On February 4th, A-shares trended lower in a volatile session, with technology stocks undergoing a comprehensive pullback. By the midday close, the Shanghai Composite Index was nearly flat, settling at 4067.67 points. The Shenzhen Component Index declined by 0.92%, the ChiNext Index fell by 1.74%, the Beijing Stock Exchange 50 Index dropped by 1.19%, the STAR Market 50 Index decreased by 2.44%, and the CSI A500 Index was down 0.48%. The total trading volume for A-shares in the morning session reached 1.63 trillion yuan.
On the liquidity front, the central bank announced that on February 4th, it conducted a 75-billion-yuan 7-day reverse repo operation using a fixed interest rate and quantity tender method. The operation rate was set at 1.40%, with a bid amount of 75 billion yuan and an awarded amount of 75 billion yuan. According to Wind data, 377.5 billion yuan in reverse repos matured on the same day. Calculating this, the net liquidity withdrawal for the single day amounted to 302.5 billion yuan.
Regarding market news, the State Council Information Office held a press conference to detail efforts in anchoring agricultural and rural modernization and solidly advancing comprehensive rural revitalization, followed by a Q&A session. It was reported that over the past year, the achievements in poverty alleviation have been continuously consolidated and expanded. The five-year transition period task of effectively linking the consolidation and expansion of poverty alleviation achievements with rural revitalization has been successfully completed. The growth rate of per capita disposable income for farmers in formerly impoverished counties has consistently remained higher than the national average, and the scale of employed workers from formerly impoverished populations has remained stable above 30 million for five consecutive years.
The "Zhejiang Province '16th Five-Year Plan' for High-Quality Development and Construction of a Common Prosperity Demonstration Zone (Draft for Comments)" was released. It mentioned strengthening, improving, and expanding state-owned enterprises and state-owned capital. The plan involves implementing a new round of state-owned capital and enterprise reforms, establishing an evaluation system for SOEs to fulfill strategic missions, and accelerating the development of innovative state-owned enterprises. It also calls for deepening the centralized and unified supervision of operational state-owned assets, improving the province-wide risk monitoring mechanism for SOE debt, supporting strategic cooperation between state-owned and private enterprises, and refining cooperation rules for industrial co-construction and innovation resource sharing.
Zhu Weidong, Vice Minister of the Office of the Central Financial and Economic Affairs Commission and Vice Minister of the Office of the Central Rural Work Leading Group, stated at the press conference that this year's Central Document No. 1 places significant emphasis on promoting increases in farmers' incomes and proposes a package of income-boosting measures. Zhu pointed out that industrial prosperity is the material foundation for rural revitalization and a crucial channel for increasing farmers' incomes. He advocated supporting regions to develop distinctive county-level economies based on local characteristic resources, promoting integrated development that strengthens local industries, counties, and enriches the people. Simultaneously, he emphasized the need to strengthen the overall planning of industrial projects to prevent falling into homogenized and "involutionary" competition. Additionally, he highlighted the importance of enhancing integration, enriching industrial forms, extending industrial chains, and expanding value chains.
In terms of sectors, semiconductor and computing hardware stocks were sluggish from the market open, with XYS and ZJXC both falling over 5%, while HGXX, SMIC, and others also followed the decline. Space-based photovoltaic concept stocks were repeatedly active, with ZLGF and SNGF among the top gainers. Increased demand for winter supply support led to a collective surge in coal stocks, with YKNY, SXHM, YMNY, and several other stocks hitting the daily limit-up.
The global natural gas market in 2025 is projected to be in a state of "slower volume growth, higher prices, and a structurally tight balance." Demand growth is expected to slow to 0.9%. On the supply side, reliance is on new LNG project increments from North America, but this is offset by factors such as interruptions in Russian pipeline gas, keeping supply relatively tight. On the demand side, Europe is engaging in high-priced inventory replenishment due to low storage levels, while Asian demand is growing steadily. China's natural gas demand is experiencing a short-term slowdown in growth but is expected to return to a high-growth trajectory.
Here, by integrating the latest research report information from over 10 brokerages including Tianfeng, Anxin, and Guoxin, brief introductions to 4 companies are provided for reference.
CHIC has been deeply involved in the fluid control field for many years and is a well-known enterprise in China's gas and heating control sector. Its main product, temperature sensors, has been applied in the SOFC field and maintains a leading market share.
The company is a leading domestic enterprise in cryogenic technology and the designated lead unit for the hydrogen energy industry development under the Shudao Group. Leveraging the group's background and resources, its cryogenic business, hydrogen energy business, gas operations, and other diversified businesses are expected to expand rapidly.
The company is a long-established domestic oil and gas equipment manufacturer, with its overseas market in a phase of rapid expansion. Simultaneously, backed by Sinopec, the company is accelerating the development of hydrogen energy as its second growth curve.
The company has established a relatively complete LNG industrial chain system covering domestic and international procurement, transportation and sales, and end-use application solutions. Relying on its own stable and scalable LNG tanker transportation capacity, a nationwide LNG procurement and sales business network, and the use of efficient information-based internet management platforms, it provides one-stop LNG transportation and trade solutions for clients in industrial fuel, city gas, and transportation fuel application sectors.
Cover image source: AIGC
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