Stock A midday review | GEM index fell by 0.39%, with nearly 4600 stocks falling in both markets. The concept of photolithography stocks collectively surged.

On September 18th, the three major indexes rose and then fell back, with the Shanghai Composite Index and the Shenzhen Component Index hitting new lows during the day. Banking stocks propped up the market, while the Shenzhen Component Index and the ChiNext Index continued to decline. By the end of the trading day, the Shanghai Composite Index fell 0.05%, the Shenzhen Component Index fell 0.55%, and the ChiNext Index fell 0.39%. Nearly 4600 stocks in the two markets declined. In terms of market performance, lithography machine and photoresist concepts stocks surged at the opening, with Sanhe Tongfei Refrigeration, Shanghai Highly, and Shanghai Zhangjiang Hi-Tech Park Development hitting their daily limit up. State-owned enterprise reform concepts rebounded, with Ruitai Materials Technology, Datang Telecom Technology, and Kunming Yunnei Power all hitting their daily limit up. The Harmony OS concept continued to be strong, with Shijiazhuang ChangShan BeiMing Technology and CHINA BEST Network Security hitting their daily limit up. International gold prices hit a new high, leading to an increase in gold stocks, with Pengxin International Mining rising nearly 6% and Zijin Mining Group rising over 2%. On the downside, liquor stocks fell again, with Kweichow Moutai falling over 2%, pushing its total market value close to 1.6 trillion yuan. Initially, the Shipbuilding concept sector declined, with KSEC Intelligent Technology falling over 7%. Insurance stocks generally fell, with Hubei Biocause Pharmaceutical hitting its daily limit down. In terms of funds, IT services, passenger cars, and banks were favored by funds, while funds exited industries such as electrical equipment and consumer electronics. Institutional Views Looking ahead, a research report from China Securities Co., Ltd. pointed out that China's policies are entering a critical observation period. The short-term sentiment in the A-share market is extremely low, with strong stocks falling back, showing characteristics of a market bottom. , Huatai Securities pointed out that the Shanghai Composite Index is getting closer to its support level, with signals increasing. The report suggests focusing on non-financial A50, industries with improving supply and demand, and the pharmaceutical industry and Hong Kong stocks benefiting from interest rate cuts. Huaxi Securities stated that the current price-earnings ratio of the Shanghai and Shenzhen 300 Index is lower than 11 times, which is close to the February low point. Looking ahead, incremental macro policies are an important driver for A-share valuation repair. If incremental policies can effectively boost confidence in the fundamentals, A-shares may transition from a slow bottoming out phase to a bullish phase. Popular Sectors 1. Lithography machine and photoresist concept stocks surged. These concept stocks saw a significant increase at the opening, with multiple stocks hitting their daily limit up. 2. State-owned enterprise reform concepts rebounded. Baoding Tianwei Baobian Electric, a popular stock in the state-owned enterprise reform concept, hit its daily limit up. Other stocks in this concept also saw a rebound, with Ruitai Materials Technology, Datang Telecom Technology, and Kunming Yunnei Power all hitting their daily limit up.Control Technology, Dalian Thermal Power, Qingdao Doublestar, Anhui Jiangnan Chemical Industry and others have all seen a rise in their stock prices.Review: On September 13, the National Development and Reform Commission's Comprehensive Department of Institutional Reform issued a notice emphasizing the deepening of reforms in state-owned enterprises, the promotion of original innovation system arrangements, and the reform of state-owned capital investment and operation companies. This move aims to promote the common development of economies with different ownership structures, stimulate the vitality of market entities, and promote economic complementarity. 3. Harmony OS concept stocks continue to be active The Harmony OS concept continues to be strong, with Shijiazhuang ChangShan BeiMing Technology and CHINA BEST Internet Security both hitting the limit up, Beijing Philisense Technology rising by over 15%, and Shenzhen Farben Information Technology, Qingdao Topscomm Communication INC., Talkweb Information System, and others following suit. Review: On the news front, Huawei's "pure-blood" Harmony OS system will officially launch at the end of September. It is believed by the Debang Securities Research Institute that the native Harmony OS has entered the final sprint in the ten-year sword-making process to create an interconnected operation system for all things. The open application of native Harmony OS has become a trend in the Harmony OS application ecosystem. Huawei's native Harmony OS will become a pioneer and leader in the rise of domestic operating systems, ensuring information security and management efficiency. Keep an eye on companies related to Huawei Harmony OS. 4. Liquor stocks decline again Liquor stocks declined again, with Kweichow Moutai falling by over 2%, pushing its total market value below the 1.6 trillion yuan mark; Wuliangye Yibin, Jiugui Liquor, Shede Spirits, and others fell by over 1%. Review: The Mid-Autumn Festival and National Day should have been a peak sales season for liquor, but market reports indicate that sales of liquor during the Mid-Autumn Festival did not meet expectations. This is the direct reason for the poor performance of liquor stocks as a whole. This article is reprinted from "Tencent Stock Selection"; GMTEight Editor: Wang Qiujia.