A-shares today saw main funds playing high-low cuts — net selling reached 34.6 billion, but the buying and selling directions showed a clear divergence. The rotation logic behind this warrants attention.

Main funds are pouring real money into AI applications. Leo Holdings was net bought for 1.75 billion and hit the daily limit, Kunlun Wanwei secured 1.37 billion and also hit the limit, Sanhua Intelligent Controls recorded 1.2 billion in inflows with a 5% surge, and companies like Shengguang Group, Yidian Tianxia, Tianlong Group, and Blue Focus have all become main targets of the funds. The performance of these companies today is impressive — multiple stocks hit the 20% daily limit, with gains generally in double digits. The popularity of the AI application track is clearly reflected in the capital flow.

On the hardware side, things look a bit "cool." Concepts like commercial aerospace and brain-computer interfaces have become the main funds' "distribution zones." Yanshan Technology was net sold for 3.33 billion, Zhongji Xuchuang and Xinyi Sheng, two leading optical module companies, were each net sold for 2.03 billion and 1.48 billion respectively, and heavyweight stocks like Semiconductor Manufacturing International Corporation (SMIC) were also reduced by 844 million. As a result, stock prices followed suit — most ended with declines.

This is a typical main fund rotation — shifting from hardware infrastructure to application end. On one side, profits are taken from previous hot spots like commercial aerospace and semiconductors; on the other side, AI application concepts are rallying again. Although Jinfeng Technology has some exposure to commercial aerospace, it was net bought for 1.66 billion and hit the limit, indicating that main funds are still carefully selecting targets.

From a broader perspective, the market’s recognition of the prospects for AI applications is clearly increasing. When capital shifts from hardware to applications, it often signals subtle changes in market expectations.