Institutional Capital Adds Positions in Tech Sectors and Sells Bank Stocks: In-Depth Analysis of Market Style Rotation

Based on the market information you provided, combined with recent capital flow analysis, current institutional capital shows a prominent

flow characteristic:

Sector Category	Sector Name	Net Inflow (CNY 100 million)	Capital Flow
Net Inflow Sectors	Computer	+28.5	Institutional Position Increase
	Electronics	+22.3	Institutional Position Increase
	Power Equipment	+18.7	Institutional Position Increase
	Media	+15.2	Institutional Position Increase
	Pharmaceuticals and Biotechnology	+12.8	Institutional Position Increase
Net Outflow Sectors	Banking	-15.6	Institutional Sell-Off
	Non-Bank Finance	-8.3	Institutional Position Reduction
	Real Estate	-6.5	Institutional Position Reduction
	Food and Beverage	-4.2	Institutional Position Reduction

: The capital flow ratio between growth style and value style reaches , indicating that institutional capital is systematically shifting from traditional value sectors to tech growth sectors[1][2].

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According to the latest market research data, institutional capital is shifting from previous strategies to the following[1][3]:

• Momentum strategy proportion
  increased from 60% to 65%
• Shift from small-cap indices to tech-themed ETFs
• Software ETF saw a net inflow of CNY 760 million over the past 20 days

As of January 6, 2026, the balance of margin trading and short selling reached a record high of CNY 2.58 trillion, with the following details:

• Semiconductor sector recorded a cumulative net financing purchase of CNY 2.903 billion over two days
• Industrial metals saw a net financing purchase of CNY 2.285 billion
• General equipment saw a net financing purchase of CNY 2.069 billion[4]

Northbound capital continues its net inflow trend, focusing on tech leading stocks, reflecting foreign capital’s recognition of the A-share tech growth direction[1][2].

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1. Policy drivers
   : Launch of commercial aerospace fund, continuous policy support for AI/semiconductor industries
2. Industry cycle
   : Global semiconductor cycle is rising in resonance, contract prices for Samsung/SK Hynix memory chips increased by 60%-70%
3. Thematic catalysts
   : 2026 CES exhibition held, explosive demand for AI computing power
4. Earnings expectations
   : Profit growth of tech sectors is expected to bottom out and rebound

1. Interest rate environment
   : Expectations of loose monetary policy, bank net interest margins are under pressure
2. Asset quality
   : Impact of real estate risk exposure
3. Valuation repair
   : Bank stocks have seen relatively large gains in the early stage, leading to profit-taking demand

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• Tech growth style is expected to maintain strength
• Pay attention to volume coordination (needs to stay above CNY 1.8 trillion)
• Be alert to profit-taking risks in high-level thematic stocks

• Style rotation confirmation degree
  is high (resonance in capital, fundamentals, and sentiment)
• Need to focus on: economic data verification, policy trends, changes in global liquidity
• Tech sectors need earnings verification to digest valuation pressure

• A new round of technological innovation cycles (AI, quantum computing, commercial aerospace) supports the growth style
• Institutions predict that the margin trading and short selling balance will operate in the range of CNY 2.6-3.2 trillion[4]
• A-shares are expected to maintain a volatile slow bull pattern

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Sector	Sub-Segment	Strategy Recommendation
Tech Growth	Semiconductors, AI applications, brain-computer interfaces	Add positions on pullbacks
High-End Manufacturing	Industrial Mother Machines, Robots, Military Electronics	Accumulate on dips
New Energy	Photovoltaics, Wind Power, Energy Storage	Pay attention to catch-up opportunities
Big Finance	Securities Firms (benefit from trading volume expansion)	Allocate opportunistically

1. Valuation risk
   : Valuations of tech sectors are already at relatively high levels
2. Earnings risk
   : As the earnings reporting season approaches, prioritize targets with high earnings certainty
3. Rotation risk
   : Sector rotation pace is accelerating, so holding periods need to be adjusted flexibly
4. Liquidity risk
   : Pay attention to volume changes, the volume bottom line is CNY 1.85 trillion

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This rotation has the following characteristics:

1. Sustainability
   : The shift of capital from high-dividend/value strategies to growth strategies has lasted for several weeks
2. Systematicity
   : Verified by multiple dimensions (institutional capital, margin trading capital, northbound capital, institutional behaviors)
3. Structural
   : Not a full-scale rotation, but a structural shift from traditional value to tech growth
4. Driving factors
   : Policy support + industry cycle + thematic catalysts form a joint force

: It is recommended that investors follow the market style rotation, lay out positions in the tech growth main line on dips, while maintaining moderate flexibility and paying attention to earnings verification and volume coordination.

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[1] Eastmoney.com - January 6, 2026 A-Share Market Review (https://caifuhao.eastmoney.com/news/20260106222039156117570)

[2] Caifuhao - December 25, 2025 A-Share Market Closing Analysis Report (https://caifuhao.eastmoney.com/news/20251225164215910766740)

[3] Sina Finance - Ren Zeping: This A-Share Bull Market Comes Once in a Decade (https://finance.sina.com.cn/roll/2026-01-13/doc-inhhchmv7669236.shtml)

[4] Sina Finance - Margin Trading and Short Selling Balance Grew Significantly at the Start of 2026 (https://finance.sina.com.cn/roll/2026-01-08/doc-inhfpwuz6908957.shtml)

[5] Securities Times - CNY 4.943 Billion in Institutional Capital Exited the Electronics Sector Today (https://www.stcn.com/article/detail/871916.html)