A-share market closing review: Index V-shaped rebound! Agricultural concept leads the market surge, computing power race erupts.

Today's index trend is differentiated, with the Shanghai Composite Index falling more than 2% at one point and the ChiNext Index reversing the trend to rise and form a V-shaped reversal. On the market, the agricultural sector, CPO, and other computing power sectors rose against the trend, while the gold and non-ferrous metal concepts plummeted across the board. The market saw a total turnover of about 2.8 trillion yuan, a decrease of nearly 400 billion yuan compared to the previous trading day, with more stocks falling than rising overall in both markets. According to Securities China, significant changes have occurred in the external market. First, on January 29, U.S. President Trump stated that he plans to engage in dialogue with Iran and said he "hopes" to avoid the use of force. This move may reduce the drive for rising oil and international gold prices. Second, the U.S. dollar index rose sharply. Third, the appointment of the Chairman of the Federal Reserve may be announced tonight, Beijing time, causing market uncertainty and fear. In terms of the market, agricultural concepts such as grain planting, seeds, and soybeans led the market higher, with multiple stocks such as ShanDongDenghai Seeds and China Agriculture Development Seed Group hitting the limit up. The performance of the agricultural sector may be related to two major positive developments. From a trading logic perspective, following the typical rotation path of bulk commodities, after the rise of precious metals, industrial metals, and energy and chemical industries, the rotation will eventually lead to Shenzhen Agricultural Power Group. The rise of the Shenzhen Agricultural Power Group will then transmit to the breeding industry, and then spread to the end consumer sector. In addition, the agricultural sector may be anticipating the release of the "No. 1 Document" of policies, which typically provide opportunities at the beginning of each year. In addition, computing power hardware stocks such as CPO continued to strengthen in the afternoon, with components of the ChiNext 50 index pulling up the market. Suzhou TFC Optical Communication rose more than 10% to hit a historic high, while Zhongji Innolight and Eoptolink Technology Inc. both saw significant increases. Some analysis agencies pointed out that several domestic companies including Alibaba recently released new versions of large models, igniting market sentiment. Additionally, positive earnings forecasts from U.S. tech giants Meta and Microsoft have alleviated previous market concerns. Google Cloud and Amazon have also successively raised prices for data transfers and computing services. In other hot spots, some AI applications such as film and television industry were strong, with Inly Media Co., Ltd and Hengdian Entertainment hitting the limit up. Sectors such as hotels, restaurants, and tourism showed strong performance. On the downside, the concepts of gold, silver, and non-ferrous metals all plunged, with multiple stocks like Zhongjin Gold Corp., Ltd and Hunan Silver hitting the limit down. Zijin Mining Group, a trillion-dollar giant, hit a low of 39.12 yuan during the day, just one cent away from the limit down price, with a market value of 1.06 trillion yuan; the concept of rising lithium battery materials collectively declined; the real estate and liquor concepts had a one-day rally. Looking ahead, Guosen believes that as we enter late January, the disclosure of annual performance forecasts will intensify, and the market focus will be on performance indicators. Among individual stocks, there were 2453 gainers and 2896 losers in the two markets, with 128 stocks remaining flat. There were 59 limit up stocks and 62 limit down stocks in total. At the close, the Shanghai Composite Index fell 0.96% to 4117.95 points, with a turnover of 1.2699 trillion yuan; the Shenzhen Component Index fell 0.66% to 14205.89 points, with a turnover of 1.5657 trillion yuan. The ChiNext Index rose 1.27% to 3346.36 points. Funds Flow Today's major funds focused on communication equipment, planting, and white goods sectors, with top net inflow stocks including Suzhou TFC Optical Communication, Addsino Co., Ltd., and Contemporary Amperex Technology. Major News Recap 1. National Energy Administration: Promote Hydrogen Energy Pilot during the "14th Five-Year Plan" period and vigorously cultivate future industries The National Energy Administration held a press conference to introduce the national energy situation in 2025, peak winter energy supply, development of new energy storage, national electricity market trading, etc. It was pointed out that hydrogen energy, as an important part of the future national energy system, will play a key role in the construction of new power systems and new energy systems, promote the development and integration of new energy, and help achieve the "dual carbon" goals. At the same time, the high technological content, long industrial chain, and various links involved in the development of hydrogen energy industry will drive industry innovation, expand domestic demand, nurture talent, and promote international cooperation. 2. China Construction Bank Corporation: The minimum deposit amount for individual gold accumulation business is raised to 1500 yuan China Construction Bank Corporation announced in a public notice that, starting from 9:10 on February 2, 2026, the minimum deposit amount for individual gold accumulation business, including daily average deposits and optional day deposits, will be raised to 1500 yuan. Previously set regular deposit plans will continue to be executed without any impact. After the expiration of the extended regular deposit plan, if the original deposit amount meets the bank's new requirements, the extension will be successful, otherwise, it will fail. Modification of regular deposit plans must meet the bank's latest deposit amount requirements. 3. Brother Ping's PPU chip total shipments exceed hundreds of thousands, surpassing Cambricon According to sources close to Alibaba, Brother Ping's True Martial PPU chip total shipments have reached hundreds of thousands, surpassing Cambricon and leading among domestic GPU manufacturers. As of the time of publication, the reporter was unable to obtain further confirmation from Cambricon. Market Outlook 1. Guosen: Focus will be on performance indicators Guosen believes that as we enter late January, the disclosure of annual performance forecasts will intensify, and the market focus will be on performance indicators. Based on the disclosure standards, the median year-on-year growth rate of net profit attributable to shareholders of listed A-share companies in 2025 is expected to reach double digits, indicating a potential acceleration in corporate profits. Among them, listed companies in industries such as computing power communications, lithium batteries, and energy storage are expected to achieve significant growth in performance. Overall, during the critical window of performance verification, combined with the high prosperity and performance elasticity of the growth sectors, companies with solid fundamentals and better-than-expected performance are likely to generate excess returns and become the core drivers of the upcoming "spring rally" market trend. 2. Zheshang: Short-term volatility expected in the market Zheshang believes that the "spring rally," as a seasonal effect, is mainly driven by factors such as policy expectations at the beginning of the year, liquidity injections from the central bank, a vacuum period in economic data and corporate earnings reports, among others. From the perspective of local currency liquidity, the central bank usually implements measures to maintain liquidity by lowering reserve requirements or interest rates at the beginning of the year to meet the cash injection needs of commercial banks before and after the Spring Festival. In terms of allocation, the market may experience short-term fluctuations and reduced volatility, with a longer-term view showing the potential for a "systemic slow bull" market. In terms of sectors, as A-shares enter the window period for annual performance verification in late January, the market style may shift towards the "two-electricity non-machine" and mid-to-small-cap growth sectors that possess both performance and elasticity. 3. Orient: Market to continue in a volatile pattern Orient believes that in the short term, the market will continue in a volatile pattern, with sector-specific rallies driven by industry prosperity and cyclical sectors. Active funds will choose directions based on performance elasticity or policy support, without a clear direction in stock indices for the time being. However, it is worth noting that there is a certain divergence in the precious metals sector, and investors need to be cautious about potential wide-ranging fluctuations in the future. This article was originally published on "Tencent Stocks", GMTEight Editor: Liu Jiayin.