A-Share Market Report: A-Stock Trend Diversifies! Shanghai Composite Index Turns Red in Mid-Morning, Machinery and Decelerator Concepts Continue Strong Performance
August 4th, the A-share market trend diversified, with the Shanghai Composite Index turning red in mid-morning, standing at a gain of 0.14% as of 9:40 am; the Shenzhen Component Index fell by 0.22%, and the ChiNext Index fell by 0.33%
In terms of market trends, military stocks rose again, with Chery Automobile's stock price hitting its daily limit; machinery and decelerator concepts continued their strong performance, with Zhongma Transmission announcing a two-day streak; the semiconductor sector fluctuated upward, with Huahong Technology's stock price rising more than 5% to a new high. The decline was led by pharmaceutical stocks, followed by photovoltaic, retail, and aquaculture sectors.
Hot Sectors
1, Military Sector Rises
Military stocks rose again, with Chery Automobile's stock price hitting its daily limit; Longi Science and Technology, Aerospace Electronics, Construction Industry, and Northern Long-distance Transportation Co., Ltd. all surged.
Analysis: Shanxi Securities stated that 2025 is a transitional year for the military sector, with delayed orders gradually releasing in the first half of the year, demand turning marginally better, and the military sector's performance expected to bottom out in the second half of the year before rising again.
2, Machinery and Decelerator Concepts Continue Strong Performance
Machinery and decelerator concepts continued their strong performance, with Zhongma Transmission announcing a two-day streak; Dongjie Intelligent touched its daily limit of 20 cm, followed by Xiaoxi Precision, Dayuan Electronics, Jintai Shares, Zhejiang Rongtai, and Changsheng Bearings.
Analysis: According to market reports, the World Robot Conference will be held in Beijing Economic Technological Development Zone from August 8th to 12th, with over 200 domestic and foreign robot companies participating, featuring more than 1,500 exhibits, and launching over 100 new products, a number nearly twice that of last year.
Institutional Views
1, CITIC Securities: Trends or Corrections?
CITIC Securities believes that the positioning of the market determines the behavior of funds, and the behavior of funds determines the structure and pattern of the rising industry. Historically, incrementally driven markets tend to concentrate on continuous growth rather than high-low rotation. The underlying logic is that funds are chasing efficiency and tend towards consensus products rather than low-lying hidden gems.
Commentary: As of July's market performance, industries have gradually focused on trend-oriented sectors, while the pattern of high-low rotation has been inefficient. Recent incremental flow has shown signs of slowing down, and the market needs to cool off before stabilizing. Our current focus remains on AI, innovative pharmaceuticals, resources, Hong Kong-listed shares, and science and technology.
2, SW Securities: Adjustments within a Bull Market
SW Securities believes that the market will return to a corrective phase in August before potentially experiencing another upward wave leading up to September 3rd. Focus on stable capital market expectations and domestic self-control catalysts bringing about pulse opportunities.
3, Eastern Securities: Weekly Adjustment Probability Higher, but Downside Space Limited
Eastern Securities believes that based on the Shanghai Composite Index's performance, last week's dip below the 10-day line was followed by a mid-morning rebound to around the 20-day line, resulting in a contraction of trading volume, indicating that the market is still consolidating. Weekly adjustment probability is higher, but downside space is limited; waiting for the market to digest short-term gains before rising again.