A-share market noon review | Unafraid of external pressure, the three major indexes hit bottom and rebounded, with the ChiNext Index rising 0.65% at midday, and the chemical industry concept stocks showing a strong performance.

According to Wall Street, the weak US employment market data has exacerbated market pessimism, leading to a systemic sell-off in the technology sector of the US stock market overnight. The selling pressure in the technology sector quickly spread globally, putting pressure on Asia-Pacific markets. Risk assets are entering a noticeable "deleveraging resonance" phase. Influenced by the pressure from the global sell-off, the three major indexes opened lower this morning but then rebounded to close higher. By midday, the Shanghai Composite was up 0.11%, the Shenzhen Component was up 0.65%, and the ChiNext Index was up 0.65%. The total trading volume in the Shanghai and Shenzhen markets was 1.38 trillion yuan, a decrease of 63.3 billion yuan from the previous trading day. So, what is influencing the market trend? From a news perspective, the situation in Iran does not seem to be improving! According to CCTV News, on February 5, US time, the US State Department issued a security warning through the "virtual Tehran Embassy in Iran" stating that Iran continues to strengthen security control nationwide, and the situation remains tense. The US urged American citizens to leave Iran as soon as possible and to prepare departure plans that do not rely on assistance from the US government. Iran also did not back down. According to Iran's Mehr News Agency on the 5th, Iranian Army spokesman Mohammad Akraminia warned that US military bases in the Middle East are vulnerable to attack. Possibly influenced by this news, spot gold and silver rebounded sharply this morning. As of 10:33 am, spot silver rose by 8% to $72.54 per ounce, while spot gold rose by over 1% to $4826.9 per ounce. International oil prices also reversed from declines to gains, with Brent crude rising from $66.9 to $67.5. In terms of the market, the dye and other chemical industry concepts surged, with stocks like HeBei Jinniu Chemical Industry and Cangzhou Dahua hitting limit-up; lithium battery materials concepts rose, with Tonze New Energy Technology and Ningbo Shanshan hitting limit-up; traditional Chinese medicine stocks surged, with Teyi Pharmaceutical Group and Hunan Hansen Pharmaceutical hitting limit-up; optical module and computing hardware concepts strengthened, with Yangtze Optical Fibre And Cable Joint Stock hitting a record high limit-up again, and Shennan Circuits hitting limit-up again; PEEK, humanoid Siasun Robot & Automation concept stocks gained strength, with stocks like Kailong High Technology and Zhejiang XCC Group hitting limit-up; new energy sectors like wind power, photovoltaics, and energy storage were strong; power equipment and transformers rebounded, with stocks like Jinneng Holding Shanxi Electric Power and San Bian Science & Technology hitting limit-up; and concepts like non-ferrous metals, agriculture, innovative drugs, and nuclear fusion were all strong. In terms of declines, the "old Deng" concept took a one-day trip, with large consumption concepts like liquor, tourism, retail, duty-free shops, and food and beverage all falling, and Gansu Huangtai Wine-Marketing Industry hitting limit-down; real estate and urban village renovation concepts fell, with Metro Land Corporation dropping by over 5%; some AI application concepts like AI animation, AI marketing, media, and AI film and television also declined again; small and medium-sized enterprises, banks, insurance, and securities concepts all experienced collective pullbacks. Looking ahead, CICC believes that in the Chinese stock market, there is no typical peak signal yet, with ample liquidity and marginal improvement in performance. The firm continues to have a strong positive view on the revaluation process of Chinese assets and maintains an overweight recommendation for Chinese stocks. Popular Sectors: 1. Traditional Chinese Medicine Concept Leads Stocks related to traditional Chinese medicine surged, with Teyi Pharmaceutical Group, Hunan Hansen Pharmaceutical hitting limit-up, and Gansu Longshenrongfa Pharmaceutical Industry, BIOVALLEY, and Jiangxi Wannianqing Cement following. Analysis: Industrial and Information Technology Department and other eight departments issued the "Implementation Plan for the High-Quality Development of the Traditional Chinese Medicine Industry (2026-2030)". The plan aims to establish a synergetic development system for the entire industry chain of traditional Chinese medicine by 2030, with a focus on enhancing the stable supply capacity of key traditional Chinese medicine raw materials. 2. Chemical Industry Concepts Surging Dyes, epoxy propane, chemical raw materials, chemical fibers, and other chemical industry concepts surged, with stocks like HeBei Jinniu Chemical Industry and Cangzhou Dahua hitting limit-up. Analysis: China Post Securities pointed out that the core factor behind the recent price surge in dispersed dyes comes from the sharp increase in the price of the upstream key intermediate reduction agents. Reduction agents are important raw materials for dispersed dyes, and their prices have increased from 25,000 yuan per ton last year to 38,000 yuan per ton, representing an increase of over 50%. 3. Power Equipment Concepts Active The power equipment and transformer concepts rebounded, with Jinneng Holding Shanxi Electric Power, San Bian Science & Technology hitting limit-up, and companies like Beijing SOJO Electric, Baoding Tianwei Baobian Electric, and Jiangsu Ankura Intelligent Electric following. Analysis: According to CCTV Finance, research conducted in Guangdong and Jiangsu found that many transformer factories are operating at full capacity. 4. Precious Metals Concept Rebound The non-ferrous metal sector rebounded, with stocks like Hunan Gold Corporation and Guangdong Xianglu Tungsten hitting limit-up. Analysis: Spot silver rose by over 2% intraday, after dropping over 10% previously, and spot gold prices returned above $4800 intraday. Institutional Views: Looking ahead, CICC believes that there is no typical peak signal for Chinese stocks yet, with ample liquidity and marginal improvement in performance. Core drivers of the market continue to be monetary order restructuring and the AI industry trend. The firm maintains an overweight recommendation for Chinese stocks and suggests buying on dips in market volatility. Tianfeng Securities' analysis suggests that market sentiment has become fragile due to the rapid rise in gold prices, and any change in news could trigger concentrated selling by short-term speculators. The nomination of Powell may have triggered the drop in gold prices, but fragile market sentiment and profit-taking by short-term investors are the main reasons for the decline. In the short term, gold may enter a period of sideways movement, but chances are high for a renewed upward trend by the end of the year. Huachuang Securities believes that the 2026 Spring Festival consumer market is expected to see a strong recovery, with consumer data potentially exceeding market expectations. The firm suggests actively focusing on leading companies in the catering, hotel, tourism, duty-free, and retail sectors, benefiting from innovation in consumption scenarios and a resurgence in consumer enthusiasm. This article is a reprint from "Tencent Self-selected Stocks," GMTEight editor: Wang Qiujia.