A-share Market Midday Report: Shanghai Composite Index fell by 0.53%, with more than 4400 stocks falling. High-priced stocks continue to decline.

On September 10th, the three major stock indexes of A shares opened higher and then trended lower, with over 4400 stocks in the market declining. By the close of trading, the Shanghai Composite Index fell by 0.53%, the Shenzhen Component Index fell by 0.96%, and the ChiNext Index fell by 0.88%. In terms of market performance, privately-owned hospitals, cell immunotherapy, stem cell and other pharmaceutical stocks continued to perform strongly. Hainan Haiyao rose for the third consecutive day, Improve Medical Instruments and Whole Shine Medical Technology rose for two consecutive days. Shanghai state-owned enterprise reform concept stocks opened higher, with Shanghai Join Buy hitting the limit up. The Party Secretary and Director of the Shanghai State-owned Assets Supervision and Administration Commission, He Qing, published an article in the Liberation Daily focusing on deepening the reform of state-owned assets and enterprises. The liquor sector rebounded at the opening, with Gansu Huangtai Wine-Marketing Industry hitting the limit up. Bank stocks rebounded, with Bank of China and Agricultural Bank of China both rising by over 2%. Charging piles and high-pressure fast charging concepts surged, with Shenzhen Auto Electric Power Plant hitting the limit up. In terms of declines, high-priced stocks continued to fall, with multiple stocks such as Kunshan Kersen Science & Technology, Dazhong Transportation (Group) Co., Ltd., Xiamen King Long Motor Group, Ways Electron, Shenzhen Best of Best Holdings, and Sunyes Manufacturing hitting the limit down. In terms of capital flow, funds favored industries such as internet e-commerce and photovoltaic equipment, while funds exited industries such as consumer electronics and securities. Institutional opinions: China Securities Co., Ltd.: It is expected that the index will continue to be in a bottom-searching process in the short term. Recently, the A-share market continued its weakness, with the index center continuously shifting downward, dispelling the market's expectations for a stabilizing and recovering index following the volume rebound at the end of August. It is expected that the index will continue to be in a bottom-searching process in the short term, waiting patiently for the market sentiment to recover. In terms of allocation, the focus should be on: 1. Resonance of domestic and foreign demand (equipment renewal, consumer goods upgrades and going global); 2. Innovative drugs; 3. Securities firms, insurance. CITIC SEC: It is expected that the gold price will remain high in the second half of the year. According to a research report from CITIC SEC, looking ahead to the second half of 2024, it is expected that the gold price will remain high, as consumers gradually accept the high gold price and release suppressed purchasing demand, merchants replenish inventory, and other factors are expected to drive up gold jewelry sales. From a brand perspective, brands with high gold investment ratios, strong design and brand power that can be realized, and brands still in the early stages of store expansion and growth may perform well. Attention should also be paid to the incremental impact brought by online and overseas business. Guotai Junan: Tesla's FSD is expected to enter China and accelerate the development of smart driving industry. According to a research report from Guotai Junan, the entry of Tesla's FSD into China is expected to replicate the "catfish effect" of electric vehicles, promote the industrialization of smart driving in China, and drive local smart driving assembly plants and supply chains. In 2023-2024, high-end smart driving in China is expected to quickly increase. According to data from the Geese Automotive Research Institute, the accumulated deployment of NOA functions in 2023 has reached 945,000 vehicles in China, with 707,000 vehicles equipped with high-speed NOA and 238,000 vehicles equipped with urban NOA. The entry of FSD into China is expected to accelerate the deployment of high-end smart driving and promote the industrialization of autonomous driving. Popular sectors: 1. Pharmaceutical stocks continue to perform strongly. Privately-owned hospitals, cell immunotherapy, stem cells and other pharmaceutical stocks continued to perform strongly, with Hainan Haiyao rising for three consecutive days, Improve Medical Instruments and Whole Shine Medical Technology rising for two consecutive days, and Zhejiang Shapuaisi Pharmaceutical, Landfar Bio-medicine, Vanfund Urban Investment & Development, PKU HealthCare Corp., Xi'An International Medical Investment, and others following the uptrend. Review: On the news front, on September 8th, the Ministry of Commerce, the National Health Commission, and the National Medical Products Administration issued a notice on expanding the opening pilot work in the medical field, allowing the establishment of wholly foreign-owned hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the entire island of Hainan. Industry experts believe that with continued policy openness, there may be more foreign and Hong Kong, Macao, and Taiwan doctors opening medical institutions in China, bringing vitality to the local medical market. 2. State-owned enterprise reform concept remains active. The state-owned enterprise reform concept continued to be active, with Shanghai Join Buy, Changchun Yidong Clutch rising for three consecutive days, Baoding Tianwei Baobian Electric rising for two consecutive days, HIT Welding Industry, Shanghai Material Trading, and others following the uptrend. Review: In terms of news, the Shanghai State-owned Assets Supervision and Administration Commission proposed a greater scope, deeper level, and broader field for coordinating the allocation of state-owned capital, promoting strategic cross-group and cross-level restructuring. A research report from China Galaxy Securities pointed out that the Third Plenary Session of the Twentieth Central Committee proposed seven directions for future state-owned asset and enterprise reform, deepening the reform of state-owned assets and enterprises, strengthening the countrys capital and enterprises to become stronger, better, and larger, enhancing core functions, and improving core competitiveness. 3. Liquor sector rebounds. The liquor sector rebounded at the opening with Gansu Huangtai Wine-Marketing Indus.Try to touch the limit-up, companies such as Shanghai Guijiu, Anhui Yingjia Distillery, Lanzhou Huanghe Enterprise, Anhui Golden Seed Winery, and Shanghai Bairun Investment Holding Group are following the trend.Review: Song Shuyu, chairman of the China Alcoholic Drinks Association, believes that in the anticipated market fluctuations, the liquor industry has shown strong resilience. Therefore, it is even more necessary to have confidence in the long-term industrial attributes of value driving in the liquor industry, and to have hope for the industry's strong vitality and sustainable potential. 4. Lithography concept bottoming rebound In the early morning, the lithography concept bottomed and rebounded, with Shanghai Highly hitting the limit up, Ncs Testing Technology rising by more than 10%, and Shanghai Zhangjiang Hi-Tech Park Development, Poly Plastic Masterbatch, Shenyang Blue Silver Industry Automation Equipment, Changchun Up Optotech following the rise. Review: In terms of news, Dutch lithography giant ASML announced on its official website that the Dutch government has announced new regulations on the export of immersion DUV lithography machines, effective from September 7. This article is reprinted from "Tencent Stock Selection"; GMTEight Editor: Wang Qiujia.