A-share market closing report | Surging and then falling! The ChiNext Index fell by 1.18% with over 4200 stocks in the market trading in the red.

On May 23, A shares rose and then fell back, with over 4200 stocks in the market trading lower. The total turnover for the day was 1.16 trillion yuan, an increase of 52.9 billion compared to the previous day. At the close, the Shanghai Composite Index fell by 0.94%, the Shenzhen Component Index fell by 0.85%, and the ChiNext Index fell by 1.18%. On the market, the hot spots were mixed and rotating quickly. The pharmaceutical sector rose collectively, with stocks like Guangdong Zhongsheng Pharmaceutical hitting the limit up; the automotive industry chain strengthened, with the vehicle and parts direction leading the gains, and BYD Company Limited hitting a new high in A shares; the controllable nuclear fusion concept surged, with stocks like Fujian Snowman Group hitting the limit up; in addition, the banking sector rose and fell, with various hot spots like Siasun Robot & Automation, solid-state batteries, and quantum technology showing performance and then falling back. Falling sectors included the port shipping sector, with Nanjing Port hitting the limit down, and sectors like gaming, electricity, real estate, semiconductors, and consumer goods leading the declines. Looking ahead, Zhonghang Securities stated that the A-share market has returned to its level before April 2, and the market may adjust its second-quarter economic expectations, which could lead to a further recovery in risk appetite. In the future, structural bull markets may dominate, and the market focus may return to fundamentals. Due to remaining external uncertainties, a dumbbell strategy may have an advantage in the short term, and dividend and technology sectors may contribute excess returns in a rotating manner. Popular sectors: 1. Pharmaceutical sector strengthens The pharmaceutical sector rose collectively, with stocks like Guangdong Zhongsheng Pharmaceutical, Zhejiang Haisen Pharmaceutical, Tibet Duo Rui Pharmaceutical, Berry Genomics, and Nanjing Hicin Pharmaceutical hitting the limit up. Comments: On the news front, Jiangsu Hengrui Pharmaceuticals' stock price rose by over 30% on its first day of listing in Hong Kong. Guoyuan stated that starting in May, pharmaceutical companies will enter a period of performance vacuum, shifting market focus from performance to changes in industry and company fundamentals. They continue to be optimistic about innovation drugs, going global, and the bulk purchase clearing sectors. Currently, China's innovative drug sector is entering a stage of achievement realization, with accelerated research and development progress, unaffected by the trade war, and likely to continue as the main investment theme in the pharmaceutical sector by 2025. 2. Automotive industry chain rises The automotive industry chain rose, with the vehicle and parts direction leading the gains, BYD Company Limited hitting a new high in A shares, and Chongqing Sokon Industry Group Stock hitting the limit up. Comments: In April, the number of electric cars sold by BYD Company Limited in Europe exceeded Tesla for the first time. In addition, according to the latest survey by the China Passenger Car Association on May 22, the total retail volume of narrow passenger cars this month is expected to reach about 1.85 million units, an 8.5% year-on-year increase and a 5.4% month-on-month increase. Sealand believes that looking ahead, the automotive sector may enter a phase of high sales, event catalysis, and resonant industrial trends, and continues to see investment opportunities in the automotive sector. 3. Controllable nuclear fusion concept rises The controllable nuclear fusion concept strengthened, with RongFa Nuclear Equipment, HIT Welding Industry, and Fujian Snowman Group hitting the limit up, and CHENGUANG MEDICAL and Xi'an Actionpower Electric leading the gains. Comments: According to reports, U.S. President Trump is set to sign an executive order on Friday local time to promote the development of the nuclear energy industry through streamlining new reactor approval regulatory processes and strengthening the fuel supply chain. In response to this, the U.S. nuclear energy sector surged collectively after the market closed. CITIC SEC believes that in recent years, the development of controllable nuclear fusion overseas has accelerated, with commercial fusion projects led by American companies expected to be put into commercial use before 2030, driving the domestic industry to accelerate. Institutional views: 1. Huatai: Structural bull markets may be the main feature of the market in the near term Huatai pointed out that after recovering the 3300-point mark, the Shanghai Composite Index's attack on the 3400-point mark appears hesitant, as the market lacks a clear theme and consensus on hot spots is still to be consolidated. Recently, trading volume has remained low, just slightly higher than 1 trillion yuan, mainly due to a game of stalemate between existing funds with weak momentum from outside the market. Although the upward momentum of the Shanghai Composite Index has appeared weak recently, the failure to yet fill the upward gap on May 7 also indicates that the bullish momentum is still resilient. Looking ahead, the attack on the 3400-point mark may not be easily abandoned after consolidating potential energy. In the short term, the Shanghai Composite Index is expected to continue to consolidate, trading time for space, with structural bull markets may become the main feature of the market in the near term. 2. Huajin Securities: Short-term maintains a strong shaking trend, technology remains the main theme Huajin Securities pointed out that with loose liquidity and positive policies in the short term, A shares are maintaining a strong trembling trend. In the short term, technology remains the main theme. Industry allocation: In the short term, it is recommended to continue to buy technology and some consumer industries on dips. From a valuation and cost-effectiveness perspective, it is recommended to focus on growing industries such as power equipment, automobiles, electronics, media, and computers. Short-term recommendations include continuing to buy low: 1. Computers (data elements), Siasun Robot & Automation, military, media (AI applications), communication (computing power), semiconductors, and electronics; 2. Food, social services, retail, home appliances, and innovative drugs on the basis of improving fundamental expectations. 3. EB SECURITIES: The market is expected to continue a style of index fluctuations and hot spot rotations EB SECURITIES pointed out that although the market is adjusting, the index is still in a range.In the intermittent pattern of oscillation, the market is expected to continue the style of index oscillation and hot spot rotation in the future. Direction: low-altitude economic concepts. The 9th World UAV Conference will be held in Shenzhen from May 23 to 25, with the theme "Entering a New Era of Low-altitude Economy", which may stimulate speculation in related concepts.This article is reproduced from "Tencent Self-selecting Stocks", edited by GMTEight: Li Fu.