Track the entire lifecycle of the main Sector.
Introduction: ① The market is undergoing a震荡反弹, with a healthy price-volume structure, so the Index is likely to continue its upward rotation; ② The innovative drug Sector has regained its strength, benefiting from policy support and accelerated overseas expansion, among other factors, this round of market trend is expected to continue, but caution is needed against short-term chasing risks; ③ Solid State Battery Concept stocks are active, with catalysts like the 2025 High-Tech Solid State Battery Technology Summit approaching, attention can be given to low-level rebound opportunities.
Yesterday, the market experienced a震荡反弹, with the GEM Index rising over 1% again, and the Shanghai Composite Index also returning to 3400 points during the session, with trading volume increasing again to about 1.3 trillion. Under the relatively healthy price-volume structure, the Index may still have further upward momentum. However, if the trading volume cannot increase continuously, the likely outcome would still be a rotating upward trend, emphasizing the importance of grasping the rhythm of market rotation.
Looking back at the market, after a few days of consolidation last week, innovative drugs once again saw collective strength yesterday, with over ten stocks in the Sector rising more than 10%. Moreover, an increasing number of individual stocks within the Sector are gaining capital diffusion and speculation, entering a bullish trend in the medium term. Overall, innovative drugs are undoubtedly one of the best core themes in the current market. This is partly due to the policy environment supporting the full-chain development of innovative drugs, the acceleration of overseas licensing, and leading high-quality companies entering a profitability cycle ahead of others. On the other hand, the innovative drug Sector has had a significant valuation advantage after a prolonged adjustment, and institutional positions remain relatively low, leading to a replenishment of institutional positions that also boosts the innovative drug direction. It is expected that this round of innovative drug trends will not end easily; however, it is important to note that with the increase in short-term heat and massive influx of active funds, volatility within the Sector may intensify, requiring vigilance against risks of chasing high prices.
Solid State Battery Concept stocks were active again yesterday, with the Sector displaying a trending upward market. Core symbols like Jinlongyu Group and Lingpai Technology once again set new highs. In terms of the market outlook, there will continue to be catalysts regarding solid state battery technology. The 2025 High-Tech Solid State Battery Technology Summit will be held, which, as an important industry summit, may reveal some new highlights. In addition, the International Solid State Battery Technology Conference will also be held on the 19th. With intensive support from national policies, industry companies speeding up layout, and breakthroughs in key technical challenges, the Solid State Battery Industry Chain is accelerating towards maturity, significantly speeding up its industrialization process, where opportunities for low-level rebounds can still be found within the Sector.
The nuclear power Sector also rebounded yesterday, with Tianjin Benefo Tejing Electric achieving a new high after two consecutive limit-up days, while popular stocks like Hahan Huaton, Hefei Metalforming Intelligent Manufacturing, and Jiangsu Zhongchao Holding also hit their limit-up. As one of the earlier hot topics to enter adjustment, if it can continue this strength today, it will also benefit the continuity of healthy rotation in the market.
