A-share market review | Seesaw market reappears, Huawei's sudden heavyweight news! Satellite communication is on the rise.

Today, the market trend is divergent, with the Shanghai Composite Index regaining the 2800 point level after losing it, and a see-saw market reappearing. Yesterday's strong dividend style led the decline, with banking and oil and gas sectors leading the losses, while growth theme stocks showed strength, with the ChiNext and STAR Market rising against the trend. In terms of the market, the consumer electronics sector is strong, with foldable screens, VR, and other sub-sectors leading the gains. Kunshan Kersen Science & Technology, a leading company, saw a 7-day consecutive increase. The satellite communication sector surged in the afternoon, with Shenzhen Tianyuan Dic Information Technology hitting the 20% limit up. Siasun Robot & Automation, electronic cigarette, and other sectors were active. Overall, the market turnover was less than 600 billion, with nearly 4000 stocks rising. Regarding the sharp drop in the banking sector, analysts believe it may be due to a resurgence of interest rate cut expectations in China. Guotai Junan believes that with the Federal Reserve's interest rate cut in September being almost confirmed, and the pro-cyclical release of exchange demand from domestic exporters also boosting the exchange rate, the probability of a second interest rate cut in China has increased. Based on previous market trends, if interest rate cut expectations emerge, bank stocks will generally undergo a period of adjustment. The satellite communication sector surged in the afternoon, with Shenzhen Tianyuan Dic Information Technology hitting the 20% limit up, and Beijing UniStrong Science & Technology and other stocks also rising. Huawei's Yu Chengdong spoke at the International Eco-Forum on Space Information Industry, highlighting Huawei's advancements in satellite communication technology. He expressed the company's commitment to seamless satellite-ground integration for future communication, and the exploration of satellite communication capabilities for commercial use in the future. The performance of the China Shipbuilding Industry Group was active, with KSEC Intelligent Technology hitting the 20% limit up, and China Harzone Industry Corp. surged over 7%. According to sources, China CSSC plans to merge with China Shipbuilding Industry. Market observers believe this move has at least three positive implications: deepening restructuring and integration, promoting competition within the group's shipbuilding business, seizing industry opportunities to build a world-class shipbuilding enterprise, and providing high-quality guarantees for the construction of a world-class navy. Foldable screen concepts continued to be strong, with Kunshan Kersen Science & Technology hitting a 7-day consecutive increase. According to Huawei's Yu Chengdong, the upcoming product named Huawei Mate XT will be the first foldable screen product under the Huawei Master brand. Although details about the product have not been officially announced, the product is expected to be Huawei's flagship foldable screen product, following previous "spy shots" of foldable products. In terms of individual stocks, 3923 stocks rose, 1167 stocks fell, and 260 stocks remained unchanged across both markets. There were a total of 72 stocks hitting the limit up, and 7 stocks hitting the limit down. At the close, the Shanghai Composite Index fell by 0.29% to 2802.98 points, with a turnover of 252.8 billion yuan; the Shenzhen Component Index rose by 1.17% to 8268.05 points, with a turnover of 327.8 billion yuan. The ChiNext Index rose by 1.26% to 1556.32 points. Funding Trends Today, primary funding focused on the battery, black household appliances, and IT services sectors. The top stocks with net inflows included Sichuan Changhong Electric, LBX Pharmacy Chain Joint Stock, and Talkweb Information System. Key Events Recap 1. Yu Chengdong: Huawei will build the future communication of "star-land integration, never lose contact" based on satellite internet Yu Chengdong, Executive Director of Huawei, Chairman of the Terminal BG, and Chairman of the Intelligent Automobile Solutions BU, delivered a speech at the International Eco-Forum on Space Information Industry on September 3. He proposed that in recent years, Huawei has been the first to use the Beidou high-precision positioning technology, continuously promote application innovation, enhance satellite communication competitiveness, and actively explore the future communication of "star-land integration, never lose contact." In the future, Huawei will focus on large-scale commercial use, continuously break through key technologies, and build a seamless three-dimensional super connection based on satellite internet. 2. Ministry of Commerce: Will launch an anti-dumping investigation on imported canola seeds and related chemical products from Canada A spokesperson for the Ministry of Commerce stated that, according to recent reports from domestic industries, Canada's exports of canola seeds to China have increased significantly and are suspected of dumping, reaching $3.47 billion in 2023, a 170% year-on-year increase in quantity with continuous price decline. Due to unfair competition from Canada, China's domestic canola-related industries have continued to operate at a loss. China will initiate an anti-dumping investigation into imported canola seeds from Canada in accordance with relevant domestic laws and regulations and WTO rules. China will also, based on industry applications, initiate an anti-dumping investigation into related chemical products from Canada. 3. SEMI: Global semiconductor equipment market expected to grow by 3% year-on-year to $109.5 billion this year Senior Director of SEMI Industry Research, Cheng Ruei-Yu, pointed out that the global semiconductor equipment market is expected to grow slightly by 3% this year compared to last year, reaching $109.5 billion, and is expected to increase by 16% next year to $127.5 billion, driven by advanced logic chip and packaging and testing sectors. Electronic equipment sales in the first half of this year were roughly flat compared to the same period last year, with a 4% year-on-year increase expected in the third quarter, and a 3-5% increase by the end of the year, slightly lower than the original estimate of 5-7%. Wafer factory capacity utilization bottomed out in the first quarter of this year and gradually recovered in the second quarter. It is expected that capacity utilization in the third quarter could reach 70%, followed by further recovery in the fourth quarter. Market Outlook 1. CICC: The current market already exhibits various bottoming characteristics.Limited downside risk.CICC pointed out that in August, the market fluctuated downward, with trading volume and turnover decreasing, and investor trading sentiment reaching a relatively low level in recent years. Structurally, with the market adjustment, the rotation speed of growth themes is fast but lacks sustainability, the ChiNext index continues to adjust, and sectors with high dividend stocks that have supportive performance have maintained relative returns. Stocks of companies such as banks and expressways have gradually adjusted after hitting historical highs. Looking ahead, the current market shows characteristics of a bottom, with limited downside risks. Investor confidence recovery requires the accumulation of more positive factors, and focus should be on the counter-cyclical adjustment intensity of domestic monetary and fiscal policies in the future. Guotai Junan: Internal and external macro environment resonating, increased probability of second interest rate cut domestically Guotai Junan's research report stated that China's August manufacturing PMI fell to 49.1%, the lowest since 2009 for the same period. New orders and production indexes continue to decline, with insufficient demand dragging down supply. Meanwhile, raw material prices are falling, and the restocking cycle is not yet clear. Considering that the Fed is expected to begin cutting interest rates in September and the pro-cyclical release of exchange demand from domestic exporters is also driving the exchange rate stronger, the resonance of internal and external macro environments means that there is a window of opportunity for a second interest rate cut domestically this year. Kaiyuan Securities: Focus on Apple, Meta's September new product launches, continue to expand in AI Kaiyuan Securities' research report stated that Apple will hold a new product launch event in September, possibly launching a new generation of iPhones. The combination of Apple and AI is worth paying attention to. Meta will hold the Connect conference in September and may release a brand new AR smart glasses before the end of the year. It is recommended to actively focus on the release of new AI hardware terminals, the growth of shipments of AI terminals, and the continuous breakthrough in the capabilities of multimodal AI models, which could drive the opening up of commercial space for AI applications. It is advised to continue expanding in AI. This article is reproduced from "Tencent Self-selected Stocks", edited by GMTEight: Liu Jiayin.