A-Share Review | Transaction Volume Exceeds 3,000 Billion! Three Major Indices Slightly Downward Adjusted
August 1st, A-share market adjusted with reduced transaction volume, and small-cap stocks surged again. The total trading value reached 16,000 billion yuan, a decrease of 3377 billion yuan from the previous trading day. As of the close, the Shanghai Composite Index fell 0.37%, the Shenzhen Component Index fell 0.17%, and the ChiNext Index fell 0.24%.
China Galaxy Securities believes that in August, A-share market is expected to present a volatile upward trend but with increasing fluctuations under the influence of policy expectations, economic warm-up, and mid-term verification windows. The main focus will be on the policy side and performance, considering that A-share market has gradually shifted towards an increasing market for investors, the most important thing is to continuously seek new consensus-driven expectations.
On the trading floor, innovative pharmaceuticals continued to expand, low-value Chinese medicine all rallied, Viva Pharmaceutical Co., Ltd. and many other stocks stopped rising; photovoltaic, papermaking, logistics, and other "anti-internal" sectors repeatedly rebounded; AI application sector rose after lunch, multimodal AI, intelligent body direction led the rise; data element concept fluctuated around noon, Deep Sand A shares stopped rising. The downward side was high-value enthusiasm stocks sharply differentiated, high-altitude tourism plate once stopped falling; recently strong algorithm hardware stocks and film industries continued to adjust, military industry sector performance relatively weak, large consumption, financial, and semiconductor sectors declined.
Looking ahead, East Securities believes that the Chinese stock market has already entered a long-term slow bull phase, with index volatility decreasing, and the market appearing as a relatively stable cycle. When there is a large withdrawal, it is considered a low-buying opportunity.
Hot Sectors
1, Pharmaceutical Stocks Continue to Rise Strongly
Innovative pharmaceuticals and Chinese medicine continue to rise strongly. Viva Pharmaceutical Co., Ltd., New Tian Pharmaceuticals Co., Ltd., Fu Yuan Pharmaceuticals Co., Ltd., and Han Shi Group Co., Ltd. many stocks stopped rising.
Commentary: On the message side, on July 31st, Hisilicon announced that its innovative pharmaceutical HSK3486 (ring-like injection liquid) had been approved by FDA for marketing authorization. On the same day, Huawei Pharmaceuticals, Yihao Pharmaceuticals, and many other innovative pharmaceutical companies' products made new progress. Xingye Securities stated that the innovative pharmaceutical sector remains a core direction, and the "innovation + internationalization" trend in innovative pharmaceuticals has not changed.
2, Photovoltaic Sector Rebounds
The photovoltaic sector fluctuated but rebounded. Jia Wei Technology Co., Ltd. and Envision Design Co., Ltd. stopped rising. Haoyun Materials Co., Ltd., Maiwei Shares Co., Ltd., Dir Laser Co., Ltd., and Crystal Machine Electric Co., Ltd. followed suit.
Commentary: On the message side, today the Ministry of Industry and Information Technology released the "2025 Annual Polysilicon Industry Special Energy-Saving Monitoring Task List", further strengthening polysilicon industry energy-saving management, promoting industrial efficiency enhancement and low-carbon development. CITIC Securities Research Report pointed out that photovoltaics are a key sector in this round of "anti-internal" due to its current homogeneous low-price competition and capacity phase.
3, Logistics Sector Surges
The logistics sector surged. Shen Tong Express Co., Ltd. and Yuanda Shares Co., Ltd. stopped rising. Hua Peng Fei, Hua Guang Source, Yuan Tong Speed, and De Bang Shares followed suit.
Commentary: On the message side, the National Postal Administration recently held a symposium for express companies to discuss governing industry "internal" competition, strengthening rural areas' receipt of parcel fees, and promoting high-quality development. Guolian Life Securities stated that the logistics industry's overall competitive intensity is expected to be controlled, with price drops during the off-season or stabilizing. At present, the sector's valuation has fallen to historical low levels, with a relatively secure margin, suggesting paying attention to investment opportunities.
Institutional Views
1, Western Securities: A-Share May Hit 2024 High Point in the Second Half
Western Securities believes that from a fundamental perspective, "anti-internal" accelerated downward, correcting some investors' expectations for long-term low inflation, and A-share companies' profits were boosted; on the funding side, since the second quarter, A-share rose with public funds and private placement positions lifted, and net buying of funds formed a positive feedback effect. In the future, as the market's earnings appear, residents' incremental funds will also be expected to enter the market, and the second half may see A-shares hit 2024 high points. The "AI+" story continues, and technology growth remains the main line.
2, Eastern Securities: Stock Market Has Already Entered a Long-Term Slow Bull Phase
Eastern Securities believes that at present, China's stock market has already entered a long-term slow bull phase, with index volatility decreasing, and the market appearing as a relatively stable cycle. When there is a large withdrawal, it is considered a low-buying opportunity. With a focus on sector trends, such as short-term focusing on sectors with good growth prospects, such as innovative pharmaceuticals, military industries, and technology sectors.