Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The North Exchange's stock market activity has significantly increased, with new stock market funds exceeding 1 trillion [1] - The North Exchange added 5 new listed companies this month, bringing the total to 292, with a total market value of 936.30 billion and a circulating market value of 580.36 billion, reflecting increases of 7.7% and 10.3% respectively [1][13] - The North Exchange's trading volume and amount for the month were 24.52 billion shares and 607.72 billion, with a month-on-month increase of 26.8% in volume and 38.6% in amount [1][16] - The North Exchange 50 Index had a price-to-earnings ratio (PE-TTM) of 45.96, ranking in the 60.46th percentile over the past two years, and a price-to-book ratio (PB-MRQ) of 9.50, ranking in the 91.10th percentile [2][25] - The North Exchange's various sectors, except for the automotive sector, experienced a general increase in returns this month, with significant gains in media, non-ferrous metals, telecommunications, public utilities, and agriculture [32][37] Summary by Sections Market Overview - The North Exchange's trading activity has shown a notable increase, with a monthly trading volume of 24.52 billion shares and a trading amount of 607.72 billion, marking a month-on-month increase of 26.8% and 38.6% respectively [1][16] - The North Exchange's total market value reached 936.30 billion, with a circulating market value of 580.36 billion, reflecting increases of 7.7% and 10.3% respectively [1][13] Valuation - As of January 30, the North Exchange 50 Index's PE-TTM was 45.96, and its PB-MRQ was 9.50, indicating high valuation levels compared to historical data [2][25] - The dividend yield was recorded at 0.72, placing it in the 18.09th percentile over the past two years [2][25] Industry Performance - The North Exchange 50 Index experienced a monthly increase of 6.33%, while the specialized index rose by 6.06% [32] - Most sectors saw positive returns, with notable increases in media, non-ferrous metals, telecommunications, public utilities, and agriculture [37] - The top-performing stocks this month included Kema Materials, Medela, Aishalon, and Guoliang New Materials [42]

Market Performance - As of January 23, 2026, the North Exchange A-share index has 290 constituent stocks with an average market capitalization of 3.335 billion yuan[13] - The North Exchange 50 index rose by 2.60% this week, closing at 1588.66 points, while the Shanghai and Shenzhen 300 index fell by 0.62%[13] - The average daily trading volume for North Exchange A-shares reached 26.831 billion yuan, a decrease of 21.36% from the previous week[13] Economic Indicators - China's GDP for 2025 is projected at 140.19 trillion yuan, with a year-on-year growth of 5%[11] - The industrial production growth is primarily driven by high-tech industries, with notable increases in industrial robots (14.7%), new energy vehicles (8.7%), and integrated circuits (12.9%) in 2025[11] Investment Insights - The price-to-earnings (PE) ratios for North Exchange A-shares, ChiNext, Shanghai Main Board, Shenzhen Main Board, and Sci-Tech Innovation Board are 43.45, 43.34, 24.55, 25.51, and 44.65 respectively as of January 23, 2026[24] - The report suggests focusing on stocks with stable growth and valuation potential in the technology sector[24] Risks - Potential policy risks may affect investor sentiment and trading enthusiasm in the North Exchange[25] - Liquidity risks exist due to lower trading volumes compared to other boards, which may negatively impact the market[25] - There is a risk of companies not meeting profit expectations due to external market changes[25]