To The Moon

A-share investors relying on research reports know that authoritative, professional, timely, and comprehensive analysis helps uncover potential thematic opportunities. Driving rotation across industries, however, still requires incremental allocation capital.

Unitree Robotics (688836.SH) surged more than 15% during intraday trading, while multiple robotics-related ETFs gained over 5% in just half a day. On October 28, the "dual innovation" segments — the STAR Market and ChiNext — staged a full-scale rebound.

On the morning of that day, A-shares opened higher and rallied sharply, with the ChiNext Index and the STAR 50 leading gains. The ChiNext Index closed up 3.4% at 2,635 points, the STAR 50 rose 2.45% to close at 1,283 points, and Unitree Robotics climbed 8.74% to close at 695.9 yuan.

In the view of industry participants, after nearly four months of correction, market sentiment had become extremely pessimistic, and A-shares have entered a阶段性 bottom area. Recently, share buybacks by listed companies have notably increased, policy signals are relatively positive, and liquidity conditions have improved. The rebound is expected to continue in the fourth quarter, with technology growth sectors remaining strong. However, driving systematic rotation across industries still requires allocation-type incremental capital, and investors should continue to monitor whether trading volume can sustain a recovery.

A-Share Liquidity Expected to Improve

Some industry insiders believe that, based on conditions on October 28, investors with low exposure to technology sectors may face the risk of missing out. As various institutional funds continue to enter the market, subsequent market liquidity is expected to gradually improve.

Wu Zhou, fund manager at Shenzhen Deyuan Investment Co., Ltd., analyzed that passive selling pressure from some institutions is gradually being cleared, and combined with the entry of stabilization funds, internal liquidity pressure in A-shares is expected to ease. Endogenous buying forces in the market are supporting the upward movement of certain active sectors.

From the October 28 trading session, the technology sector was the main line of the rebound, with robotics and other areas showing relatively strong performance. After institutional selling pressure is cleared, AI hardware is also expected to strengthen, and small-cap stocks are outperforming large-cap stocks. At this stage, if investors have low technology exposure, they may face the risk of missing out on a medium-term rebound.

Since late September, the pace of stabilization fund entry has exceeded market expectations, and the market has entered a bottoming-out phase. As long as index-level indiscriminate declines no longer occur, thematic trading is expected to become active again.

Deng Lijun, strategy analyst at Huajin Securities, believes that after extreme pessimism in market sentiment, A-shares have entered a bottom area. Short-term policy is relatively positive, fundamentals are repairing, and liquidity remains accommodative. Investors can look for opportunities in technology growth and large financial sectors on dips.

On the liquidity front, the likelihood of a Federal Reserve rate hike in October is low, and overseas factors have limited impact on domestic liquidity easing. Domestic macro liquidity may remain accommodative, and stock market capital inflows are expected to improve marginally. Margin financing outflows may decline or even turn into inflows, new fund issuance may continue to recover, and listed company buybacks have notably increased recently.

Mou Yiling, strategy analyst at Guojin Securities, said that overall, leverage funds represented by margin trading are still seeing significant net outflows, but as the rebound helps repair maintenance ratios, stock ETFs remain the main stabilizing force in the market. Northbound funds and actively managed equity funds have seen阶段性 inflows. In the future, attention should be paid to whether margin trading funds can gradually stabilize and return, as well as the sustainability of inflows from other participants.

Li Qian, investment advisor at Guangzhou Yuesheng Wealth Management,judges that the conditions for a "dual innovation" rebound are already in place, but sustainability still needs confirmation. The rebound window from late October to mid-November remains valid, and what happens next depends on whether margin trading funds can shift from net outflows to stabilizing inflows. Before that, the "dual innovation" segments are more likely to show oscillating repairs rather than a one-way uptrend.

Robotics Leads Gains for Nearly Two Weeks — How Will the Market Rebound Rotate?

Unitree Robotics has rebounded by more than 80% from its October 15 low at one point, touching an intraday high of 739 yuan. The robotics sector has risen for nearly two consecutive weeks. Can this trigger a sector rotation rally within growth stocks?

On this question, industry participants still hold somewhat divergent views.

Deng Lijun believes that short-term A-share valuations and sentiment are at relatively low levels, and industry allocation can focus on oversold technology growth and certain blue-chip sectors. Within growth industries, electronics, telecommunications, machinery, and non-ferrous metals, as well as non-bank financials within large financials, have seen notable sentiment pullbacks, with low valuations and relatively high revenue growth.

Li Qian said that the rebound in robotics stocks such as Unitree Robotics is mainly driven by scarcity premiums and sentiment resonance. The demonstration effect of a single company's rise is difficult to directly transmit into a broad industry rally. After the company issued an announcement warning of valuation regression risks, it still received capital inflows, reflecting that current pricing is anchored more to narrative than to earnings. This model mainly attracts thematic trading funds, while driving systematic rotation across industries still requires allocation-type incremental capital.

Li Qian believes that rotation has already appeared, but the path is relatively convergent. First, within technology, capital is shifting from high-flying robotics to lower-position directions. For example, after consecutive adjustments in computing power hardware names, trading crowding and valuations have been somewhat digested. After selling pressure is released, there is technical repair momentum, but stabilization still requires volume and sentiment cooperation.

On the other hand, the "seesaw" effect between banks and technology growth currently manifests more as capital reshuffling. Going forward, investors can track whether margin trading funds can shift from sustained net outflows to stabilizing inflows, in order to break the previous negative feedback of "many killing many" in growth stocks.

Overall, the macro and valuation conditions for a rebound are already in place, but repairing the chip structure still takes time. Rotation is expected to mainly take the form of high-low switching within technology and phased risk aversion into consumer sectors. Conditions for full industry-wide diffusion are not yet mature.

Pan Jun, investment manager at Cheese Fund, said that this round of "dual innovation" rebound still has room to continue in the short term, but it currently looks more like valuation repair and risk appetite recovery after a sharp decline, and it cannot yet be confirmed as the start of a new trend uptrend. Unitree Robotics has rebounded more than 80% from its stage low, which mainly reflects scarcity leadership, thematic catalysts, and capital herding. It cannot be simply equated with synchronized upward revisions in earnings expectations. The company has also warned that humanoid robots are still in the early commercialization stage, with uncertainties in technology, demand, and supply chain supporting infrastructure.

Pan Jun believes that rotation into other industries and a gradual stabilization of the broader market is possible, but it is more likely to be structural repair rather than an immediate full-blown bull market. In the next stage, the key is to watch whether semiconductors, domestic computing power, AI hardware, printed circuit boards (PCB), innovative drugs, and certain non-ferrous metals and high-end manufacturing can relay the robotics theme. In particular, investors should observe whether trading volume can be sustained, whether the number of advancing stocks can maintain an advantage, whether other new main lines can take over when the robotics sector adjusts, and whether the ChiNext and STAR 50 can avoid breaking below previous lows on pullbacks.