Recently, the performance of the A-shares has been quite impressive, with several highlights worth paying close attention to.

First, let's talk about the military industry. U.S. President Trump recently announced that the military budget for FY2027 will be increased from $1 trillion to $1.5 trillion, which is no small move. Global defense spending is heating up, and opportunities in the domestic military sector are naturally emerging, with plenty of room for future layout and imagination.

Next, on the AI application front, this is truly the main focus. Brain-computer interfaces led the gains for three trading days, followed by the rise of the intelligent agent sector. The rotation rhythm of the entire sector is very clear, with funds continuously flowing into AI chip fields. The main players' intention is obvious—going all in on applications. According to the industry development process, a wave of concentrated explosive growth in AI applications is highly likely in the first half of 2026.

The capital side also sends strong signals. Margin financing and securities lending balance just broke through the 2.6 trillion yuan mark, reaching 26,047 billion yuan, hitting a new high, with an increase of 24.8 billion yuan in a single day. What does this data indicate? It shows that bullish sentiment has completely taken control of the market. Coupled with the previous impressive performance of the index rising for 14 consecutive days, the strength of the A-shares in 2026 may be even more intense than expected.

Today’s market, although the index fluctuated little, over 3,500 individual stocks are in the red, and the profit-making effect is very strong. The only drag was the brokerage stocks being pressured by large funds. Some worry that history might repeat itself, but based on volume and capital flow, the index is likely to continue oscillating upward and keep hitting new highs.

Overall, the main theme moving forward is undoubtedly AI applications. Brain-computer interfaces, robotics, autonomous driving, and intelligent agents—these sub-sectors are already brewing a rotation and upward trend. To seize the opportunity, focus your attention on these areas and observe how things unfold.