A shares midday review | The Growth Enterprise Market Index rose more than 2% in the morning, with more than 4400 stocks in the market trading in the red. The application of AI has led to a surge in the number of stocks hitting the limit up.

On March 6, the overnight Chinese concept stock index surged more than 6%, reaching a new closing high since October last year. As a result, Chinese assets strengthened again in the morning. As of 11:30, in the Hong Kong stock market, the Hang Seng Index rose nearly 3%, the Hengke Index rose nearly 4%, tech stocks surged, with Kuaishou rising 10% and Alibaba rising over 7%. In the A-share market, the market opened high and continued to rise, with the Sci-Tech Innovation Board and the ChiNext leading the gains. Over 4400 stocks were in the green, with the trading volume breaking one trillion yuan in half a day. By midday, the Shanghai Composite Index rose 1.06%, the Shenzhen Component Index rose 1.75%, the ChiNext Index rose 2.15%, and the STAR 50 Index rose 3.52%. Goldman Sachs raised its target price for the Emerging Markets Index, predicting further gains in the Chinese stock market. Goldman Sachs believes that Chinese stocks currently have three major catalysts for upside: first, an increase in fiscal stimulus. Second, a recovery in earnings per share for companies. Additionally, a potential tariff solution is also worth anticipating. In terms of market performance, the AI industry chain saw a surge, with AI application companies hitting price limits, leading in directions like smart bodies and gaming. "Bull market leader" brokerage stocks rose, and the semiconductor sector strengthened. On the downside, sectors like engineering machinery and banks saw a pullback, while sectors like oil and gas and agriculture performed weakly. Looking at fund flows, main funds flowed into the software development, IT services, securities, computer equipment, and advertising industries, while flowing out of state-owned major banks, chemical pharmaceuticals, photovoltaic equipment, batteries, refining, and trade industries. Institutional Perspectives: In looking ahead, Shenwan Hongyuan Group believes that the medium-term trend in the technology industry is the structural mainline. 1. Goldman Sachs raised its target price for the Emerging Markets Index, predicting further gains in the Chinese stock market. 2. Shenwan Hongyuan Group: The medium-term trend in the technology industry is the structural mainline. 3. Zhongtai: Investors who currently hold defensive assets do not need to chase high-tech stocks. 4. CICC: Market performance in the second half of the year is expected to be better than in the first half. Hot Sectors: 1. AI Intelligent Body Concept Spike 2. Semiconductor sector strengthCam Optics surged by 20%, and Piotech Inc., Beijing Jingyi Automation Equipment, Skyverse Technology, Shenyang Fortune Precision Equipment, Advanced Micro-Fabrication Equipment Inc. China, and other companies saw significant increases in stock prices.Review: On the news front, ASML expects global 300mm wafer fab equipment spending to reach $123.2 billion/ $136.2 billion/ $140.8 billion in 2025-2027, with year-on-year growth of 24%/ 11%/ 3% respectively. 3. The concept of 6G continues to strengthen 6G concept stocks continue to rise, Sunwave Communications has seen two consecutive daily limit increases, Guomai Technologies, Inc. also hit the daily limit, with stocks like Xinke Mobile, Kingsignal Technology, Jiangsu Allfavor Intelligent Circuits Technology, Shenzhen Sunway Communication showing an upward trend. Review: According to Galaxy Securities research report, based on the overall research pace of 6G, the attention on 6G is gradually increasing. With new network performance such as hundredfold rate and capacity driving six major application scenarios, 6G's ultra-large-scale antenna array ELAA-MM changes from 64T64R to 256T256R, once again restructuring the base station industry chain, with antennas, filters, power amplifiers, PCB prices rising together, full-duplex CCFD, intelligent metamaterial RIS, orbital angular momentum OAM, terahertz electro-optical emissions, and other technologies further increasing device usage and considering fine materials. This article is reprinted from "Tencent Stock Selection" by GMTEight Editor: Wang Qiujia.