A-Share Review | A-Shares Fluctuate and Fall, AI Hardware Stocks Rise

July 31st, A-shares fluctuated and fell, with over 4,200 stocks falling, total trading volume reaching 1.9 trillion, an increase of 917.6 billion from the previous day. As of the closing, the Shanghai Composite Index fell 1.18%, the Shenzhen Component Index fell 1.73%, and the ChiNext Index fell 1.66%.

Market analysts believe that the index's decline is related to three factors:

1. Uncertainty surrounding the Federal Reserve's interest rate meeting, which led to global risk asset fluctuations;

2. Policy expectations and technical corrections putting pressure on the market;

3. Rising funding rates leading to adjustments in the bond market and compressing stock market risk appetite.

OpenSource Securities believes that the market's breakthrough will continue, despite remaining divergences, with a long-term optimistic judgment similar to "a slow-burning up trend with oscillations". In the short term, the index approaches key points, market gaming intensifies, and caution is advised against potential corrections.

On the trading floor, AI hardware stocks rose collectively, with Zhongji Xinzhuan creating a new high, followed by Unitek Technology, Tianfu Communication, etc. The liquid cooling server concept also rallied, with Yixun and Binhuan Environmental rising to the limit; baby and assisted reproduction concepts continued their strong performance, with Yangguang Dairy, Anzhen Fashion, and Joint Medicine Co. all closing out three consecutive sessions.

Looking ahead, East Securities believes that the current A-share market is characterized by a persistent oscillating upward trend, with abundant liquidity, attracting incremental funds, and cautiously optimistic sentiment accumulating, without turning towards risk; the Shanghai Composite Index may continue to fluctuate around 3600 points before expanding further.

Hot Sectors

1. Assisted Reproduction Concepts Continue Strong Performance

Assisted reproduction concepts continued strong performance, with Yangguang Dairy and Anzhen Fashion closing out three consecutive sessions, followed by Joint Medicine Co. and Hansheng Group rising to the limit.

2. AI Hardware Stocks Rise

Ai hardware stocks rose collectively, with Zhongji Xinzhuan creating a new high, followed by Unitek Technology, Tianfu Communication, etc.

3. Liquid Cooling Server Sector Rallies

Liquid cooling server sector rallied, with Yixun and Binhuan Environmental rising to the limit.

4. Innovative Pharmaceutical Concepts Continue Active

Innovative pharmaceutical concepts continued active performance, with Nanxin Pharmaceutical, Qi Zheng Pharmacy, Anke Biological, etc. all closing out consecutive sessions.

Institutional Views

1. Guangfa Securities: Focus on the Sci-Tech Board

Guangfa Securities believes that from a cyclical perspective, the current market is characterized by the start of a new cycle, with low-value assets still offering opportunities for exploration.

2. Nation Gold Securities: Still Value-Laden Assets Worth Exploring

Nation Gold Securities believes that the market as a whole approaches its peak but is still relatively undervalued compared to its underlying fundamentals, with room for further growth.

3. East Securities: Market Temporary Has No Risk-Turning Signals

East Securities believes that innovative pharmaceutical and AI industries remain the main investment themes, with the latter's continued explosive growth driving forward the entire sector.