prices – namely, the "Fed rate cut cycle + heightened overseas uncertainty + global de-dollarization trend" – remains intact. Investors can continue to monitor investment opportunities in the GTJA Gold ETF (518800) and the Gold Stock ETF (517400).
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