A-share closing review: Shanghai index hits a new low! Two major brokerage giants officially announce merger, leading the way against the market trend.

Today, the overall market surged and then fell back, with the Shanghai Composite Index hitting a new low since February this year; the announcement of the merger of two major securities giants drove the securities sector to strengthen against the trend, while previously hot topics such as foldable screens and the Huawei industrial chain adjusted, and the ChiNext Index fell by 1.7%. Looking at the market, the securities sector led the gains against the trend, with stocks like Sealand hitting the limit up; the concept of intelligent driving was active again, with multiple stocks like LianChuang Electronic Technology hitting the limit up; funds continued to speculate on high-quality stocks, with Shenzhen Huaqiang Industry hitting the limit up for 16 days out of 17, Kunshan Kersen Science & Technology hitting the limit up for 10 consecutive days, and LBX Pharmacy Chain Joint Stock hitting the limit up for 4 consecutive days. Overall, market sentiment in the short term is low, turnover remains low, and the number of declining stocks in both markets exceeds 4,700. Specifically, stimulated by the news of the merger of Guotai Junan and Haitong, securities stocks and investment-related securities concepts surged. A CITIC SEC research report pointed out that the merger of Guotai Junan and Haitong is the first top institutional merger case in this cycle and also the first listed securities firm merger case in the industry. It responds to the macro direction of the country to build a first-class investment bank and promote the high-quality development of the industry. It is expected to significantly change the industry competition pattern in the long term and open up space for subsequent securities industry mergers and reorganizations. It recommends securities companies under the same ultimate controller and securities companies with a high possibility of market-oriented mergers in the future. The concept of intelligent driving was active again, with stocks like LianChuang Electronic Technology hitting the limit up. Goldman Sachs' latest view indicates that there are signs that some automation and assisted driving cars are becoming more popular. It is expected that by 2030, L3-level automated driving cars may account for 10% of global new car sales. According to the forecast of the Prospective Industry Research Institute, the Chinese driverless car market will continue to expand from 2024 to 2029, with the potential to exceed 29 billion yuan by 2029, and the compound annual growth rate will reach 17.57%. Looking at individual stocks, 539 stocks rose in both markets, 4,712 fell, and 99 remained unchanged. There were a total of 44 limit-up stocks and 5 limit-down stocks in both markets. At the close, the Shanghai Composite Index fell by 0.81% to 2,765.81 points, with a turnover of 228.6 billion yuan; the Shenzhen Component Index fell by 1.44% to 8,130.77 points, with a turnover of 314.1 billion yuan. The ChiNext Index fell by 1.70% to 1,538.07 points. Funds Flow Today, the main funds focused on grabbing the railway securities, commercial vehicle, and banking sectors. The top stocks with net inflows of main funds included Tianfeng, Chongqing Zonsen Power Machinery, Anhui Jianghuai Automobile Group Corp., Ltd., etc. News Review 1. Canalys predicts that by 2025, Windows AI PC shipments will soar. Canalys reports that the Lunar Lake processor is adding power to the Intel AI PC target. With the launch of the Lunar Lake processor, Intel has made significant progress towards its goal of shipping 100 million AI PCs by the end of 2025. In the second quarter of 2024, shipments of AI PCs with Intel Core Ultra doubled compared to the previous month, with chip shipments exceeding 15 million since December 2023. Canalys predicts that the share of AI PCs in the Windows PC market will increase from less than 10% in 2024 to 30% in 2025, reaching 50% in 2026. 2. Global Manufacturing Purchasing Managers Index in August flat compared to the previous month, global economy continues to run weakly. The China Federation of Logistics & Purchasing announced the Global Manufacturing Purchasing Managers' Index for August. The index was flat compared to the previous month and has been running below 50% for five consecutive months, indicating that the global manufacturing sector continues to run weakly. The global manufacturing Purchasing Managers' Index in August was 48.9%, flat compared to the previous month, and has been running below 50% for five consecutive months. 3. Citigroup expects Brent crude oil futures to fall to the $60 mark by 2025. In a report, Citigroup analysts noted that there are signs of significant oversupply in the market, and Brent crude oil futures are expected to fall to the $60 range by 2025. OPEC+'s delay in production expansion plans and geopolitical factors, including disruptions in supply from Libya, are expected to support Brent crude oil prices in the $70-72 range. Citigroup recommends selling when Brent crude oil rebounds to around $80, as concerns about economies in countries like the United States will further drag down oil prices. Future Market Analysis 1. China Securities Co., Ltd.: Positive factors are constantly accumulating, A-shares below 3000 points present another good investment opportunity. In the current market volatility, positive factors are constantly accumulating, with important news from home and abroad converging, which will help the market to interpret structured trends in the short term. However, the recovery of market confidence may still require the landing of expectations and verification over time, so the future market direction still needs to be observed. In the medium to long term, we maintain an optimistic view that A-shares are another good investment opportunity below 3000 points. On the operational side, it is recommended to focus on core assets in the technology sector for oversold opportunities and buy on dips. 2. Industrial: The securities sector is currently in the bottoming stage, with good trading opportunities in the merger and reorganization theme. In a report on September 5th, Industrial stated that the securities sector is undergoing a stress test due to market and policy factors. Fee-based businesses continue to be under pressure, while functional implementation is gradually being realized. There is a clear differentiation in proprietary performance, with bonds becoming a winning hand. The securities sector is currently in the bottoming stage, with good trading opportunities in the merger and reorganization theme. This article is reposted from "Tencent Self-selected Stocks", GMTEight editor: Liu Jiayin.