The market experienced a significant surge in trading volume today, with the ChiNext Index rising nearly 3% and the Shanghai Composite Index reclaiming the 4100-point level. Capital was concentrated in thematic stocks such as AI applications, space-based photovoltaics, and computing power. Full-day market turnover exceeded 2.2 trillion yuan, an increase of 100 billion yuan from the previous session, with over 4600 stocks advancing across the two exchanges. Structurally, three primary drivers contributed to the rally: First, Nvidia's strong rebound last Friday ignited the AI-related sectors. Second, Tesla's evaluation of multiple US sites for expanding its solar cell manufacturing operations boosted the solar energy sector. Third, the continued sharp rise in Hong Kong-listed property stocks lifted the A-share real estate sector.
On the market front, AI application concepts were particularly active, with stocks like Chinese Online hitting the daily limit. Recently, an AI video generation model named Seedance2.0, launched by ByteDance, has gained widespread attention online. According to official information, Seedance2.0 can create cinematic-quality videos from text or images using a dual-branch diffusion transformer architecture that simultaneously generates video and audio. By simply writing a detailed prompt or uploading an image, Seedance 2.0 can produce a multi-shot sequence video with native audio within 60 seconds.
The space-based photovoltaic concept also saw strong momentum, with stocks such as JPT and Aiko Solar reaching the daily limit. A CITIC Securities research report indicated that demand for space-based photovoltaics is expected to experience exponential growth. Elon Musk's bet on photovoltaic manufacturing paves the way for orbital computing power and AI energy supply. Leading Chinese photovoltaic equipment manufacturers, with their strong capabilities for efficient iteration and rapid response, are well-positioned to join the supply chains of companies like Tesla and SpaceX, potentially securing substantial orders and unlocking new growth opportunities.
In other hotspots, computing power hardware sectors like CPO performed strongly, with TFC Optical Communication hitting a new historical high. The non-ferrous metals sector was also active, with stocks including Shenghe Resources and Hunan Silver closing at the upper limit. Conversely, home appliances and petrochemicals were among the top decliners.
Looking ahead, China Securities believes that current external disturbances have not substantially impacted China's industrial fundamentals. With concentrated cooling measures concluded and market sentiment fully released, the adjustment appears adequate. The spring rally is expected to continue after the Spring Festival, suggesting investors consider holding positions through the holiday.
In terms of individual stocks, 4612 companies advanced, 759 declined, and 108 were unchanged. Ninety-nine stocks hit the daily limit up, while eight fell to the limit down. At the close, the Shanghai Composite Index was up 1.41% at 4123.09 points, with a turnover of 949.7 billion yuan. The Shenzhen Component Index rose 2.17% to 14208.04 points, with a turnover of 1.2998 trillion yuan. The ChiNext Index advanced 2.98% to 3332.77 points.
Regarding capital flows, main funds focused on sectors such as communication equipment, photovoltaic equipment, and semiconductors. Stocks with significant net inflows included Sunwoda, TFC Optical Communication, and Sungrow Power.
Key news recaps: 1. Shenzhen has announced plans to accelerate the construction of a global AI pioneer city. During the recent government work report, the city proposed increasing the value-added of its AI industrial cluster by over 10% by 2026, establishing high-standard innovation platforms, and strengthening the development of a fully independent AI software and hardware ecosystem.
2. According to a SensorTower report, revenue from the top 100 mobile games is projected to rise to approximately $53 billion by 2026, driven by enhanced operational activities and optimized commercialization strategies by leading games.
3. BYD is exploring multiple pathways in solid-state battery technology, with sulfide-based solid-state batteries as a key direction. Breakthroughs in battery lifespan and fast charging are expected to enable small-scale production by 2027. In sodium-ion battery development, BYD has reached the third-generation product platform stage, with products capable of thousands of cycles; mass production will depend on market and customer demand.
Market outlook analysis: 1. China Securities maintains that external impacts are limited and advises focusing on sectors with strong growth prospects, such as AI computing power, chemicals, and power equipment, while anticipating potential policy catalysts around the upcoming National People's Congress.
2. GF Securities highlights that historical patterns show February and the period around the Spring Festival typically exhibit strong seasonal effects, with small-cap stocks tending to outperform. With negative fundamental disturbances subsiding after earnings season and the market trend remaining bullish, the current level around 4000 points presents a confidence-building opportunity for the next upward cycle.
3. Huajin Securities suggests the spring rally is not over, and risks during the holiday are likely limited, supporting holding positions. Recommendations include sectors with favorable policies and industrial trends, such as electronics, media, and computers, as well as potentially undervalued industries like non-bank finance and consumer goods.
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