On February 10, A-shares opened mixed before the three major indices fluctuated in positive territory. As of writing, the Shanghai Composite Index rose 0.05%, the Shenzhen Component Index gained 0.12%, and the ChiNext Index advanced 0.32%.
In terms of sector performance, AI application stocks continued their strong momentum, with Rongxin Culture and Zhangyue Technology hitting their second consecutive daily limit-up. Computing power concept stocks extended their gains, with Dawei Technology rising for the second straight session and Tefa Information reaching the upside limit. The dye sector maintained its high opening, with Jihua Group also locking in its second consecutive limit-up. On the downside, power grid equipment stocks opened lower, with Hangdian Co. falling by the daily limit.
In focus stocks, commercial aerospace newcomer Cetc Lantian Technology Co.,Ltd. surged 750% on its first trading day, with its market capitalization approaching 140 billion yuan.
Looking ahead, China Securities Co., Ltd. indicated that with four trading days remaining before the Spring Festival holiday, short-term market fluctuations are expected to moderate due to the holiday effect, and the market is likely to consolidate with limited movement. Guosen Securities added that the current spring rally may have further room to develop, and a strategy of holding positions through the holiday could be relatively favorable.
**Hot Sectors:**
1. **AI Application Stocks Maintain Strength** AI application and text-to-video sectors opened higher again, with Chinese Online and Fengyuzhu approaching the daily limit, while Bona Film Group, Visual China Group, and Danhong Technology also opened notably higher. Commentary: Industry reports indicate that ByteDance's AI video generation model, Seedance2.0, has gained significant attention during its limited testing phase due to its breakthrough capability of generating cinematic-quality videos from text or images.
2. **Computing Power Concept Stocks Remain Active** Computing power concept stocks rose early in the session, with Dawei Technology hitting its second consecutive limit-up and Tefa Information reaching the upside limit. Yakang股份, Jiangsu Cable, Glodon Company, Chengdi Xiangjiang, and Yitian Intelligent followed with gains. Commentary: Sinolink Securities believes that the underlying logic of global digital and intelligent transformation remains robust, and AI's industrial penetration is far from complete. As a core infrastructure of the digital era, computing power continues to exhibit clear long-term growth prospects.
**Institutional Views:**
**China Securities Co., Ltd.: Pre-Holiday Rally May Continue** The firm noted that with four trading days left before the Spring Festival, short-term market fluctuations are expected to moderate due to the holiday effect. The market is likely to consolidate, with previous heavy selling pressure having been partially released. Regulatory authorities are emphasizing stable market operations ahead of the holiday, coupled with expectations of holiday consumption boosts, creating a generally supportive policy environment. Internationally, recent comments from U.S. Treasury Secretary suggest that the new Federal Reserve chair is unlikely to rapidly implement balance sheet reduction measures, possibly delaying such actions for at least a year and a half, implying low probability of Fed tightening before mid-2027. Current market pricing still anticipates at least two interest rate cuts by the Fed in 2026, indicating a broadly accommodative macro-liquidity environment for the year. Overall, indices are expected to fluctuate near current levels before the holiday, with some oversold stocks likely to stage a recovery in the coming days, suggesting the pre-holiday rally may persist.
**Guosen Securities: Spring Rally May Have Further Upside; Holding Positions Through Holiday Recommended** Historically, bull market spring rallies have seen index gains of around 20%. Since December 17, 2025, the Shanghai Composite Index has risen by a maximum of 9.8%, indicating significant room for further gains compared to historical patterns. The current spring rally may have additional momentum, making a strategy of holding positions through the holiday relatively more advantageous in the short term.
**Soochow Securities: Pre-Holiday Week Represents Optimal Window for Index Positioning** A Soochow Securities research report highlighted that the week before the holiday is the best window for index positioning, with rebound inflection points typically occurring around five trading days prior to the holiday. Analysis of Spring Festival market trends since 2006 shows that after initial consolidation, indices often begin a trend rebound approximately five trading days before the holiday. In terms of sustainability, the rally generally continues until around T+6 days after the holiday, with indices showing a clear upward trend that gradually moderates. From a style perspective, large-cap and small-cap performances tend to reverse around the holiday. Historically, large-cap stocks outperform small-caps before the holiday, with growth styles generally beating value. After the holiday, small and micro-cap stocks take the lead. The reversal effect between large and small-cap styles is particularly pronounced.
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