A-shares closing review | Index rises but falls back! Banks experience sudden plunge

Today, the overall market surged and then fell back, with a sharp decline in the banking sector in the afternoon dragging the index down. The market turnover exceeded 1.6 trillion, with a volume increase of over 200 billion compared to the previous trading day, and more stocks rose than fell in both markets. Looking at the market, the banking sector, which has been strong recently, saw a sharp decline in the afternoon. Stocks like China Zheshang Bank, Bank Of Lanzhou, and Bank Of Changsha led the decline. The securities sector was active throughout the day, with multiple stocks like BOC International hitting their daily limit up. On the news front, many securities firms like Hongta and Guosheng Financial Holding Inc. reported positive earnings. Shipbuilding and defense industry related sectors showed strength, while the rare earth sector saw a surge with China Northern Rare Earth and Inner Mongolia BaoTou Steel Union among the stocks hitting their limit up. On the downside, sectors like internet e-commerce, gaming, oil and gas, and photovoltaics were the top decliners. Looking ahead, Guosen pointed out that with the increased risk appetite in the market, the index broke through, and with improved fundamental expectations, the market outlook is still positive. In terms of individual stocks, there were 2960 gainers and 2206 decliners in both markets, with 252 stocks remaining unchanged. There were 69 limit-up stocks and 14 limit-down stocks in total. At the close, the Shanghai Composite Index rose by 0.01% to 3510.18 points, with a turnover of 753.6 billion yuan; the Shenzhen Component Index rose by 0.61% to 10,696.10 points, with a turnover of 953.3 billion yuan. The ChiNext Index rose by 0.80% to 2207.10 points. Capital flow Today, main funds flowed into industries such as securities II, software development, minor metals, marine equipment II, and insurance II; while funds flowed out of industries such as photovoltaic equipment, components, passenger cars, communication equipment, and power grid equipment. Top news recap 1. Some coking companies in China hold market analysis meeting: Urging a quick increase in coke prices to improve profitability. 2. Shanghai SASAC holds central study session on the development trend of cryptocurrencies and stablecoins. 3. SASAC urges state-owned capital to focus on forward-looking strategic emerging industries. 4. Trump plans to impose a unified tariff of 15% or 20% on countries that have not received tariff letters. Market outlook 1. Goldman Sachs strategist: Raises Asian stock targets, upgrades Hong Kong stock rating. 2. Guosen: The market outlook is still positive. 3. Ping An Fund: Maintaining a bullish outlook in the medium to long term.