Hexun Investment Advisor Zhou Dayong: Market Strong Rebound, Opportunities and Risks Behind It

The market has recently been declining continuously, but today finally saw a strong rebound. So, which sectors are rising, and what are the opportunities and risks behind them? According to Zhou Dayong, a Huaxun investment advisor, the strongest sector today remains the electric power grid. The electric power grid started to rally at the opening today, with energy coordination already included in the government work report. Plus, the surge in AI computing power demand is a solid logical basis. Additionally, geopolitical conflicts have created energy gaps, and China leads significantly in the electric power sector, making it highly substitutable. Among the current weak markets, this is the most certain and resilient sector. Huayao continued to hit the daily limit with few stocks, while Guangdong Electric Power hit the limit and then caught up, helping the sector strengthen. This is a key area to watch this year, so everyone should explore opportunities at these low levels.

Secondly, the computing power sector is regaining strength. Our daily token usage has already exceeded 140 trillion, and cloud providers like Alibaba Cloud and Baidu Cloud are raising prices for computing and storage. As a result, Aurélien hit the daily limit again, but today’s rise was mostly driven by market sentiment returning. Overall, market sentiment remains weak, and there is a risk that computing power may continue to weaken. Another notable development today is the rise of innovative drugs. The main reason for their increase is WuXi AppTec’s earnings report, which announced revenue of 45.4 billion yuan last night, up 15.8% year-over-year. Although the revenue figure isn’t large, the company’s total profit increased by 107%, which is impressive. This indicates that the profit margins in the innovative drug sector are very good. Other related companies also experienced a rally, with Fuxiang up 20 centimeters and Wanbang up 10 centimeters, hitting the daily limit. However, the overall sector remains mainly a rebound from oversold conditions.