The Shanghai Composite Index rose slightly, but the trading volume was only 820 billion. The ChiNext Index, on the other hand, closed in the red across the board, with a decline of over 1%. Will the dividend trend in A-shares continue today? Is there a risk of the Shanghai Composite Index pulling back after a short-term rise?

The US and European stock markets closed slightly lower. The slight decline in the US stock markets last night had a certain negative impact on today's A-share market, with the Dow Jones Index falling by 66 points and the Nasdaq Index dropping by 36 points; European stock markets were similarly mixed, and the offshore RMB exchange rate closed around 6.9. On Wednesday, the Shanghai Composite Index rose by 3 points, and the daily K-line remained stable above the 20-day moving average, but the trading volume on the Shanghai market was only 820 billion, once again setting a new low for this year. For the Shanghai Composite Index facing a breakthrough, a short-term rise in volume is not a good sign, as the continued decline in trading volume means that the index lacks sustained upward momentum; the more severe the decline in volume, the greater the risk of a pullback. In the context of continuous shrinking volume, the Shanghai Composite Index may hold the support of the 20-day moving average before the holiday, but the risk of a pullback after the holiday will increase.

The concept of annual report pre-increase is expected to usher in a rising market after the holiday. Stable performance growth is the foundation for supporting the continuous rise of listed companies' stock prices, and the concept of annual report pre-increase is the investment direction we should pay the most attention to in the first quarter. There are only two trading days left before the holiday, and only five trading days left in February. Starting in March, more and more listed companies will announce their performance for 2025 and their first-quarter performance for this year. For high-quality companies with rapid profit growth in the first three quarters, this is the best entry point for them. The cap-removal concept, high transfer concept, high dividend selection concept, annual report pre-increase concept, and companies with expectations of turning losses into profits are the most valuable investment varieties in the next two months.

The primary choice for risk avoidance remains undervalued, high-dividend blue-chip stocks. The reason blue-chip stocks have hedging value is that they are undervalued, have strong profitability, and low potential risks. In a bull market, they may not have the largest gains, but in a bear market, they are definitely the best hedging assets, and can even be big winners that span bear markets. Although the current A-share market is in a strong trend, the index that has risen for a year also shows signs of weakened upward momentum. At this time, choosing hedging assets is very necessary; industry leaders with a price-to-earnings ratio below 20 times, a dividend yield greater than 3%, and a market capitalization exceeding 100 billion are worthy of our serious study as investment targets. In the long run, they also have long-term investment value due to their undervaluation.