A-share closing review: Shanghai Composite Index rises for the eighth consecutive day! Strong performance from the consumer sector continues.

The hawkish speech by the chairman of the Federal Reserve Powell dealt a heavy blow to US stocks, with the three major indexes collectively plunging overnight. Today, A-shares once again showed independent trends, with the three major indexes opening lower and closing higher. The Shanghai Composite Index closed up for the eighth consecutive day, with market turnover falling below trillion yuan, and more stocks rising than falling. GF SEC believes that the market has entered a volatile range, with index volatility narrowing. A-shares may gradually begin trading on expectations of increased domestic counter-cyclical adjustments, technological self-reliance and controllability. It is recommended to focus on three clues: domestic demand hedging, technological advancement, and external demand breakthrough. In terms of the market, consumer stocks are active again, with sectors such as dairy, liquor, and e-commerce showing strength. The chemical industry sector is on the rise, with stocks like Hongbaoli Group Corporation and Tian Jin Bohai Chemical hitting the limit up. Real estate stocks are strong, with stocks like Chong Qing Yukaifa hitting the limit up. The semiconductor industry chain is strong, with lithography machines and resists leading the way, and stocks like Xilong Scientific and Anhui Guofeng New Materials hitting the limit up. The power sector is fluctuating and rebounding, with Leshan Electric Power hitting four consecutive limit ups. On the downside, the port and shipping sector is retreating, with precious metals and the automotive industry chain leading the declines. Looking at individual stocks, there were 3127 gainers and 2039 losers in the two markets, with 246 stocks remaining unchanged. There were a total of 99 stocks hitting the limit up and 12 hitting the limit down. At the close, the Shanghai Composite Index rose 0.13% to 3280.34 points, with a turnover of 442.6 billion yuan; the Shenzhen Component Index fell 0.16% to 9759.05 points, with a turnover of 556.9 billion yuan. The ChiNext Index rose 0.09% to 1908.78 points. Funds Movement Today, major funds focused on investing in shipping ports, aviation equipment, and hotel and catering sectors, with major net inflows into stocks such as Greatoo Intelligent Equipment Inc., Jiangsu Lianyungang Port, and Cambricon Technologies. News Review 1. Zhejiang issued the "Implementation Plan for Promoting the High-Quality Development of Initial Projects". The Zhejiang Provincial Department of Commerce and 10 other departments issued the "Implementation Plan for Promoting the High-Quality Development of Initial Projects." It mentions that by 2027, the initial economic system for research and development, production, services, publication, display, promotion, and sales of new products will be basically sound, forming an initial economic ecosystem driven by innovation, industrial upgrading, and integration of diverse consumer scenes. The province will introduce over 2000 types of initial stores, with over 200 high-level initial stores, of which more than 20 are national-level or higher, incubate more than 50 new local initial brands, introduce and cultivate more than 20 headquarters-type enterprises, incubate a group of multinational companies and world-renowned enterprises, hold over 200 events for new product initial releases, and promote a significant growth in the scale of the initial economy. 2. Shanghai: Support for private-listed companies to use buybacks and shareholder increases for market value management. Shanghai held a municipal government press conference to introduce the "Measures to Promote the High-Quality Development of the Private Economy in the New Era." The conference introduced that in terms of broadening the financing channels of private enterprises, the "Measures" encourage private enterprises to focus on new quality production capabilities, strengthen chain supplementation and upgrading in traditional industries, and support private listed companies to use tools such as buybacks and shareholder increases for market value management. The measures also encourage government investment funds and industry support funds to support private investment projects. 3. CSRC plans to conduct special evaluations for securities firms on "five major aspects of finance". According to the deployment of the CSRC, to further enhance the main responsibility of securities firms in the "five major aspects of finance" and improve the relevant assessment and incentive mechanism, the CSRC has organized the drafting of the "Special Evaluation Measures for Securities Firms on Achieving the 'Five Major Aspects of Finance' (Trial) (Draft for Solicitation of Opinions)." The evaluation index system (out of 100 points) consists of quantitative evaluation indicators (85 points) and qualitative evaluation indicators (15 points). The quantitative evaluation indicators reflect the contribution and capabilities of the securities companies in key areas such as technological finance, green finance, inclusive finance, pension finance, digital finance, etc., while the qualitative evaluation indicators include mechanism construction and other aspects, totaling 14 evaluation indicators. Analysis of the Future Market 1. GF SEC: Market in a volatile range GF SEC believes that looking ahead, the short-term potential of the current round of risk-off (i.e., risk aversion) has been reached, and the market is expected to enter a volatile range with a narrowing of index volatility. After the short-term global risk-off period, A-shares may gradually begin trading on expectations of increased domestic counter-cyclical adjustments and technological self-reliance. In terms of allocation, it is recommended to focus on three clues: domestic demand hedging - service consumption, fertility and elderly care, cost-effective consumption; technological advancement - domestic cloud giants industry chain, end-side industry chain, military electronics, semiconductors, and other specific fields; external demand breakthrough ("Belt and Road", Europe) - motorcycles, inverters, passenger cars, wind power, etc. 2. Guotai Haitong: Continue to maintain bullish thinking Guotai Haitong believes that it is advisable to continue to maintain a bullish attitude towards the Chinese stock market. In terms of industries, financial stocks are expected to see improved valuations, recommending securities firms, insurance companies, banks, and low-risk assets with high dividends such as power, operators, and highways. Secondly, proactive domestic demand policies will likely break the supply-demand balance for some cyclical products in China, leading to price recovery, recommending non-ferrous metals, real estate, building materials, steel, and chemicals. Thirdly, as the economic structure shifts towards technological innovation, it is recommended to focus on technology with minimal short-term performance risks and significant long-term growth potential, such as Hong Kong-listed Internet companies, gaming, semiconductors, aerospace defense, and AI computing power. 3. Orient: Structural market trends, hotspots rotation style may continue Orient believes that looking ahead, the market is still in the process of exploring a bottom and rebounding. In recent days, trading volume has continued to shrink, and the stock market index has shown weak upward momentum. The continued contraction of trading volume to build a phase bottom is a high-probability event, and the trend of structural market trends and hotspots rotation style may continue. The market trend characterized by speculation in cyclical stocks with internal circulation themes is likely to prevail.The trend is expected to be maintained, especially for stocks with high certainty of good performance in the first quarter and continuous validation of their fundamentals, which are expected to deliver good performances.This article is reprinted from "Tencent Self-selected Stocks", GMTEight editor: Liu Jiayin.