A-share midday review | Divergent trend of three major indices Shanghai index rose 0.53% to return to 3600 points in half a day Real estate stocks strengthened

On August 5th, A-shares showed a mixed trend in the morning session, with the Shanghai Composite Index returning to 3600 points. By the midday close, the Shanghai Composite Index was up 0.53%, the Shenzhen Component Index was up 0.14%, and the ChiNext Index was down 0.26%. CMSC believes that in the first half of August, after a significant market rally, the market entered the earnings disclosure month. Overall, the performance of listed companies is mixed, with some thematic concept stocks that have seen significant gains facing adjustment pressures before the earnings disclosure. After the earnings disclosure in late August, the market will enter a period of earnings vacuum. Ultimately, A-shares are expected to see a strong possibility of hitting new highs in August. In terms of the market, the major financial sector was active, with leading brokerage stocks surging and some even hitting the daily limit. Real estate stocks continued to strengthen, with stocks like Shanghai Industrial Development hitting the limit up. The defense sector remained active, with Anhui Greatwall Military Industry hitting the limit up for 3 out of 4 days. Gaming stocks rose, with Perfect World surging by over 7%. Additionally, consumer electronics, automakers, and steel sectors performed well. On the downside, pharmaceutical stocks continued to decline, with media, semiconductor, and photovoltaic sectors leading the losses. In terms of individual stocks, Swancor Advanced Materials Co., Ltd. resumed trading today, surging nearly 15% at one point, with its stock price surpassing 100 RMB and total market value exceeding 40 billion RMB. Looking ahead, Industrial believes that the core logic supporting the current market rally remains intact, with potential catalysts to boost market confidence in the future. The next round of market rally could start at any time. Popular Sectors: 1. Leading brokerage stocks surged, with Cinda hitting the daily limit, and other related stocks rising. 2. Defense sector continued to perform well, with Anhui Greatwall Military Industry and North Long Dragon New Materials Tech hitting new highs. 3. Gaming stocks saw a shakeup, with Perfect World surging over 7%. Institutional Views: 1. Industrial: The next round of market rally could start at any time. 2. CMSC: The possibility of A-shares hitting new highs in August is quite high. 3. EB SECURITIES: The market may focus on structural market rallies in the future.