A-share midday review | ChiNext index down 5.37% in half a day, lithography machines and brain-computer interfaces rise against the trend
Complete. Here is the key summaryThe A-share midday review on July 28 showed a sharp market divergence. The ChiNext dropped 5.37%, while the SSE Index fell 0.98%. Affected by the sharp decline in U.S. chip stocks, the AI computing hardware sector led the decline, with funds flowing into defensive sectors and themes such as photolithography machines and brain-computer interfaces. The total market turnover for half a day was 1.34 trillion yuan, with a net outflow of 66.2 billion yuan from main funds
The three major A-share indices opened lower collectively, fluctuating downwards in the early session, with a significant divergence between the yellow and white lines in the intraday chart, and the heavyweight sectors under pressure. As of the midday close, the Shanghai Composite Index fell 0.98% to 3820.52 points, the Shenzhen Component Index dropped 3.42% to 13664.80 points, and the ChiNext Index decreased 5.37% to 3397.97 points; the STAR 50 fell 4.03%, while the Beijing Stock Exchange 50 rose 0.55%. In the entire market, 2836 stocks rose, 2521 stocks fell, and 197 stocks were flat, with a profit-making effect of 52.94% and a median change of +0.11%. The total transaction volume in the three markets of Shanghai, Beijing, and Shenzhen for half a day was 1.34 trillion yuan (613.4 billion yuan in Shanghai, 714.3 billion yuan in Shenzhen, and 8.8 billion yuan in the Beijing Stock Exchange), a decrease of about 21.7 billion yuan compared to the previous trading day. In terms of main funds, there was a net outflow of about 66.2 billion yuan from the entire market in half a day, with the electronic sector experiencing a net outflow of over 27.7 billion yuan, while the banking, automotive, and retail sectors saw net inflows of main funds.
Market Overview
In the market, the brain-computer interface concept continued to be strong, the photolithography machine concept saw a collective explosion in the early session, and the consumer sector (liquor, dairy) was active against the trend, while the banking sector rose during the session; on the downside, the CPO, storage chips, and components (PCB) sectors related to AI computing hardware led the decline significantly, and the coal sector adjusted. Overall, the overnight plunge of US chip stocks and the significant drop in Japanese and Korean stock markets transmitted risk-averse sentiment to A-shares, with AI hardware becoming the main force driving the sell-off, as funds fled from high-position computing chains to defensive sectors like consumption and banking, as well as thematic directions like photolithography machines and brain-computer interfaces.
Popular Sectors
- Photolithography Machine Concept Explodes in Early Session
The photolithography machine concept opened significantly higher in the early session, with Jietuo Technology hitting the daily limit, Lanying Equipment and Wavelength Optoelectronics also hitting the daily limit, and multiple stocks including Zhangjiang Hi-Tech, Yongxin Optical, Haili Co., Dongfang Jiasheng, Aopu Optoelectronics, and Electric Science Digital hitting the daily limit, while Maolai Optics and Jiuri New Materials followed suit.
Comment: According to a report by the American technology media "The Information" on July 27, it is rumored that a state-owned enterprise in China has initiated mass production of immersion deep ultraviolet (DUV) photolithography machines, planning to deliver products to major domestic chip manufacturers within the year. In addition, Suzhou Extreme Ultraviolet Semiconductor recently officially launched a self-developed three-beam plasma-coupled DPP extreme ultraviolet (EUV) light source engineering prototype, a result achieved by a team of EUV light source experts from Harbin Institute of Technology after more than twenty years of research. Tesla CEO Elon Musk recently publicly stated that the progress of China's independent research and development of photolithography machines far exceeds market expectations. Affected by the above news, global photolithography giant ASML saw a significant drop in US stocks last night, further stimulating the A-share market's attention to the logic of independent and controllable photolithography machines.
- Brain-Computer Interface Concept Continues to Be Strong
The brain-computer interface concept continued its recent strength, with Innovation Medical hitting the daily limit for three consecutive days, Nanjing Panda and Hainan Haiyao hitting the daily limit for two consecutive days, and Saily Medical, Kelan Software, and Yanshan Technology also hitting the daily limit, while Aipeng Medical rose over 15%, and Beiyikang, Xiangyu Medical, Zhongke Information, and Sanbo Brain Science followed suit.
Comment: According to news, the American startup Science Corp. has been approved to sell a retinal chip in the EU that helps patients with "geographic atrophy" (GA) regain some vision It is said to be the first time that a U.S. BCI company has commercialized such devices on a large scale for patients, marking an important milestone for the company's move towards the commercialization of brain-computer interfaces. This product belongs to the category of visual restoration medical devices and broadly falls under the category of brain-computer interfaces, but it is distinct from the invasive/non-invasive brain-computer interface concepts that are being hyped in the domestic market.
- The consumer sector remains active against the trend
The liquor sector has fluctuated upward, with Jinzhongzi Liquor hitting the daily limit, Huangtai Liquor rising over 7%, Jinshiyuan rising over 5%, and Yingjia Tribute Liquor, Gujing Tribute Liquor, and Luzhou Laojiao rising over 3%. The dairy sector continues to strengthen, with Yiming Foods hitting the daily limit, Pinwa Foods rising over 15%, Wancheng Group rising over 6%, and Huanlejia, New Dairy, and Qiaqia Foods following suit. In the hotel and restaurant sector, Huatian Hotel hit the daily limit, and Dongbai Group hit the daily limit.
Commentary: According to reports from Caixin, recently, the price of 53-degree 500ml Feitian Moutai in direct sales stores in Beijing, Shanghai, and other places has been raised to 1,719 yuan per bottle, higher than the price of 1,639 yuan per bottle on the iMoutai platform. Moutai has adjusted the retail price on the iMoutai platform from 1,539 yuan per bottle to 1,639 yuan per bottle since July 18, marking the second price increase this year. Market views suggest that Moutai, as an industry leader, raising prices is expected to drive a rebound in the overall price of the liquor industry, with the consumer sector receiving risk-averse capital inflows amid market adjustments.
- The banking sector rises against the trend
The banking sector rose against the trend during the trading session, with China Construction Bank rising over 3% at one point, reaching a stock price of 10.68 yuan, setting a new historical high, and the total market value of A+H shares exceeding 2.1 trillion yuan, with Shanghai Bank, Agricultural Bank of China, Postal Savings Bank of China, and Nanjing Bank following suit.
Commentary: The banking sector is supported by dividend value, and amid the overall market adjustment, funds are seeking defensive assets with higher certainty