A-share midday report | The ChiNext Index fell by 1.29%, with major financial stocks showing strength against the market trend, while the photovoltaic sector led the decline.

On September 6, A-shares once again fell, with the Shanghai Composite Index down 0.23% and the Shenzhen Component Index down 1.01%. The ChiNext Index fell 1.29%. In terms of the market, securities stocks were active at the beginning of the session, with Sealand hitting the limit up, Guangdong Golden Dragon Development Inc. up more than 6%, and Guotai Junan planning to absorb and merge with Haitong, both companies suspended trading today. Auto stocks fluctuated and rose, with Anhui Jianghuai Automobile Group Corp., Ltd. up more than 7% to a new high for the year. Tourism and hotel stocks also fluctuated and rose, with Zhejiang Sunriver Culture Tourism hitting the limit up. E-commerce concept stocks were active, with Global Top E-Commerce up for two consecutive days. Pharmaceutical commercial concepts were also active, with LBX Pharmacy Chain Joint Stock up for 6 days straight, and HPGC Renmintongtai Pharmaceutical Corporation and Shu Yu Civilian Pharmacy Corp., Ltd. up more than 4%. The ride-hailing concept opened high, with Dazhong Transportation (Group) Co., Ltd. up for two consecutive days and Shanghai Jin Jiang Online Network Service up more than 6%. In terms of declines, foldable screen concept stocks continued to trend lower, with Triumph Science & Technology hitting the limit down. Real estate stocks fell at the start of the session, with Beh-Property down more than 5% and Beijing Capital Development down nearly 4%. In terms of main funds, funds favored the securities and auto parts industries, while funds fled the photovoltaic equipment and consumer electronics industries. Institutional viewpoints: China Securities Co., Ltd.: Positive factors are continuously accumulating, A-shares below 3000 points present a good opportunity for allocation. In the current market volatility, positive factors are continuously accumulating, with a convergence of heavyweight news from both domestic and international sources, which may help in structuring market movements in the short term. However, market confidence restoration may still require the realization of expectations and time verification, so the future market trend still needs to be observed. In the medium to long term, we maintain an optimistic outlook, that is, below 3000 points, A-shares present a good opportunity for allocation. In terms of operations, we recommend focusing on the core assets of science and technology companies like CKH HOLDINGS, and buying on the dips. Industrial: The securities sector is currently in the bottoming stage, optimistic about the opportunities for mergers and acquisitions. Industrial's research report on September 5 stated that the securities sector is undergoing a stress test due to the combined impact of market and policy. Fee-based businesses continue to be under pressure, with functionality gradually being implemented. There is a clear differentiation in proprietary performance, with bonds becoming the deciding factor. The securities sector is currently in the bottoming stage, and there is optimism regarding opportunities for mergers and acquisitions. Tianfeng: There is indeed a possibility of further lowering of existing home loan rates Tianfeng's research report pointed out that considering the latest mortgage policies and interest rate changes this year, there is indeed a possibility of further lowering existing home loan rates. Taking into account the actual impact of lowering existing home loan rates in 2023, it is expected to have a limited negative impact on the bond market. Whether the market's focus on the potential benefits of lowering existing home loan rates combined with interest rate cuts is indeed favorable for the bond market also needs to be considered in conjunction with the ongoing normalizing regulatory measures and curve management by the central bank. Hot sectors: 1. The securities sector is strong With the announcement of the merger of the two major top-tier securities firms, the securities sector led the gains at the opening, with Sealand hitting the limit up, and Guangdong Golden Dragon Development Inc., China Galaxy, Guolian, Tianfeng, CICC, etc. all opening higher. Comment: In terms of news, Guotai Junan is planning to absorb and merge with Haitong, and both companies are suspended from trading today. Huachuang Securities stated that if Guotai Junan and Haitong merge, their total assets and net assets will both rank first in the industry. If the merger is successful, the imagination space for the merger of top-quality securities firms such as Zhongjin and Galaxy, Jianguo and Citic, may further open up. 2. Mobile payment concept stocks continue to be active Mobile payment concept stocks continue to be active, with Beijing Cuiwei Tower, Hengbao Co., Ltd. up for two consecutive days, Feitian Technologies, Chase Science up more than 10%, and Zhejiang Netsun, Beijing Certificate Authority, Sunyard Technology, etc. leading in gains. 3. Auto stocks fluctuate and rise Auto stocks fluctuate and rise, with Anhui Jianghuai Automobile Group Corp., Ltd. up more than 7% to a new high for the year, Xiamen King Long Motor Group challenging the limit up, and Anhui Ankai Automobile, Haima Automobile, Zotye Automobile, SAIC Group, Yutong Bus Co., Ltd., etc. following the gains. Comment: In terms of news, the China Association of Automobile Manufacturers preliminarily calculated that from August 1 to 31, the retail sales of new energy vehicles were 1.015 million, a year-on-year increase of 42% and a month-on-month increase of 16%. The total retail sales this year have reached 6.004 million, a year-on-year increase of 35%. 4. Pharmaceutical commercial concepts continue to be active Pharmaceutical commercial concepts continue to be active, with LBX Pharmacy Chain Joint Stock up for 6 days straight, and HPGC Renmintongtai P (Note: The text ends abruptly and seems to be cut off. The translation provided covers the available text.)Pharmaceutical Corporation, Shu Yu Civilian Pharmacy Corp., Ltd., JZJ Chain Drugstore Corporation, GKHT Medical Technology and others are all on the rise.Review: According to Securities Times, in the pharmaceutical business industry, in the first half of this year, China's chain retail pharmacy industry has experienced a comprehensive outbreak, with multiple listed companies achieving double-digit revenue growth and the number of stores exceeding the 10,000 mark. While traditional offline businesses are expanding rapidly, new retail models such as 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: Wang Qiujia.