1. Eight government departments have issued a policy document promoting the approval and market launch of innovative traditional Chinese medicine drugs. Only 9 undervalued stocks with strong performance potential are highlighted. Importance: ★★★★★ On February 5, eight departments including the Ministry of Industry and Information Technology released the "Implementation Plan for High-Quality Development of the Traditional Chinese Medicine Industry (2026-2030)". The plan aims to establish a preliminary collaborative development system for the entire TCM industrial chain by 2030, enhance stable supply capacity for key TCM raw materials, significantly improve digital and green transformation levels, achieve breakthroughs in key technologies, and substantially elevate industry innovation capabilities. The plan expects continuous emergence of innovative products, facilitating the approval and market entry of a batch of innovative TCM drugs. Looking ahead, institutions believe the TCM sector is quietly turning around after a period of deep adjustment. Guojin Securities research indicates that after ongoing destocking through 2024-2025, digestion of performance bases, approaching peak delivery periods, and significantly higher flu incidence in Q4 2025, channel inventory digestion is expected to accelerate. OTC Chinese patent medicines for flu may perform well subsequently, companies with light inventory pressure could resume normal delivery rhythms, and earnings may recover earlier. Additionally, a screening identified only 9 undervalued TCM stocks with strong annual report performance for reference.
2. Shanghai Futures Exchange adjusts price limits and margin requirements for gold, silver futures contracts. Importance: ★★★★ On February 5, the Shanghai Futures Exchange announced adjustments to price fluctuation limits and trading margin ratios for silver, copper and other futures contracts effective after market close on February 9. The price limit for gold futures listed contracts will be adjusted to 17%, with hedging margin ratios set at 18% and speculative margin ratios at 19%. Silver futures listed contracts will have price limits adjusted to 20%, with hedging margins at 21% and speculative margins at 22%.
3. Cyberspace Administration and 10 other departments issue guidelines to enhance digital service convenience for international visitors. Importance: ★★★ Recently, 11 departments including the Cyberspace Administration of China jointly issued implementation opinions on improving digital service convenience for international visitors. The document proposes that by 2027, digital services for arrivals should achieve significant improvement in internationalization and convenience, with more efficient basic digital services and resolved bottlenecks in digital applications for residence, healthcare, payments, tourism, and public services, comprehensively expanding application scenarios to inject strong vitality into high-level opening up.
4. China Photovoltaic Industry Association forecasts slower growth but stable additions for solar installations during 2026-2030 period. Importance: ★★★ On February 5, the China Photovoltaic Industry Association held a seminar in Beijing reviewing 2025 development and forecasting 2026 trends. The released roadmap estimates China's new solar installations in 2026 at 180-240GW, lower than 2025's 315.07GW. New installations are expected to gradually increase from 2027 onward. Globally, the roadmap projects 500GW new installations in 2026 under normal conditions (below 2025's 580GW), or 667GW under optimistic scenarios, with growth resuming from 2027. Association advisor Wang Bohua explained that new policies including distributed management measures and market-based feed-in tariff reforms have created market wait-and-see sentiment, leading to expected adjustments in 2026 new installations. However, as policies like integrated renewable energy development and direct green power connection take effect, new installations should return to growth trajectory, though with certain slower growth rates but stable increments.
5. Southbound capital records largest single-day inflow in nearly six months at HK$25 billion, analyzing reasons behind accumulation. Importance: ★★★ Southbound capital recorded net purchases of HK$24.977 billion on Thursday, the highest single-day inflow since August 16, 2025. Through Shanghai-Hong Kong Stock Connect, Tencent Holdings and Tracker Fund of Hong Kong led net buying at HK$3.659 billion and HK$2.566 billion respectively. Through Shenzhen-Hong Kong Connect, Tracker Fund and Tencent Holdings led with HK$2.010 billion and HK$1.919 billion net purchases. China Asset Management analysis suggests three reasons for accumulation: Hong Kong tech stocks show valuations at nearly 5-year lows compared to A-shares and US tech, with yield spread between Hang Seng Tech Index and ChiNext Index at historical highs indicating high safety margin; Hong Kong tech sector occupies core AI application and commercialization segments with high growth certainty; weak US dollar trend continues, resonating with southbound flows to support Hong Kong market liquidity. These factors may facilitate value recovery for Hong Kong tech stocks.
6. Cryptocurrency market plunges with $1.3 trillion evaporation, examining triggering factors. Importance: ★★★ On February 5, Bitcoin fell below $70,000, hitting lows since Trump's presidential inauguration. The overall cryptocurrency market capitalization dropped nearly 7% to around $2.48 trillion, losing approximately $186 billion (about RMB 1.3 trillion) in single-day value. Market triggers included US Treasury Secretary Scott Bessent's暗示 that the government wouldn't bail out cryptocurrencies, followed by investor Michael Burry's warning that continued Bitcoin declines could "trigger a death spiral leading to massive value collapse," igniting selling pressure.
7. NIO records first quarterly adjusted operating profit, US shares surge over 10%. Importance: ★★★ NIO's US-listed shares jumped over 10% after the company disclosed Q4 2025 profit guidance on February 5. NIO expects to report adjusted operating profit (non-GAAP) between approximately RMB 700 million (about $100 million) and RMB 1.2 billion (about $172 million) for Q4 2025, marking its first quarterly adjusted operating profit.
8. Meituan announces major acquisition of Dingdong Maicai, US shares surge significantly. Importance: ★★★ After hours on February 5, Meituan announced plans to acquire all issued shares of leading fresh grocery e-commerce platform Dingdong Maicai for $717 million, with both parties signing share transfer agreement during non-trading hours. The agreement allows transferors to extract up to $280 million while ensuring target group's net cash不低于$150 million. Post-acquisition, Dingdong will become Meituan's indirect wholly-owned subsidiary with financial results consolidated. Dingdong's US-listed shares surged nearly 5%.
9. European Central Bank and Bank of England maintain interest rates unchanged, matching market expectations. Importance: ★★★ On February 5, the ECB kept three key rates unchanged as expected, maintaining the deposit facility rate at 2%, main refinancing rate at 2.15%, and marginal lending rate at 2.40% for the fifth consecutive meeting. The Bank of England also held its benchmark rate at 3.75%, aligning with expectations. Following the BOE decision, traders increased bets on policy easing, pricing in 44 basis points of rate cuts this year.
Market analysis identifies investment opportunities in film and other sectors: 1. Approaching longest-ever Spring Festival holiday period, related stocks overview With 9-day holiday in 2026 creating the longest Spring Festival season, Maoyan Professional data shows Pegasus 3 producers include Maoyan Entertainment, Damai Entertainment, Wanda Film, Bona Film Group and 5 other listed companies. Boonie Bears: Every Year Has Bears also involves multiple producers including Fantawild, Hengdian Films, China Film, Maoyan Entertainment, and Wanda Film. China Film participates in all 7 films (including Huaxia Film where it holds 14% stake). China Securities (CSC) notes two high-grossing IP sequels already scheduled for 2026 Spring Festival, with Damai, Maoyan, Wanda Film and China Film having major releases pending. Strong casts and past box office performance maintain positive outlook for 2026 season.
Other noteworthy sectors include: 2. AI glasses | Guangdong includes smart glasses in subsidy program 3. Energy storage | Breakthrough in compressed air energy storage technology R&D 4. Robotics | Li Auto's Li Xiang: New L9 model will be embodied AI robot 5. Chips | Infineon announces price increases for some products effective April 1
Positive corporate announcements include Meituan's Dingdong acquisition plan; negative announcements include Besmooth's Ma Xuejun facing market manipulation investigation.
Positive Announcements: 1. Baidu Group: Board approves new $5 billion share repurchase program 2. Taiqi Industrial: Subsidiary 11 Technology pre-wins Huahong FAB9B project with RMB 3.778 billion bid 3. Meituan: Plans $717 million Dingdong acquisition 4. Suzhou High-tech: Grandson company to increase capital to controlling company Xinjunjie via debt-to-equity swap of RMB 780 million 5. Yapp Group: SDIC High-tech and SDIC High-Tech complete additional 0.34% stake purchases
Negative Announcements: 1. Besmooth: Actual controller Ma Xuejun investigated for suspected securities market manipulation 2. Hongdou Co: Controlling shareholder's 860 million shares judicially frozen 3. Shuyu Civilian: Alibaba Health ownership decreases to 5.39% 4. Conpro Group: Shareholders Wuxi Yunhui, Tongxiang Jiawo plan combined减持up to 5.22% 5. Beijiajie: Multiple shareholders plan combined减持up to 2.9926%