Just now, major data releases triggered a market surge! Real estate and financial stocks rose together, while this type of stock was abandoned by funds.

Ask AI · How can major data breakthroughs ignite the real estate finance market?

On March 17th midday, the A-share market showed narrow fluctuations overall, with major indices fluctuating but within limited ranges, and significant sector differentiation.

At midday, the Shanghai Composite index slightly declined by 0.04%, closing at 5,864.63 points, with the steady performance of large-cap stocks serving as the main support for the market; the Shenzhen Component Index fell more noticeably, down 0.40%, the ChiNext Index dropped 0.58%, and the STAR 50 Index declined 0.45%. Market sentiment cooled slightly, the combined half-day trading volume across both markets was 1.3681 trillion yuan, down 140.4 billion yuan from the previous trading day. Overall, more stocks declined than rose, with over 3,400 stocks falling, and the ratio of advancing to declining stocks around 0.7.

Unlike the stable trend in A-shares, Hong Kong stocks performed more actively today, with the Hang Seng Index up 0.84%, and the Hang Seng Tech Index rising 1.26%, maintaining lively half-day trading.

In terms of sector performance, the A-share market exhibits a clear pattern of “weighting on the stage, growth adjustment”. Among the primary industries, non-bank financials led the gains with a 2.09% increase, with brokerage and insurance sectors performing strongly together. The stock trading software index rose 2.92%, and the insurance select index increased 2.54%. Real estate, food and beverages, and banking sectors followed, each rising over 0.8%.

In terms of growth and cyclical sectors, telecom and petrochemical sectors led the declines, falling 2.4% and 2.23%, respectively. Basic chemicals, coal, and electronics also declined over 1%. Concept sectors saw notable movements: the near-term new stock index surged 4.04%, while previously hot concepts like CPO, cultivated diamonds, and optical communications experienced deep corrections, with CPO index dropping 5.37%.

Hong Kong stocks showed a more prominent broad-sector rally, with the Hang Seng Composite Industry Index leading gains in non-essential consumer and healthcare sectors, up 2.2% and 2.03%, respectively. Only the energy sector declined significantly due to international oil price fluctuations.

Analyzing today’s market, the collective strength of large financials and real estate chains is driven by dual macroeconomic fundamentals support. On one hand, the central bank conducted 51 billion yuan of 7-day reverse repos today, net injecting 11.5 billion yuan, continuing a tone of reasonably ample liquidity. Previously, the weighted average of DR001 remained around 1.32%, providing a friendly funding environment for valuation recovery in financial sectors. On the other hand, economic data released by the State Council Information Office for January-February showed clear improvements, indicating a strong start for the economy. Real estate sales and development investment narrowed their declines significantly compared to earlier periods, boosting market expectations for effective growth stabilization policies.

Additionally, the rise in non-bank financials is related to policy expectations, with the pilot of fund advisory services becoming routine, coupled with steady upward movement in the capital market center, and the contribution of wealth management to brokerage performance attracting market attention.

The adjustments in TMT and cyclical sectors also have logical support. The declines in telecom and electronics sectors are mainly due to profit-taking after previous AI-related sector gains, especially following the NVIDIA GTC conference’s positive news. Particularly, the optical module sector saw a significant correction after NVIDIA extended the timeline for its next-generation AI chip architecture, delaying short-term benefits. Cyclical sectors like oil & petrochemicals and coal were affected by short-term international oil price fluctuations, and the synchronized decline in Hong Kong energy stocks confirms this logic.

Looking ahead, the market is expected to continue exhibiting short-term sector differentiation. The recovery trend in macroeconomic data and reasonably ample liquidity provide a foundation for valuation recovery in large financials, consumer, and real estate sectors, which are likely to remain the core drivers maintaining index stability. However, caution is needed regarding the risk of some previously high-flying stocks pulling back, especially if industry technological iteration expectations or short-term positive catalysts fall short, which could intensify sector volatility due to market speculation.

From a medium- to long-term perspective, market consensus is gradually forming. As macroeconomic stabilization and recovery continue, the valuation logic of the A-share market is shifting from “liquidity-driven” to “profit-driven.” The substantial improvement in corporate profitability will be the key support for the next phase of market trends, with earnings becoming the critical measure of asset quality. In terms of allocation, a “dual-wheel drive” of “technology + cycle” is taking shape: on one hand, AI remains a long-term certainty as a new productive force, with investment focus shifting from hardware to broader application scenarios; on the other hand, China’s competitive manufacturing industries, such as chemicals, non-ferrous metals, and electrical equipment, are experiencing a revaluation of pricing power, with capacity advantages gradually translating into profit advantages.

As the intensive disclosure period for annual and first-quarter reports approaches, market focus will return to fundamentals, and “earnings are king” is expected to reinforce the main investment logic. Investors can seize long-term opportunities amid short-term volatility by focusing on profit certainty and industry trends.

Author’s note: Personal opinions are for reference only.