A-share closing review: Shanghai Composite Index rose for the fourth consecutive day, CRO concept stocks strengthened.

On September 23, the three major indexes showed differentiated performance throughout the day, with the Shanghai Composite Index posting its fourth consecutive gain. By the close, the Shanghai Composite Index rose by 0.44%, the Shenzhen Component Index rose by 0.10%, and the ChiNext Index fell by 0.40%. According to Securities China, multiple positive factors and expectations were released in the market today: First, this morning the funding market received good news, with the overnight Shanghai Interbank Offered Rate (SHIBOR) at 1.9210%, a decrease of 1.10 basis points. The 7-day SHIBOR was at 1.8590%, a decrease of 7.00 basis points. The 3-month SHIBOR was at 1.8540%, an increase of 0.20 basis points. Second, there was a new development at the macroeconomic level: the National Development and Reform Commission stated that the 300 billion yuan of national debt funds to support the "new" work had been fully allocated. This action to boost the real economy may signal a forward rush. Lastly, after a significant appreciation of the Renminbi, related positive expectations were once again sparked. Many brokerage research reports believe that there are still policy positives in the fourth quarter. In terms of the market, domestic substitution concepts such as information technology and data security surged again, with companies like Shenzhen Farben Information Technology and Wuhan Kotei Informatics up by their daily limit. Concepts like vehicle-road coordination and autonomous driving also strengthened, with stocks like NavInfo Co., Ltd. and Shenzhen Soling Industrial hitting their limit up. CRO concept stocks opened high and then fell, with ChemPartner PharmaTech hitting the limit up. The steel and special steel concepts rose in the afternoon, with companies like Guangdong Zhongnan Iron & Steel and Wuchan Zhongda Geron hitting their limit up. The banking sector saw a unilateral rise throughout the day, with only Bank Of Nanjing in the sector closing in the red. State-owned enterprise reform concepts continued to be strong, with companies like Baoding Tianwei Baobian Electric and Hunan Tianyan up by over 20%. In terms of declines, the photovoltaic equipment, battery energy storage, and silicon energy concepts led the market down, with Ningbo Deye Technology hitting the limit down. Mubang High-Tech was close to hitting the limit down. Agricultural concepts like grain planting, corn, and soybeans all declined. Semiconductor, lithography machines, Semiconductor Manufacturing International Corporation, and state-held funds in the tech sector all declined. Diversified financials, insurance, and futures concepts declined, with Holly Futures hitting the limit down. Most healthcare concepts like medical devices and pharmaceuticals also declined, with companies like ChengDu Sheng Nuo Biotec and INNOCARE down by over 10%. Overall, the number of gainers and losers among stocks was roughly equal. The total trading volume in the Shanghai and Shenzhen markets today was 551 billion, down 237 billion from the previous trading day. In terms of main funds flow, funds favored industries like batteries and communication equipment, while funds left industries like semiconductors and software development. Institutional Views Looking ahead, China Securities Co., Ltd. believes that the sentiment bottom and valuation bottom in the A-share market have almost been reached. If the policy bottom is further confirmed, the market will form a resonance counterattack signal. China Securities Co., Ltd.: The bottom is here, be prepared The strategy team at China Securities Co., Ltd. pointed out that the bottom is here, and we should be prepared. The sentiment bottom and valuation bottom in the A-share market have almost been reached. If the policy bottom is further confirmed, the market will form a resonance counterattack signal. It is not advisable to be bearish at this time, we should be prepared, and we also need to pay attention to the historical characteristics of the A-share market, as the market style in the fourth quarter differs significantly from the first three quarters, and we should focus on potential highly resilient stocks. CITIC SEC: Loose monetary policy may have more room, LPR pricing in the fourth quarter may still have room for downward adjustment CITIC SEC's chief economist Ming Ming pointed out in his comments that with the Federal Reserve entering an interest rate cut cycle and the pressure on stabilizing exchange rates gradually easing, there may be more room for loose monetary policy. The necessity of strengthening countercyclical adjustments is still high, and there may still be a need for further loose monetary policy tools, with the possibility of downward adjustment in LPR pricing in the fourth quarter. Hot Sectors 1. CRO concept stocks strengthened CRO concept stocks opened high and then fell, with ChemPartner PharmaTech hitting the limit up, while Xinjiang Bai Hua Cun Pharma Tech and Hainan Shuangcheng Pharmaceuticals also hit the limit up. Review: On the news front, the U.S. Senate Armed Services Committee on the 19th released the Senate version of the 2025 Fiscal Year National Defense Authorization Act, which included 93 amendments but did not include proposals related to the "Biological Security Act." China Securities Co., Ltd. pointed out that compared to global enterprises, domestic CXO companies still have certain competitive advantages. The overall valuation of the CXO sector is currently low, and in the long run, the development potential and growth space of the CXO sector are still favorable. 2. Liquor stocks rebounded Liquor stocks rebounded, with Shanghai Guijiu hitting the limit up, followed by Gansu Huangtai Wine-Marketing Industry, Wuliangye Yibin, and Luzhou Laojiao. Review: In terms of news, Kweichow Moutai recently announced a plan to buy back shares worth 3 billion to 6 billion yuan for cancellation. CMSC stated that in recent years, the Mid-Autumn Festival season effect has not been very obvious, and in this trend, it is difficult for demand to exceed expectations, but this year there has been a differentiation in supply, with the relative launch of high-end and second-tier products exceeding last year.Be more cautious, real estate and liquor policies are relatively positive. Looking at the recent continuous adjustment of the capital market, if Double Festival can withstand the pressure test (the price system stabilizes and lands smoothly), it is possible to form a stock price reversal.3. Huawei industrial chain collectively strengthens Huawei concept stocks collectively strengthened, with more than 10 stocks including Shijiazhuang ChangShan BeiMing Technology, CHINA BEST Network Security, Shenzhen Farben Information Technology, and Fujian Furi Electronics hitting the limit up. Commentary: On the news front, Meta Connect 2024 will begin on September 25 in local time in the United States, where Zuckerberg will share the latest developments in mixed reality, AI, and wearable devices. New MR headsets and AR glasses products are expected to be unveiled at the same time. In addition, it was leaked that Huawei's entire terminal will be equipped with pure Hongmeng, including phones, tablets, and PCs; Huawei's Mate 70 series is expected to be released in the fourth quarter of this year. 4. Gold stocks show strength Gold stocks are performing strongly, with Western Region Gold, Shandong Yulong Gold, Chifeng Jilong Gold Mining, among others, showing strength. Commentary: On September 20, the spot gold price broke through $2600, reaching a historic high, and the closing price last Friday even approached $2622. Several Wall Street investment banks predict that the target price for gold this year or the first half of next year could reach $2700, with some institutions even calling for a target price of $3000. This article is reproduced from "Tencent Select Stocks", GMTEight Editor: Huang Xiaodong.