Advantage Transformation Thinking
Thoughts of the Week
When Amazon’s server management capabilities, storage capabilities, or computing capabilities exceed its own e-commerce business needs, it can be separated to become a brand new business sector—Amazon Web Services (AWS).
Today, the benefits brought by Amazon’s cloud services to the group account for 25%-30% of the entire company.
In existing business sectors, to do a good job in business, it is necessary to build capabilities in all links. But when the capability of a certain link exceeds its own needs, you might as well split it out to form a brand new market opportunity. This is advantage transformation thinking.
Event of the Week
The “14th Five-Year Plan and Long-Range Objectives Through the Year 2035” was released.
Market of the Week
Period: 2021-03-01 ——— 2021-03-07
4-week review: All global indices rose this week. Gains: A-shares > H-shares > US shares. Stock Connect saw net inflows for two consecutive weeks, and Hong Kong Stock Connect continued large net inflows. Wind’s top three gaining industry sectors were alcohol, catering, and daily chemicals; the top three losers were shipping, Internet, and gas. Wind’s top three gaining concept sectors were medical beauty, PTA, and vaccines, the top three losers were online games, rare earth permanent magnets, and lithium battery electrolyte. The effect of the local Chinese New Year is still obvious. Chips and chemicals are expected to continue to boom after the new year, and vaccines and testing will decline.
3-week review: The A-share market differentiated clearly after the Spring Festival holiday. Although market trading is still active, the leading stocks where funds are clustered continued to adjust, and small and medium-cap stocks rose generally. Wind’s top three gaining industry sectors were precious metals, coal, and petrochemicals; the top three losers were office supplies, education index, and household goods. Wind’s top three gaining concept sectors were financial participation, Chengdu-Chongqing economic circle, smart grid, the top three losers were tungsten ore, rare earths, and industrial metal electrolyte.
2-week review: Major global indices fell generally this week, the clustering collapsed, and the main forces fought on their own. Wind’s top three gaining industry sectors were environmental protection, real estate, and motorcycles; the top three losers were alcohol, automobiles, and catering. Wind’s top three gaining concept sectors were reverse merger, limit board, low-price stocks, the top three losers were high-price stocks, beverage manufacturing, and medical.
1-week review: The declines this week tended to stabilize. Wind’s top three gaining industry sectors were forestry, steel, and energy equipment; the top three losers were precious metals, agriculture, and shipping. Wind’s top three gaining concept sectors were rare earths, copper-clad laminates, and carbon neutrality; the top three losers were rare metals, Stock Connect, and photovoltaic roofs.
This week’s review: The declines widened this week, and A-shares fell for three consecutive weeks. Wind’s top three gaining industry sectors were electric power, steel, and coal; the top three losers were aerospace, semiconductors, and agriculture. Wind’s top three gaining concept sectors were thermal power, electric power, and coal-power restructuring; the top three losers were aviation, planting, and marketing communication.
| Market (%) | Index | This Week | 1 Week Ago | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|---|
| Shanghai Composite | 3453.08 | -1.4 | -0.2 | -5.06 | 5.72 |
| Shenzhen Component | 13897.03 | -3.58 | -0.66 | -8.31 | 5.44 |
| ChiNext Index | 2756.81 | -4.01 | -1.45 | -11.3 | 2.88 |
| Hang Seng Index | 28739.72 | -1.23 | 0.41 | -5.43 | 2.02 |
| HSCEI | 1094.01 | -0.81 | 1.68 | -1.75 | 5.13 |
| Hang Seng HK Chinese Enterprises | 4074.45 | -0.84 | 0.84 | -3.54 | 4.94 |
| Dow Jones | 32778.64 | 4.07 | 1.82 | -1.78 | 0.2 |
| Nasdaq | 13319.87 | 3.09 | -2.06 | -4.92 | -1.08 |
| S&P 500 | 3943.34 | 2.64 | 0.81 | -2.45 | -0.28 |
| Market (CNY, Billions) | This Week | Previous Week | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|
| Shanghai Connect | 61.74 | 31.28 | -21.75 | 44.72 |
| Shenzhen Connect | 4.4 | -39.65 | -53.206 | 101.54 |
| Hong Kong Connect | 32.05 | 17.04 | -105.52 | 149.07 |
Positions
| Code | Name | Current Period Dynamics |
|---|---|---|
| SZ000889 | Zhongjia Bochuang | Flat |
| SZ300766 | Merit Interactive | Flat |
| GME | GameStop | Flat |
| F260104 | Invesco Great Wall Domestic Demand Growth | New |
| F002083 | Xinhua Xin Dongli Flexible Allocation A | New |
| F166301 | Huashang New Trend Flexible Allocation A | New |
| F163406 | Xingquan Herun Mixed | New |
| F005534 | Huaxia New Era Mixed | New |
Published at: Mar 14, 2021 · Modified at: Dec 2, 2025
