A-share closing review | After a surge and pullback, the Northern Stock Exchange 50 rose by 3.26%, with AI applications experiencing a full-scale explosion

According to Zhitong Finance APP, on July 31, the three major A-share indices opened significantly higher in the morning, with the ChiNext Index rising over 5% at one point and the Sci-Tech 50 Index rising over 9% during the session. In the afternoon, the gains continued to narrow, and the market showed a trend of rising and then falling throughout the day. By the close, the Shanghai Composite Index was at 3832.26 points, up 0.72%; the Shenzhen Component Index was at 13578.93 points, up 2.21%; the ChiNext Index was at 3343.96 points, up 3.06%; the Sci-Tech 50 was at 1635.96 points, up 2.99%; and the Beijing Stock Exchange 50 was at 1083.27 points, up 3.26%. The total trading volume of the Shanghai and Shenzhen markets was approximately 2.54 trillion yuan, an increase of about 199.1 billion yuan compared to the previous day. A total of 4691 stocks in the market rose, 728 fell, with 101 hitting the daily limit up and 0 hitting the daily limit down, resulting in a profit effect of about 86.5%. On the sector front, AI applications (the token concept rose 11.45%, Kimi concept rose 10.21%), information security, semiconductors, computing power leasing, robotics, and CPO optical communication sectors led the gains; while banks, coal, insurance, liquor, and oil and petrochemicals sectors fell against the trend.

Driving Factors

The ChiNext Index rose over 5% at one point, and the Sci-Tech 50 Index rose over 9%, with significant gains in the technology growth direction. The overnight Philadelphia Semiconductor Index in the U.S. surged by 8.19%, the South Korean Kospi rose over 17% at one point, SK Hynix rose over 28%, and Samsung Electronics' Q2 sales increased by 130% year-on-year, exceeding expectations. The AI application concept strengthened across the board, with the token concept sector rising 11.45% and the Kimi concept rising 10.21%. The National Development and Reform Commission stated at a press conference on July 31 that the construction of the "14th Five-Year Plan" computing power network is expected to add direct investment of 4 trillion yuan and promote the legislative process of artificial intelligence law. The information security concept strengthened, with Youfu Network hitting the daily limit up and Shenxinfu rising over 14%. Sectors such as banks, coal, and insurance fell against the trend, with Agricultural Bank falling over 5% and Antai Group falling over 7%. The total trading volume of the two markets was approximately 2.54 trillion yuan, an increase of about 199.1 billion yuan compared to the previous day, with 101 stocks hitting the daily limit up and no stocks hitting the daily limit down.

Popular Sectors

1. [AI Applications] The AI application concept exploded across the board, with the token concept sector rising 11.45%, Kimi concept rising 10.21%, AI marketing concept rising 8.67%, and physical AI concept rising 9.26%. Zhongwen Online, Yidian Tianxia, BlueFocus, Kunlun Wanwei, and Rongxin Culture all hit the daily limit up. The National Development and Reform Commission stated at a press conference that it will accelerate the legislative process of artificial intelligence law. Huachuang Securities research report believes that the performance improvement pace of domestic large models (GLM-5.2 to Kimi K3) exceeds expectations and possesses global competitive capabilities.

2. [Semiconductors/Computing Power] The semiconductor industry chain rebounded collectively, with the sector rising 3.28%, 168 stocks rising and 9 stocks falling. Taiji Industry hit the daily limit up, while Zhaoyi Innovation, Demingli, and Purun Co., Ltd. touched the daily limit up during the session, and Industrial Fulian rose over 6%. On the news front, Samsung Electronics' Q2 performance greatly exceeded expectations, predicting that generative AI will drive a shortage of memory chips until 2028, and plans to increase the proportion of long-term contract sales to 60%-70%; Amazon raised its annual capital expenditure guidance to $220 billion 3. [Information Security] The concept of information security has strengthened, with the sector index rising over 5%. UFIDA Software hit the daily limit, Sangfor Technologies rose over 14% and briefly touched the daily limit, while Hehe Information and Hand Enterprise Solutions rose over 5%. On the catalyst side, the National Development and Reform Commission announced on July 31 that it would accelerate the legislative process for artificial intelligence, increasing expectations for AI security governance and domestic software substitution.

Adjusting Sectors

Sectors such as banking, coal, insurance, liquor, and oil and petrochemicals fell against the trend. In the banking sector, Agricultural Bank of China fell over 5%, while Bank of China, Ningbo Bank, Bank of Communications, Industrial and Commercial Bank of China, and China Construction Bank collectively declined; in the coal sector, Antai Group fell over 7%, with the entire sector in the red; the insurance and liquor sectors showed weak performance. These sectors have seen significant gains recently, with Industrial and Commercial Bank of China and China Construction Bank both hitting historical highs the previous day, leading to notable declines on that day