A-share market closing review | Index plunges and rebounds! Shanghai Composite Index rises by 0.12%, Optical communication surges

Today, the market hit bottom and rebounded. The main A-share indexes opened lower in the morning but later rallied in the afternoon led by technology stocks. The ChiNext Index and the ChiNext 50 Index both rose by over 2% at one point during trading. Sector leaders included diamond cultivation, super capacitors, and communication equipment. The market saw a total turnover of 3 trillion yuan for the day, with a decrease of over 270 billion yuan from the previous trading day, and over 3000 stocks in both markets rose. In terms of market performance, the strong performance of the semiconductor and chip sectors led to an increase in market risk appetite. Optical module stocks rose in the afternoon, with "Zhongji Innolight" up nearly 7%, "Eoptolink Technology Inc." up over 3%, and stock prices reaching historical highs. The 6G concept surged in the afternoon, with ZTE Corporation's A-shares hitting the limit up. The power sector continued to rise, with Ningbo Energy Group and Huadian Energy among the stocks hitting the limit up. The synthetic diamond concept rose, with Henan Huanghe Whirlwind and Sf Diamond Co., Ltd. hitting the limit up. Materials in the PCB upstream, such as MLCC, copper foil, and electronic fabrics, all saw significant increases. Semiconductor industry chains, including IGBT and power chips, remained active, with Jilin Sino-Microelectronics hitting the limit up. Coal stocks continued to rise, with Beijing Haohua Energy Resource among the stocks hitting the limit up. On the downside, stocks related to humanoid robots, such as Siasun Robot & Automation, continued to decline, with Zhejiang Zomax Transmission approaching the limit down. The AI manga concept had a one-day performance decline, with Kunlun Tech leading the way. The big financial concepts like securities, banks, and insurance continued to decline, while the liquor and consumer goods concepts had a one-day performance surge. Looking ahead, China Securities Co.,Ltd. believes that in the short term, the market is likely to show characteristics of "index mild fluctuations and accelerated style rotation." The market focus may shift from the previous direction of AI computing power towards low-end consumption, electricity, and domestic semiconductor substitution. In terms of individual stocks, there were 3018 gainers and 2365 losers in the two markets, with 141 stocks remaining flat. There were 127 limit up stocks and 13 limit down stocks in total. At the close, the Shanghai Composite Index rose by 0.12% to 4098.64 points, with a turnover of 1361.3 billion yuan; the Shenzhen Component Index rose by 0.80% to 15861.89 points, with a turnover of 15909 billion yuan. The ChiNext Index rose by 1.96% to 4125.07 points. In terms of fund movements, today's main capital focus was on small metals, electricity, glass fiber and other sectors. Stocks with the largest net inflows included Foxconn Industrial Internet, Yunnan Lincang Xinyuan Germanium Industry, and Guangdong Fenghua Advanced Technology. News Review 1. ByteDance is reportedly developing custom CPUs to support AI demand According to sources, ByteDance is developing its own CPU to meet its growing artificial intelligence infrastructure needs. The current surge in chip prices and long-term supply shortages are limiting the company's expansion plans. This move highlights the industry's accelerated transition to the "inference" stage, which has significantly increased the demand for CPUs, leading to a CPU shortage in recent months. Sources say that ByteDance plans to deploy its self-developed CPU on its own servers and data centers to support internal operations. 2. Zimbabwe lists 14 minerals as "critical minerals," mandates state ownership, and prohibits mining without it The Zimbabwean government recently issued a "Mineral Classification and Declaration," officially listing 14 minerals, including lithium, nickel, cobalt, and graphite, as "critical minerals" subject to equity and export controls, and establishing the principle of mandatory minimum state ownership through designated special purpose vehicles (SPVs). This move is seen as following Indonesia's nickel industry roadmap, aiming to control the global critical mineral supply chain by banning the export of raw ores, forcing foreign investment to build smelters, and acquiring equity by the state. 3. Alibaba's Damo Academy releases GPU version solver for the first time, breaking the billion-variable "unsolvable" challenge Damo Academy announced on its official Weibo account that Alibaba's Damo Academy's "MindOpt" solver was officially released in a GPU version, fully utilizing GPU parallel acceleration features and introducing new algorithms to overcome the "long tail effect" challenge. Testing on around 2000 generic cases showed that MindOpt can stably solve over 99% of problem types to high precision, and can support solving complex problems with billion variables that were previously considered "unsolvable." The solver is known as the "core of industrial software" and is responsible for complex computations in key areas such as power scheduling, flight scheduling, advanced manufacturing, and financial management. Market Analysis 1. China Securities Co.,Ltd.: The short-term market is likely to show characteristics of "index mild fluctuations and accelerated style rotation." Looking ahead, it is important to closely monitor the impact of Changxin Technology's IPO approval on the storage industry chain and whether hot money will form new sustained hotspots in consumer and power directions after fleeing high-tech sectors. Overall, the short-term market is likely to show characteristics of "index mild fluctuations and accelerated style rotation," with the market focus shifting from the previous direction of AI computing power towards low-end consumption, electricity, and domestic semiconductor substitution. 2. East Money Information Securities: Technology remains a more certain main theme for the year The Chief Strategy Officer of East Money Information Securities, Chen Guo, stated in a research report that after experiencing the significant gains in the previous "normal trading + quarterly report" market, there is an increasing divergence in market structures, with some funds seeking structural rebalancing and rotation, leading to a correction in previously high-growth AI computing power (optical modules, storage) popular tracks. Chen Guo predicts that in the medium term, the triple high-growth logic of AI industry capital expenditure, order landing, and performance realization remains unchanged, coupled with the macroeconomic K-shaped differentiation strengthening the profitability advantage of the technology sector, making technology a more certain main theme for the year. It is recommended to avoid overdrawn high-level themes, and to prioritize the layout of high certainty in industrial prosperity, solid order performance, and relatively lagging hardcore segments. 3. Guosheng: Starship V3's maiden flight verifies core capabilities, SpaceX's listing is expected to open a new era of commercial aerospace The acceleration of SpaceX's listing process, combined with the continuous iteration of the Starship series, is reshaping the global commercial aerospace competition landscape and valuation system, with the leading overflow effect expected to resonate in the A-share industrial chain. On the investment side, it is recommended to focus on upstream segments with high barriers, early realization of business performance, companies deeply linked to national constellation projects, with irreplaceable technological barriers, production capacity reserves and in-hand orders, and those directly benefiting from the accelerated deployment of star chains. This article is reposted from "Tencent Stock Selection," edited by Liu Jiayin.