A-Share Stock Indexes Continue to Soar
On February 7, the three major A-share stock indexes continued to rise, signaling a positive momentum in the market. As of the close of the day, the Shanghai Composite Index rose 1.44% to 2829.70 points, the Shenzhen Composite Index rose 2.93% to 8708.24 points, and the GEM Index rose 2.37% to 1707.02 points. Enthusiasm for market transactions was high, with the transaction volume on that day exceeding one trillion yuan for the first time since 2024. The total transaction volume of the Shanghai and Shenzhen stock markets reached 1,021.9 billion yuan. Northbound funds made a small net purchase of 1.684 billion yuan that day, achieving net purchases for the seventh consecutive trading day.
The trading activity also saw a surge in several CSI 300 ETF funds, with Huatai-PineBridge, Harvest Fund, E Fund, and China Asset Management’s Shanghai and Shenzhen 300 ETF products ranking first in terms of transaction volume. The total transaction volume of the four ETF funds exceeded 38 billion yuan.
In terms of industry concepts, the defense industry, nonferrous metals, steel, and biomedicine industries were among the top gainers. Industries such as electronics, power equipment, automobiles, and basic chemicals with the largest turnovers all posted strong gains. Among the individual stocks with the largest trading volume, Kweichow Moutai, WuXi AppTec, CATL, Cyrus, and ICBC showed notable movements in their stock prices.
Analysts at China Merchants Securities analyzed that during the early market adjustment, the dividend index showed a significant acceleration in style. It was recommended to pay attention to new productivity such as electronics, computers, machinery, medicine, and light building materials, as well as industries benefiting from major projects and real estate stabilizing growth policies.
Securities analysts, including Chen Li from Soochow Securities, believe that as U.S. dollar interest rates fall from high levels, A-share style switching is expected to occur, and growth styles may welcome valuation restoration. The decline in core assets has exceeded the decline based on fundamental understanding, leading to attractive trading odds once the valuation recovery market for growth stocks starts.
Zhao Wei, chief economist at Sinolink Securities, analyzed that the current private equity fund positions, public equity fund issuance, and market valuation levels are all at historically low levels. As related risks are gradually released, market sentiment is expected to improve marginally.
Overall, the A-share stock market is showing signs of resilience and positive momentum, with various sectors and individual stocks witnessing strong gains. The market outlook remains optimistic, and investors are eyeing the potential for further growth in the coming days.
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