A-share market opening express | A-shares collectively open lower, Shanghai index falls 0.87%, precious metals, oil and gas sectors lead the decline.

The three major A-shares collectively opened lower, with the Shanghai Composite Index falling by 0.87% and the ChiNext Index falling by 1.15%. On the market, the pharmaceutical sector performed actively, with Teyi Pharmaceutical Group and Shaanxi Panlong Pharmaceutical opening at the limit up; precious metals, oil and gas, and photovoltaic equipment sectors were among the top decliners. Institutional outlook Cinda: The negative factors that disrupt the logic have not appeared, and after a short-term adjustment, February is expected to continue the second half of the spring market Cinda believes that the current spring market has not faced negative factors that disrupt the logic, such as policy shift, substantial tightening of liquidity, overseas black swan impact, or significant weakening of fundamentals. After the short-term adjustment, February is expected to continue the second half of the spring market. Potential positive factors at the institutional level include increased allocation of equity assets by insurance funds, centralization of matured deposits for reallocation, resurgence in public offerings, repositioning by private equity, and return of foreign capital. Incremental positive factors at the macro level can focus on credit data and inflation data for January. In terms of style, February is usually a period where small-cap growth has an advantage, with a focus on themes over industries. High-elastic growth themes may still perform well after a period of earning effects consolidation. Additionally, it is still recommended to focus on industry directions with strong mid-term logic, as sustained momentum may be strong in the mid-term after valuation adjustments in the short-term. Huafu Securities: With relatively abundant liquidity combined with a rebound in earnings growth reaching bottom, the stock market may hit new highs again this year Huafu Securities stated that the market trend is not always synchronous with economic growth, and liquidity is often a significant driver of market changes. Although nominal GDP growth is still at its bottom range, the divergence between the balance sheets of residents and financial institutions, with the former being dragged down by real estate and weak improvement while the latter's balance sheet expansion speed is still adequate, provides abundant liquidity resources to the equity market. As deposits mature in the next few years, the low interest rate level may trigger a reallocation of assets by residents, which although may not be high in proportion, the large volume of maturing funds can still drive a considerable amount of capital flow. Chen Xing predicts that a relatively abundant liquidity environment, combined with a rebound in earnings growth, may lead to the stock market hitting new highs again this year. Orient: Signs of a cooling market are evident, "fear of highs" sentiment is showing, investors should adjust their expectations appropriately Orient stated that in the short term, there are clear signs of a cooling market, and there is a high probability that the Shanghai Composite Index will fluctuate in the 4000-4100 points range before the Spring Festival. Investors should adjust their expectations appropriately and can continue to focus on the technology track on dips. This article is reproduced from "Tencent Stock Selection". GMTEight Editor: Liu Jiayin.