In January, the gold stocks recommended by Shanxi Securities were: China Merchants Shekou, Yuyuan Co., Ltd., Yixintang, Gilbit, Xinzhoubang, Shanxi Coking Coal, Sun Paper, Guangzhou Automobile Group, Pioneer Intelligence, and China Merchants Securities.

　　[Gold stock retrading] In December 2020, the gold stock portfolio recommended by Shanxi Securities had a yield of 0.45%, ranking 25th out of 30 brokerage firms. The 3 stocks with the highest yields were Longji Shares, Hengdian Film and Television, and Frantec, with monthly increases of 31.86%, 6.26%, and 1.59%, respectively. For details of the report, see “Brokers' December Gold Stock Portfolio “Record”: Guojin Securities won the championship 17%, the worst in the League of Nations”.

　　The following is the financial stock report of Shanxi Securities for January:

　　January 2021 Strategic Opinions & Gold Stock Combinations

　　January strategy

　　Domestic: There are no sharp turns in policy, liquidity is stable on New Year's Eve, and the upward trend in term interest spreads supports A-shares.

　　Overseas: The US passed the fiscal stimulus bill, and foreign capital will continue to flow in under the liquidity spillover.

　　Market: The index remains volatile, and institutions are grouped or loose, but they will not collapse easily. The performance of some sectors that have overfallen has warmed up, and there is an opportunity for a rebound in the short term. Capital will be repeatedly switched between the cluster sector and the overfalling sector until the market breaks out of a new main line.

　　Sector: The new high level of the epidemic has disrupted the recovery, but the vaccine has already begun to be promoted and applied. The general logic of recovery has not been falsified, and the undervalued procyclical sector still has allocation value. The performance of industries such as electronics, games, and computers is getting warmer. The pullback period for some high-quality targets is long and deep, and there is an opportunity for a rebound over the short term. The 14th Five-Year Plan mentioned “speeding up the upgrading of weapons and equipment,” and the market's expectations for military performance were raised. Attention should be paid to investment opportunities in the military industry.

　　Industry selection

　　1. Undervaluation procyclical: coal, non-ferrous metals, big finance (leading brokerage firms, banks, insurance)

　　2. Fundamental improvement & overdecline rebound: electronics, innovation, games

　　3. Thematic investment: military industry