Market Overview
The A-share market kicked off 2026 with robust gains. The Shanghai Composite Index climbed 1.38% to close at 4023 points, reclaiming the psychologically important 4000 level and marking its longest daily winning streak since 1993—12 consecutive sessions. The Shenzhen Component Index and the ChiNext Index surged 2.24% and 2.85%, respectively. Market activity was feverish, with combined turnover across the three exchanges soaring to 2.57 trillion yuan, an increase of over 500 billion yuan from the previous session. Nearly 4200 stocks advanced, indicating broad-based buying.
Sector Highlights
Clear Dominance of Tech & Growth Themes:
- Brain-Computer Interface (BCI) stocks exploded, with nearly 20 constituent stocks hitting the daily limit-up, fueled by Elon Musk's "mass production forecast for 2026."
- AI and Semiconductor chains rallied in tandem, with active performances in AI chips, memory chips, and AI applications. A China-South Korea Semiconductor ETF skyrocketed over 8%.
- Innovative Drugs/Medical Devices staged a strong rebound, driven by industry tailwinds (record out-licensing deals, upcoming JPM conference). Related ETFs were among the top gainers.
Divergence in Blue-Chips & Cyclicals:
- Insurance stocks were standout performers, contributing significantly to index gains.
- Sectors like automobiles, oil & gas, and banks underperformed, weighed down by downgraded sector outlooks and lower oil price expectations.
Hong Kong Market & Capital Flows
Hong Kong's three major indices traded within a narrow range, with the Hang Seng Index edging up 0.03%. Tech stocks were mixed; Kuaishou surged over 11% on positive news about its AI model. Notably, southbound capital recorded a net inflow exceeding HK$15 billion, indicating sustained mainland investor interest in the Hong Kong market.
Outlook & Risk Remarks
Market risk appetite has significantly improved against a backdrop of policy expectations, technological breakthroughs (e.g., BCI), and ample liquidity, favoring growth-oriented styles. The 12-day rally has built up considerable profits, warranting attention to potential volatility and sector rotation above the 4000-point level. Investors should focus on sectors with solid earnings support or clear industrial trends, avoiding blind chasing of speculative themes.
This article does not constitute any investment advice. The stock market involves risks, and investment requires caution!