The A-share market shows characteristics of 'narrowing index fluctuations and increasing stock differentiation.' The Shanghai Composite Index fluctuates in the range of 3100-3200 points, while the Shenzhen Component Index and the ChiNext Index fluctuate around 10800 points and 2750 points, respectively. The market turnover remains at an average daily level of one trillion yuan, but the rotation speed of hot sectors has accelerated, and funds show a preference for 'high cutting low.'
Event: The Ministry of Industry and Information Technology announced the launch of the 'Domestic Substitution Acceleration Plan,' requiring government agencies to increase the proportion of domestic chip and operating system procurement to over 70%. Market Reaction: Loongson Technology (688047) saw a weekly increase of over 25%, and Zhongke Chuangda (300496) benefited from the HarmonyOS ecosystem, rising over 18%. Successful Case: A private equity fund in Shenzhen strategically invested in domestic EDA software company Geland Electronics (688206), achieving a 40% return three months after the policy was implemented.
Data Support: The total retail sales of consumer goods in January-February 2025 increased by 5.2% year-on-year, with high-end liquor (Moutai, Wuliangye) and duty-free (China Duty Free) growing at over 10%. Risk Warning: Consumption related to the real estate chain (home appliances, furniture) is dragged down by weak real estate sales, with some companies' stock prices hitting new lows for the year.
Case: A public fund took a contrarian position in innovative drug company Jiangsu Hengrui Medicine (600276) after the implementation of the pharmaceutical procurement policy, and due to the company's PD-1 monoclonal antibody overseas authorization exceeding expectations, the stock price rebounded by 35% from the bottom.
Risk Management: Positions and Hedging Tools
Suggestion: Single industry holdings should not exceed 30% of the total position, and stock index options can be used to hedge systemic risks.
Future Outlook: Rationally view market fluctuations
The current market is in a stage of 'weak economic recovery + strong policy expectations,' making it difficult to form a trending market in the short term.
The essence of the stock market is a game of 'expectation differences.' The market adjustment in March 2025 is not the end but the starting point of structural opportunities. Investors should abandon the speculative mentality of 'chasing highs and selling lows,' return to fundamental analysis, while maintaining sensitivity to policy changes. As Peter Lynch said, 'Investing is a marathon, not a sprint.' Only by adhering to discipline and focusing on value can one proceed steadily in long-term compounding.
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