A-share opening express | A-shares opened higher but then retreated, with the Shanghai Composite Index slightly stronger, rising 0.18%. The pharmaceutical and commercial sectors continue to be active.

On September 6th, the three major indexes of A-shares opened high and went low. As of the time of publication, the Shanghai Composite Index rose by 0.18%, the Shenzhen Component Index fell by 0.39%, and the ChiNext Index fell by 0.59%. In terms of the market, brokerage stocks were active in the early trading session. Sealand hit the limit up, Guangdong Golden Dragon Development Inc. rose by over 6%, and Guotai Junan announced a merger with Haitong, with both companies suspending trading today. The pharmaceutical business concept continued to be active, with LBX Pharmacy Chain Joint Stock hitting the limit up for 5 consecutive days, HPGC Renmintongtai Pharmaceutical Corporation and Shu Yu Civilian Pharmacy Corp., Ltd. rising by over 4%. The ride-hailing concept opened high, with Dazhong Transportation (Group) Co., Ltd. hitting consecutive limit up, and Shanghai Jin Jiang Online Network Service rising by over 6%. Real estate stocks fell in early trading, with Beh-Property falling by over 5% and Beijing Capital Development falling by nearly 4%. In terms of main funds, funds favored securities, auto parts, and other industries, while fleeing photovoltaic equipment, consumer electronics, and other industries. Institutional Views China Securities Co., Ltd.: Positive factors are still accumulating, A-shares below 3000 points present a good opportunity for allocation In the current market volatility, positive factors are still accumulating, with heavy domestic and international news gathering, which may help in the short term for the market to structure a rally. However, the recovery of market confidence may still need expectations to materialize and time to verify, so the future trend of the market still needs to be observed. In the medium to long term, we also maintain an optimistic view that, below 3000 points, A-shares present a good opportunity for allocation. In terms of operation, it is suggested to focus on core assets in the technology industry, and buy on dips. Industrial: The brokerage sector is currently in a bottoming phase, optimistic about the trading opportunities in the merger and restructuring theme Industrial's research report on September 5th stated that the brokerage sector has undergone pressure testing due to market and policy factors. Fee-based businesses continue to be under pressure, with functionality gradually being implemented. Proprietary trading has shown a clear differentiation, with bonds becoming the advantage. The brokerage sector is currently in a bottoming phase, and there is optimism about trading opportunities in the merger and restructuring theme. Tianfeng: The possibility of another reduction in existing home loan interest rates does exist Tianfeng's research report pointed out that, combined with this year's latest housing loan policy and interest rate changes, there is indeed a possibility of another reduction in existing home loan interest rates. Further considering the actual impact of reducing existing home loan interest rates in 2023, it is expected to have limited negative impacts on the bond market. As for the market focus on the combination of reducing existing home loan interest rates and interest rate cuts being potentially beneficial for the bond market, it still needs to be considered in conjunction with the central bank's routine supervision and curve management. Hot Sectors 1. The securities sector led the opening gains With the announcement of the merger of the top two brokerage firms, the securities sector led the opening gains, with Sealand hitting limit up, Guangdong Golden Dragon Development Inc., China Galaxy, Guolian, Tianfeng, CICC, and others opening higher. Analysis: Regarding the news, if Guotai Junan and Haitong merge successfully, their total assets and net assets will both rank first in the industry. If the merger goes through, it is expected that the imagination space for mergers of top quality brokerage firms like CITIC and Galaxy, Haitong and CICC, would further open up. 2. The pharmaceutical business concept continues to be active The pharmaceutical business concept continued to be active, with LBX Pharmacy Chain Joint Stock hitting limit up for 5 consecutive days, and entities like HPGC Renmintongtai Pharmaceutical Corporation, Shu Yu Civilian Pharmacy Corp., Ltd., JZJ Chain Drugstore Corporation, and GKHT Medical Technology following the rise. Analysis: According to Securities Times, in the pharmaceutical business industry, in the first half of this year, China's chain retail pharmacy industry saw comprehensive growth, with many listed companies achieving double-digit revenue growth and the number of stores exceeding ten thousand. While traditional offline business is expanding rapidly, new retail models like O2O direct delivery are also experiencing explosive growth, bringing new growth points to the industry. This article is reprinted from "Tencent Self-selected Stocks", Edited by GMTEight: Chen Xiaoyi.