A-share midday review | The three major indexes all turned green, state-owned enterprise reform concept erupted, solid-state batteries continued to decline.

ing Electronic Zone High-tech Group On September 13, the A-share market opened higher in the morning, but the three major indices turned green again later. By the close, the Shanghai Composite Index fell by 0.09%, the Shenzhen Component Index fell by 0.09%, and the ChiNext Index fell by 0.12%. In terms of market performance, gold concept stocks were active, with Pengxin International Mining hitting the daily limit, Beijing Xiaocheng Technology Stock, and Leysen Jewellery Inc. rising by over 5%, and spot gold hitting a historical high of $2560 per ounce; insurance and securities stocks were volatile and higher, Tianfeng rose by the daily limit, Hubei Biocause Pharmaceutical hit the daily limit for the 8th consecutive day; real estate sector was volatile and higher, with Beijing Electronic Zone High-tech Group hitting the daily limit; state-owned enterprise reform and mergers and acquisitions concept stocks were active, with several stocks hitting the daily limit. On the downside, the solid-state battery concept continued to decline, with Shenzhen V&T Technologies falling by over 10%; the liquor sector was volatile and lower, with Shanghai Guijiu hitting the limit down again, after the company announced that the actual controller was subject to criminal measures; and the Hongmeng concept stocks fell back, with Qingdao Topscomm Communication INC. falling by nearly 8% and Changbeishanming falling by over 4%. In terms of main funds, funds favored communication equipment, industrial metals, and insurance industries, while funds flowed out of optical and optoelectronic industries and software development industries. Institutional views Looking ahead, China Securities Co., Ltd. stated that although there are still many suppressive factors both internally and externally in the near future, the market itself is in a value range. Once the market stabilizes, close attention can be paid to the direction of recent countercyclical resilience. Key areas of focus: 1. Synchronized domestic and foreign demand (equipment renewal, consumer goods for trading, and going abroad); 2. Innovative drugs; 3. Securities firms, insurance companies; 4. New energy directions. CITIC SEC: The resilience of the Mid-Autumn Festival and National Day holidays tourism and alcohol consumption expectations is relatively strong CITIC SEC stated that according to the recent survey data of CITIC-CLSACRR team, residents' overall interest in tourism during the 2024 National Day holiday has slightly weakened compared to the same period in 2023, possibly due to the longer holiday period last year, but the willingness of low-income and affluent groups to travel is still increasing. Residents' average travel budget is higher than that of the 2023 National Day, but lower than the Spring Festival and Labor Day this year. Residents' willingness to consume baijiu and beer during the Mid-Autumn Festival and National Day holidays is stronger than usual, with both quantity and price showing improvements compared to last year. The expected change in baijiu consumption in the next 12 months is similar to last year, with strong growth expectations for residents in lower-tier cities. Huatai: Focus on Apple's new product launches and the pace of AI functionality landing On September 10, Apple (AAPL US) held its autumn product launch as scheduled, launching/updating four iPhone 16 models, two Series10/Ultra2 watches, three earphones AirPods 4/AirPods Max/AirPods Pro 2, and all specifications of the new products are basically in line with previous media reports. The main changes to the iPhone include: 1) hardware: support for the 3nm A18 chip, Camera Control, image upgrades, etc. 2) software: gradual landing of AI functions. The highlights of wearable products include adding health detection functions to watches and active noise reduction to penetrate Airpods 4. Optimistic about the continuous improvement in ASP driven by AI users upgrading and the trend towards premiumization, it is recommended to focus on related targets in industries such as periscope lenses, cooling, and acoustics. Hot sectors 1. Strong performance of gold stocks Gold concept stocks opened higher collectively, with Pengxin International Mining hitting the limit up, Beijing Xiaocheng Technology Stock, and Leysen Jewellery Inc. rising by over 5%, and follow-up gains from Shandong Yulong Gold, Chifeng Jilong Gold Mining, Sichuan Gold, Mclon Jewellery, Zhongjin Gold Corp., Ltd., among others. Comment: On the news front, stimulated by the European Central Bank's announcement of interest rate cuts and expectations of a rate cut by the Federal Reserve, the spot gold price rose above $2560 per ounce on Thursday evening, hitting a historical high. Analysts point out that the long-term trend of gold is bullish, as it has reached the target of $2550, opening the way for the next upward target of $2570, and is likely to go higher. 2. Volatile rise in the real estate sector The real estate sector was volatile and rising, with Beijing Electronic Zone High-tech Group hitting the limit up. Commentary: With continuous loose policies, the real estate sector continues to attract market attention. Continue to pay attention to hot stocks in this sector.Electronic Zone High-tech Group hit the daily limit, followed by Beijing Airport High-Tech Park, Shahe Industrial, Gree Real Estate, Beijing Dalong Weiye Real Estate Development, CCCG Real Estate Corporation and others.Review: Minsheng Securities' research report believes that in July and August 2024, high temperatures combined with a sluggish market sentiment, leading to a continued decline in transaction volume month-on-month and year-on-year. It is predicted that in September, with the arrival of the traditional peak sales season, real estate companies will see an increase in both promotion intensity and marketing efforts, leading to a possible increase in overall transactions compared to the previous month. 3. State-owned enterprise reform concept stocks are active again Stocks related to state-owned enterprise reform, mergers and acquisitions have been active again. Guizhou Wire Rope, Beijing Electronic Zone High-tech Group, LingNan Eco&Culture-Tourism, Holly Futures, Wuxi New Hongtai Electrical Technology, Ningxia Building Materials Group, CCCG Real Estate Corporation, Hainan Haiyao all hit the daily limit up, while Gansu Mogao Industrial Development, Shahe Industrial, Baoding Tianwei Baobian Electric rose by over 5%. Comment: On the news front, Wu Qing, the chairman of the China Securities Regulatory Commission, stated that the commission will continuously improve the quality and investment value of listed companies, and actively promote mergers and acquisitions in the market through various measures. 4. The major financial sector strengthens again The major financial sector is active again, with Hubei Biocause Pharmaceutical hitting the daily limit up for the 8th consecutive day, Holly Futures hitting the daily limit up, and Tianfeng, Ruida Futures, Sunny Loan Top following the upward trend. Comment: On September 12, Chairman Wu Qing of the China Securities Regulatory Commission stated in Liaoning that the commission will implement the new deployment of the "Nine Measures for the Country," further comprehensively deepen the reform of the capital market, continuously improve the quality and investment value of listed companies, fully leverage the functions of the multi-level capital market system, support the development and growth of enterprises through stock and bond financing, futures risk management and other channels, and actively promote mergers and acquisitions in the market through various measures. This article is reproduced from "Tencent Stock Selection"; GMTEight Editor: Wang Qiujia.