Analysis of Market Logic Behind Institutional Capital Rotation from Tech Growth to Consumer Sectors

Based on the obtained market data analysis, I will interpret the market logic behind institutional capital rotation from tech growth sectors to consumer sectors from multiple dimensions:

• Tech growth stocks (e.g., Zhongji Innolight) currently have high valuations with a PE ratio of 72x, while traditional consumer stocks are relatively more attractive in terms of valuation
• Consumer stocks like Yonghui Supermarket have been adjusted for a long time, are at a low valuation level, and have a margin of safety

• Recently, the U.S. tech sector has been under pressure overall, with the Nasdaq index falling consecutively [0], reflecting correction pressure faced by global tech stocks
• Investors are shifting from high-valued growth stocks to relatively stable value stocks, which reflects a decline in risk appetite

1. Logic Behind Yonghui Supermarket’s Sharp Rise [0]
   • Single-day increase of 10.10%, trading volume expanded to 1.3 billion shares, far higher than the average level
   • Institutional capital net inflow of 2.9 billion yuan, indicating institutional funds are repositioning in traditional consumption
   • Rebounded from the 52-week low of 3.78 yuan, with technical repair needs

2. Seasonal Advantages of Consumer Sector
   • Year-end consumption peak season expectations are strengthened
   • Expectations of improved consumption data for food and beverage, automobiles, etc.

1. Correction Factors for Zhongji Innolight [0]
   • Single-day drop of 3.74%, pulled back from the high of 627.11 yuan
   • As a leading optical module company, it faces valuation correction pressure from the AI industry chain

2. Impact of Global Tech Stock Rotation
   • Hong Kong-listed Chinese tech stocks have performed weakly, and investors are worried about the valuation of AI-related stocks [1]
   • The tech sector performed the worst in the U.S. market, falling by 1.40% [0]

• Historically, capital tends to shift from high-risk sectors to stable sectors at the end of the year
• Consumer sectors usually perform relatively resilient when economic uncertainty increases

• The relatively stable cash flow and dividend attributes of consumer sectors are more attractive in the current environment
• Tech sectors face high valuation pressure and policy uncertainty

• Focus on leading enterprises in the consumer sector and valuation repair opportunities
• Remain cautious about tech growth stocks and wait for better entry timing

• Style rotation may not happen overnight, so it is necessary to observe the sustainability of capital flow
• Pay attention to policy changes’ different impacts on consumer and tech sectors

This capital rotation reflects the market’s repricing of risk; investors are paying more attention to risk control while pursuing returns, which reflects the market’s shift from ‘growth preference’ to ‘value return’.

[0] Jinling API Data - Real-time stock prices, trading volume, market data and sector performance
[1] Bloomberg - “China’s Hong-Kong Listed Stocks May Extend Lag on Tech Rotation” (https://www.bloomberg.com/news/articles/2025-12-16/china-s-hong-kong-listed-stocks-may-extend-lag-on-tech-rotation)
[2] Yahoo Finance - “Tech rotation, small caps, oil vs. energy stocks: Market dynamics” (https://ca.finance.yahoo.com/video/tech-rotation-small-caps-oil-221000676.html)