A-share market closing review | Stock indexes collectively adjust! Consumer stocks active against the trend

Today, the market showed weak fluctuations, and by the closing bell, the three major indexes all closed lower. The consumer goods sector was active against the trend, and the market saw a noticeable decrease in trading volume with over 3800 stocks falling. Of note, Goldman Sachs released a report stating that they have raised their 12-month targets for the MSCI China Index and the CSI 300 Index to 84 points and 4600 points respectively (with potential upside of 11% and 17% respectively). They maintain an overweight rating on Chinese stocks and recommend focusing on multiple themes to capture thematic excess returns. In the market, new hotspots emerged with the Ma Jiaosulfuring concept being active, leading to a 20% trading halt for Yili Chuanning Biotechnology, as well as multiple stocks reaching their trading limits. The beauty and healthcare sectors saw simultaneous rises, while the food and beverage sector continued to rebound in the afternoon with multiple stocks hitting their trading limits. The shipping and port sectors continued their upward trend, with multiple stocks hitting their 3-day trading limits. The textile and clothing sector also rebounded, with Huafang Co., Ltd. hitting its trading limits for the 6th day in 8 days. Additionally, the coal, chemical, synthetic biology, rare earth, and ST sectors all performed during the day. However, the computing power sector continued to decline, with Kehua Data Co., Ltd. approaching its trading limit, and the photovoltaic, consumer electronics, and automotive sectors leading the declines. According to the China Securities Journal, the subsidiary of Sichuan Kelun Pharmaceutical, Yili Chuanning Biotechnology, introduced on its official website that Ma Jiaosulfur is a super antioxidant that protects cells from harmful free radicals that damage DNA. The anti-aging industry can be divided into medical and non-medical tracks, with the former based on basic medical research including regenerative medicine, gene editing, and metabolomics, while the latter includes various aspects such as sociology, psychology, electronic products, artificial intelligence, and big data. Looking ahead, Huaan believes that the easing of US-China trade tensions and better-than-expected market conditions are positive, but it will not happen overnight. Continued upward movement in the market will require sustained improvement in the macroeconomic fundamentals to provide stronger support to the market. In terms of individual stocks, there were 1407 stocks rising and 3856 stocks falling, with 149 stocks remaining unchanged. There were 78 stocks hitting their trading limits, with 12 stocks hitting their downward limits. By the closing bell, the Shanghai Composite Index fell by 0.68% to 3380.82 points with a turnover of 461.3 billion yuan. The Shenzhen Component Index fell by 1.62% to 10186.45 points with a turnover of 688.7 billion yuan. The ChiNext Index fell by 1.91% to 2043.25 points. Funds Movement Today, major funds focused on chemical pharmaceuticals, minor metals, and passenger cars, with top net inflows into stocks such as BYD Company Limited, Yili Chuanning Biotechnology, and Shenghe Resources Holding. News Recap 1. CSRC: Urgently introduce a package of policy measures to deepen the reform of the Sci-Tech Innovation Board and Growth Enterprise Market CSRC Vice Chairman Chen Huaping stated at the 2025 "5.15 National Investor Protection Day" event that the CSRC has always adhered to the concept of finance for the people and has fully launched a new round of capital market reform, promoting the high-quality development of the capital market and urgently introducing a package of policy measures to deepen the reform of the Sci-Tech Innovation Board and Growth Enterprise Market, further enhancing the inclusiveness and adaptability of the system, and actively supporting technological innovation and the development of new productive forces. Working together with all parties to implement stable market policies, effectively promote the increase in the proportion and scale of medium to long-term funds entering the market, continuously unleash new development vitality on the basis of stability, and strengthen investor confidence. 2. Institute of Physical Chemistry, Chinese Academy of Sciences: Breakthrough in research on the electrocatalysis of recycling PET waste to produce biodegradable PGA plastics The official website of the Institute of Physical Chemistry, Chinese Academy of Sciences reported that the large-scale application of biodegradable plastics is a key breakthrough in solving the problem of plastic pollution. According to estimates, the future demand for PGA in the Chinese market will reach millions of tons. However, the mainstream production process of PGA faces major challenges: the traditional synthesis route for its monomer, glycolic acid, relies on highly toxic precursors, posing safety risks and difficulties in large-scale production. In response to this significant demand, the research team led by Senior Researcher Chen Yong of the Institute of Physical Chemistry, Chinese Academy of Sciences, has developed a new electro-synthesis strategy using recycled PET plastic as raw material, successfully achieving kilogram-level production of glycolic acid. To promote the industrialization of this technology and achieve the full transformation from waste PET plastic to biodegradable PGA plastics, the team has systematically analyzed the two core challenges in the process of electrocatalytic reformation of PET to produce PGA: the low space-time yield of ethylene glycol to produce glycolic acid; and the high cost of separating and purifying glycolic acid crystals. Economic and technical analysis results show that the cost of producing PGA based on the electrocatalytic reformation route is approximately 1240.12 US dollars per ton, which is close to the cost range of general polyolefin plastics, laying a solid foundation for the industrialization of this technology. 3. Lead by China, international standards for aging-friendly digital economy are released Recently, the International Organization for Standardization (ISO) officially published the "Aging Society - Accessible Digital Economy: General Requirements and Guidelines" (ISO 25556:2025), led by China. This is the first digital economy standard from an aging population perspective issued by the ISO. The standard sets out the basic principles and core elements for an aging-friendly digital economy, and provides specific recommendations and application cases for high-frequency scenarios where elderly people participate in the digital economy, such as online shopping, digital banking, digital hospitals, online entertainment, social media, smart travel, smart communities, and smart homes, offering scientific solutions to establish an aging-friendly digital economy and eliminate global elderly digital divides, contributing to China's wisdom. 4. After reciprocal tariff reductions, booking volume for China to US container shipping soars nearly 300% On May 14, it was reported that trade tracking organization Vizion released data showing that after the reciprocal tariff reductions between the US and China, the booking volume for container shipping from China to the US in the US increased by nearly 30%.0%. Ben Tracy, Vice President of Vizion Strategic Business Development, said that the seven-day average booking volume as of May 5 was 5709 standard containers, and the seven-day average booking volume surged 277% to 21530 standard containers as of May 14.1. Market Analysis for the Future Minsheng Securities: Chinese assets may be more resilient than overseas Minsheng Securities pointed out that the market was briefly calm due to expectations of easing trade disputes, but asset volatility may increase again as the economic fundamentals gradually weaken. Due to fewer constraints on Chinese policies compared to the United States, Chinese assets may be more resilient than overseas until July. In the next one to two months, pay attention to the re-balancing of market styles. In terms of industries, they recommend: firstly, the consumer industry with three sources of income under the long-term mechanism (home appliances, automobiles, food and beverage, cosmetics, trendy toys, tourism and leisure, games, online retail); secondly, the undervalued financial sector (banks, insurance) that adapts to the reallocation direction of equity funds; and thirdly, in the reshaping of the global economy, resources (copper, aluminum, gold) and capital goods (machinery and equipment, etc.) have their value. 2. Huaan: High consolidation continues, focus on financial sector Huaan pointed out that as policies are gradually implemented, the central bank's monetary policy is "leading," and subsequent fiscal, industrial, employment, social security and other policies are expected to gradually land with coordinated efforts. Supporting the shift of enterprises from export to domestic sales, continuing to expand domestic demand especially in areas such as elderly care and childcare services, and loosening real estate regulations are expected to become the focus. However, until policies are significantly strengthened and the fundamentals improve significantly, the market will continue its consolidation trend. In terms of allocation, there is still a need for a balanced allocation between growth and value sectors, especially in the banking sector: there is an increasing demand for short-term stable allocations and banks and insurance companies that have strategic long-term investment value. Growth technology has strong positioning value after a deep retracement, coinciding with policy and event catalysis; focus on the broad TMT sectors including electronics, computers, media, telecommunications. 3. Orient: Strength in major financials is expected to lead to a rebound in other themes Orient stated that from a technical perspective, the market continues to maintain a pattern of climbing in a volatile manner, with the Shanghai Composite Index possibly challenging the 3440 and above region. The strength in major financials is expected to lead to a rebound in other themes, and structural rallies remain the main feature of the current market. With companies focusing on "grabbing shipments" in the shipping sector, the short-term cargo volume on the Asia-Europe and trans-Pacific routes may see an impulsive growth before entering normal operational status, reducing the stimulus effect of strong stocks; investors should consider reducing positions at higher levels. This article is reprinted from "Tencent Stock Selection," GMTEight Editor: Liu Jiayin.