A-Share Midday Review: Index Trend Diversified, Shanghai Composite Rises 0.2%, Military Industry and Gold Concepts Strong!
On August 4th, the market trend was diversified in the early afternoon, with the Shanghai Composite Index rebounding and rising. The sector performance was led by the military industry, aerospace direction, Aerle(300696), Lijun Shares(002651), and other stocks rising sharply; high-end equipment concepts followed suit, with Tech, East China Numerical Control(002248), and other stocks rising sharply; gold concepts oscillated and rose strongly, with Chifeng Gold(600988) leading the way; pharmaceutical and medical stocks collectively adjusted, with innovative medicine concepts declining sharply, Kexing Pharmaceutical declined over 10% to lead the decline; solar energy equipment sector weakened, with Aggregates Materials declining sharply; retail stocks fell weakly in the early afternoon, with Dalian Friendship(000679) falling to a new low. Overall, individual stocks rose more than fell, with over 2700 stocks rising.
As of midday, the Shanghai Composite Index stood at 3567.02 points, up 0.20%; the Shenzhen Component Index was at 10960.75 points, down 0.28%; and the ChiNext Index was at 2311.27 points, down 0.49%.
On the market front, military industry, gold concepts, and high-end equipment sectors led the way in terms of gains; recombination protein, weight loss drugs, and medical services sectors declined sharply.
Hot Sectors:
1. Military Industry
Aerle, North Star Long, Heng Yu Trust, Lijun Shares, and other stocks rose sharply.
According to a report by Arab News, on August 2nd, the Pakistani military announced that it had inducted China-made Z-10ME attack helicopters into its air force, with the aim of promoting defense equipment modernization. According to the Pakistani Ministry of Defense, the Z-10ME attack helicopter is equipped with advanced radar systems and cutting-edge electronic warfare suites, which significantly enhance Pakistan's ability to respond to various aerial and ground threats, and strengthen its capabilities against potential adversaries.
2. Gold Concepts
Chifeng Gold, Chao Hong Ji(002345), Shandong Gold(600547), and Western Gold(601069) rose sharply.
According to the latest data from the US Labor Department, the number of new jobs added in July was 7.3 million, significantly lower than market expectations of 11 million. Meanwhile, the total number of new jobs added in May and June was revised downward by 25.8 million, with revisions totaling 1.4 million and 1.9 million respectively. On August 1st, the market responded to this news with a sharp decline.
4. Hainan Province: Optimize Offshore Duty-Free Policy, Expand "Buy Now, Take Home" Product Catalogue
According to the action plan for building a modern industrial system with distinctive characteristics and advantages in Hainan Province (2025-2027), the province will optimize its offshore duty-free policy and expand the catalogue of products available for "buy now, take home". The aim is to create a unique "study-in-Hainan" brand, attract high-quality educational resources from abroad, and promote clinical real-world data applications.
Organizational Views:
Citic Securities believes that market trends are determined by the positioning of funds, which in turn determines the behavior of funds. The behavior of funds determines the structure and mode of sector performance. Historical data shows that fund flows driven by trend changes have led to sharp increases in certain sectors, while high-fee products with low efficiency have declined.
Wang Tao Securities Strategy Team notes that last week's market was dominated by key events from home and abroad. As the dollar index and policy expectations continue to influence the market, investors are advised to focus on stable, high-yield stocks like storage chips, optical fibers, chlor-alkali products, and aviation equipment.