A-share market review | Divergence in trends, Shanghai Composite Index closes up 0.39%! Bank stocks rebound

On July 1st, the A-shares showed differentiation in trends, with individual stocks experiencing mixed ups and downs. By the close, the Shanghai Composite Index rose by 0.39%, the Shenzhen Component Index rose by 0.11%, and the ChiNext Index fell by 0.24%. Of note, the chip industry chain continued to rise today. According to the Securities Times, the semiconductor sector has seen continuous catalytic factors recently: first, the acceleration of mergers and acquisitions in the semiconductor industry; second, the attention on the IPO process of chip "unicorn" companies; and finally, the recent release of the latest chip products by Loongson Technology Corporation. In terms of trading, pharmaceutical stocks, led by innovative drugs, surged in the afternoon, with Staidson and Zhejiang Anglikang Pharmaceutical hitting historical highs intraday, and Thalys Medical Technology Group Corporation and others hitting limit up; banking stocks rebounded strongly, with China Construction Bank Corporation and others hitting new highs intraday; the power sector surged, with DaTang HuaYin Electric Power hitting limit up; the chip industry chain continued to rise, with lithography machines and advanced packaging leading the way, and NanJing Sanchao Advanced Materials and others hitting limit up; defense stocks rebounded in the afternoon, with Anhui Greatwall Military Industry seeing an 8-day rise; in addition, the chemical industry, brain-machine interface, and controlled nuclear fusion sectors all showed some performance intraday. On the downside, previously hot sectors such as solid-state batteries and stablecoin concepts collectively adjusted, while the cultural media, photovoltaic, and consumer electronics sectors saw larger declines. In terms of hot sectors: 1. The lithography machine concept was strong, with the chip industry chain continuing to rise. Lithography machines, advanced packaging, and other sectors led the way, with stocks such as Suzhou Convert Semiconductor, NanJing Sanchao Advanced Materials, and Hunan Kaimeite Gases hitting limit up. 2. The innovative drug sector was strong, leading pharmaceutical stocks to surge. Thalys Medical Technology Group Corporation hit limit up, and other stocks such as REMEGEN, Staidson, Joinn Laboratories, and Hybio Pharmaceutical also rose. 3. The brain-machine interface concept was active, with companies such as Innovative Medical Management seeing consecutive rises, and others like Xiangyu Medical, Jiangsu Apon Medical Technology, and Beijing Beilu Pharmaceutical following suit. In terms of institutional views: 1. Guotai Haitong believes that the stock market still has room for growth by the end of July. They focus on the financial sector and growth sectors such as new technology trends and new consumer trends. 2. CMSC predicts that the market may see a breakthrough in indices in July, with a focus on sectors like technology and non-banking. 3. Orient believes that the half-year report will continue to be an important factor to consider, especially focusing on sectors with reasonable valuation and good earnings expectations, such as overseas computing power, gaming, and defense.