A-share midday review |Growth Enterprise Board Index falls 0.84% in the first half of the day, banking stocks strengthen again, and marine economy concept stocks rise against the trend.

On July 2nd, the A-share market opened low and oscillated, with over 3200 stocks trading in the red. By midday, the Shanghai Composite Index fell by 0.04%, the Shenzhen Component Index fell by 0.42%, and the ChiNext Index fell by 0.84%. Orient believes that overall, the market still lacks a comprehensive foundation for strength, with weak fundamental expectations and fragmented fund expectations. In the short term, market hotspots are still driven by speculative behavior. In terms of market performance, bank stocks showed strength again, with China Construction Bank Corporation, Shanghai Pudong Development Bank, etc., hitting new highs; the marine economy concept surged against the trend, with stocks like Juli Sling Co., Ltd. hitting the limit up; aquaculture concepts also strengthened, with Cnfc Overseas Fisheries hitting the limit up; the construction machinery sector rose, with Fujian South Highway Machinery hitting the limit up; the photovoltaic sector surged higher, with glass and silicon materials leading the way, Changzhou Almaden hitting the limit up; in addition, sectors such as oil and gas, ports, and liquor performed well. On the downside, stocks in the diversified financial concept sector collectively fell sharply, with Shanghai Aj Group hitting the limit down; the chip industry chain corrected, with military industry, consumer electronics, and computing hardware direction leading the declines. Looking ahead, Cinda believes that the market may continue to experience oscillations and pullbacks in July, but the magnitude can be controlled. In the late third quarter or fourth quarter, as long as there is a shift towards optimism in terms of profits and policies, the market may return to a bull market state. Popular sectors: 1. The marine economy concept surged Stocks in the marine economy concept surged against the trend, with stocks like Juli Sling Co., Ltd., Shanghai SK Petroleum & Chemical Equipment Corporation, Shandong Oriental Ocean Sci-tech, Hynar Water Group hitting the limit up. Comment: The sixth meeting of the Central Financial and Economic Committee emphasized that promoting high-quality development of the marine economy is necessary for China's modernization, and it must follow a path of strengthening towards the sea with Chinese characteristics. Sinolink pointed out that by 2024, China's marine equipment technology will have made significant breakthroughs, and under this background, the three segmented areas of marine engineering equipment, underwater operation equipment, and underwater new infrastructure are expected to experience accelerated growth. 2. Active photovoltaic sector The photovoltaic sector showed strong and volatile performance, with glass and silicon materials leading the way, Changzhou Almaden hitting the limit up, and companies like Inner Mongolia OJing Science & Technology, Tongwei Co., Ltd, Xinjiang Daqo New Energy, Risen Energy following suit. Comment: According to Shanghai Nonferrous Net, in order to eliminate "internal competition," China's leading photovoltaic glass companies recently announced plans to collectively reduce production by 30% starting from July, with domestic glass production expected to decrease to around 45GW in July. Sinolink believes that looking ahead, industry marketization clearing, corporate self-discipline coordination, along with the policy cooperation and supervision of relevant government departments and regulatory agencies, are expected to drive a turnaround in the photovoltaic industry's plight. Institutional views: 1. Shenwan Hongyuan Group: Short-term focus on financials setting the stage for growth Shenwan Hongyuan Group believes that multiple positive factors will overlap in 2026-2027, forming the core interval for a bull market. The recent downward pressure on A-shares is weak, while the upward pressure is strong, indicating the market should pay more attention to long-term positive factors. However, it must be acknowledged that the current market still has some distance to go before the bull market starts. In the short term, there may still be speculative index highs, with a mid-high oscillation market judgment maintained in the third quarter of 2025. Short-term focus remains on financials setting the stage for growth. Overseas AI computing industry chain continues to drive a prosperous market, while stablecoin themes and national defense military industry show higher flexibility. Mid-term valuation reassessment of high dividend assets is a trend, and once the short-term market attention drops, there are still opportunities for allocation. 2. Cinda: Market may experience oscillation pullbacks, but can be controlled Cinda believes that the market may experience oscillation pullbacks in July, but the magnitude can be controlled. In the later part of the third quarter or the fourth quarter, with a shift towards optimism in terms of profits and policies, the market may return to a bull market state. Industry outlook for allocation: new consumption, media, military industry, offensive and defensive (banking, non-banking), non-ferrous metals, real estate. 3. Orient: Short-term market hotspots driven by speculative behavior Orient believes that overall, the market still lacks a comprehensive foundation for strength, with weak fundamental expectations and fragmented fund expectations. In the short term, market hotspots are still driven by speculative behavior; from a configuration perspective, the overseas AI computing industry chain, stablecoin themes, and national defense military industry still show higher flexibility, with a short-term price pullback still presenting opportunities for allocation. This article was reposted from "Tencent Self-selected Stocks" and edited by GMTEight: Wang Qiujia.