What are "Theme Stocks" and "Niche Stocks"?

1. Explanation

Niche Stocks refer to listed companies whose core businesses align with specific high-growth industries or trends. Examples include:

• Semiconductor niche stocks

• Consumer sector niche stocks

• Healthcare niche stocks

• Technology niche stocks

• Carbon-neutral niche stocks

Theme Stocks are grouped based on short-term events or time-sensitive concepts, regardless of their core businesses. Examples:

• Asset restructuring theme

• Belt and Road theme

• Xiongan New Area theme

Key Differences:

• Theme Stocks: Driven by hot money or market makers, often subject to corrections without policy support.

• Niche Stocks: Focus on sustainable industries with policy backing, attracting institutional investments and forming upward trends.

• Investment Logic: Niche stocks lean toward value investing, while theme stocks are more prone to speculation.

Tools like East Money, Caixin, brokerage apps, or Tonghuashun can track these stocks.

2. Explanation

Niche Stocks represent high-growth sectors with:

• Strong industry momentum

• Policy tailwinds

• Heavy capital inflow
  Examples: Lithium batteries, wind power, solar energy, energy storage, and semiconductor chips.

Reality Check:
Many "niche" labels are created by institutional funds to rally retail investors around trendy themes. While these stocks boast "high growth," they may not be sustainable. The goal is often to pump prices for profitable exits.

Investors should analyze industry fundamentals and valuations to avoid bubble risks.