July 24, 2024 review: 2,900 points, the market is still in the midst of short sellers' venting.

Today the market intraday fell below the 2900-point mark. There were signs of the "national team" supporting the market, unlike yesterday's unchecked unilateral decline, so today's drop was relatively restrained. However, judging from the advance-decline ratio—about 800 stocks rising versus over 4,000 declining—the market remains in a phase of bearish sentiment.

Many friends must have questions about the recent market trends: Why hasn't the national team's injection of hundreds of billions managed to lift the market? Who is selling? According to recently disclosed mutual fund data, active equity funds continued to see accelerated redemptions in Q2 2024, with net redemptions totaling 240.176 billion yuan—new fund issuance accounted for 23.262 billion, while existing funds saw net redemptions of 263.438 billion. This translates to an average monthly redemption of 80 billion yuan in Q2. Back in 2020, retail investors flooded into the market, pouring trillions into consumer and liquor stocks heavily held by funds, creating a massive bubble. Most fund investors bought at peak levels and are now facing losses of 50% or more.

Meanwhile, the limited incremental capital from the national team has been scooping up heavyweight stocks like "China Special Valuation" (中特估), high-dividend plays, the SSE 50, and the CSI 300. This explains why 中特估 and high-dividend stocks keep hitting new highs while fund-heavy holdings, low-priced stocks, and micro-caps keep plumbing new lows. Fund redemptions are hammering retail investors, making directional choices in this fragmented market absolutely critical!

Sector-wise, wind power stocks strengthened again today, with Feiwo Technology (飞沃科技), Fushite (福事特), Xinqianglian (新强联), and Xiangming Intelligent (祥明智能) hitting limit-ups. On the news front, the National Development and Reform Commission, Ministry of Industry and Information Technology, National Energy Administration, and National Data Bureau jointly released the "Data Center Green and Low-Carbon Development Action Plan," proposing coordinated development of large-scale wind and solar bases with national hub nodes and supporting the migration of non-real-time computing facilities to western hubs.

In 2024-2025, the wind power sector may enter a relatively rapid offshore construction phase. Future progress in offshore wind projects could face diminishing resistance, with orders and profits for related companies likely to show marked improvement. Longer-term, accelerated deep-sea wind projects, more aggressive 15th Five-Year Plan targets, and ongoing global expansion could further buoy the industry.

Additionally, high-speed copper cable connections performed well today, with Woer Heat Shrinkable Material (沃尔核材) surging toward a limit-up. Nvidia unveiled its next-gen GB200NVL72 server, which uses high-speed copper cables for internal cabinet communication. Conservative estimates suggest Nvidia’s NVL72/36 servers could drive incremental copper cable demand exceeding 7 billion yuan. With continued fundamental catalysts, core copper cable plays may sustain their oscillating uptrend.

In summary, the three major indices closed lower again, but sector rotation revealed a shift from high to low valuations—recurring activity in wind power, PV inverters, commercial aerospace, and defense. At its core, this reflects attempts at rotational positioning. While these themes haven’t yet synced with index movements, select stocks have bucked the trend with sustained momentum. As high-flying themes recede, opportunities may emerge in oversold low-valuation sectors.