In-depth Analysis of A-share Market: Research on Investment Opportunities After Shanghai Composite Index Hits Decade High

According to the latest market data, the Shanghai Composite Index closed at 4069.38 points, up 1.14%, successfully hitting a more than decade-high [0]. The 52-week range shows the index has climbed from a low of 3040.69 points to a high of 4069.71 points, with a cumulative increase of 5.48% in the past 30 days and an even larger gain of 22.40% over the past year [0]. This marks an important development stage for the A-share market.

The large financial sector has become the leading force in this round of rise, with an average sector gain of 14.57% (since October 2025) [0]. Specifically:

:

• Ping An of China (601318.SS)
  has performed the most outstandingly, with a gain of up to 34.74% in the past three months and a 46.32% increase over the past year [0]
• Current share price is 74.16 yuan, PE is only 9.52 times, PB is 1.35 times, and valuation is at a historical low [0]
• Technical analysis shows MACD golden cross, KDJ indicator is bullish, in an upward trend, with resistance at 74.88 yuan [0]

:

• CITIC Securities (600030.SS)
  has been relatively stable recently, with only a 1.42% increase in the past three months [0]
• PE is 15.94 times, ROE is 9.50%, and fundamentals are sound [0]
• As an industry leader, it has long-term allocation value

:

• China Merchants Bank
  has risen by 5.43% in the past three months, showing stable performance [0]
• Bank stocks as a whole benefit from economic recovery expectations and valuation repair needs

1. Valuation Repair Demand
   : After long-term adjustments, the financial sector’s valuation is at a historical low, with room for repair
2. Economic Recovery Expectations
   : The market expects China’s economy to recover in 2026, and the financial industry will benefit first
3. Policy Support
   : Capital market reforms continue to advance, and securities firms benefit from increased trading activity
4. Interest Rate Environment Improvement
   : Insurance stocks benefit from rising bond yields and improved interest spread expectations

The nonferrous metals sector also performed strongly, with an average gain of 11.29% (since October 2025) [0]:

• Yunnan Tin Co., Ltd. (000960.SZ)
  : Up 23.76% in the past three months, up 123.26% over the past year, and hit a 10.01% daily limit today [0]
• Zijin Mining Group
  : Up 15.13% in the past three months, showing stable performance [0]
• Shandong Gold Mining
  : Affected by gold price fluctuations, down 5.02% in the past three months [0]

1. Improved Supply-Demand Pattern
   : For industries like electrolytic aluminum, “capacity ceiling approaching + power constraints” bring tight supply constraints, and “low inventory + diversified demand” are expected to exceed expectations [1]
2. Price Expectations
   : Aluminum prices are expected to rise moderately in 2026 and hit new highs throughout the year [1]
3. Profit Expectations
   : Guojin Securities expects electrolytic aluminum industry profits to hit new highs, and the aluminum sector will become a high-quality dividend asset [1]
4. Resource Attribute
   : Under global inflation expectations, nonferrous metals are sought after as anti-inflation assets

Our data shows that the A-share market is undergoing an obvious style switch [0]:

:

• Average gain: 13.15%
• Ping An of China: 34.74% (leading)
• China Merchants Bank: 5.43%
• Kweichow Moutai: -0.70%

:

• Average gain: -7.01%
• CATL: -9.76%
• BYD: -10.70%
• Longi Green Energy: -0.58%

1. Valuation Differentiation
   : After long-term rises, growth stocks are overvalued, while value stocks are at historical low valuations
2. Profit Certainty
   : Under economic recovery expectations, value stocks have higher certainty of profit repair
3. Interest Rate Sensitivity
   : Growth stocks are more sensitive to interest rates, and global interest rate upward pressure suppresses growth stock valuations
4. Hedging Demand
   : As market uncertainty increases, funds flow to value stocks with lower valuations and higher dividends

:

• Valuation Still Attractive
  : Ping An of China’s PE is 9.52 times, CITIC Securities’ PE is 15.94 times, still having room compared to historical levels [0]
• Strong Technicals
  : Ping An of China has a MACD golden cross, in an upward trend, with bullish technical indicators [0]
• Fundamental Improvement
  : Economic recovery expectations and policy support will gradually be realized

:

• Large Short-Term Gains
  : Ping An of China has risen 34.74% in the past three months, with profit-taking pressure
• Economic Recovery Strength
  : If economic recovery is less than expected, financial stock performance may be affected

: The rise of the large financial sector is sustainable, but short-term fluctuations may occur. It is recommended to focus on undervalued bank stocks and fundamentally sound insurance leaders.

:

• Sustained Improvement in Supply-Demand Pattern
  : Capacity constraints and demand growth support prices
• Positive Profit Expectations
  : Strong expectations of new highs in profits for industries like electrolytic aluminum [1]
• Global Inflation Expectations
  : Nonferrous metals benefit as anti-inflation assets

:

• Price Volatility Risk
  : Yunnan Tin Co., Ltd.'s PE has reached 26.85 times, with high valuation [0]
• Overbought Technicals
  : Yunnan Tin Co., Ltd.'s KDJ indicator shows overbought risk [0]
• Global Demand Uncertainty
  : Slowdown in global economic growth may affect demand

: The nonferrous metals sector has medium-term allocation value, but short-term price fluctuations need to be vigilant. It is recommended to focus on leading companies with high profit certainty and reasonable valuations.

Based on the current market style and relative advantages of value stocks, it is recommended:

1. Increase Value Stock Weight to 60-70%
   :
   • Financial Sector (30-40%): Focus on insurance and bank leaders
   • Consumer Sector (20-30%): Layout high-quality consumer leaders

2. Reduce Growth Stock Weight to 30-40%
   :
   • Choose high-quality growth stocks with reasonable valuations and high performance certainty
   • Avoid overvalued and concept speculation stocks

3. Nonferrous Metals Allocation (10-15%)
   :
   • Focus on varieties with improved fundamentals like electrolytic aluminum and copper
   • Control positions to prevent price volatility risks

:

• Ping An of China (601318.SS)
  : Insurance leader, low valuation, strong technicals, target price 76.71 yuan [0]
• China Merchants Bank
  : High-quality bank target, benefits from economic recovery
• CITIC Securities (600030.SS)
  : Securities industry leader, benefits from capital market reforms

:

• Zijin Mining Group
  : Diversified metal leader, sound fundamentals
• Focus on Electrolytic Aluminum Sector
  : Positive profit expectations, focus on related leading enterprises [1]

1. Control Single Sector Position
   : Avoid excessive concentration risk
2. Set Stop-Profit and Stop-Loss
   : Protect existing gains
3. Focus on Technical Indicators
   : Pay attention to the 74.88 yuan resistance level for Ping An of China and the 31.11 yuan resistance level for Yunnan Tin Co., Ltd. [0]
4. Diversified Investment
   : Diversify individual stock risks through ETFs and other methods

According to Morgan Stanley’s view, there are multiple undervalued positive catalysts in the 2026 market, and banks continue to be optimistic about finance, healthcare, non-essential consumer goods, industry and small-cap stocks [2]. This is consistent with our analysis, and value stocks and cyclical sectors are expected to continue to perform.

1. Economic Recovery Less Than Expected
2. Global Liquidity Tightening Exceeds Expectations
3. Geopolitical Risks
4. Recurrent Pandemic Risks

1. Macroeconomic Data
   : PMI, social financing, industrial value-added, etc.
2. Policy Trends
   : Monetary policy, fiscal policy, industrial policy
3. International Environment
   : Fed policy, global economic growth
4. Market Sentiment
   : Turnover, margin trading balance, northbound capital flow

---

:

[0]
This chart shows the price trend of the Shanghai Composite Index over the past year, including 50-day and 200-day moving averages. It can be clearly seen from the chart that the index has steadily climbed from around 3848 points to 4069 points, hitting a decade-high. The 50-day moving average is at 3925 points, the 200-day moving average has not yet formed, but the overall trend is upward. Trading volume has increased in line with the rise, indicating continuous capital inflow.

[0]
This chart shows the relative performance of representative stocks in different sectors in a standardized form. In the large financial sector, Ping An of China leads with a 34.81% gain, CITIC Securities is relatively stable (1.42%), and Industrial Bank rises 7.47%. In the nonferrous metals sector, Yunnan Tin Co., Ltd. has the largest gain (23.76%), Zijin Mining Group rises 15.13%, and Shandong Gold Mining falls 5.02%.

[0]
This chart clearly shows the market style switch. Value stocks (Kweichow Moutai, Ping An of China, China Merchants Bank) have an average gain of 13.15%, while growth stocks (CATL, BYD, Longi Green Energy) have an average decline of 7.01%. Ping An of China is the best-performing value stock with a 34.74% gain, while BYD is the worst-performing growth stock with a -10.70% decline.

:

[0]

• Current Price: 74.20 yuan
• Trend: Upward Trend (to be confirmed)
• MACD: Golden Cross, Bullish Signal
• KDJ: Bullish (K:70.2, D:66.8, J:77.1)
• RSI: Overbought Risk
• Beta: 0.78 (relative to Shanghai Composite Index)
• Resistance Level: 74.88 yuan
• Support Level: 70.27 yuan
• Target Price: 76.71 yuan

[0]

• Current Price: 31.10 yuan
• Trend: Upward Trend (to be confirmed)
• MACD: Golden Cross, Bullish Signal
• KDJ: Bullish but Overbought (K:80.0, D:71.4, J:97.1)
• RSI: Overbought Risk
• Beta:1.13 (relative to Shanghai Composite Index)
• Resistance Level:31.11 yuan
• Support Level:28.08 yuan
• Target Price:32.50 yuan

The current A-share market is in an important style transition period, and the Shanghai Composite Index hitting a decade-high marks the recovery of market confidence. The strong rise of the large financial and nonferrous metals sectors has fundamental support and is expected to continue, but short-term profit-taking pressure needs to be vigilant.

:

1. Value Return Trend Established
   : The trend of market style shifting from growth stocks to value stocks has formed
2. Financial Sector Has Outstanding Allocation Value
   : Triple benefits of low valuation, fundamental improvement, and policy support
3. Nonferrous Metals Have Medium-Term Opportunities
   : Supply-demand improvement and positive profit expectations, but risk control is needed
4. Balanced Allocation is the Best Policy
   : Maintain balance between value stocks and growth stocks, adjust dynamically

Investors should closely follow market changes, seize investment opportunities brought by style switches, and do a good job in risk management to maintain rational judgment amid market fluctuations.

[0] Jinling API Data
[1] Yahoo Finance - “Guojin Securities Expects Electrolytic Aluminum Industry Profit to Hit New High; Aluminum Sector Becomes High-Quality Dividend Asset” (https://hk.finance.yahoo.com/news/大行-國金證券料電解鋁行業盈利創新高-鋁板塊成為優質紅利資產-035705681.html)
[2] Yahoo Finance - “Morgan Stanley flags 6 bullish market catalysts…” (https://finance.yahoo.com/news/morgan-stanley-flags-6-bullish-030310429.html)