On February 26, China’s A-share market extended its gains, with all three major indices closing higher amid continued active trading. By the close, the Shanghai Composite Index stood at 4166.72 points, up 1.20%. The Shenzhen Component Index and ChiNext Index also moved higher, rising 1.29% and 1.41% respectively. Total trading volume on the two markets reached 2.48 trillion yuan for the day, significantly higher than the previous session. Net northbound capital inflows exceeded 4 billion yuan, as foreign investors continued to increase their holdings of RMB-denominated assets.

The market saw structural strength, with cyclical sectors leading the way. Chemicals, non-ferrous metals, steel, rare earths, and other resource-related sectors rose sharply, with a batch of related stocks hitting the daily limit. The real estate chain also recovered. Benefiting from optimized control policies in many regions, capital attention increased for home furnishings, building materials, and other segments. Computing power, semiconductors, and other technology sectors performed actively, with hardware and materials leading gains amid rising expectations for AI industrial implementation.

Analysts believe that the current recovery in market sentiment resonates with policy support and capital inflows. The steady recovery of the domestic economy and improving consumption and investment data provide fundamental support for the stock market. Policies continue to release positive signals, including excess MLF rollovers and local optimizations of property market policies, boosting risk appetite.

In the short term, the volume-driven rally confirms a strong market pattern, with capital flowing into performance-definite and policy-benefiting areas. Investors are advised to focus on opportunities in cyclical resources, tech hardware, and the real estate chain, while monitoring trading volume and sector rotation to capture high-quality targets in the structural market.