China’s stock market staged a broad rebound on February 3, with the three main A‑share indices recovering from intraday lows to close higher. The Shanghai Composite rose 1.29%, the Shenzhen Component gained 2.19% and the ChiNext index climbed 1.86%. Overall turnover reached ¥2.57 trillion, down about ¥41 billion from the previous session, while 4,856 stocks finished higher across the Shanghai, Shenzhen and Beijing boards.
The day’s leadership came from the photovoltaic (PV) industry chain, where firms linked to space photovoltaics led gains, and from the compute‑hardware complex where “算力硬件” concepts and CPO‑related names advanced strongly. Other sectors showing notable strength included commercial space, deep‑sea technology, ultra‑high‑voltage power transmission (UHV) and AI application plays. Multiple small and mid‑cap companies—including Ju Li Suoju (巨力索具), Tongyu Communications (通宇通讯), Shenjian Co. (神剑股份), Zhongchao Holdings (中超控股), Guosheng Technology (国晟科技), Jinjing Technology (金晶科技), Zerun New Energy (泽润新能) and Haiyou New Materials (海优新材)—hit daily price limits.
The surge in PV‑related stocks reflects a combination of structural demand and cyclical sentiment. China remains the dominant global manufacturer of solar modules and components, and manufacturers along the upstream and midstream chain frequently enjoy volatile outperformance when investors rotate into renewable‑energy themes. “Space photovoltaics” is a niche with higher technological thresholds and margins, making it attractive to growth and speculative money when sentiment turns positive.
Strength in compute hardware and CPO segments is consistent with the continued flow of capital into AI infrastructure. Policymakers and corporate budgets that prioritize data‑centre expansion and AI deployment create periodic rallies in suppliers of chips, packaging and related hardware. At the same time, areas such as commercial space and deep‑sea technology are benefiting from a wider investor appetite for advanced industrial and strategic‑tech exposures.
Despite the breadth of the advance, the slightly reduced turnover suggests the rally was more a rotation of capital than a conviction‑driven surge. A high number of rising stocks indicates risk‑on positioning among retail and momentum investors, but the trimmed volume underlines that institutional participation may be cautious. Market watchers will be looking to macro indicators, forthcoming policy signals from Beijing and external demand trends—especially in renewables and semiconductor markets—to judge the durability of the move.