The three major stock indexes made a good start to the Year of the Dragon, and the Shanghai Composite Index regained the 2,900-point mark

Finance Associated Press on February 19, today's 237 shares of the limit, 41 shares of fried board, the sealing rate of 83%, Kelai Electromechanical 7 boards, Huatian Technology 4 boards, Hasen shares, Lanke High-tech 3 boards, Silk Road Vision, Weihaide, Lyle Technology 20CM2 boards, China Television Media 16 days 10 boards, Changjiang Communications 5 days 4 boards, Anoqi 20CM3 days 2 boards, Beijing Stock Exchange Tianfang Standard, Yunchuang Data 30CM first board. On the market, more than 4,000 stocks in the two cities rose, and in terms of sectors, Sora concept, education, media, CPO and other sectors rose first, while a few sectors such as brokerages fell.

Market Overview

In terms of individual stocks, the new industrialization concept Kelai Electromechanical has 7 boards, the CPO concept Huatian Technology has 4 boards, the M&A and restructuring concept Hasen shares and the hydrogen energy concept Lanke High-tech 3 boards. Although the number of daily limits in the two cities still reached more than 270 today, but 19 of the 19 stocks yesterday even the board stocks, only four stocks achieved the promotion of the board, and the low-priced hydrogen energy stock Hongtao shares that came out of the 4 boards failed to advance and once fell to the limit, which shows that the dominant market is still dominated by the low first board and the main trend line, and the willingness of funds to participate in the high-standard relay of the board is still relatively limited. After the AI industry chain is in full bloom to welcome the short-term climax today, the short-term accumulated profits of the front-row stocks are not light, and it is important to pay attention to whether the low-level stagflation varieties in the sector can be relayed to carry out rotation.

This morning, the stock index continued to open collectively higher on the back of last Friday's sharp rise in Hong Kong stocks, and after a brief retreat at the beginning of the session, the index maintained a strong shock. Stimulated by the news that OpenAI released a new generation of Wensheng video model Sora, AI applications such as AIGC and multimodality, as well as computing hardware led by CPO, have been highly sought after by funds. High-dividend stocks such as coal and oil continued to be strong, and many stocks such as CNOOC refreshed their all-time highs. In the afternoon, AI concept stocks continued to break out, and the Chinese head sector also extended its gains, and the Shanghai Composite Index regained the 2,900-point mark strongly. The turnover of the Shanghai and Shenzhen stock markets today was 957.2 billion, a decrease of 60.2 billion from the previous trading day. At the close, the Shanghai Composite Index rose 1.56%, the Shenzhen Component Index rose 0.93%, and the ChiNext Index rose 1.13%.

Northbound funds sold a net of 6.375 billion yuan throughout the day, of which 178 million yuan were net bought in Shanghai-Hong Kong Stock Connect and 6.553 billion yuan were net sold in Shenzhen-Hong Kong Stock Connect.

Focus sectors and individual stocks

Wensheng video and multimodal AI concepts broke out in a large area today, and more than ten constituent stocks such as Wondershare Technology, Danghong Technology, Silk Road Vision, Insai Group, Yidiantianxia, Xinyada, Visual China, and Danghong Technology have daily limits. On the news side, OpenAI released the Wensheng video model Sora, which can quickly make a video of up to a minute long from text. It was revealed that Sora is based on DALL· The diffusion model used in E 3 and the Transformer engine of GPT-4 generate detailed descriptions for the visual training data, so that the model can more accurately realize functions such as Wensheng video, Tusheng video, video expansion and frame supplement, and the generated video effect currently seems to be ahead of the pioneers of large video models such as Pika and Runway.

After the fermentation during the Spring Festival holiday, many shares in the Wensheng video concept directly opened and closed the one-word limit, and the market's response to the news of the Sora model was enthusiastic. Previously, in December last year, the Pika large model was born, which led to a wave of climax of the concept of multimodal AI, and most of the core targets such as Xinyada have fallen below the starting point. Therefore, the sudden emergence of today's Wensheng video concept is not unrelated to the serious overfall of most stocks on the AI application side. The content varieties such as media that benefit from the large number of video materials and IP copyrights that benefit from the large number of video models also show a strong linkage market, and the follow-up value of IP may still need to be explored.

The direction of computing hardware also ushered in a climax today, among which in the optical communication sector, Zhongji Innolight, Tianfu Communication, and Xinyisheng all recorded a 20CM daily limit, and Dongtian Micro, Liante Technology, Huatian Technology, Cambridge Technology and other stocks have risen or risen by more than 10%. Computing power, memory chips, AI servers and other directions also ushered in a climax, and a large number of constituent stocks such as high-tech development, Hongbo shares, industrial Fulian, and Zhongbei communication rose to the limit. On the news side, Altman plans to raise trillions of dollars to expand AI computing infrastructure. The analysis predicts that multimodal related training and inference applications will further increase the demand for computing infrastructure.

According to a memo recently shared by UBS analysts with investors, Nvidia has significantly shortened the delivery cycle of its GPU AI chips, from 8-11 months at the end of last year to 3-4 months now. At the current rate, it looks like Nvidia will be able to complete its backlog in the next two or three quarters. Based on NVIDIA's computing power chip delivery cycle, the delivery cycle has been greatly shortened, and technology giants such as Meta and Microsoft have also increased their computing power servers, and computing hardware such as optical modules will still be the first to benefit from the AI industry chain. Driven by the sharp rise in the optical communication sector, domestic computing power, memory chips, upstream PCB and other packaging materials have performed well, which shows that CPO's core position in the hardware direction of AI concept stocks is still difficult to shake.

Education concept stocks rose hotly in the intraday, and more than 10 constituent stocks such as Weihaide, Rongji Software, 263, Onlly Education, All-Access Education, and Kaiyuan Education rose to the limit. On the news side, the Ministry of Education recently issued an announcement on the "Regulations on the Administration of Off-campus Training (Draft for Comments)" for public comment, intending to upgrade the management of off-campus training to an administrative regulation for the first time. During the Spring Festival, K12 education ranked first among the Hong Kong stock sector, with a rise of 12.19%.

The draft opinion released by the Ministry of Education is generally interpreted by institutions as another important milestone in the management of off-campus training towards the rule of law. The core of the Draft Opinion is to regulate and ensure the long-term governance and development of the off-campus training industry, which plays an important role in the long-term healthy development of the industry and the long-term expectations of investors. Judging from the summer of 2023, the year-on-year growth rate of New Oriental, Good Future, and Xueda Education revenue will reach 30%-50%, returning to rapid growth. With the reshaping of the positioning of off-campus training, high school and non-subject training may welcome major development opportunities, and the education industry is also regarded as the first direction of AI application, so the release of the Sora video model also assists the education sector, which is also an important part of the AI application side.

Coal, oil, power and other high-dividend sectors showed an accelerated upward trend today, Yankuang Energy, China Coal Energy, CNOOC, Lu'an Environmental Energy, China Shenhua, Shaanxi Coal, SDIC Power, Huaneng Hydropower and other stocks hit a record or multi-year high. CITIC Securities pointed out that the listed companies of central state-owned enterprises are expected to continue to strengthen dividends, and the relatively stable dividend policy and attractive dividend yield will be an important catalyst for various sectors of the industry. Previously, the State-owned Assets Supervision and Administration Commission (SASAC) said that in 2024, it will fully implement the "one enterprise, one policy" assessment for central enterprises. On the basis of pilot exploration and accumulation of experience in the early stage, we will comprehensively promote the market value management assessment of listed companies.

In the pre-holiday market, high-dividend stocks are more regarded by the market as the core force of the protective index, but when the market continues to rise and rebound today, high-dividend stocks are rising instead of falling, and the rally has accelerated, becoming another highlight of today's market in addition to the AI industry chain. If the rebound momentum of short-term micro- and small-cap stocks is shaken, it cannot be ruled out that the market may further switch to high-dividend led weighted bills.

On the whole, the market continued the momentum of general growth before the holiday, assisted by many news factors during the Spring Festival. Among them, small-capitalization stocks led by the AI industry chain and weighted votes led by high dividends showed a simultaneous upward trend, and market sentiment reached a new level. However, the turnover of the two cities shrank slightly today, failing to continue to maintain a turnover of more than one trillion yuan, and northbound funds showed a net sale of more than 6 billion yuan today, which has become a major hidden danger for the continuation of the short-term market. Combined with the short-term climax of most core directions of the AI industry chain today, whether the undertaking of short-term profit chips and the large outflow trend of northbound funds can be reversed, or whether the rebound in the future can be continued.

Today's daily limit analysis chart:

(Finance Associated Press, Jin Haoming)