A-share market closing review | The index surged in the final moments! The leader of the bull market has changed, and the chip sector has sparked a surge in limit-up stocks.

Today, the market saw a rapid rise in the late trading session, with the Shanghai Composite Index up by over 1% and the Sci-Tech Innovation 50 Index up by over 3%. Leading the bull market were brokerage stocks, with a surge in the chip sector leading to trading halts. The market saw a total turnover of 2.3 trillion yuan, a decrease of over 180 billion yuan compared to the previous trading day, with over 3600 stocks rising. Regarding the recent change in market style over the past two days, Xingye Securities stated that the diversity of industry sectors is an important characteristic of a steady upward market trend. Despite the index reaching new highs, the majority of industries are still in the medium range in terms of congestion, indicating that the market is not overly hot as a whole. There are still some sectors with low congestion levels that can attract funds and heat from the cooling sectors, effectively maintaining the continuity of the market trend through the rotation of industry, sectors, and thematic opportunities. On the market front, leading brokerage stocks surged, with Harbin Hatou Investment hitting the limit; there was a strong performance in the afternoon in the chip sector, with the stock price of Hyve Solutions breaking through 1,000 yuan, and Verisilicon Microelectronics (Shanghai) Co., Ltd. hitting a 20% limit up; consumer stocks such as liquor continued to rebound, with Jiugui Liquor hitting two consecutive limits; consumer electronics concepts like AI smartphones and AI glasses showed strength, with Kunshan Kersen Science & Technology hitting four consecutive limits; chemical fiber stocks rose, with Suzhou Longjie Special Fiber hitting the limit; mining stocks were active, with Inspur Electronic Information Industry hitting the limit in the afternoon; additionally, sectors such as non-ferrous metals, automobiles, gaming, defense, and photovoltaics all had strong performances. On the decline side, stocks at high levels collectively fell, with multiple stocks hitting limit-down, and sectors such as pharmaceuticals, cinema, and diversified finance leading the decliners. Looking ahead, China Galaxy believes that with an active trading market, there is potential for rotation around the AI industry chain, "anti-internal friction," and non-bank financial sectors. Based on individual stocks, 3676 stocks rose, 1587 fell, and 162 held steady. There were a total of 104 limit-up stocks and 17 limit-down stocks. At the close, the Shanghai Composite Index rose by 1.04% to 3766.21 points, with a turnover of 1.0175 trillion yuan; the Shenzhen Component Index rose by 0.89% to 11926.74 points, with a turnover of 1.3907 trillion yuan. The ChiNext index rose by 0.23% to 2607.65 points. Market Trends Today, major funds focused on acquiring shares in the optical and optoelectronic, liquor, and banking sectors. The top stocks with net inflows by major funds included ZTE Corporation, Sanan Optoelectronics, and Hytera Communications Corporation. News Recap 1. ByteDance denies rumors of AI chip collaboration with Verisilicon Microelectronics (Shanghai) Co., Ltd. Recent industry reports suggested that ByteDance was collaborating with Verisilicon Microelectronics (Shanghai) Co., Ltd. to design an advanced AI computing chip. In response, a ByteDance representative stated that there is no AI chip-related collaboration with Verisilicon Microelectronics (Shanghai) Co., Ltd. 2. Insider source: FAW Group plans to acquire around 10% equity stake in LEAPMOTOR According to sources, FAW Group is planning to become a strategic shareholder in LEAPMOTOR by acquiring approximately 10% of its shares. The plan is currently being circulated and promoted within FAW Group. 3. Newly exhibited equipment accounts for a large percentage in weapons and equipment showcased at the parade At a press conference held by the State Council Information Office this morning, officials discussed preparations for the parade, highlighting that the showcased weapons and equipment are selected from domestically produced active-duty main combat equipment, with a significant percentage of newly exhibited equipment. 4. August LPR pricing: 5-year and 1-year rates remain unchanged The Loan Prime Rate (LPR) for August is as follows: 3.5% for maturities of 5 years and above, and 3% for a 1-year term, both remaining the same as the previous month. Market Outlook 1. Guotai Haitong: Stock indices are expected to reach new highs Guotai Haitong believes that the A-share stock market has the potential to reach new highs. Market valuation factors mainly include company performance, risk-free interest rates, and risk preferences. However, institutional changes are a crucial factor in the Chinese market and can be decisive at specific times. Focus sectors include big finance, high-quality blue chips, and emerging technologies. In terms of hardware, with the traditional peak season approaching in August for consumer electronics, the industry may benefit from the release of new products in September. Besides AI, the domestic military industry is showing signs of growth in the mid-year report, with frequent catalyzation of the domestic industry chain in the field of Siasun Robot & Automation. 2. China Galaxy: A new stability is set to establish in the A-share market China Galaxy suggests that as investors enter the market at an accelerated pace and household wealth shifts towards financial assets, the re-risk preference trend is evident, leading to a diffusion of earnings. The market's activity suggests a rotation around the AI industry chain, "anti-internal friction," and non-bank financial sectors. During the concentrated period of semi-annual reports, combined with performance forecasts, attention should be given to opportunities in the upstream non-ferrous metal industry, midstream sectors like steel, machinery and electrical equipment, and non-bank financial, agriculture, forestry, animal husbandry, fisheries, and electronics industries. 3. Orient: The market gradually enters a high-volatility area According to Orient, with daily turnover and margin financing balances remaining above 2 trillion, it indicates that the market is in a period of relatively high heat and potential volatility. However, the growth of margin financing and the scale of participating funds are not as significant as the market rally in September last year or the spring rally this year, suggesting that the market is not extremely overheated. Daily fluctuations and retracements might actually be conducive to future market developments. Overall, the market is gradually entering a high-volatility area, with diminishing marginal positive factors, and the latter part of August is a period of concentrated mid-year report disclosures, where the market is expected to focus more on performance, with defensive strategies prevailing. This article is reproduced from "Tencent Self-selected Stocks", GMTEight editor: Liu Jiayin.