Zhongyuan Securities·2026-01-20 09:32Market Overview - On January 20, the A-share market experienced a slight fluctuation, with the Shanghai Composite Index facing resistance around 4128 points before retreating[2][3] - The Shanghai Composite Index closed at 4113.65 points, down 0.01%, while the Shenzhen Component Index fell by 0.97% to 14155.63 points[7][8] - Total trading volume for both markets reached 28,044 billion yuan, above the median of the past three years[3][14] Sector Performance - Strong performers included banking, insurance, precious metals, and real estate sectors, while communication equipment, aerospace, photovoltaic equipment, and computer equipment sectors lagged[3][7] - Over 50% of stocks in the two markets declined, with notable gains in precious metals, chemical raw materials, cement, and real estate development sectors[7] Valuation Metrics - The average price-to-earnings (P/E) ratios for the Shanghai Composite and ChiNext indices are 16.85 times and 53.40 times, respectively, above the median levels of the past three years, indicating a suitable environment for medium to long-term investments[3][14] Economic Indicators - The central bank has indicated that there is still room for further interest rate cuts this year, aiming to support economic transformation and boost market confidence[3][14] - Regulatory measures are being implemented to encourage long-term capital inflow while maintaining market stability through adjustments in margin trading and transaction regulations[3][4] Investment Recommendations - Investors are advised to focus on financial, real estate, precious metals, and engineering construction sectors for short-term opportunities[3][14] - Future market trends are expected to concentrate on performance and industry trends, with a likelihood of the Shanghai Composite Index maintaining a slight upward trend[3][14]