Gold and silver experienced sharp declines, while overseas technology stocks fell further, with major foreign institutions reducing their holdings. The technology sector remained under pressure, with the Nasdaq index continuing to drop. Notable tech stocks such as Netflix fell over 5%, while Amazon, Apple, and META declined more than 2%. Cisco's stock plunged over 11% due to disappointing performance guidance for the current quarter from the network hardware manufacturer.

AI advertising technology firm Applovin saw its stock drop nearly 19% following the release of its fourth-quarter results and outlook. Although key metrics exceeded market consensus, they may not be sufficient to alleviate recent concerns about AI-related impacts.

The central bank conducted a 1 trillion yuan outright reverse repo operation, signaling efforts to maintain ample liquidity. The People's Bank of China announced on February 12 that it would carry out the operation with a fixed amount, interest rate bidding, and multiple price settlements, with a maturity of six months (182 days). Dong Ximiao, Chief Economist at Zhaolian and Deputy Director of the Shanghai Finance and Development Laboratory, noted that this operation represented an increased rollover, achieving a net injection of 500 billion yuan. The cumulative net injection via outright reverse repos in February reached 600 billion yuan, the highest in nearly three months.

Dong stated that factors such as credit distribution and cash withdrawals around the Spring Festival have increased market demand for liquidity. The central bank's decision to increase the scale of outright reverse repos before the holiday sends a positive signal about maintaining ample liquidity and stabilizing financial markets.

With 300 billion yuan in medium-term lending facility (MLF) set to mature in February, Wang Qing, Chief Macro Analyst at Oriental Jincheng, expects the central bank to roll over the amount either fully or with a slight increase. Overall, the central bank will use policy tools such as outright reverse repos and MLFs to continuously inject medium-term liquidity into the market.

Several top-performing stocks issued risk warnings. On the evening of February 12, Honghe Technology cautioned that its main business had not undergone significant changes, but its stock price had risen sharply in the short term, advising investors to be aware of secondary market trading risks.

On the same evening, Zhangyue Technology, which had seen four consecutive limit-up gains, also warned that its AI short drama business revenue for 2025 is expected to account for no more than 1% of its main business revenue. Decai Holdings, another stock with four consecutive limit-up gains, announced that its subsidiary, Qixiang Wuxian, currently has no orders or revenue related to comic drama production. Jiamei Packaging stated that its Magic Atom capital operation plan would remain entirely independent of the listed company, and if stock prices rise abnormally further, it may apply for another trading suspension review.

Additionally, Shuangliang Energy Saving clarified that commercial aerospace is not a primary application area for its products, and the company has no direct cooperation with SpaceX. International Composite Materials announced that its production and operations remain normal, with no significant changes to its main business or operating model. YUNENG Energy Control, with two consecutive limit-up gains, stated that its investment target does not belong to the computing power chip manufacturing, computing power leasing, or cloud services industries.

Former U.S. President Donald Trump warned Iran that it "must" reach an agreement, or the situation would become "very serious." Trump also mentioned that Israeli Prime Minister Netanyahu "did not say" he wanted to stop negotiations, and the issue was "not discussed" between them. Trump emphasized that he is willing to negotiate with Iran for as long as necessary, and if no agreement is reached, "phase two" would begin, which would be "very difficult" for Iran.

Trump stated that if Iran fails to reach an agreement, the situation would change significantly, warning that developments could unfold rapidly within the next month. He described his talks with Netanyahu as "very good" but stressed that any agreement ultimately depends on him and must be "very fair and very good."

China successfully launched seven satellites into orbit near Yangjiang, Guangdong, including "CUHK-1," the world's first AI large model satellite focused on urban sustainable development. Developed with participation from The Chinese University of Hong Kong, the satellite innovatively integrates high-resolution remote sensing with AI technology, effectively bringing large models into space, marking a breakthrough in intelligent remote sensing satellites.

After a three-year hiatus, actively managed equity funds have made a comeback, with several "one-day sell-out" funds reappearing. Fund issuance has warmed significantly this year, with many hybrid FOFs achieving substantial initial offering sizes. Some index-enhanced products have also been oversubscribed, triggering proportional allotments. Notably, actively managed equity funds with scales of around 70 billion yuan have reemerged in the market.

Domestic AI large models have been released intensively during the Spring Festival period. Zhipu officially launched its new flagship model, GLM-5, while Minimax released Minimax 2.5. DeepSeek updated its model on both web and app platforms, expanding its context window from 128K to 1 million tokens, enabling it to process an entire novel in a single task.

Alibaba's Qwen 3.5 and ByteDance's Doubao Large Model 2.0 are also expected to be released during the Spring Festival. Programming and intelligent agent capabilities have become focal points in the newly released models. However, as the complexity of intelligent agent tasks increases, token consumption per task rises sharply. If costs cannot be reduced further, it may hinder the large-scale adoption of AI.

The first simplified review M&A deal for A-shares has been completed, with China Shenhua Energy's 100 billion yuan restructuring approved. The company's plan to issue shares for asset acquisition and raise supporting funds has received regulatory approval, marking a milestone for centrally administered enterprises and a benchmark case for energy transition and capital market reforms.

The yuan exchange rate broke through the 6.90 level against the U.S. dollar, reaching its highest point in nearly three years. The rally, which began quietly late last year, has drawn widespread attention. Market analysts attribute the strength to concentrated foreign exchange settlement demand, with seasonal increases in corporate settlement needs and accumulated demand from strong exports accelerating the release.

Cross-border ETF scales have returned to 1 trillion yuan, with Hong Kong-themed ETFs accounting for 822.451 billion yuan. Net inflows into Hong Kong-themed ETFs reached 54.435 billion yuan this year. The number of cross-border ETFs with scales exceeding 100 billion yuan has grown from 11 at the beginning of 2025 to 26 as of February 11 this year.

Tianji Holding is under investigation by the China Securities Regulatory Commission for suspected information disclosure violations. The company stated that the matter would not significantly impact its normal operations. Notably, the company recently faced regulatory actions due to issues such as irregular goodwill impairment testing and inaccurate financial accounting.

A high-value divorce case has emerged in the A-share market, with the ex-wife receiving 1.29 billion yuan in shares, while the ex-husband's annual salary is 3.12 million yuan. Zhuoshengwei announced that its controlling shareholder, Xu Zhihan, has divorced Zhang Yu, transferring 17.15 million shares (3.21% of the company's total shares) to her as part of the settlement.

Wingtech Technology announced that its control over Nexperia remains restricted following a court ruling in the Netherlands. The court approved a formal investigation into the local management's actions and maintained temporary measures, including restrictions on specific personnel and shareholder rights, during the investigation.

In industry news, Seedance 2.0 has gone viral on social media, marking a "DeepSeek moment" for film and television creation. Silver price fluctuations have increased costs for the photovoltaic industry, with high-power components seeing significant price hikes. Leading companies are exploring cost reductions through base metal alternatives and process optimization.

AI is driving high growth in the cloud computing market, with 23 stocks receiving substantial capital inflows. Lithium futures prices have surged, raising questions about a potential "third super cycle" for lithium. Prices for key rare earth varieties have exceeded 260,000 yuan per ton, with related stocks expected to report earnings growth.

BlackRock Jianxin Wealth Management Deputy General Manager and Chief Investment Officer Liu Rui stated that the current environment is unsuitable for static asset allocation, emphasizing the need for proactive rebalancing. Research shows that active rebalancing every quarter or half-year outperforms long-term holding strategies in high-volatility markets.

Regarding equity assets, Wang Xiaojing, Chief Investment Officer for Equity, Quantitative, and Multi-Asset at BlackRock Fund, noted that the CSI 300 Index rose nearly 18% in 2025, with significant gains in small and mid-cap stocks, tech shares, and Hong Kong stocks. The rally was primarily driven by valuation expansion, representing an emotion-driven bull market.

Market volatility at the beginning of 2026 reflects adjustments in investor expectations for future liquidity. For the bull market to continue, four conditions must be met: ample liquidity, supported by policies from the Fed and the PBOC; a shift to earnings delivery, with fundamental improvements in cash flow and profits; policy expectations and incremental support, such as fiscal stimulus and consumption promotion; and eased geopolitical risks. If these conditions are met, BlackRock expects the CSI 300 Index to perform well over the next 12 to 18 months.

Wang emphasized that traditional negative correlations between assets, particularly stocks and bonds, are weakening or disappearing. The focus should be on assessing the risk-return profiles of various assets, with opportunities currently found in equities and government bonds.

Regarding investment tools, Huang Yi, Head of Investment Operations at BlackRock Fund, highlighted the flexibility of ETFs, which are suitable for capturing structural opportunities in the A-share market. In 2026, investors can efficiently allocate to preferred sectors through industry or thematic ETFs.

Li Jiachun, Investment Manager at BlackRock Jianxin Wealth Management, noted that the shift toward ETFs and index-enhanced products among domestic investors reflects market maturation.

In fixed income markets, Wang Dengfeng, Chief Fund Officer at BlackRock Fund, anticipates a "weak recovery" in the economy. As fundamentals improve, risk assets may pressure the bond market. Current data, such as aggregate financing, indicates a lack of strong momentum, suggesting monetary policy will remain moderately accommodative.

Looking ahead, the bond market is likely to exhibit a "corridor" pattern, with upper limits constrained by loose expectations and policy support, and lower limits pressured by recovering risk assets. Overall, interest rate fluctuations are expected to remain narrow.

Corporate announcements include Unisplendour Corporation terminating its plan to issue H-shares and list on the Hong Kong Stock Exchange. Yunnan Botanee Bio-technology announced that 13 of its products have been selected for续采. Hefei Meiling Co., Ltd. decided not to participate in the capital increase for GEM's Indonesia project. Jinhaitong plans to invest up to 400 million yuan in building a semiconductor equipment manufacturing center in Shanghai.

Kaiying Network's subsidiary signed a settlement agreement with Legend IP, expected to positively impact profits by approximately 200 million yuan. Xinrui Holdings plans to acquire a 70% stake in Huilian Electronic for up to 700 million yuan. LB Group will acquire a 5.46% stake in Yunnan Guotai for 234 million yuan. Dawei Technology clarified that its Zhangbei data center project does not involve computing power leasing services.

Earnings reports: Guobo Electronics reported a net profit of 508 million yuan for 2025, up 4.72% year-on-year. Autel Intelligent Technology's net profit rose 45.89% to 935 million yuan. Actions Technology's net profit increased 6% to 871 million yuan. Microport EP's net profit fell 1.76% to 51.1517 million yuan. Sgcc's net profit declined 16.91% to 678 million yuan.

Share repurchases: Quzhou Dongfeng plans to repurchase 50 million to 100 million yuan worth of shares. Share reductions: Keli Technology shareholders plan to reduce their holdings by up to 3.13%. Contract signings: Roman Tomson signed a 260 million yuan wind power project contract. Sonavation pre-qualified for a 288 million yuan project. Shaanxi Construction Engineering won four projects totaling 4.834 billion yuan. Dongfang Tieta secured a 111 million yuan State Grid contract. Naipu Mining Machinery's subsidiary signed a supply contract for mineral processing equipment wear parts. TaiJi Industry's joint venture won a 3.778 billion yuan project for Hua Hong FAB9B. *ST Songfa's subsidiary signed a shipbuilding contract worth $1.7-2 billion. Tieke Railway signed sales contracts totaling 511 million yuan. Pudong Construction's subsidiaries won projects worth 1.41 billion yuan.