A shares are off to a good start in the Year of the Dragon, the Shanghai Composite Index regained 2,

Mondo Finance Updated on 2024-02-19

On February 19, A-shares ushered in the first trading day of the Year of the Dragon, and at the same time, they also gained a "good start".

As of **, the Shanghai Composite Index rose 156%, recovering 2,900 points, the Shenzhen Component Index rose 093%, the GEM index rose 113%, the Beijing Stock Exchange 50 Index rose 322%。

Flush data shows that the turnover of the Shanghai and Shenzhen markets is 957.3 billion yuan. More than 4,200 northbound funds in the two cities sold 637.5 billion yuan.

On the theme of the sector, AI concept stocks set off a tide of price limits, SORA concept, multimodal AI, AIGC, CPO sectors collectively rose sharply, and education and computing power leasing sectors rose first. Huichang Communication, C Yidian, Danghong Technology, Insai Group, Wanxing Technology "20cm" daily limit, Huayang Lianzhong, Xinguomai, Xinhuanet daily limit sealing board.

In addition, the CPO sector rose in the afternoon, Tianfu Communication's "20cm" daily limit refreshed a record high, and more than 10 shares of Zhongji Innolight, Xinyisheng, Yuanjie Technology, Liante Technology, Dongtian Micro, Cambridge Technology, etc.; The education sector is among the top gainers, with ST Kaiyuan and All-Access Education "20CM" daily limit, Kaiwen Education, Onlly Education, Chuanzhi Education, China Hi-Tech, and Guoxin Culture.

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, which intends to upgrade the management of off-campus training to an administrative regulation for the first time.

Yinhe ** pointed out that the release of the "Opinion Draft" is in line with the previous view, that is, the current regulatory policy framework of China's education and training industry has been relatively complete, the boundaries and framework of the standardized development of the industry have been clarified, and the visibility of policy stability has been high, which is expected to dispel the market's concerns about the policy risks of the education sector and improve the valuation of the sector. Considering that the regulations no longer include high schools in the scope of supervision, and classify subject and non-subject training, education and training companies focusing on K9 new literacy + high school training will fully benefit from the current industry trend of strong demand and optimized supply.

Minsheng ** pointed out that the draft clarifies the scope of application of the regulations on the management of off-campus training: off-campus training for primary and secondary school students and preschool children aged 3-6 is included in the scope of management, while the high school stage is not within the scope of management; It also clarifies the method of classified management of disciplines and non-disciplines, and only academic training in the compulsory education stage is non-profit, and other training is allowed to be profit-making. The agency believes that the recent new policies in the off-campus training industry have been frequent, the regulatory red line has been clarified, and the state's attitude towards supporting the development of legal and compliant off-campus training has been continuously clarified, and the release of the draft opinion will further boost market confidence and play an important role in stabilizing long-term expectations.

It is worth noting that the performance of the Hunan plate is also very bright, according to the reporter's statistics, on February 19, a total of 111 of the 146 Hunan stocks recorded **, and 30 Hunan stocks rose by more than 5%.

Among them, ST Kaiyuan achieved a "20CM" daily limit, Lingpai Technology and Kechuang Information rose by more than 11%, and Jingfeng Pharmaceutical, Hunan Tianyan, Huayang Lianzhong, Tuowei Information, Taijia Shares, Zhongguang Tianxue, Nanhua Biotechnology, Hunan Development, and Hunan Investment 10** all recorded daily limits.

Looking forward to the market outlook, the Zheshang ** research report pointed out that since August 2023, the market has basically entered the historical bottom area. On February 6, 2024, ** Huijin announced that it would increase its holdings, which boosted liquidity confidence and became an inflection point for micro liquidity repair. As the market returns to a steady state, the essence of where A-shares are bottom will depend on valuations and earnings. In terms of valuations, a number of indicators show that the market has basically entered the historical bottom zone; In view of profitability, the policy of stabilizing growth has been strengthened, and high-quality development has helped, and the overall profitability is expected to be gradually restored, and structural highlights are expected to gradually appear. The market has basically entered the historical bottom range, and at this time, we should seize the opportunity with an optimistic attitude and pay close attention to the positive changes in the policy and industry.

Xiaoxiang Morning News reporter Gigi Hao.

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