A-share midday report | GEM index rises nearly 2% in half a day, PEEK material concept stock soars, Xinjiang sector continues to be strong.

On August 11th, A-shares fluctuated and strengthened, with over 4200 stocks rising in the market. The half-day trading volume was 1.1 trillion yuan, which was about 58.5 billion more than the same period on the previous trading day. By midday closing, the Shanghai Composite Index rose by 0.51%, the Shenzhen Component Index rose by 1.48%, and the ChiNext Index rose by 1.99%. Market analysis believes that the following positive news influenced the market: 1. Ning Wang's response to the production suspension crisis ignited the lithium carbonate market, with EB SECURITIES pointing out disruptions in the supply end due to the suspension of mining at the Contemporary Amperex Technology Jingfanwo lithium mine and other mines, leading to a possible short-term increase in lithium prices. 2. The AI industry chain receives multiple catalysts, with AI leader Foxconn Industrial Internet achieving record high performance in the first half of the year. Additionally, Huawei will release breakthrough achievements in the AI inference field. 3. The Securities Regulatory Commission stated that it will continue to strictly control the issuance and listing entrance and there will not be a situation of large-scale expansion. In terms of the market, the energy and metal sector strengthened, with stocks like Tianqi Lithium Corporation and Chengxin Lithium Group hitting the daily limit; the Xinjiang revitalization sector remained hot, with stocks like China West Construction Group and Xinjiang Communications Construction Group hitting the daily limit; the PEEK material and Siasun Robot & Automation sector became active, with Shandong Shuangyi Technology hitting the daily limit; the consumer electronics sector rose, with Risuntek Inc hitting the daily limit; and the real estate sector rebounded, with Vantone Neo Development Group hitting the daily limit. Furthermore, the military industry, securities, AI industry chain, liquor, solid-state batteries, and others showed positive performance. Sectors like precious metals, electricity, banks, and transportation were in the red. In terms of individual stocks, Siasun Robot & Automation concept stock Beijing Bewinner Communications hit the "circuit breaker" limit up and saw five consecutive limit up days with a trading volume exceeding 1.3 billion. Looking ahead, Zhongtai believes that the current market adjustment is not the peak of a major cycle but a phase of structural transition. In this environment, the key factor in determining whether the market has peaked is whether there has been a change in the guidance intensity of policies towards the market. Hot sectors: 1. Energy and metal sector strengthened, with companies like Chengxin Lithium Group and Tianqi Lithium Corporation hitting the limit up. 2. The Xinjiang revitalization concept saw a surge, with companies like Xinjiang Communications Construction Group and Xinjiang Torch Gas hitting the limit up. 3. PEEK material sector saw a rise, with companies like Shandong Shuangyi Technology and Essence Fastening Systems hitting the limit up. Institutional views: 1. China Securities Co., Ltd.: A-shares are still in a bull market and the current pullback presents a good opportunity for positioning. 2. Zhongtai: The current market adjustment is not the peak of a major cycle but a phase of structural transition. 3. Tianfeng: The main disturbance in the market is the large-scale expiration of open market operations, but the loose policy environment remains unchanged.