Chinese Stocks Soar: Shanghai Composite Index Rises 1% to Near-Ten-Year High, Shenzhen Component Index Surges Over 3%! More Than 4,400 Stocks Rise, Trading Volume Reaches 1.74 Million Billion; Institutional Insights
On August 18, the Shanghai Composite Index rose over 1% to a near-ten-year high, while the Shenzhen Component Index surged over 3%. Sector-wise, the entertainment and film industry led the gains, with stocks such as Bona Film Group (300133), Huayi Brothers Media (300499), and Enlight Media (002343) rising sharply. The liquid cooling server concept also continued to soar, with stocks such as Gaorui Technology (300499) and Strong Power Technology (300750) hitting new highs.
As of the mid-day close, the Shanghai Composite Index stood at 3740.50 points, up 1.18%, while the Shenzhen Component Index rose to 11896.38 points, up 2.25%. The ChiNext Index surged over 3.63%.
On the market front, the entertainment and film industry, liquid cooling server concept, and innovation-driven stocks led the gains, while the precious metals, coal mining, and oil and gas sectors declined.
Hot Sectors:
1. Liquid Cooling Server
Companies such as Avazu (300499), Gaorui Technology (300750), and Strong Power Technology (300730) rose sharply.
According to IDC data, China's liquid cooling server market is expected to grow at a compound annual growth rate of around 48% from 2025 to 2029, reaching approximately $162 billion in 2028. As the demand for high-performance computing and data centers continues to rise, the liquid cooling server industry is poised for rapid growth.
2. Entertainment and Film Industry
Companies such as Bona Film Group (300133), Huayi Brothers Media (300499), and Enlight Media (002343) rose sharply.
According to data from online platforms, the total box office revenue for the summer film season reached 99.56 billion yuan by August 18, with a total audience of over 26 million people, representing a significant increase compared to last year.
Institutional Insights:
Sinoda Securities believes that the current market is likely in the early stages of a bull run, driven by three factors: 1) The market's volatility has decreased significantly since April, indicating that the bull run may be entering its later stages; 2) The stock market's liquidity remains strong, with institutional investors continuing to play a key role; and 3) The government's monetary policy is still accommodative, supporting economic growth.
Huatai Securities notes that the recent surge in trading volume has led to a significant increase in new accounts and public offerings, indicating a strong appetite for risk-taking among individual investors. The firm also highlights the potential for institutional investors to participate in the market's rebound, given their historical track record of driving market trends.