A-share midday review | Three major indexes narrow fluctuations, Shanghai index fell 0.02% in half a day, AI application end continues to be strong.

On February 10th, the index fluctuated narrowly in the morning. By the noon closing, both the Shanghai Composite Index and the Shenzhen Component Index fell by 0.02%, while the Growth Enterprise Index dropped by 0.14%. The total turnover of the Shanghai and Shenzhen stock markets in the morning was 1.39 trillion RMB, a decrease of 97.3 billion RMB compared to the previous trading day. In terms of the market, the AI sector continued to be strong, with the application side leading the market. Industries such as film and television media, short dramas, ByteDance, valley economy, multimodal, etc., all surged. Over ten stocks, including Beijing Enlight Media, Shanghai Fengyuzhu Culture Technology, and People.cn Co., Ltd., hit the limit up. The chip sector was active, with Anhui Guofeng New Materials hitting the limit up. Pharmaceutical stocks rebounded, with Wanbangde Pharmaceutical Holding Group hitting the limit up. Chemical stocks maintained an upward trend, with ZheJiangJiHua Group hitting the limit up. Cross-border payments and sports sectors rose during intraday trading. In terms of declines, the airport transportation, liquor, duty-free shops, and dairy industries led the market down. Gansu Huangtai Wine-Marketing Industry plummeted. The photovoltaic sector underwent a correction, with BC batteries, photovoltaic equipment, organic silicon, POE film, and other related stocks all falling. Business aerospace and military electronic sectors all declined, with Finework (Hunan) New Energy Technology and Shanghai Shunho New Materials Technology leading the decline. The gold and non-ferrous metals sectors experienced a pullback, with Beijing Caishikou Department Store Co., Ltd. at the front of the decline. Agricultural stocks were soft, while insurance stocks trended downwards collectively. The steel, power, real estate, and Hainan sectors all showed weakness. In terms of focus stocks, the commercial aerospace new stock Electric Blue Sky soared by 750% on its first day of listing, with a market value approaching 140 billion RMB. The main business of Electric Blue Sky Technology Co., Ltd. is the research and development, production, sales, and service of electric power products and systems, including aerospace power supplies, special power supplies, and new energy applications and services. Looking ahead, China Securities Co., Ltd. stated that with four trading days left before the Spring Festival, the short-term market speculation is expected to be moderate due to the long holiday effect. The market is likely to be characterized by consolidation and fluctuations. Guosen also mentioned that there may still be further development in this round of spring market, and a short-term holding strategy over the festival may be relatively advantageous. Popular Sectors: 1. The AI application side continued to be strong, leading the market. 2. The concept of computing power stocks rose again. 3. The dispersed dye concept became active again. 4. The consumer sector led the market down. Institutional Views: China Securities Co., Ltd.: The small red envelope market before the Spring Festival may continue. Guosen: There may still be room for further development in this round of spring market. Soochow: The week before the festival is the best time to position the index.