A-share market review: Shanghai index narrowly holds onto 2700 points, hitting a new low in the stage. The Huawei industrial chain collectively retreats.

On September 13th, the three major indices fluctuated lower throughout the day, with the Shanghai Composite Index narrowly holding above 2700 points to set a new stage low. By the close, the Shanghai Composite Index fell by 0.48%, the Shenzhen Component Index fell by 0.88%, and the ChiNext Index fell by 1.07%. On the market, state-owned enterprise reform and mergers and acquisitions concept stocks surged against the trend, with more than 20 stocks such as Baoding Tianwei Baobian Electric, SinoDaan Co., Ltd., and Guizhou Wire Rope hitting their daily limit; the real estate sector remained strong throughout the day, with Beijing Airport High-Tech Park and CCCG Real Estate Corporation hitting their daily limit; large financial stocks such as securities and insurance continued to rise, with Hubei Biocause Pharmaceutical and Tianfeng hitting their daily limit; retirement concept stocks rose at the end of the day, with Everjoy Health Group and Jiangsu Phoenix Property Investment hitting their daily limit. In terms of declines, liquor stocks continued to struggle, with Kweichow Moutai falling below 1300 yuan and hitting a 22-month low, with Shanghai Guijiu hitting its daily limit; the recent strong performance of the Huawei industrial chain collectively declined, with multiple stocks such as Huayang OURGAME and Shenzhen Huaqiang Industry hitting their daily limit; lithium resources, solid-state batteries, and photovoltaic new energy tracks all fell, with Shenzhen V&T Technologies and Jiangxi Haiyuan Composites Technology hitting their daily limit or falling by more than 10%. Overall, more stocks fell than rose, with over 4000 stocks in the entire market declining. The trading volume in Shanghai and Shenzhen today was 524.8 billion, an increase of 9.1 billion compared to the previous trading day. In terms of capital flows, funds favored industries such as communication equipment and securities, while funds flowed out of industries such as optics and white liquor. Institutional views Looking ahead, China Securities Co., Ltd. stated that despite various suppressing factors internally and externally, the market itself is within a value range. Once the market stabilizes, close attention can be paid to the recent trend of defiance against declines. China Securities Co., Ltd.: Once the market stabilizes, close attention can be paid to the recent trend of defiance against declines Looking ahead, despite various suppressing factors internally and externally, the market itself is within a value range. With the Federal Reserve expected to begin cutting interest rates in September, the domestic monetary policy space is opening up, with the central bank already announcing reserve cuts this week, still with some room for further cuts; the issuance of special bonds is speeding up, localities are intensively introducing regulations for the replacement of old with new, and policies are likely to further add towards boosting domestic demand. Once the market stabilizes, close attention can be paid to the recent trend of defiance against declines. Focus on: 1. domestic and foreign demand resonance (equipment renewal, consumer goods upgrading + going abroad); 2. innovative drugs; 3. securities, insurance; 4. new energy direction. CITIC SEC: The resilience of tourism and liquor consumption expectations during the Mid-Autumn Festival and National Day holidays is strong CITIC SEC stated, data from a recent survey conducted by the CITIC-CLSACRR team shows that overall tourism interest during the 2024 National Day holiday has slightly weakened compared to the same period in 2023, possibly due to the longer holiday last year, but the willingness of low-income and affluent groups to travel has still improved. The average travel budget per capita of respondents is higher than during the 2023 National Day, but lower than during this year's Spring Festival and Labor Day. Respondents have a stronger willingness to consume white wine and beer during the Mid-Autumn Festival and National Day holidays, with both quantity and price levels having improved compared to the previous year. Expectations for white wine consumption in the next 12 months are similar to last year, with strong growth expectations among residents of lower-tier cities. Hot sectors 1. Gold stocks were active throughout the day Gold concept stocks were active throughout the day, with Beijing Xiaocheng Technology Stock rising by over 4%, and Chifeng Jilong Gold Mining, Shandong Yulong Gold, and Sichuan Gold following suit. Analysis: In terms of news, stimulated by the European Central Bank's announcement of rate cuts and expectations of rate cuts by the Federal Reserve, the spot gold price rose to over $2560 per ounce on Thursday night, hitting a historical high. Analysts point out that the long-term trend of gold is bullish at the moment, having reached the bullish target of $2550, which opens the door to the next target of $2570 and is expected to reach higher levels. 2. Real estate sector remained strong throughout the day The real estate sector remained strong throughout the day, with Beijing Airport High-Tech Park and CCCG Real Estate Corporation hitting their daily limit. Analysis: A research report by Minsheng Securities indicated that the high temperatures in July and August 2024, combined with a downturn in the market sentiment, continued the trend of declining transactions on a month-on-month and year-on-year basis. It is predicted that in September, with the traditional peak season for marketing approaching, real estate companies will see an increase in both the intensity of new listings and marketing efforts, leading to a possible month-on-month increase in overall transactions in September. 3. State-owned enterprise reform concept stocks surged against the trend State-owned enterprise reform and mergers and acquisitions concept stocks surged against the trend, with more than 20 stocks such as Baoding Tianwei Baobian Electric, SinoDaan Co., Ltd., and Guizhou Wire Rope hitting their daily limit. Analysis: On the news front, Wu Qing, Chairman of the China Securities Regulatory Commission, stated that the commission will continue to improve the quality and investment value of listed companies, actively promote mergers and acquisitions and restructuring in the market. 4. Large financial sector continued to rise Large financial stocks such as securities and insurance continued to rise, with Hubei Biocause Pharmaceutical and Tianfeng hitting their daily limit. Analysis: In the news, on September 12, Wu Qing, Chairman of the China Securities Regulatory Commission, stated in Liaoning that the commission will implement the new deployment of the "Nine National Reform Measures," further comprehensively deepen the reform of the capital market. Translation provided by SJBtranslations Note: Please note that the translation may not be perfect and can sometimes be incorrect. It is always recommended to consult a professional translator for accurate translations.Continuously improve the quality and investment value of listed companies, fully leverage the functions of the multi-level capital market system, support enterprises to develop and grow through channels such as stock and bond financing, and futures risk management, and take multiple measures to activate the mergers and acquisitions market.This article is reproduced from "Tencent Stock Selection", edited by GMTEight: Chen Xiaoyi.