China’s A-share film and television theater sector performed well on Tuesday

China News Service, Beijing, November 10 (Reporter Chen Kangliang) China's A-shares surged in volume on the 10th (Tuesday). All major stock indexes turned red. The film and television theater sector led the day's gains and performed well.

According to statistics from financial data service provider Oriental Fortune, the film and television theater sector rose 7.05% that day. In terms of individual stocks, the share price of Huazhi Digital Media hit the daily limit (up about 20%), and the share prices of Huace Film and Television, Bona Pictures, Enlight Media, Huanrui Century, and Beijing Culture all rose by more than 5%.

He Chen, an analyst at Caixin Securities, said that recently, the valuation of the A-share film and television theater sector has been at a historically low level, and the allocation value has gradually emerged. The development of artificial intelligence (AI) technology has brought innovation in content supply to the film and television industry, while driving down production costs. Related content forms are extending to long-form dramas, theater movies and interactive video games. The AI ​​film and television industry is expected to develop towards high-quality production and diversified commercial realization, which will benefit related listed companies.

According to monitoring by QuestMobile, as of July this year, the number of daily active users of the AI ​​short drama platform Hongguo was 168 million, a year-on-year increase of 107%, surpassing iQiyi, Tencent Video, Youku, and Mango TV combined, with average daily usage of more than two hours per person. Industry insiders said that AI has reduced the cost of a single short drama from about 300,000 yuan to about 50,000 yuan, and the cycle has been reduced to 7 to 15 days.

In terms of the performance of the major A-share indexes that day, as of the close, the Shanghai Composite Index reported 3,663 points, an increase of 0.08%; the Shenzhen Component Index reported 11,241 points, an increase of 0.86%; the GEM Index reported 2,494 points, an increase of 1.46%. The total transaction volume in Shanghai and Shenzhen stock markets was approximately 1,504.8 billion yuan, which was approximately 22.2 billion yuan higher than the previous trading day.