A-share midday report | Shanghai index rose 0.32% intraday, the leader of the bull market Siasun Robot&Automation, engineering machinery sector and other strong performances.

On March 5th, the A-share market opened with narrow fluctuations, with the Shanghai Composite Index showing a slightly stronger trend. By midday, the Shanghai Composite Index was up 0.32%, the Shenzhen Component Index was down 0.13%, and the ChiNext Index was down 0.33%. On the market, large financial stocks such as banks and securities companies fluctuated and rose, with China Galaxy rising over 5%; the concept stocks of Siasun Robot & Automation triggered a surge in limit ups, with more than 20 stocks such as Changzhou Xiangming Intelligent Drive System Corporation and Hangzhou Advance Gearbox Group hitting the limit up; the communication sector strengthened, with multiple stocks like Beijing Tongtech hitting the limit up; the computing power industry chain rebounded, with companies like Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology hitting the limit up; RISC chip concepts remained active, with Shenzhen Best of Best Holdings hitting a limit up for the second consecutive day; and sectors like real estate, photovoltaics, and pharmaceuticals led the declines. In terms of fund flows, main funds flowed into state-owned large banks, engineering machinery, joint-stock banks, industrial metals, and communication services industries, while funds flowed out of semiconductor, IT services, software development, battery, and photovoltaic equipment industries. Institutional Views: Looking ahead, Sinolink believes that the market style may switch to large-cap value defense. 1. China Securities Co., Ltd.: Market will remain volatile and consolidating in the short term China Securities Co., Ltd. believes that the market will remain volatile and consolidating in the short term. In the medium term, with demand stabilizing and supply shrinking leading to profit improvements and capital inflows, the medium-term environment remains unchanged. The market reform dividends will continue, and with the consensus on industrial trends, the technology growth sector will remain the main focus. From a global perspective, the medium-term trend of re-evaluating confidence in Chinese assets is expected to continue. 2. Sinolink: Market style may switch to large-cap value defense Sinolink believes that market "volatility" may rise again, growth style may overall "ebb", while some structural technology directions may still have the opportunity to "cross". At the end of February, technology stocks saw a significant pullback for two consecutive days. As we have previously pointed out, AI and Siasun Robot & Automation-related sectors have been crowded in terms of trading and funds. With the domestic fundamentals "slowing down" and the added overseas risks, liquidity and sentiment are facing obvious trend declines, leading to the rise in "volatility" of broad-based indexes. At that time, overall small and medium-cap growth styles will "switch" to large-cap value defense; considering that the A-share market bottom has been reached + AI industry logic catalyzing, it is expected that technology growth still has some structural opportunities. 3. Orient: Generic technology growth stocks remain the focus of fund battle Orient believes that the semiconductor industry is in an upward cycle, welcoming an opportunity for AI industry chain development, and rapid development of AI on the terminal side. With the combined effect of industry recovery, AI industry trends, and domestic substitution process, the semiconductor industry chain has long-term investment opportunities, and investors are advised to pay close attention. Currently, the market faces trade-negative disturbances, increased policy games, leading to a decline in sentiment. The market still needs time to repair, but structural trends still significantly exist, especially generic technology growth stocks remain the focus of fund battle. Popular Sectors: 1. Communication sector strengthened The communication sector fluctuated and strengthened, with Beijing Tongtech, Wuhan Fingu Electronic Technology, Wintao Communications, Sunwave Communications hitting the limit up, and Shenzhen Neoway Technology, Suzhou Shijia Science & Technology Inc., T&S Communications following suit. Review: According to the government work report, a mechanism for increasing investment in future industries will be established, nurturing future industries such as biomanufacturing, quantum technology, artificial intelligence, and 6G. Zhongtai's research report believes that by 2025, AI entering the reasoning stage is expected to drive a new round of demand growth for computing power, the start of the low-orbit satellite network in China is anticipated, and investment opportunities in the communication sector are promising, with a focus on autonomous and controllable development. 2. Computing power industry chain rebounding The computing power industry chain rebounded, led by the computing power leasing sector, with Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology, Jwipc Technology hitting the limit up, and Glory View Technology, RunJian Co., Ltd., Kehua Data Co., Ltd. rising. Review: In terms of news, a large order for computing power has been signed, with Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology's subsidiary signing a 36.9 billion yuan computing power service agreement with Company X in Hangzhou. According to China Securities Co., Ltd., in the long term, the decrease in computing power costs is a necessary condition for the outbreak of AI applications with large models. Currently, both domestic and foreign cloud vendors are significantly increasing capital expenditures, and there are strong supporting factors on the demand side, suggesting continued focus on the computing power infrastructure industry chain. 3. Siasun Robot & Automation concept active The Siasun Robot & Automation concept remained active, with Fujian Lo...Ngxi Bearing (Group) Co., Ltd., Jade Bird Fire, Zhejiang Jiecang Linear Motion Technology, Guilin Fuda Co., Ltd., Qinchuan Machine Tool & Tool Group Share and other companies hit the daily limit up. WANDA BEARING, HAOMIAO TECHNOLOGY, Yijiahe Technology and others are among the top gainers in terms of percentage increase.Review: On the news front, the world's first humanoid Siasun Robot&Automation half marathon will be held. Sinolink stated that, driven by the wave of technology, humanoid Siasun Robot&Automation has become one of the most certain directions for the future, receiving all-round support from top domestic and foreign policies, government-enterprise funds, and technology leaders, and the industry has entered a period of rapid development. The humanoid Siasun Robot&Automation industry is expected to enter the mass production year by 2025, and will see a commercialization explosion in 2026. This article is reproduced from "Tencent stock selection", edited by GMTEight: Wang Qiujia.