0227: February exceeded expectations and wrapped up successfully. Tiangong has dropped another bomb!!!

Last night, most U.S. tech stocks declined, and the leading Chinese concept stocks index fell 2.2%, casting a shadow over the market. Today, the A-shares opened lower across the board, but ultimately rebounded from the lows, closing with a very important bullish candlestick, marking a satisfying end to February. Why is this bullish candlestick so crucial? Not only does it turn the weekly and monthly charts red, but it also serves as a key correction to the weekly divergence pattern, partially alleviating the technical risk of a March pullback. There was some support from certain teams defending the market today, but unlike past methods that only protected the index without regard for individual stocks, today’s support not only stabilized the index but also boosted individual stocks. As long as no unexpected news emerges over the weekend, there’s little need to worry about the opening next Monday. [Taogu Ba]
Today, two stocks hit the daily limit-up, but I lost over 30% of the unrealized gains from yesterday, which is a bit regrettable.
The monthly chart closed positive today, with the index achieving three consecutive months of gains, indicating that the medium-term upward trend is established. There’s no need to panic excessively over short-term fluctuations. After February’s end, the market will officially enter the March Two Sessions rally. Northbound funds had a net inflow of 8.67 billion yuan today, marking seven consecutive days of net inflow, with a total net inflow exceeding 46 billion yuan. The main sectors receiving inflows were non-ferrous metals, finance, and electricity.
The trend of the A-shares often reflects the U.S. stock market, but currently, there’s a view that a sharp decline in U.S. stocks is bearish for A-shares, and today’s movement seems to support that view. Due to yesterday’s sharp drop in the Nasdaq, with Nvidia falling 5%, today’s related hardware sectors led the decline, especially the recently surging electronics sector. Meanwhile, domestic tech stocks like Huawei’s Ascend and token exports have risen sharply, becoming some of today’s top gainers. The divergence within the tech sector has also contributed to a large rally in non-ferrous metals, with a clear dual rotation pattern between price-increasing and tech sectors.
Today, tungsten prices hit a new all-time high.

News Highlights:

1. As of February 27, 2026, tungsten raw material prices continue to soar, with tungsten powder surpassing 1,800 yuan/kg.
2. On February 24, sources reported that the Trump administration plans to use the U.S. Department of Defense’s AI projects to help set reference prices for key minerals amid efforts to build a global metals trade group. It is said that officials are initially focusing on at least four critical minerals—germanium, gallium, antimony, and tungsten—before expanding to others. The U.S. is developing a global reference price for these minerals through the Defense-led OPEN (Open Price Exploration for National Security) AI model, aiming to reconstruct pricing power, ensure supply chain security, and serve geopolitical strategies through algorithms.
3. On February 11, during trading, the tungsten long-term contract prices for the first half of February were announced, with tungsten concentrate (WO3 ≥55%) priced at 670,000 yuan per metric ton, up 147,000 yuan from the previous quote.
   According to institutional research reports: In 2024, global tungsten reserves are estimated at 4.6 million tons (metal), with China holding 2.4 million tons, accounting for 52.17%. Worldwide tungsten concentrate production is 81,000 tons, with China producing 67,000 tons, making up 82.72%. About 35% of global tungsten supply comes from recycled materials, but China’s recycling rate is only 17%.

Core stocks related to tungsten metal:

• China Tungsten High-Tech: Tungsten resources of 560,000 tons, over 30% of national reserves, the largest industrially mineable reserves globally; tungsten concentrate accounts for about 6% of China’s total tungsten output, over 4% of global production.
• Xiamen Tungsten: Fully integrated tungsten industry chain, with good cooperation with Chengfei Group.
• Luoyang Molybdenum: The second-largest tungsten producer globally, with overseas assets in Congo (Kinshasa) (Tenkei).
• Zhangyuan Tungsten: Owns 6 mining rights and 10 exploration areas, with proven reserves of 300,000 tons; ammonium paratungstate (APT) capacity of 10,000 tons/year, tungsten powder capacity of 15,000 tons/year, tungsten carbide powder capacity of 13,100 tons/year, and cemented carbide production capacity of 1,500 tons/year.
• Xianglu Tungsten: Subsidiary Jiangxi Xianglu owns tungsten mining rights at Tiecangzai, covering 5.96 sq km; a full industry chain enterprise; unconfirmed reports suggest a domestic tungsten carbide market share of 50%, military-grade at 35%.
• Jiang Wuzhuang Equipment: Announced on February 12, 2026, plans to raise up to 1.882 billion yuan via targeted share issuance to acquire 100% stakes in Jiang Wuzhuang Hard Alloy Co., Gannan Huamao Tungsten Materials Co., Ltd., and Jiujiang Nonferrous Metal Smelting Co., Ltd., integrating tungsten and tantalum-niobium resources.
• Yasheng Group: Since 2012, invested in mineral resources within Yasheng Hongmu Ranch, including the Talgou tungsten mine with 224,200 tons of WO3 (including 12,980 tons of black tungsten ore), with 3,773 tons of C-grade ore.
• Guangsheng Nonferrous: Owns rich tungsten resources, with 65,000 tons of tungsten mineral resources documented, not yet mined.
• China Rare Earth: Core listed platform of China Rare Earth Group; has a strategic layout of rare earths, copper, and tungsten, with 65,000 tons of tungsten resources documented.
  Other associated tungsten mines include Yunnan Geology, Jiangxi Copper, Hunan Gold, etc.
• China Ruolin: Developed new mineral processing technology (including tungsten ore), with advanced grinding and classification systems and high-efficiency reprocessing equipment, improving recovery rates.
• Ganhua Science & Industry: Shenyang Energetics, a joint venture with the Ordnance Group, supplies tungsten alloy preforms for military applications, producing over 2,000 tons of tungsten alloy preforms, with numerous R&D projects, used in various weapons systems.
• GreenMe: Reported in 2024, total tungsten recovery reached 6,486 tons (WC basis). Recycled tungsten products (APT, tungsten powder) are industry-leading, rapidly advancing toward becoming a top-tier green tungsten resource base.

Core stocks related to germanium: Yunnan Geology, Chi Hong Zinc & Ge, Luoping Zinc & Electric, China Gold Group, Hengguang Shares, Yue Ling Shares.
Core stocks related to gallium: China Rare Earth, Zhenghong Shares.
Core stocks related to antimony: Huayu Mining, Hunan Gold, Huaxi Nonferrous, Xingye Silver & Tin, Meiyan Jixiang.

The price-increasing line is not only present in non-ferrous metals and chemicals but also in PCB materials, where hidden leaders are riding the dual premiums created by international capacity gaps and domestic industry chain substitution. For example, the global high-end copper foil market for PCBs, which accounts for over 40% of PCB main materials and is dominated by Mitsubishi Materials, Furukawa, and Soro in Japan, with Dafu Technology rising rapidly. The resin formula at the core of PCBs, especially PBO (Polyphenylene Oxide), has nearly all of the global electronic-grade capacity controlled by SABIC, Mitsubishi Gas Chemical, and Asahi Kasei. Shengquan Group recently commissioned 1,000 tons, while Dongcai Technology is still ramping up capacity. The chemical etching materials for PCBs are still dominated by Japanese JCU, Korean Nabo Electronics, Midea Meles, and Anmet, but Tiancheng Technology and Guanghua Technology have begun to break into certain segments.
The wave of PCB upgrades driven by AI is forcing the entire upstream material system to rewrite rules, representing an irreversible structural wealth transfer driven by technological generational gaps.

While everyone discusses AI chips, large models, and compute leasing, the truly savvy investors have already gone underground, positioning themselves in those seemingly insignificant but essential “sell-side” players.
They don’t produce chips, but they make chips usable; they don’t provide compute power, but they are the foundation of compute.

After market close today, a major news broke: the People’s Bank of China announced that starting March 2, 2026, the foreign exchange risk reserve ratio for forward foreign exchange sales will be reduced from 20% to 0%. The interpretation is as follows:
In the short term, this policy sends two key signals: first, the central bank has strong control over the RMB exchange rate, with ample tools to maintain stability, completely dispelling market fears of large fluctuations; second, monetary policy will remain prudent and neutral, with no adjustments due to exchange rate movements, ensuring liquidity remains reasonably ample. These signals directly boost market risk appetite, especially foreign investment confidence, laying a solid foundation for the Two Sessions rally in March.
In the medium to long term, this policy’s impact on A-shares is more profound. Maintaining the RMB at a reasonable and balanced level is essential for sustained foreign capital inflows into A-shares. The central bank’s move to stabilize the exchange rate acts as a “confidence pill” for foreign investors, ensuring continued inflows, bringing incremental funds, optimizing investor structure, and supporting long-term healthy development of A-shares.

Another piece of breaking news that has just exploded in the industry—whether it will ferment over the weekend like Seedance remains to be seen—is from Kunlun Wanwei’s Kunlun Tiangong SkyReels-V4. As Seedance 2.0 flooded the internet, a Chinese dark horse quietly rose to second place on the global AI video ranking. Kunlun Tiangong SkyReels-V4 has made a strong entry into the top-tier scene, featuring multimodal input, synchronized audio-visual output, and cinema-grade quality, astonishing with its capabilities! On launch day, it ranked second among active global models, and fourth in history.
Three major innovations break industry ceilings:

1. Dual-stream MMDiT architecture—truly integrating audio and video.
2. Unified stitching framework—one model handling all video operations.
3. Efficient generation strategy—finding the optimal balance between quality and speed.
   Having just finished a detailed analysis, I was stunned by the many generated works included, such as a short video recreating a classic dance scene with exquisite detail, or changing the white tank top in a video to a blue T-shirt with no visible edits.

During today’s pre-market, perceptive funds have already heavily bought into Kunlun Wanwei, with trading volume nearly doubling compared to yesterday. As for which concepts it will influence, there will likely be various interpretations over the weekend.

Today’s Trading Tips: Based on the latest beta version of DeepSeek, Huawei’s priority access news, and the continued fermentation of token exports, today’s focus is on domestic computing power. I secured two limit-ups: Hang Steel and FiberHome. However, in Huawei’s computing ecosystem, I chose CloudWalk Technology, which surged then pulled back. From a logical perspective, CloudWalk is one of Huawei Ascend’s most core large model partners, a benchmark for domestic AI computing power and model localization. It was recognized as an Ascend ecosystem best practice partner in September 2025 and a Huawei Ascend leading partner in December 2025 (one of the highest certifications). Unfortunately, the strongest capital inflows today targeted Huawei Cloud MaDao and token exports. Since October 30 last year, I’ve been posting daily summaries of market news, analyzing key stories, listing related stocks, and sharing insights—an important resource for ultra-short traders to monitor capital flows and capture intraday hot spots, helping improve operational strategies.