Venture(US:VEMLY) Xin Lang Ji Jin·2025-10-28 11:49Market Overview - The three major indices turned positive on October 28, with the Shanghai Composite Index breaking the 4000-point mark, reaching a ten-year high, while the ChiNext Index experienced a pullback after initially rising over 1% [1][2] - The total trading volume in the two markets was 2.15 trillion yuan, a decrease of 192.3 billion yuan compared to the previous trading day [1] Sector Performance - The artificial intelligence ETF (159363), heavily invested in optical modules, led the market with an intraday increase of over 3% and closed at a new high, with a net subscription of 28 million units [1][10] - The defense and military sector saw a resurgence, with the high-profile defense ETF (512810) rising over 1%, ranking among the top five in the market [1][3] - Domestic software stocks also showed upward movement, with the Xinchuang ETF (562030) and financial technology ETF (159851) both closing higher [1] A-Share Market Dynamics - The recent breakthrough of the Shanghai Composite Index above 4000 points is attributed to a "technology bull" market, contrasting with previous surges driven by traditional cyclical industries like non-bank financials and real estate [2][3] - Short-term fluctuations may occur as the market adjusts to the psychological barrier of 4000 points, with some investors likely to take profits [2][3] - Long-term trends will depend on whether "hard technology" can translate into sustained profit growth [2] Defense and Military Sector Insights - The defense sector is experiencing significant inflows, with net capital inflow exceeding 8.4 billion yuan, making it the top-performing sector among 31 categories [3][4] - The defense ETF (512810) showed a technical bullish pattern, indicating a potential trend shift towards a more favorable market environment [6] - Among the 32 disclosed quarterly reports of the defense ETF's constituent stocks, 27 reported profits, with half achieving over 10% year-on-year growth [8] Artificial Intelligence Sector Developments - The artificial intelligence sector, particularly optical modules, is expected to continue its strong performance, driven by increasing demand for 1.6T optical modules [12][13] - The AI index has seen a year-to-date increase of 93%, significantly outperforming other AI-themed indices [13] - Major companies in the optical module space, such as NewEase and Zhongji Xuchuang, are anticipated to report strong earnings growth in the upcoming quarterly disclosures [12][13] Hong Kong Market Trends - The Hong Kong market is witnessing a recovery phase, with significant capital inflows into ETFs focused on internet and innovative drug sectors [3][17] - The Hong Kong internet ETF (513770) has attracted over 540 million yuan in the past four days, indicating strong investor interest [15][18] - The valuation of the Hong Kong internet sector remains attractive, with a current PE ratio of 23.69, below historical averages [21]