A-share midday review | The Shanghai Composite Index rose by 0.72%. Leading the gains were the concept of precious metals and the network security sector. The diversified financial sector showed a decline.

On September 23, the market rebounded in the early trading session. By the close, the Shanghai Composite Index rose by 0.72%, the Shenzhen Component Index rose by 0.58%, and the Growth Enterprise Index rose by 0.09%. In terms of market performance, the precious metals concept fluctuated and rose, with Western Region Gold rising by over 5%; the CRO concept continued to be active, with Hainan Shuangcheng Pharmaceuticals hitting a 7-day limit, and the proposal for biological safety not being included in the US Senate NDAA; the Hongmeng concept was active, with Shenzhen Farben Information Technology rising by over 15%; liquor stocks rebounded, with Shanghai Guijiu rising by over 8%; real estate stocks rose again, with CCCG Real Estate Corporation hitting a limit for the 3rd time in 5 days; state-owned enterprise reform concept was active again, with Baoding Tianwei Baobian Electric hitting a limit. On the downside, the diversified financial sector declined, with Holly Futures hitting a limit; the lithography concept declined, with Shanghai Highly falling by nearly 7%, and Sanhe Tongfei Refrigeration and Shanghai Zhangjiang Hi-Tech Park Development falling by over 5%. In terms of main funds, funds favored the medical services and battery industries, while funds exited the power grid equipment and software development industries. Institutional Views Looking ahead, China Securities Co., Ltd. believes that the A-share market has reached the emotional and valuation bottom conditions, and if the policy bottom is further confirmed, the market will form a resonant rebound signal. Huatai: The bottom of A-shares is beginning to take shape. Huatai research report believes that A-shares rebounded slightly last week, mainly driven by the expectation of loosening policies domestically due to the 50bp interest rate cut by the Federal Reserve. Investors are concerned whether the timing and space of this adjustment have been reached. Huatai believes that the bottom of A-shares is beginning to take shape. There are signs of stabilization in margin trading balances, the cost-effectiveness ratio of dividend stocks is improving, and the strong stocks of the previous period stopped falling last week, suggesting a turning point for contrarian funds - recent industrial capital net increases turned positive. In terms of time, the Federal Reserve interest rate reduction only provides favorable conditions, and the continued rebound may still require patience. Focus on the following configurations corresponding to the industry - AH premium convergence, non-financial A50, actively replenish inventory, and sustainable, benefiting from interest rate cuts. CITIC SEC: Loose monetary policy may have more space, LPR pricing in the fourth quarter may still have room for further reduction CITIC SEC Chief Economist Ming Ming pointed out in his comments that the Fed has started an interest rate cut cycle, and the constraint of stable exchange rate pressure on the loose monetary orientation has gradually eased. There may still be more room for loose monetary policy in the future. It is expected that the necessity of strengthening counter-cyclical adjustments remains high, so it is still necessary to add loose monetary tools in the future, and there is still a possibility of further reduction in LPR pricing in the fourth quarter. Popular Sectors 1. The CRO concept stocks are strong. CRO concept stocks opened high collectively, with Hainan Shuangcheng Pharmaceuticals hitting a limit for 7 consecutive days, and WuXi AppTec, ChemPartner PharmaTech, Pharmaron Beijing, Xinjiang Bai Hua Cun Pharma Tech, and Porton Pharma Solutions rising by over 5%. Comments: According to China Securities Co., Ltd., domestic CXO companies still have a competitive advantage compared to global enterprises. The overall valuation of the CXO sector is currently low. In the long term, the development potential and growth space of the CXO sector are still promising. 2. Liquor stocks rebounded. Liquor stocks fluctuated and rebounded, with Shanghai Guijiu rising by over 8%, and Gansu Huangtai Wine-Marketing Industry, Luzhou Laojiao, Anhui Gujing Distillery, Shanxi Xinghuacun Fen Wine Factory, Wuliangye Yibin, Kweichow Moutai, Shede Spirits, and others following suit. Comments: Kweichow Moutai recently announced a plan to repurchase shares worth 3 billion to 6 billion yuan for cancellation. CMSC stated that in recent years, the Mid-Autumn Festival peak season effect has not been very significant. In this trend, it is more difficult for demand to exceed expectations. However, this year, there has been a differentiation in the supply side, with cautious placements in high-end and mid-to-high-end segments compared to last year, and a relatively positive policy input for real estate wine. Considering the recent continuous adjustment in the capital market, if the Double Festival can withstand the pressure test (the price system is stable and the landing is smooth), it is expected to form a stock price reversal. 3. Consumer electronics concept stocks rebounded. Consumer electronics concept stocks fluctuated and rebounded, with Dongguan Chitwing Technology hitting the limit up, Ningbo Bird Co., Ltd. hitting the limit up before, and DBG Technology rising by over 10%.Fujian Furi Electronics, Electric Connector Technology, Ugreen Group Limited, Sichuan Furong Technology, Shenzhen Transsion Holdings Co., Ltd., Shenzhen Zowee Technology and others have seen a rise.Review: On the news front, Meta Connect 2024 will start on September 25th in the local time of the United States. Zuckerberg will share the latest developments in mixed reality, AI, and wearable devices. The new MR headset and AR glasses products are expected to debut at the event. In addition, according to leaks, Huawei's entire terminal will be equipped with pure HarmonyOS, including smartphones, tablets, and PCs; the Huawei Mate 70 series is expected to be released in the fourth quarter of this year. 4. Gold stocks open high Gold stocks opened high, with Pengxin International Mining rising over 5% and Shanjin International Gold rising nearly 2%. Review: On September 20th, the spot gold price broke through $2600, reaching a historic high, and the closing price last Friday was close to $2622. Several Wall Street investment banks predict that the target price for gold will reach $2700 by the end of this year or the first half of next year, with some institutions even calling for a target price of $3000. This article is reprinted from "Tencent Self-selected Stocks". GMTEight editor: Wang Qiujia.