A-share market closing review | The market rebounded in the last two days of trading, with the Shanghai Composite Index closing up by 0.85% to surpass the 4100 points mark. The photovoltaic sector experienced an overall surge.

On February 4th, the three major indexes rose in the afternoon, with mixed closing prices. By the close, the Shanghai Composite Index rose by 0.85% to surpass 4100 points again, the Shenzhen Component Index rose by 0.21%, and the Growth Enterprise Index fell by 0.40%, dropping by over 2% at one point during the day. The total turnover of the Shanghai and Shenzhen stock markets was 2.48 trillion yuan, a decrease of 63.3 billion from the previous trading day. In terms of the market, the photovoltaic concepts such as space photovoltaic and perovskite batteries exploded across the board, with multiple stocks like Jinko Solar and Jolywood hitting the limit up; coal stocks collectively surged, with over 10 stocks including Shaanxi Heimao Coking and Shanxi Meijin Energy hitting the limit up; cyclical concept stocks such as chemicals, natural gas, electricity, and steel all rose; the hydrogen energy concept stocks surged collectively, with multiple stocks like Changchun Zhiyuan New Energy Equipment and Beijing Jingcheng Machinery Electric hitting the limit up; the real estate concept rebounded, with stocks like CASIN Real Estate Development Group and Rongan Property hitting the limit up; the consumer concept sectors such as airport transportation, hotel catering, all showed strength, with stocks like China Eastern Airlines Corporation and Xinjiang Youhao (Group) Co., Ltd. hitting the limit up; the Xiong'an concept remained strong, with stocks like Beijing Hanjian Heshan Pipeline hitting the limit up; and the lithium battery concept rose towards the end, with Contemporary Amperex Technology rising by over 5% at one point. It is worth noting that the AI industry chain weakened, with hardware and application directions dropping simultaneously, with stocks like Inly Media Co., Ltd. and Beijing Quanshi World Online Network Information hitting the limit down, and stocks like Beijing Zhidemai Technology and Shijihengtong Technology facing significant declines. On the news front, a new AI legal plugin launched by the AI star company Anthropic caused a drop in software stocks in the US overnight, leading investors to worry that the core businesses of software companies could potentially be replaced by AI technology. In fact, whether "big models will swallow software" has been a focus topic in the market in recent years. In response to this, Guosheng expressed that firstly, the impact of AI is not limited to software, and software companies seizing the opportunity in the AI era have emerged in various fields: such as Applovin in the advertising sector, and Figma and Canva in the visual design tools category. Secondly, companies that may be impacted by AI will empower themselves with AI. Finally, the development of open-source models is beneficial for software companies. The development of AI is a process where models and application vendors grow the cake together. The industrial landscape is still undergoing continuous changes. There is no need to worry broadly about AI consuming software; rather, it is important to observe the core competitiveness of different companies in the AI era and their ability to embrace AI specifically. Hot Sectors: 1. Coal concept triggers a limit up trend The coal concept has triggered a limit up trend, with over ten constituent stocks hitting the limit up, including Shaanxi Heimao Coking, Yankuang Energy Group, and China Coal Energy. Comments: Recently, affected by the cold wave, many places have experienced strong winds, rain, and snow, leading to an increase in energy demand for heating. To ensure stable and orderly energy supply in winter, help people stay warm during winter, and promote steady economic operation, localities have increased efforts to ensure energy supply, promote stability in coal production and supply, increase natural gas reserves and production, and maximize the use of clean energy. In addition, an Indonesian mining official stated on Tuesday that due to the Indonesian government's significant production reduction plan, the country's mining companies have temporarily suspended the export of thermal coal. Last month, Indonesia issued production quotas to major miners that are 40% to 70% lower than the 2025 levels as part of the country's plan to boost coal prices. Indonesia's major industry associations oppose this move, warning that it could lead to layoffs and mine closures. 2. Photovoltaic concept explodes across the board Space photovoltaics, perovskite batteries, and other photovoltaic concepts exploded across the board, with multiple stocks like Jinko Solar and Jolywood hitting the limit up. Comments: According to market rumors, the team of Elon Musk has been visiting several Chinese photovoltaic companies, focusing on companies with heterojunction and perovskite technology routes. Responding to these rumors, a Jinko Solar representative stated that the company has indeed had contact with Elon Musk's team recently, and the team has inquired about the company's technological reserves, production equipment, etc., but the specific details of cooperation intentions and visits cannot be disclosed. 3. AI industry chain experiences a collective pullback The AI industry chain experienced a collective pullback, with hardware and application directions all declining, with Inly Media Co., Ltd. and Beijing Quanshi World Online Network Information hitting the limit down, and multiple stocks like Beijing Zhidemai Technology and Shijihengtong Technology facing significant declines. Comments: On the news front, a new AI legal plugin launched by the AI star company Anthropic caused a drop in software stocks in the US overnight, leading to a series of software companies potentially being replaced by AI. Josh Brown, CEO of Ritholtz Wealth Management, stated that such situations occur once or twice a year. The triggers are always different, but the results are similar the most popular trades in the previous uptrend are severely hit. Josh Brown added, "This indicates that risk appetite is pulling out of all technology-related sectors." 4. Real estate concept rebounds The real estate sector showed active performance, with Rongan Property, CASIN Real Estate Development Group, and 5i5j Holding Group hitting the limit up. Comments: According to a CICC research report, the focus in 2026 should be on the principle of "controlling incremental growth and destocking," especially paying attention to the progress of policies on new land supply and the policy of collecting existing housing inventory. Investors should watch for trading opportunities in the real estate sector. Institutional viewpoints: 1. Zheshang: Consumption is the most important countercyclical variable in 2026, bullish on A-shares Li Chao, Chief Economist of Zheshang, stated that from the overall policy direction, the fiscal policy in 2026 needs to maintain a positive stance, with a certain level of deficit. At the same time, from a monetary policy perspective, there will still be room for a slight easing of reserve requirements and interest rates under moderate loosening conditions. Regarding the 2026 key tasks of "domestic demand" determined at the Central Economic Work Conference, Li Chao pointed out that in terms of expanding domestic demand, the importance of consumption should be emphasized in 2026. In the past, in the context of expanding domestic demand, real estate was the main countercyclical variable, with consumption often seen as a pro-cyclical variable. However, in the future, the market needs to recognize that consumption will be the most important countercyclical variable. "For the Chinese stock market in 2026, there is no need to pay particular attention to interest rates anymore, but we need to focus more on risk appetite. If market confidence stays relatively optimistic in the long term, the stock market still has the opportunity to continue the 'slow bull' market through valuation appreciation," Li Chao said. 2. Dalio: The current situation is nearing the critical point of a capital war, gold remains the safest asset Ray Dalio, Founder of Bridgewater Fund, stated at the World Government Summit that in the context of escalating geopolitical tensions and high volatility in capital markets, the world is on the edge of a "capital war." The current situation is nearing the critical point of a capital war. Dalio stated that despite the historic sell-off and price declines experienced by precious metals earlier, gold remains the best place to store funds. Gold and silver experienced rare flash crash movements last Friday and this Monday, but signs of initial stabilization have been seen on Tuesday. When asked whether the recent turmoil would shake the position of gold as the safest asset, Dalio said: "This is something that will not change over time." 3. China Securities Co.,Ltd.: Global commercial space industry enters a new stage with a focus on large-scale deployment and ecosystem building China Securities Co., Ltd. pointed out that the global commercial space industry has entered a new stage with a focus on large-scale deployment and ecosystem building, dominated by the bipolar development process of China and the US. US companies represented by SpaceX have established global benchmarks for commercial and technological development through reusable rockets and giant constellations. China, driven by comprehensive policy empowerment and capital system breakthroughs (such as the fifth set of criteria for the Sci-Tech Innovation Board), is pushing the industry to achieve structural leaps, ultimately surpassing the trillion-yuan valuation threshold. The current competition has shifted from single technological breakthroughs to comprehensive competitions in the engineering of reusable rockets, industrialization of satellite manufacturing, and commercialization of space-ground fusion. With efficient collaboration between state-owned enterprises and private enterprises in the industry chain, resources in frequency bands are being rapidly seized, and the competition for standard discourse power in the integrated standards of the 6G era in airspace is underway. In the future, the industry boundaries will expand to diverse tracks such as space computing power and space tourism, signaling that commercial space is transitioning from being a national project to driving future economic growth and strategic competition. This article was reprinted from "Tencent Stock Picks", GMT8 Editor: Huang Xiaodong.