A-share market opened with narrow fluctuations, with the biopharmaceutical sector showing strength and the AI application side becoming active again.

On July 25th, A-shares traded narrowly. As of 9:41, the Shanghai Composite Index fell by 0.10%, the Shenzhen Component Index fell by 0.20%, and the ChiNext Index fell by 0.21%. In terms of the market, the lithography concept was active in the morning with Fujian Acetron New Materials hitting the limit up; the banking sector stopped falling and rebounded with Bank of Ningbo soaring; sectors such as biopharmaceuticals, automobiles, agricultural chemicals, and aquaculture showed some performance. On the downside, sectors such as Hainan concept, diversified financials, and engineering materials pulled back, while coal mining, steel, liquor, and power grid led the declines. Looking ahead, Orient stated that the macroeconomic expectations are stable, overall liquidity is abundant, external conditions are improving marginally, and structural market activity is expected to continue. The pattern of index oscillation and rise remains unchanged, and the Shanghai Composite Index is expected to challenge last year's high of 3674. Hot sectors 1. Active lithography equipment concept The lithography adhesive concept was active, with Fujian Acetron New Materials hitting the limit up. Shanghai Chemspec Corporation, MayAir Technology, Jiang Su Yida Chemical, Shanghai Sinyang Semiconductor Materials, HMT (Xiamen) New Technical Materiasls Co., Ltd followed suit. Comment: According to reports, Professor Xu Huaping's team from the Chemistry Department of Tsinghua University recently made significant progress in extreme ultraviolet (EUV) lithography materials, developing a new lithography adhesive based on polytelluroxane, providing a new design strategy for key materials in advanced semiconductor manufacturing. Institutional views 1. Shenwan Hongyuan Group: Necessary conditions for a bull market will gradually accumulate Shenwan Hongyuan Group stated that the necessary conditions for a bull market will gradually accumulate as time progresses. The conditions for an upward breakthrough in the fourth quarter of 2025 will be more favorable. 2. Industrial: Market still in the phase of industry rotation intensity convergence and focus on main lines Industrial stated that in the absence of major changes in the macroeconomic environment, focusing on structural main lines is still the main response strategy. 3. Dongguan Securities: Chinese asset valuation is expected to see further improvement Dongguan Securities stated that since the end of June, the total market value of A-shares has remained stable above 100 trillion yuan, reflecting the continuous expansion of the market size and the confidence of global capital in the Chinese market.