A-share market closing review | Divergence in indexes! Shanghai index rose slightly, with three major price increase themes erupting.

Morning market opening today was volatile with differentiation, the Shanghai Composite Index slightly increased, and the Growth Enterprise Board Index showed significant adjustment. There was high-low fund switching, with the previously strong film and television media sector experiencing adjustment. The market had a total turnover of less than 2 trillion, which was more than a trillion lower compared to the previous trading day, with over 3200 stocks falling in both markets. In terms of the market, recently there have been repeated outbreaks of rising themes. Today, the market saw three rising themes surge again. These three rising themes were small metals, dyes, and electronic fabrics, where the first two catalyzed the cyclical stock market, leading the way for non-ferrous metals and chemical sectors. In the electronic fabric theme, Chongqing Polycomp International Corporation rose by the limit, while stocks like China Jushi Co., Ltd, Grace Fabric Technology, and Sinoma Science & Technology also rose by the limit. In other hotspots, coal, oil and gas, steel, and other resource stocks showed strong performance. Offshore Oil Engineering rose by the limit, with stocks like Shanxi Coking following the trend. The film and television media sector underwent a significant adjustment, with the industry leader Hengdian Entertainment hitting the limit down. The company stated that there is still uncertainty surrounding the box office performance of three Spring Festival movies, including "Speedy Life 3". If the company's stock price further abnormally rises, the company may apply for a trading halt for investigation. Looking ahead, Minsheng Securities believes that the week before the holiday is the best time to position oneself, to seize the opportunity to buy back before the Spring Festival. Looking at individual stocks, there were 2050 companies that rose in both markets, while 3241 companies fell, and 192 had flat growth. A total of 61 stocks hit the daily limit up, and 13 stocks hit the daily limit down. At the close, the Shanghai Composite Index rose by 0.09% to 4131.98 points, with a turnover of 822.6 billion; the Shenzhen Component Index fell by 0.35% to 14160.93 points, with a turnover of 116.17 billion. The Growth Enterprise Board Index dropped by 1.08% to 3284.74 points. Fund movement Today, the main funds focused on seizing opportunities in small metals, glass, chemical fibers, and other sectors. The top stocks in terms of net inflow of major funds included China Northern Rare Earth, GEM Co., Ltd., Wangsu Science & Technology, among others. Highlights Review 1. Wuxi Hosts Space Photovoltaic Supply and Demand Meeting, with companies like Guoyu Xingkong, Hongyuan Green Energy participating On February 10, the Wuxi Development and Reform Commission organized a Space Photovoltaic Supply and Demand meeting, inviting companies like Jiangsu Guoyu Xingkong Technology Co., Ltd., Hongyuan Green Energy Co., Ltd., Jiangsu Yixing Derong Technology Co., Ltd., Jidian Light Energy Co., Ltd., Wuxi Huasheng Photovoltaic Technology Co., Ltd., and the Yangtze River Delta CECEP Solar Energy Photovoltaic Technology Innovation Center. At the meeting, companies had detailed discussions about the development plans and goals of Jiangsu Guoyu Xingkong Technology Co., Ltd., and had in-depth exchanges on technical research and development, material applications, manufacturing processes, inspection, and testing in the field of space photovoltaics. In the future, the Wuxi Development and Reform Commission will play a coordinating role and continue to build a cooperation platform to accelerate the creation of benchmarks for innovation in space photovoltaics. 2. China Car Industry Maintains Stable Operation in January The latest data released by the China Association of Automobile Manufacturers today showed that in January 2026, China's automotive industry maintained stable operation. In January, automobile production and sales reached 2.45 million and 2.346 million units, with a year-on-year increase of 0.01% in production but a 3.2% decrease in sales. New energy vehicles market operated smoothly, with production and sales reaching 1.041 million and 945,000 units respectively, representing a year-on-year increase of 2.5% and 0.1%. 3. "New Year Gift Package" worth 20.5 billion will benefit consumers during the Spring Festival This morning, a relevant person from the Ministry of Commerce introduced that during the Spring Festival holiday this year, the Ministry of Commerce, together with 9 other departments, planned the "Happy New Year" special Spring Festival activities, delivering real money and silver "New Year Gift Packages" to consumers. Currently, 20.5 billion funds have been arranged nationwide. During the 9-day holiday, through the distribution of consumer vouchers, subsidies, red envelopes, and other forms, a wide range of consumers will be directly benefited. 4. Semiconductor Manufacturing International Corporation Zhao Haijun: Increase in orders related to AI, storage, and mid-to-high-end applications At the performance meeting, Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corporation, stated that the strong demand for storage in artificial intelligence is squeezing the supply of storage chips available to smartphone and other applications, especially in the mid-to-low-end sectors, leading to a shortage and price increase in these areas. All these factors combined have resulted in a decrease in mid-to-low-end orders received by chip factories, but an increase in orders related to AI, storage, and mid-to-high-end applications. Future Prediction 1. Minsheng Securities: The week before the holiday is the best window for positioning, seize the opportunity to buy back before the Spring Festival Minsheng Securities stated that under the influence of the long holiday, the market's bullish and bearish games are becoming milder, with supervision emphasizing stable operation as the main tone. Overseas, the Federal Reserve's shrinking balance sheet expectations have decreased, and the overall macro liquidity environment is ample. Historical data shows that the week before the holiday is the best window for positioning. Around five days before the holiday, a rebound turning point is often reached, and the market style is more likely to shift towards small and medium growth stocks. This week is the last trading week before the holiday, emphasizing the opportunity to buy back before the Spring Festival. Priority allocation to cyclical dividend assets (coal), technological growth, and some high prosperity sectors such as pharmaceuticals, military industries, and automobiles. 2. China Galaxy Securities: The Spring Festival holiday is expected to provide an ample time window for the release of seasonally adjusted box office According to China Galaxy Securities, in recent years, the effects of film schedule and Matthew effect have become increasingly apparent. From the current Spring Festival slate announcement and performance on third-party platforms, it seems that audiences still have a high acceptance and desire to watch quality films. The Spring Festival holiday this year is 9 days long, providing a more ample time window for the release of seasonally adjusted box office revenues, and we look forward to the subsequent box office performance. Additionally, ByteDance's video model Seedance2.0 recently entered internal testing, and its video generation capability has significantly improved. There is optimism about the long-term empowerment of AI video tools on the film industry. 3. CITIC Securities: The solar cell module industry is expected to accelerate the "anti-crowding" trend According to a CITIC Securities research report, against the backdrop of soaring silver prices, leading companies in the solar cell module sector are expected to accelerate the substitution of cheap metal slurry, driving further cost differentiation in the industry. Demand is also shifting towards high-efficiency products continuously upgrading, with lagging production capacity facing accelerated elimination pressure; Shanghai Aiko Solar Energy has taken the lead in launching the first anti-crowding initiative in the photovoltaic industry, and leading companies with core technology and patent advantages are expected to stand out. The solar cell module industry is expected to accelerate the "anti-crowding" trend, and it is recommended to invest in leading companies in the battery and module, slurry, and equipment sectors. This article was reprinted from "Tencent Stock Selection". Editor: Liu Jiayin.