In recent days, the stock market has witnessed a whirlwind of activity, particularly in sectors such as industrial machinery, reducers, wind energy equipment, and energy metals, all of which have seen notable gainsHowever, not all stocks have fared so wellTop-performing names like Tuowei Information, which recently saw its stock price double, faced a sharp decline at the end of the trading day, hitting a limit down status.

Today marked a low opening for the A-share market, with indices such as the Shenzhen Component Index, ChiNext Index, and the STAR 50 Index all dropping by over 1%. However, the STAR market showed resilience, with the STAR 50 Index managing to stay in the green, achieving a new high not seen in almost two yearsThe volume of stocks dropping surpassed those that rose, with a total market turnover shrinking to 19.3 trillion yuan.

A closer examination of specific sectors highlighted industrial machinery, reducers, wind energy equipment, and energy metals as leaders in gains, while sectors like agriculture, film and television, grain concepts, telecommunications services, and gaming faced the greatest declinesAmong individual stocks, Tuowei Information stands out with its dramatic price fluctuations, reinforcing the volatility that characterizes the current market environment.

Real-time data from Wind reveals that both the electronics and machinery sectors attracted over 8 billion yuan each in net inflows from major investors, while the automotive sector saw inflows surpassing 5.3 billion yuanOther sectors like power equipment, computers, and steel also experienced net inflows of over 2 billion yuanConversely, non-banking financial sectors saw net outflows exceeding 3.9 billion yuan, with basic chemicals, media, and banking also showing significant outflow totals.

Looking ahead, Dongxing Securities has noted that the market could establish a new value center between 3,200 and 3,300 pointsThey anticipate a volatility range of 10% to the downside and at least 15% to the upside, suggesting that the support level may hover around 3,000 points, while the ceiling could reach approximately 3,800 points

Advertisements

The expectation is for a gradually upward trend as conditions in the latter half of the year improve due to a recovery in core fundamentals alongside diminished external pressures and proactive policy responses.

Meanwhile, Xiangcai Securities is optimistic about the current spring rally, projecting that the momentum from artificial intelligence (AI) could extend into February, with a possible shift in direction by MarchThey express confidence particularly in the technology and consumer sectorsTheir recommendations include focusing on AI and humanoid robots, which are closely tied to emerging productivity gears, as well as sectors related to real estate services, shipping ports, and digital services in consumer markets.

The market has recently seen a surge in interest surrounding robotics, with the reducer sector leading the chargeThe relevant sector index started low but rallied over 2%, marking a continuous five-day streak of reaching historical highsCompanies like Mingyang Technology, He Feng Tools, and Yongmao Technology indicated strong performances, with their stocks seeing limit-up gains of 30% and 20%, respectively.

According to GGII, there is a growing demand forecast for industrial robot reducers in China, with expectations of reaching 1.3442 million units in 2024, a 13.01% year-on-year increaseSpecifically, demand for RV and harmonic reducers is projected to be around 560,500 and 783,700 units correspondinglyOver the next few years, GGII estimates that the total need for reducers in China's industrial robotics sector could exceed 7.5 million units from 2025 to 2028, highlighting a robust growth trajectory for the industry.

Ping An Securities emphasizes that precision reducers are critical components in smart manufacturingThe demand for newly added industrial robots serves as a significant driver for the reducer industry, while the replacement of existing products contributes further to this needExcitingly, the rise of humanoid robots is anticipated to provide even more expansion opportunities for precision reducers, potentially launching the sector into a new growth phase.

Additionally, the concept of flying cars has garnered attention yet again, as it has seen upward momentum for the fifth consecutive day, breaking new ground in stock price performance

Advertisements

Notable advancements include the heavy trading of Banjiao Co., which saw its stock soar 20%, and Tiancheng Technology, which also experienced a trading lock-in for the second consecutive day, along with other companies like Huitong Co., Chuangshiji, and Xiangyou Pump witnessing substantial gains.

Recently, Alef Aeronautics, a flying car company backed by Elon Musk, successfully completed its first test flight of their electric flying vehicle Model A in urban settings in California, reigniting investor enthusiasm for the concept of flying vehicles.

According to forecasts by Guoxin Securities, within a medium-term scope, the stable market for eVTOL (electric Vertical Takeoff and Landing) in China could exceed 200 billion yuan, driven primarily by markets for sightseeing, commuting, and overall vehicle sales, which are projected to generate market sizes of 68.3 billion, 20.8 billion, and 126 billion yuan, respectively.

Lastly, AVIC Securities notes that the forthcoming National People's Congress in March could spotlight low-altitude economy and commercial aerospace as strategic emerging industries that are likely to provoke extensive discussionCompanies with core technological competencies are positioned to achieve extraordinary returns in this evolving landscape.

Advertisements