Gree Electric (000651.SZ): Analysis of Reasons and Drivers for Becoming a Hot Stock

Gree Electric (000651.SZ) is a large listed company in the Furniture, Fixtures & Appliances industry within the consumer cyclical sector, with a market capitalization of $225.51 billion [0]. The core reason it became a hot stock on December 29, 2025, is the significant increase in trading volume that day, reaching 36.38 million shares, which is about 29% higher than the 4-day average trading volume of 28.16 million shares from the 23rd to the 26th [0]. Since English search tools did not capture relevant news, the possible drivers of the volume surge include two aspects: first, the attractiveness of valuation and fundamentals— the company’s TTM P/E ratio is only 7.10x, while maintaining a high ROE of 22.62% and net profit margin of 17.62% [0], which may attract value investors; second, domestic Chinese news or social media discussions (not covered by current tools). In terms of price, the recent stock price shows an oscillating trend: a 0.10% drop in 1 day, a 0.22% drop in 5 days, and a 0.89% increase in 1 month, with a trading range of $40.52-$40.92 [0].

Although there is currently no clear catalyst news, the abnormal increase in trading volume is associated with the company’s low valuation and strong fundamentals, indicating potential market recognition of its value. The KDJ indicator shows a bearish signal coexisting with an oscillating trend, suggesting unclear short-term direction, but low valuation provides a certain safety margin for long-term investment. The information gap (Chinese news not captured) is an important limitation of the current analysis; attention should be paid to possible undisclosed events or emotional changes in the domestic market.

• Risk Points
  : The lack of clear catalytic events casts doubt on the sustainability of the volume surge; the oscillating trend limits short-term profit space [0]; as a consumer cyclical stock, it is vulnerable to reduced consumer spending due to economic slowdown; the information gap may hide unperceived risks.
• Opportunity Window
  : Low valuation and strong fundamentals may attract long-term value investors; if the trading volume continues to increase and breaks through the $40.92 resistance level, it may start an upward trend [0].

Gree Electric (000651.SZ) became a hot stock mainly driven by a significant increase in trading volume, possibly due to value investment attention or domestic market discussions. The current stock price is oscillating, with support at $40.52 and resistance at $40.92 [0]. Market sentiment is mixed; attention should be paid to subsequent changes in trading volume, breakthroughs of key price levels, and relevant domestic news to judge the sustainability of the heat and price trends.