This week, A-share market financing activities showed a net buying trend, with the electronics sector leading in net purchase amounts. Electronics and nonferrous metals sectors attracted significant financing interest. During the week of February 24 to 27, A-share margin trading balances continued to rise, reaching 2,649.976 billion yuan (as of February 26). Total net financing purchases amounted to 57.306 billion yuan. By sector, electronics led significantly with net financing purchases of 15.883 billion yuan. The nonferrous metals sector followed with net purchases of 8.866 billion yuan, while power equipment ranked third with 7.937 billion yuan. Net purchases in computers, defense military, and telecommunications all exceeded 5 billion yuan. Regarding the electronics sector outlook, Galaxy Securities indicated that global AI infrastructure construction will maintain strong momentum through 2026. With China steadily advancing domestic substitution rates, investment opportunities remain favorable in semiconductors and related components. These include domestic computing chips, memory chip price cycles, PCBs, semiconductor manufacturing/equipment, advanced packaging, and semiconductor materials.

Financing funds heavily targeted specific stocks this week. Seventeen stocks saw net financing purchases exceeding 500 million yuan. Cambricon and Zhongji Innolight both recorded net purchases over 1 billion yuan, at 1.33 billion and 1.19 billion yuan respectively. Cambricon's performance report showed 2025 revenue of 64.97 billion yuan, up 453.21% year-over-year, with net profit turning positive to 2.059 billion yuan. The surge was attributed to rising AI computing demand and successful market expansion. Zhongji Innolight, Eoptolink, and Huafeng Technology—all optical module manufacturers—appeared on the list with net purchases of 1.19 billion, 501 million, and 452 million yuan respectively. Zhongji Innolight reported 2025 revenue of 38.24 billion yuan (up 60.25% YoY) and net profit of 10.799 billion yuan (up 108.81% YoY), citing strong customer investment in computing infrastructure and growing shipments of high-speed optical modules. North America's top four cloud providers projected 2026 capital expenditures exceeding 660 billion USD, a 61% YoY increase. TrendForce expects high-speed optical modules (800G+) to grow from 19.5% of global shipments in 2024 to over 60% by 2026, becoming standard in AI data centers. Lumentum anticipates CPO market inflection near 2027, with initial scale-up product deliveries expected. Commercial aerospace firms like Dianke Lantian and Feilihua, alongside nonferrous metal players such as Northern Rare Earth and Xingye Yinsi, also attracted financing interest.

Multiple PCB stocks experienced net financing outflows. Thirty-one stocks saw net financing repayments exceeding 100 million yuan. Wus Printed Circuit, Hengli Petrochemical, Hikvision, and CIMC ranked highest with repayments of 351 million, 316 million, 270 million, and 244 million yuan respectively. Wus Printed Circuit, specializing in PCB operations, reported 2025 revenue of 18.9 billion yuan (up 42% YoY) and net profit of 3.822 billion yuan (up 47.74% YoY), benefiting from structural demand for high-speed servers and AI applications. Besides Wus, other PCB-related stocks like Avary Holding and Fastprint Circuit Tech also faced financing sell-offs. Dongguan Securities noted that PCBs achieved rapid growth in 2025 due to increased demand for high-layer and advanced HDI boards. Nvidia's new Rubin platform is expected to enter mass production in the second half, while ASIC clients accelerate shipments, potentially upgrading PCB specifications and value. New technologies like orthogonal backplanes and CoWoP may further enhance PCB value.

Nonferrous metals gained investor favor this week. A-shares rose steadily, with the Shanghai Composite Index gaining 1.98% to close at 4162.88 points. A February 28 weekly survey on March market trends showed 72% of participants profited this week, with 63% gaining under 10%. Approximately 41% of investors maintained full positions or leveraged positions. Regarding position changes, 25% increased holdings (down sequentially), 18% reduced holdings (up 4 percentage points), while 54% held steady. With stable market gains, investors generally expressed optimism about future trends. Survey data indicated 46% expect sideways movement between 4100-4200 points, 41% predict further gains above 4200 points, and 9% anticipate declines below 4100 points.

Sector-wise, nonferrous metals were most popular (26% bullish, up 13 percentage points), while power equipment rose to 13% (up 7 points). Technology sector enthusiasm declined. Themed investments favored minor/precious metals (23%), commercial aerospace/satellite internet (17%), computing power (17%), and AI (12%).