ZHESHANG SECURITIES·2026-01-12 23:30Market Overview - On January 12, the Shanghai Composite Index rose by 1.09%, the CSI 300 increased by 0.65%, the STAR 50 surged by 2.43%, the CSI 1000 climbed by 2.8%, the ChiNext Index went up by 1.82%, and the Hang Seng Index gained 1.44% [5] - The best-performing sectors on January 12 were Media (+7.8%), Computer (+7.26%), Defense and Military Industry (+5.66%), Social Services (+3.21%), and Communication (+2.74%). The worst-performing sectors were Oil and Petrochemicals (-1%), Coal (-0.47%), and Real Estate (-0.29%) [5] - The total trading volume for the A-share market on January 12 was 36,446 billion, with a net inflow of 7.306 billion HKD from southbound funds [5] Important Recommendations Company Updates - Xirui (02507): The company is highlighted for its high visibility in performance and simultaneous increase in volume and price. The valuation is considered attractive, with potential for exceeding expectations in 2026 due to continuous innovation in core models and strong brand recognition [6] - Dongfang Securities (600958): As the second-largest brokerage under Shanghai State-owned Assets, it is positioned to benefit from both internal growth and external integration opportunities. The governance structure is being strengthened, and there are expectations for improved operational efficiency and capital utilization [7][8] Key Insights Strategy Research - The A-share market is expected to have greater certainty in the first half of 2026 compared to the second half, driven by various factors including technical patterns and international conditions. The Shanghai Composite Index is anticipated to trend upwards in the first half, while potential corrections may occur in the second half [10] - The offshore RMB exchange rate is projected to approach the 0.5 percentile between 6.3 and 7.4, which could attract foreign investment and positively impact the A-share market [10] Media Industry Commentary - The application of AI is gaining momentum, particularly in the areas of GEO and AI animation. The rapid evolution of generative engines into marketing necessities is noted, with significant investment opportunities identified in companies involved in these themes [12][13]