The three major A-share stock indexes collectively opened higher on January 20. In early trading, the two markets fluctuated at high levels, and core assets rose. In the afternoon, the two markets walked out of the downward trend of shocks, and the Shanghai Composite Index turned down at the end of the session.

From the perspective of the disk, the concepts of high-speed copper connection, PCB, and solid-state batteries have strengthened across the board, consumer electronics and pharmaceutical stocks have performed actively, and CATL and WuXi AppTec have both risen by more than 5%; Dividend assets continued to weaken, cyclical stocks fell, and Xiaohongshu concept stocks retreated again.

At the close, the Shanghai Composite Index rose 0.08% to 3,244.38 points, the STAR 50 Index rose 0.25% to 968.27 points, the Shenzhen Component Index rose 0.94% to 10,256.4 points, and the ChiNext Index rose 1.81% to 2,104.73 points.

Wind statistics show that a total of 3,613 companies rose in the two cities and the Beijing Stock Exchange, 1,586 declined, and 186 were flat.

The turnover of the two cities was 1,182.9 billion yuan, an increase of 47.3 billion yuan from 1,135.6 billion yuan on the previous trading day. Among them, the Shanghai market turnover was 469.7 billion yuan, an increase of 13.1 billion yuan from the previous trading day's 456.6 billion yuan, and the Shenzhen market turnover was 713.2 billion yuan.

According to Great Wisdom VIP, a total of 89 stocks in the two cities and the Beijing Stock Exchange rose by more than 9%, and 28 stocks fell by more than 9%.

Power equipment led the gains, and coal and oil fell first

In terms of plates, the strength of energy storage and lithium battery has driven the power equipment sector to lead the two cities, with Ketai Power (300153), Far Eastern Group (600869), Hewang Electric (603063), Jinzhi Technology (002090), Zhongheng Electric (002364), Shengyang (002580) and other daily limits or more than 10%.

Textile and apparel rose to the top, Aimer shares (603511), Huijie shares (002763), true love beauty (003041), Mengjie shares (002397) and other daily limits, leading shares (600630), Yangzhou Jinquan (603307), Henghui Security (300952) and so on rose more than 6%.

Education stocks strengthened, the social service sector performed eye-catchingly, Guoxin Culture (600636) rose by the limit, Pony Test (300887) rose by more than 8%, and Zhongxin Tourism (002707), China Youth Travel Service (600138), and China Testing (300012) rose by more than 2%.

Coal stocks fell first, with Lu'an Environmental Energy (601699), Anyuan Coal (600397), Baotailong (601011), Power Investment Energy (002128), Shanmei International (600546), and China Shenhua (601088) falling more than 2%.

Petroleum and petrochemical fell significantly, CNOOC Development (600968), PetroChina (601857), CNOOC (600938), Donghua Energy (002221), Quasi-Oil (002207), and PetroChina Engineering (600339) fell more than 2%.

Semiconductors fell in the afternoon, with Shanghai Silicon Industry (688126), Shengbang (300661), Siruipu (688536), NOVOSENSE (688536), Brite (688691), and Anlu Technology (688107) falling more than 4%.

The market pullback is nearing its end

Haitong Securities pointed out that if September 24 last year is characterized as the first wave of market reversal, the adjustment since October 8 last year can be characterized as a takeback after the first wave of rise. Looking back on history, the fundamentals of the previous bull market gestation period have not improved significantly or are even still downward, and the market will advance and retreat. As a result, the market correction since October 8 last year is nearing its end. Drawing on history, the necessary condition for the previous bull markets to enter the explosive period from the gestation period is that the policy is further increased or implemented, and the fundamentals have shown obvious directional improvement. In the future, if the incremental policy accelerates the implementation and promotes the improvement of fundamentals, the market is expected to start a new round of rise. In terms of industry allocation, the fundamentals of technology and mid-to-high-end manufacturing are more certain. In terms of science and technology, the dual benefits of policy and technology superimposed on the rebound of the industrial cycle supported the development of the market. In terms of medium and high-end manufacturing, China's supply is superior, domestic and foreign demand is supported, and the boom is expected to continue. There is a large expectation gap between real estate and consumer medicine, and with the balance sheet repair + fiscal policy force, consumer medicine is expected to usher in fundamental improvement; At the same time, under the policy force, the real estate market is expected to "stop falling and stabilize".

Industrial Securities believes that since the end of last year, the market has undergone a round of adjustment. We believe that it is time to put aside the pessimism and prepare for a new round of upward movement around the Spring Festival. First of all, this wave of adjustment since the end of last year is a process of market shock digestion. Secondly, after the adjustment at the end of the year and the beginning of the year, the market has once again come to the cost-effective range, and the congestion of most industries is at a low level. In addition, the easing of external pressures such as the Sino-US game is also expected to lead to the recovery of risk appetite. In addition, the economy in 2024 ended above expectations, and fundamental expectations continue to recover. Finally, referring to historical experience, from around the Spring Festival to the two sessions, it is also a precious traditional window of restlessness driven by expectations and increased risk appetite. Structurally, the "dumbbell" configuration can be tilted in stages in the direction of high elasticity. Since the end of September 2024, the policy reversal, but the fundamental reversal has yet to be verified, the performance of the index and the industry has a low correlation with the fundamentals, and the market mainly trades odds based on liquidity and valuation repair logic, showing an obvious "dumbbell" allocation, focusing on small caps when risk appetite rises, and tangential dividends when risk appetite shrinks. With the further release of subsequent uncertainties and the opening of a new round of rise, the "dumbbell" configuration may once again tilt towards high elasticity.

CITIC Securities said that this week, the market is about to enter a critical window period for the landing of external disturbances, with the official inauguration of the President of the United States, the convening of the Federal Reserve interest rate meeting, and the upper limit of the U.S. federal debt; The trading loss indicator we created shows that the short-term correction in the A-share market is basically over, and the front-running indicator we created observed that the front-running behavior of trading is occurring and will continue, and the spring offensive may be advanced. In terms of configuration, it is recommended to continue to maintain the barbell strategy of the bonus + theme, and strengthen the direction of going overseas in the theme.

China Securities said that the two sessions have been held intensively in various places recently, and many places have set the expected GDP target for 2025 at about 5% or 5.5%, and the market has also begun to enter the policy expectation stage of the two sessions. Overseas, with Trump's inauguration imminent, China-US relations have released positive signals, and after the recent release of U.S. inflation data, U.S. bond interest rates have also peaked in stages. A new round of offensive market is gradually unfolding, investors can consider continuing to actively layout, if there is another pullback, it is a good opportunity. Focus on industries: electronics, communications, non-ferrous metals, non-bank finance, banking, construction, food, etc.