“
Funds are like a playboy, tired of AI hardware, and immediately turn to robots.
Today’s market can be summed up in one word: split!
The Shanghai Composite Index crawled up 0.38%; the Shenzhen Composite Index surged 0.61%; the ChiNext is like a loser, down 0.84%.
3900 stocks are rising, but AI hardware is crying like a dog. This market is like a blind date market—robot concepts are being snatched up, while AI hardware is cast aside.
The Hong Kong stock market is quite strong, with the Hang Seng Index up 0.85% and the technology index up 1.17%. Southbound funds bought a whopping 16.7 billion, reminiscent of your shopping spree on Double Eleven.
01 Index Plays Split Personality
The market today is exhibiting a split personality.
The Shanghai Composite Index pretended to be dead at 3800 points, closing at 3826 points, like a laid-back office worker.
The Shenzhen Composite Index is like an overly excited salesperson, with an intraday fluctuation of 1.41%, closing at 12666 points.
The ChiNext is directly lying down, closing at 2933 points. Why? AI hardware collectively crashed, with optical modules and optical chips plummeting.
The North Star 50 is impressive, soaring 1.78%, reaching a historical high. What does this indicate? The spring of small stocks has arrived!
The Hong Kong stock market is as steady as a rock. The Hang Seng closed at 25608 points, and the technology index at 5745 points, with increases of 0.75% and 1.01%, respectively. Truly a financial center, calm! The Hang Seng Technology ETF: currently possibly the best allocation window in three years.
02 Sectors Change Faces
Robots are going crazy today!
Tesla is about to mass-produce humanoid robots, and the entire industry chain is ecstatic. Mingzhi Electric, Sanhua Intelligent Control, and Jiangte Motor all hit the daily limit. Yokogawa Precision and Zhaomin Technology also hit the daily limit, exciting!
PEEK materials are also on the rise, with Xinhan New Materials and Tianci Materials hitting the daily limit. This stuff is in the same boat as robots; when one thrives, they all thrive.
Medical devices are catching up, previously unwanted, now in high demand. This is like an older single woman suddenly being sought after in the blind date market.
Energy metals are rising, fertilizers are rising, and shipping is also on the rise. China Merchants Industry is hitting the daily limit! Global trade recovery is bringing these old players back to life.
03 AI Hardware Is Finished
AI hardware is in a dire state today.
The communications sector fell by 5.25%, with CPO and high-speed copper plummeting. Institutional heavyweights collectively dived, with New Yisheng and Zhongji Xuchuang dropping over 10%, and Tianfu Communication dropping over 11%, while Changfei Optical Fiber hit the daily limit.
The electronics sector is also suffering. Shenghong Technology dropped over 12%, Yuanjie Technology dropped over 16%, and Dongxin Co., Ltd. dropped over 13%. The consumer electronics peak season is not peaking, like having no date on Valentine’s Day, tragic!
The tourism and hotel sectors are playing dead; post-pandemic consumption is still weak.The big finance sector is also lying flat, with insurance, banks, and brokerages collectively feeling down. The market lacks confidence in the financial sector, just like you lack confidence in your salary card.
04 ETFs Play Heartbeat
ETFs are all about the heartbeat today.
The Robot 50 ETF rose by 5.63%, the New Energy Vehicle ETF rose by 5.20%, and the Robot ETF rose by 4.90%. Funds are rushing towards robots like crazy!
The medical ETF is also thriving, with Huatai-PB and China Merchants’ medical device ETFs both rising over 4.5%. Medical devices are usually ignored, but when they rise, they become a hot topic.
AI hardware-related ETFs collectively crashed. The communications ETF fell by 4.92%, and the artificial intelligence ETF dropped over 4%. Cloud computing also suffered, with Huatai’s cloud computing ETF dropping by 2.59%.
This tells you: don’t go against the market; the market is always right!
05 Funds Drift
Today, the two markets had a transaction volume of 241.87 billion, 114.1 billion more than yesterday. Funds are drifting madly, like the AE86 in Initial D.
The financing balance is approaching 2.2 trillion, reaching a new high since 2016. What does this indicate? Leverage funds are entering the market crazily, and there are more and more gamblers!
Power equipment is the most favored, with a net purchase of 12.3 billion. Non-bank financials are also doing well, with a net purchase of 4.5 billion. These sectors are like the top stars in a nightclub, everyone wants them.
Southbound funds are crazily buying Hong Kong stocks, with 16.7 billion. Mainland investors think Hong Kong stocks are cheap, just like you think Pinduoduo is a great deal.
06 What to Play in the Future
Brokers are all acting cool, saying the “healthy bull” hasn’t changed. In plain language: don’t be afraid of the drop; it will rise again!
The logic of the eight major tracks is still there: AI/robots/solid-state batteries/nuclear fusion/aerospace/semiconductors/innovative drugs/new consumption. These are like the spiritual roots in a fantasy novel; having spiritual roots means you can become immortal!
Operational advice: don’t chase highs and kill lows; find something with policy backing. Robots, new energy, and Hong Kong Stock Connect all have policy support, just like a stable job with a system!
The U.S. non-farm data was disappointing, with only 22,000 new jobs added. The market believes the Federal Reserve will definitely cut interest rates in September, with a 100% probability! This is like knowing that Double Eleven will definitely have discounts; it’s wise to add to your cart in advance.
Global liquidity is set to improve, and the technology sector in A-shares will benefit first. Communications, semiconductors, solid-state batteries, and innovative drugs can all thrive.Photovoltaics are also good, after all, we need to “reverse the involution”.
Remember: investing is like dating; don’t fall in love with just one flower. Cast a wide net and focus on catching!