On the first trading day of the final week before the Spring Festival holiday, A-shares recorded substantial gains. The Shanghai Composite Index rose by 1.41% to close at 4,123.09 points, while the Shenzhen Component Index advanced 2.17% to 14,208.44 points. Over 4,600 stocks gained across the two markets, with trading volume remaining roughly flat compared to the previous session at 2.27 trillion yuan. The majority of sectors ended higher, led by communications, internet, and semiconductors, while only a few such as oil and gas retreated. Looking ahead, A-shares have digested some valuation pressure through recent adjustments, and a slow-bull trend is expected to persist over the medium to long term.
Recently, the gaming sector has shown encouraging early-year momentum. According to the latest data from the National Press and Publication Administration, 182 game licenses were issued in January 2026, including 177 domestic titles and five imported games. This not only continues the normalized approval trend seen since 2025 but also reflects regulatory support for the industry’s healthy development. Meanwhile, the newly released "2025 China Gaming Industry Report" indicates that the domestic gaming market’s actual sales revenue reached 350.789 billion yuan in 2025, up 7.68% year-on-year, surpassing the 350 billion yuan mark for the first time. The number of gamers also grew steadily to 683 million. Driven by both favorable policies and a solid recovery in fundamentals, the gaming sector is once again presenting attractive investment opportunities.
The current investment thesis for the gaming sector centers on two key dimensions: earnings delivery and AI-driven transformation. On the earnings front, after several years of adjustment, 2025 marked a clear inflection point toward recovery. The 7.68% revenue growth cited in the report effectively dispels notions of industry contraction. With the long-tail effect of hit titles such as "Black Myth: Wukong" and the scheduled releases of multiple major games in 2026, industry revenue is expected to maintain steady growth. Meanwhile, the deepening application of AI technology is reshaping the valuation framework for gaming companies. Recent market attention has focused on AI agents in game development and player interaction, which not only reduce R&D costs but also enhance user willingness to pay through innovations like intelligent NPCs.
The price-to-earnings ratio of the CSI Animation & Gaming Index currently sits within a relatively reasonable historical range. Supported by the dual drivers of earnings growth and technological innovation, the sector exhibits strong upside potential. The Gaming ETF (516010) closely tracks the CSI Animation & Gaming Index, which comprises listed companies primarily engaged in animation, comics, and gaming. It serves as a barometer for the overall performance of A-share companies in these sectors. For investors optimistic about the long-term prospects of the gaming industry—particularly those seeking exposure to the "AI + gaming" transformation—this ETF offers a convenient and efficient investment vehicle.
Looking forward, as license approvals normalize and AI applications accelerate across the gaming industry chain, the sector’s valuation is expected to further recover. Although short-term volatility may arise due to macroeconomic sentiment, Chinese gaming companies are steadily enhancing their global competitiveness over the medium to long term, supported by a dual-engine growth model driven by both overseas and domestic revenue. Investors may consider allocating to the Gaming ETF (516010) in a phased or regular investment manner to capture the sector’s long-term growth potential while managing risks.
The film and television sector stood out in today’s session, with the Film and Television ETF (516620) surging over 7% in a single day, following several consecutive days of net inflows. The immediate catalyst for this rally is the upcoming 2026 Spring Festival holiday season. This year’s extended nine-day holiday provides a record number of effective screening days, and several blockbusters, including "Pegasus 3," have already been scheduled, fueling early market enthusiasm. Driven by the combination of an extended holiday and high-quality content supply, the film and television sector is experiencing a pronounced pre-holiday uptrend.
From a long-term perspective, the sector is benefiting from a triple tailwind of policy support, recovering demand and supply, and technological innovation. On the supply-demand front, data shows that China’s full-year box office revenue in 2025 reached 51.832 billion yuan, up approximately 22% year-on-year, recovering to over 80% of historical peaks. Moreover, box office revenue in early 2026 quickly exceeded 2 billion yuan, underscoring the resilience of offline entertainment consumption.
At the same time, AI technology is bringing profound changes. With iterations of video generation models such as Sora and Seedance, AI is rapidly penetrating all aspects of production—from scriptwriting to special effects. This not only significantly reduces production costs but also enhances profitability for leading studios through a "productivity revolution."
The Film and Television ETF (516620) tracks the CSI Film and Television Index, which includes companies involved in video, live streaming, gaming, and film production—all aligned with new technology and consumption trends. The index covers traditional cinema giants such as Enlight Media and Wanda Film, as well as new media leaders like Mango Excellent Media, offering a comprehensive reflection of the content production and distribution industry. With sector valuations still at reasonable historical levels, bolstered by Spring Festival box office expectations and the long-term logic of AI adoption, the sector offers favorable risk-reward characteristics. Investors bullish on the recovery of cultural consumption and AI application opportunities may consider the Film and Television ETF (516620) as a means to participate in sector rotation.
Gold prices fluctuated within a wide range last week after a sharp pullback. Today, the Guotai Gold ETF (518800) rose 3.52%, while the Gold Stock ETF (517400) gained 2.71%.
On the U.S. economic front, manufacturing PMI data came in strong, while the labor market showed signs of softening. Markets are awaiting non-farm payrolls and January CPI figures. The U.S. ISM Manufacturing PMI for January registered 52.6, returning to expansion territory and exceeding expectations of 48.5 and the prior reading of 47.9. However, labor market data weakened: January ADP employment came in at 22,000, below the previous 41,000 and expectations of 48,000.
In terms of central bank gold purchases, the People’s Bank of China increased its gold reserves for the 15th consecutive month. As of end-January, China’s gold reserves stood at 74.19 million ounces (approx. 2,307.567 tons), up by 40,000 ounces (approx. 1.24 tons) from 74.15 million ounces (approx. 2,306.323 tons) at end-December.
Looking ahead, the long-term trend for gold remains robust. Against a backdrop of monetary expansion and fiscal monetization, the U.S. dollar credit system faces challenges. Increased geopolitical instability worldwide is also driving diversification of asset reserves, boosting demand for gold as a safe-haven asset. The global trend toward de-dollarization may position gold as a renewed pricing anchor, supporting upward momentum for precious metals. The supportive narrative of "Fed rate-cut cycle + heightened overseas uncertainty + global de-dollarization" remains intact. Investors may continue to monitor opportunities in the Guotai Gold ETF (518800) and the Gold Stock ETF (517400).
Overseas computing power-related stocks rebounded today, with the Communication ETF (515880) rising 5.7% and the ChiNext Artificial Intelligence ETF Guotai (159388) gaining 6.59%. In terms of capital expenditure, overseas cloud providers have significantly raised their Capex guidance, driving a valuation recovery across the supply chain. Google’s projected capital expenditure for 2026 is between $175 billion and $185 billion, nearly doubling year-on-year. Meta’s full-year Capex guidance stands at $115–135 billion, up 73% year-on-year, while Amazon guided for $200 billion, a 53% increase.
Industry sentiment remains strong, with U.S. earnings reports reaffirming the AI theme and highlighting continued shortages in computing power supply. Google noted that Gemini 3.0 is its fastest-adopted model in company history, with monthly active users exceeding 750 million. Management also indicated that AI infrastructure investments will increase throughout the year, expecting computing power shortages to persist. Similarly, Microsoft stated that Azure AI remains supply-constrained, and Amazon emphasized that monetization speed depends on installation pace.
Recent strong rebounds in U.S. computing and optical communication stocks have spilled over to boost sentiment and risk appetite in A-shares. A-share optical module and server suppliers occupy key positions in the global AI industrial chain and stand to benefit from their role as "picks and shovels" providers. The Communication ETF (515880) holds core stocks in the overseas computing power supply chain, with optical modules, servers, optical fiber, and copper connections accounting for over 76% of its portfolio, making it a strong proxy for overseas computing power fundamentals. Against the backdrop of stronger-than-expected 2026 capital expenditure guidance, the outlook for optical modules and servers has further improved. Interested investors may continue to monitor the Communication ETF (515880) and the ChiNext Artificial Intelligence ETF Guotai (159388).
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