Zhongyuan Securities·2026-01-12 09:02Market Overview - On January 12, the A-share market opened high and experienced a steady upward trend, with the Shanghai Composite Index facing resistance around 4156 points[3] - The Shanghai Composite Index closed at 4165.29 points, up 1.09%, while the Shenzhen Component Index rose 1.75% to 14,366.91 points[8] - The total trading volume for both markets reached 36,450 billion yuan, indicating an increase compared to the previous trading day[8] Sector Performance - The cultural media, internet services, software development, and gaming sectors performed well, while the oil, insurance, fertilizer, and mining sectors lagged behind[4] - Over 70% of stocks in the two markets saw gains, with software development and internet services attracting significant capital inflow[8] Valuation Metrics - The average price-to-earnings (P/E) ratios for the Shanghai Composite and ChiNext indices are 16.87 times and 52.69 times, respectively, above the median levels of the past three years, suggesting a favorable environment for medium to long-term investments[4] - The trading volume is above the median of the past three years, indicating a resurgence in market activity[4] Economic Indicators - The domestic risk-free interest rate continues to decline, and there is a trend of household deposits moving towards equity markets, providing ample liquidity[4] - The Consumer Price Index (CPI) in December 2025 showed a slight increase year-on-year, indicating marginal improvement in domestic demand[4] Investment Strategy - The report suggests a dual focus on technology innovation and the recovery of traditional industries for investment strategies[4] - Investors are advised to closely monitor macroeconomic data, changes in overseas liquidity, and policy developments[4]