The three major A-share indices closed lower, with the ChiNext Index down 1.55%, and trading volume below 2.2 trillion.

The three major indices of the A-shares market collectively pulled back today. By the close, the Shanghai Composite Index fell 0.64%, closing at 4075.92 points; the Shenzhen Component Index dropped 1.44%, closing at 13,952.71 points; and the ChiNext Index declined 1.55%, closing at 3,260.28 points. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was only 21,945 billion, shrinking by 3,090 billion compared to yesterday.

Industry sectors saw more declines than gains, with beauty and personal care, tourism and hotels, banking, and retail sectors leading in gains. Gold, photovoltaic equipment, energy metals, minor metals, power grid equipment, and non-ferrous metals sectors experienced the largest declines.

In individual stocks, over 1,600 stocks rose, with more than 50 hitting the daily limit. The consumer sector surged, with food and beverages, retail, film and television theaters, and tourism and hotels being particularly active. Hengdian Film & Television hit the limit-up 5 days out of 6; Hangzhou Jiebai hit two consecutive limit-ups; Anji Food, Haixin Food, Jinyi Film & Television, and Three Gorges Tourism also hit the limit-up. The large financial sector strengthened in the afternoon, with Hualin Securities and Xiamen Bank hitting the limit-up. The commercial aerospace concept was active in parts, with Shenjian Co., Ltd. hitting the limit-up twice in 3 days. The computing power leasing concept warmed up, with Qunxing Toys hitting the limit-up twice in 4 days, and 26.com also hitting the limit-up.

Today’s Highlights

The Ministry of Finance and Two Other Departments Release “Zero Tariff” Policy on Imported Goods for Domestic Residents in Hainan Free Trade Port

To solidly promote the construction of Hainan Free Trade Port and effectively enhance residents’ sense of gain, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued the “Notice on the ‘Zero Tariff’ Policy for Imported Goods for Domestic Residents in Hainan Free Trade Port,” effective from the date of announcement. The policy stipulates that for residents within the designated operating venues in Hainan Free Trade Port, imported goods purchased within the duty-free quota and list will be exempt from import tariffs, import value-added tax, and consumption tax at the domestic stage.

Elon Musk’s Team Inspects Photovoltaic Industry Chain! Listed Companies Respond Intensively

On February 4, Shanghai Securities News confirmed from multiple sources in the photovoltaic industry chain that Musk’s team recently visited China to inspect the photovoltaic industry chain. On the same day, GCL Group, Jinko Solar, TCL Zhonghuan, and High Measurement Co. confirmed contact with media. However, Jing Sheng Electromechanical, Shuangliang Eco-Energy, and Jinko Solar disclosed abnormal movements after market close, warning of related risks.

Sudden News in A-shares! Multiple Major Bull Stocks Urgently Warn of Risks!

Last night, several major bull stocks in the A-share market issued announcements warning of trading risks. Among them, Shuangliang Eco-Energy, which hit the limit-up twice in a row, stated that the company currently has no related business in space photovoltaic applications; Guosheng Technology, also hitting the limit-up twice, said it is not involved in space photovoltaic business; Jing Sheng Electromechanical indicated that the application scenarios for space photovoltaics are still in exploration, and industrialization faces uncertainties.

Interest Rate Cuts Accelerate? Trump Clearly States: If Wosh has Expressed Willingness to Raise Rates, He Won’t Be Nominated!

There is still uncertainty about what stance Wosh will take after becoming Federal Reserve Chair, sparking market speculation. On Wednesday, U.S. President Trump made a statement. Trump bluntly said that if the Fed Chair nominee he proposed had expressed a willingness to raise interest rates, that person would not have received the nomination.

Institutional Views

CITIC Securities: Building Materials, Chips, Computers, Military Industry and Other Sectors Have Good Allocation Value

CITIC Securities research report states that the multi-sector industry ETF rotation model uses industry macroeconomic conditions, analyst expectations, and valuation levels to select high-growth industries with reasonable valuations. It also combines market stock price trends, trading congestion, and margin financing flows to adjust sector weights for timing. Based on long-term investment value fundamentals, this approach effectively enhances portfolio return potential. As of the end of January 2026, the stock industry rotation strategy shows high allocation value in building materials, computers, chips, military industry, tourism, animal husbandry, coal, real estate, batteries, and automobiles. It recommends equal weighting across these sectors.

Guotai Haitong: Policy Injects Consumption Momentum, Optimistic About Third-Party Payment Companies

Guotai Haitong released a research report stating that at the start of 2026, frequent policies promoting consumption and the continued expansion of domestic demand strategies will accelerate consumer confidence and demand growth. Third-party payment companies are expected to benefit from the recovery of offline consumption. Compared to 2025, the 2026 “national subsidy” has optimized support scope, subsidy standards, and implementation mechanisms.

Zheshang Securities: Consumption Is the Most Important Counter-Cyclical Variable in 2026; Optimistic About A-shares

Recently, Zheshang Securities Chief Economist Li Chao said that from the overall policy orientation, fiscal policy in 2026 should remain proactive with a certain deficit level. Meanwhile, monetary policy will likely continue to be moderately easing, with reductions in reserve requirements and interest rates. Regarding the key economic task of “domestic demand” set at the Central Economic Work Conference for 2026, Li Chao pointed out that from the perspective of expanding domestic demand, more attention should be paid to consumption. Historically, real estate was the main counter-cyclical variable in expanding demand, with consumption often seen as a pro-cyclical variable. In the future, the market needs to recognize that consumption will be the most important counter-cyclical variable. “For China’s stock market in 2026, there’s no need to focus excessively on interest rates but rather on risk appetite. If market confidence can remain relatively optimistic over the long term, the stock market may continue its ‘slow bull’ trend through valuation uplift,” Li Chao said.