February 11 witnessed a dip across the three major indices in the Chinese stock market as traders braced for an uncertain future. The Shanghai Composite Index fell by 0.12%, while the Shenzhen Component Index saw a decline of 0.69%. The ChiNext Index, which is vital for new ventures, slumped by 1.43%. There was, however, a glimmer of hope with the Ke Chuang 50 index only dropping 1.19%. Amid this volatility, over 1,600 individual stocks experienced price increases, a sign of resilience within certain sectors. The total trading volume for both Shanghai and Shenzhen exchanges reached an impressive 1.64 trillion yuan, indicating active investor engagement despite the overall downturn.

One sector that garnered attention was the copper cable high-speed connection stocks, which experienced a significant rebound. Stocks such as Hangjin Technology (000818.SZ) surged to their daily limit of 10%, while other key players like Jinxinno (300252.SZ), Ruikeda (688800.SH), and Taichengguang (300570.SZ) posted substantial gains. Analysts, like those at Huaxin Securities, pointed out that the demand for high-speed copper cables is consistently on the rise, particularly for applications in server connectivity, as well as in decoupled switches and routers. It's projected that the compound annual growth rate (CAGR) for high-speed copper cables will reach an astonishing 25% from 2023 to 2027, with estimated shipments soaring to 20 million by 2027.

Citic Securities recently issued a research report that highlights DeepSeek's potential to become a significant driving force behind the rapid development of China's AI industry. The technology's low-cost, high-performance features are reshaping the global AI industrial landscape, enabling China to elevate its status from a “follower in computing power” to a “leader in ecosystem development.” This optimistic industry outlook has led to fervent investor interest in related stocks, fueling their impressive market performance.

Gold stocks also shone brightly on this day, with companies like Laishen Tongling (603900.SH) and Caibai Co. (605599.SH) hitting the trading limit of 10%, while other firms such as Xiaocheng Technology (300139.SZ), China Gold (600916.SH), and Zhou Dazhen (002867.SZ) enjoyed considerable price increases. The recent uptick in gold prices can be attributed to a multitude of factors, which have collectively driven prices to historical highs. On the retail front, major brands such as Chow Tai Fook have reported significant price hikes in their 24K gold jewelry, with prices exceeding 870 yuan per gram, marking an increase of over 70 yuan within the year.

Investment bank UBS has adjusted its gold price forecast for the next 12 months from $2,850 to $3,000 per ounce. This adjustment comes amid growing geopolitical uncertainties, prolonged global interest rate cuts, and strong demand from both investors and central banks worldwide, suggesting a robust outlook for gold prices.

The consumer electronics segment, including the AI glasses concept, also exhibited strength, with companies like Thunder Technology (872190.BJ) witnessing a close to 15% price increase. Other firms such as Shengli Precision (002426.SZ) and Rapoo Technology (002577.SZ) reached their trading limits, rising by 10%, along with significant gains seen in Rongqi Technology (301360.SZ) and Huicheng Vacuum (301392.SZ). There is considerable anticipation surrounding the upcoming launch of AI glasses, and several manufacturers are working diligently to meet production timelines. For example, China Telecom plans to officially release its AI smart glasses in May 2023. In addition, Baidu's AI glasses are projected to hit the market in the first half of 2025, followed closely by Rokid AR glasses expected to launch in the second quarter of 2025.

The downturn in DRG/DIP concepts could be attributed to recent adjustments in medical insurance policies and escalating industry competition, leading to increased pressure on profitability and a reshuffling of market shares among relevant companies. Meanwhile, the photovoltaic equipment sector is grappling with fluctuating raw material prices and fears of industry overcapacity, prompting investors to be more cautious about future performance. The semiconductor industry is encountering challenges, including intensified competition and escalating research and development expenses, resulting from global shifts in chip supply and demand dynamics. The automotive and real estate sectors are not immune either; they are navigating difficulties stemming from macroeconomic conditions, weakened consumer demand, inventory pressures, and evolving competitive landscapes, collectively impacting stock prices.