The Shanghai Composite Index has seven consecutive days of gains, approaching 3,

On February 22, the three major A-share stock indices closed higher collectively. The Shanghai Composite Index (SCI) rose by 1.27%, reaching 2,988.36 points, approaching the 3,000-point threshold and achieving a seven-day winning streak on the daily line; the Shenzhen Component Index increased by 0.76%, and the ChiNext Index was up by 0.31%. In terms of sector performance, coal and oil stocks showed strength, with China Shenhua and China National Offshore Oil Corporation (CNOOC) hitting new highs; AI computing power, Sora, and state-owned cloud concept stocks demonstrated strong performance. According to Wind statistics, a total of 4,580 stocks across the Shanghai, Shenzhen, and Beijing markets rose, with 96 stocks hitting the daily limit up.

Looking ahead, many securities firms maintain a bullish stance on the A-share market, especially with a consensus on the recent rebound trend. In terms of allocation, there is a preference for small-cap stocks and optimism for fields such as AI Generated Content (AIGC), new quality productivity, and new energy.

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The spring market restlessness may have already emerged.

Guotai Junan believes that the market should first consider stabilizing above the 60-day moving average before contemplating whether to effectively break through the half-year line. The current market is still in a relatively healthy rebound structure, paying attention to the rotation rhythm between various hot sectors. The market is expected to continue its trend of fluctuating and rebounding. The basic value of the trading volume in both markets must reach over ten billion, while also paying attention to the sustainability of the inflow of Northbound capital. In the short term, one can consider opportunities to buy on dips during the differentiation and rotation of popular sectors, and also appropriately focus on the catch-up opportunities for sectors that have previously been oversold.

East Wu Securities points out that, from a medium-term trend perspective, the SCI has consecutively broken through key positions, forming a reversal trend. However, it is important to note that with the recent continuous rise, the SCI is approaching the 3,000-point psychological threshold, with a significant number of profit-taking positions, and the short-term market is under pressure, with a certain expectation for adjustment, but the space is relatively limited. In addition, the trading volume significantly increased yesterday, indicating that incremental funds have entered the market, supporting the upward trend. In terms of investment direction, it is recommended to continue focusing on high-quality growth stocks and core asset targets, and to avoid the practice of buying high and selling low.

Guotai Junan Securities stated that the market has rebounded strongly before and after the Spring Festival, and the spring market restlessness has emerged. With the rapid recovery of market sentiment in recent times, the SCI has approached 3,000 points in one go, further boosting investor confidence. The regulatory authorities have taken multiple measures to effectively maintain the stable operation of the market, and the loose monetary and fiscal policies have also provided protection for the capital market. The spring restlessness in the A-share market may have already begun.

Caixin Securities pointed out that against the backdrop of improved social expectations, reasonable and adequate liquidity, and the expected interest rate cut by the Federal Reserve, the valuation of A-shares has the foundation to return to a normalized level. At present, the relative return rate of stocks and bonds has already reached a historical high, and from a medium to long-term perspective, the value of stock asset allocation has become prominent. It is expected that the rebound trend that started a week before the Spring Festival still has some room for growth.

How should the market be laid out for the future?

Guotai Junan Securities suggests that in terms of operations, one can focus on some micro-cap stocks with better fundamental quality, as this round of adjustment brings opportunities for stock leverage clearing and misjudgment. In the short term, one can pay attention to the concepts of brain-computer interfaces and humanoid robots, which have been popular recently.

Guotai Junan recommends paying attention to thematic investment opportunities in AIGC, new quality productivity, overseas capacity, and low-altitude economy. 1. AIGC: The progress and effectiveness of the Sora video model exceed expectations, and Google has released the Gemini 1.5 model, which is optimistic about content creation companies and the computing power industry chain that benefit from efficiency improvements and cost reductions. 2. New quality productivity: Winning the new track leads to new directions for industrial investment, with optimism for new technologies such as intelligent manufacturing and new materials, as well as future new scenarios. 3. Overseas capacity: Against the backdrop of structural overcapacity and insufficient demand, there is optimism for high-end equipment, hardware tools, and cross-border trade under new consumption trends that strategically go overseas. 4. Low-altitude economy: Optimistic about the manufacturing of low-altitude aircraft, core components, and flight service companies.Caixin Securities stated that in the short term, one can speculate on optional consumption and small-cap styles, while in the medium term, it is recommended to seize structural opportunities: 1. The TMT sector. On one hand, the global industry is currently in the wave of artificial intelligence, which is expected to give birth to new industrial chains and business models; on the other hand, China is in a critical period of industrial chain autonomy and controllable development, and the technology industry is expected to experience rapid growth. In the TMT sector, particular attention should be paid to the software side of computers and the application side of media; 2. The new energy track, such as photovoltaics, new energy vehicles, lithium batteries, and other tracks; 3. The biopharmaceutical sector, such as innovative drugs, CXO; 4. The heavily invested sectors by foreign capital, such as liquor and home appliances.