On February 10, the A-shares market experienced a day of fluctuations, ultimately trending upwards as the three major indexes recorded modest gainsBy the end of trading, the Shanghai Composite Index increased by 0.56%, closing at 3322.17 pointsThe Shenzhen Component also rose by 0.52% to settle at 10631.25 points, while the ChiNext index appreciated by 0.44%, ending at 2183.88 pointsOverall, the trading volumes in both the Shanghai and Shenzhen markets reached 1.73 trillion yuan, reflecting a decrease of 229.4 billion yuan compared to the previous trading day.

The market's dynamics were heavily influenced by the growth of AI-related stocks, particularly those associated with the DeepSeek concept, which saw a significant surge in interestStocks linked to Dongfeng Motors soared, reflecting a trend that captivated investor attentionHowever, not every sector benefited from this upward momentum; specifically, the photovoltaic equipment sector underwent a notable adjustment, and industries such as coal and utilities also faced declines.

On the preceding day, enthusiasm for DeepSeek stocks continued to escalateMeg Intelligent Technology recorded an impressive six-day streak of trading limits, while Hengxing Technology hit a daily limit with a 30% surge in valueOther companies such as Daily Interactive and Anheng Information also reached their trading limitsThis excitement was primarily driven by a report from QuestMobile stating that on January 28, DeepSeek surpassed Doubao in daily active users, marking a historic milestoneBy February 1, the application crossed the significant threshold of 30 million active users, making it the fastest application to achieve such a benchmark.

Furthermore, in a pivotal move for the telecommunications sector, all three major operators fully integrated the DeepSeek open-source modelThis development led to a substantial spike in their stock prices during trading hours, with China Telecom momentarily reaching its daily limit and achieving a new historical peak

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By the close of trading, China Telecom’s stock had increased over 6%, with China Unicom and China Mobile rising by more than 4% and nearly 2%, respectively.

Additionally, stocks associated with Dongfeng Motors demonstrated collective robust performance as stocks such as Dongfeng Motor Corporation and Dongfeng Technology hit their daily limitsIn the Hong Kong stock market, Dongfeng Group's shares initially surged over 85% but eventually moderated to a still impressive closing gain of 25.70%. These fluctuations stemmed from announcements on the evening of February 9 concerning potential changes in indirect control by Dongfeng Motor Group Company Limited, the indirect controlling shareholderThey informed the market that they were engaged in restructuring discussions with other state-owned enterprises, though this renovation process would not affect the actual control of the entities involved.

The ongoing excitement around AI, particularly driven by the DeepSeek narrative, is doing wonders for market confidenceLooking ahead, CITIC Securities highlights that the technology sector, anchored by the AI industry chain, is set to continue developing favorablyThey recommend maintaining a focus on sectors with high certainty for prosperity, particularly in the end-side AI industry.

Meanwhile, Industrial Securities asserts that the direction of the AI investment landscape is becoming increasingly clearThere are emerging trends stretching from upstream to downstream, from centralized growth to a more diversified approach, and the interaction between AI and various sectors, which hints at a significant shift that could characterize the upcoming AI market cycleIn terms of profitability expectations, it is suggested that the prosperity of more downstream AI sectors will experience marginal improvements this yearAdditionally, with institutional capital still underweight in many AI-related segments, subsequent trends in the industry may invite increased allocations of incremental funds into these branches.