A-share midday review | The ChiNext Index increased by 2.13% in half a day. The game and energy storage sectors rose, with Contemporary Amperex Technology hitting a new high.

Index rebounded in the morning, with the Shanghai index up 0.22%, the Shenzhen Component Index up 1.07%, and the ChiNext Index up 2.13% by midday. The turnover of the two cities was 1.51 trillion yuan, a decrease of 124 billion yuan from the previous trading day. In terms of the market, the semiconductor sector was active again, with Shanghai Belling hitting the limit up. The automotive industry chain strengthened collectively, with autonomous driving and car dismantling leading the gains. Siasun Robot & Automation sector performed well, with Ningbo Tuopu Group hitting the limit up. The solid-state battery and energy storage sectors rose, with Contemporary Amperex Technology rising nearly 10% to a historical high, and Guangzhou Tinci Materials Technology hitting the limit up. Gaming stocks rose during trading, with Perfect World hitting the limit up. Consumer concepts such as pork and pre-packaged food rose, with Shandong Delisi Food hitting the limit. On the downside, previously strong sectors such as culture and media, real estate, and minor metals led the market lower. Looking ahead, Guotai Haitong believes that the logic of the Chinese stock market's rise is sustainable, and A/H shares in China are expected to reach new highs this year. In terms of industry allocation, they recommend focusing on high-growth sectors, as they are likely to benefit from valuation premiums during a bullish market. Hot sectors 1. Semiconductor sector active again The semiconductor sector was active again, with Shanghai Belling hitting the limit up, SG Micro Corp up 19.97%, and Suzhou Novosense Microelectronics up 13.42%. Comment: The Ministry of Commerce announced on September 13th that it had initiated an anti-dumping investigation against imported analog chips from the United States and launched an anti-discrimination investigation against related measures in the integrated circuit field. China Securities Co., Ltd. report stated that the semiconductor industry is a battleground in the new technological revolution, and semiconductor equipment is crucial in the technology war. 2. Solid-state battery concept rises The solid-state battery and energy storage sectors rose, with Contemporary Amperex Technology rising nearly 10% to a historical high, and Guangzhou Tinci Materials Technology hitting the limit up. Comment: Overseas demand for energy storage has surged this year, with top battery factories having full orders and limited capacity. Sinolink believes that the industrialization inflection point is imminent, emphasizing investment opportunities in solid-state batteries. 3. Siasun Robot & Automation sector shines The Siasun Robot & Automation sector performed well, with Ningbo Tuopu Group hitting the limit up, and Zhejiang Rongtai Electric Material rising nearly 8% to a new high. Comment: Tesla founder Musk discussed the latest situation of Optimus in Siasun Robot & Automation at the All-In Summit. He mentioned that the current design of the third version of Optimus will address hand flexibility, have an AI brain, and is expected to achieve mass production, advantages that other competitors cannot match. 4. Consumer concepts rise Consumer concepts such as pork and pre-packaged food rose, with Shandong Delisi Food hitting the limit, and others following suit. Comment: The draft of the "National Standard for Pre-packaged food safety" led by the National Health Commission has passed expert review and will soon be open for public comments. Institutional viewpoints 1. Guotai Haitong: Opportunities in the Chinese market are extensive, expected to reach new highs this year. We believe that the logic of the rise in the Chinese stock market is sustainable, and A/H shares in China are expected to reach new highs this year. Firstly, China's accelerated transformation and reduced uncertainty in economic and social development have increased visibility, which is an important prerequisite for the revaluation of valuations. Secondly, under the risk-free return system, the cost of stock market opportunities has decreased, and the surge in asset management demand and incremental market entry is a historical inevitability that has not yet ended. Thirdly, institutional changes have a key impact on stock market valuations. Timely, reasonable, and appropriate economic policies, capital market reforms to improve investor returns, and measures to enhance social perceptions of the value of Chinese assets and improve risk awareness. In addition, with global easing on the horizon, China's anti-inversion and incremental economic support measures are expected to further intensify, continuing the upward trend in the Chinese stock market. 2. GF SEC: After the "volume peak," the upward trend tends to continue, maintain a bullish mindset. Since late August, trading volumes in the market have declined at high levels, with daily turnover dropping from 3.2 trillion to 2 trillion, accompanied by lower profit margins and increased market volatility, causing concern among some investors. However, the "volume peak" does not mean the end of the trend, but only a slowdown in the trend. An analysis of the performance of the full A-share market after the "volume peak" since 2010 shows that the "volume peak" often indicates a peak in the second derivative of the trend. Even after the end of the accelerated upward phase, the upward trend will likely continue, albeit with a slower slope. Typical main sectors such as optical modules, PCB, innovative drugs, and sci-tech chips currently have deviation rates of 1.3%, 2.0%, 0.1%, and 1.2%, respectively, and none of the main sectors have given off stop-loss signals. 3. Huaxi: What are the main lines of the "slow bull" market in September? High-growth sectors remain the top choice. Regarding overseas factors, the Fed's interest rate cut in September has become a market "consensus," and the progress of the China-US negotiations will be an important factor affecting global risk appetite. For A-shares, this round of DRIVE bull market has not changed, and policies continue to provide strong support for a "stable stock market," with potential incremental funds from residents still abundant. In terms of industry allocation, high-growth sectors are the preferred choice during a bull market, as they are expected to enjoy valuation premiums during the industrial transition process, such as solid-state batteries, energy storage, innovative drugs, AI applications, and humanoid Siasun Robot & Automation. In the new consumption field, such as IP economy and vape, with the background of the Fed's interest rate cut, Hong Kong stocks are expected to receive "overseas + southbound" double support, such as Hong Kong Internet stocks. This article is reproduced from "Tencent Stocks Selection", GMTEight Editor: Wang Qiujia.