A-share midday review | ChiNext Index fell 0.32% Siasun Robot & Automation concept stocks strengthened. TikTok, Uni-President Big Market concept active.

Market hit a morning low and rebounded, with the ChiNext Index falling more than 1% at one point. As of noon close, the Shanghai Composite Index fell 0.1%, the Shenzhen Component Index fell 0.26%, and the ChiNext Index fell 0.32%. On the market front, the magazine "Seeking Truth" published an important article "Deepening the Construction of a Unified National Big Market", leading to concepts like logistics and unified big market rising. Stocks like Ccoop Group Co., Ltd., Shanghai Lily & Beauty Cosmetics hit the limit up; stimulation from the basic framework consensus reached by China and the US on the TikTok issue led to a collective surge in concepts like Douyin and Xiaohongshu, with Guangdong Advertising Group hitting the limit up. In addition, the liquid-cooled server sector rebounded, with stocks like Beijing Tricolor Technology and Jiangsu Lopal Tech. Group hitting the limit up; the automobile industry chain and Siasun Robot & Automation sectors remained strong, with Wanxiang Qianchao hitting the limit up; low-priced stocks were active, with Shanghai Construction Group hitting a triple limit; sectors like real estate, consumer electronics, diversified finance, clothing and home textiles, and brain-machine interface all saw gains. On the decline side, the non-ferrous metals sector continued to pull back, with Henan Yuguang Gold & Lead leading the losses; the pork, chicken, and breeding sectors declined, with TianYu Bio-Technology hitting the limit down; the solid-state battery sector underwent adjustment, with Zhejiang HangKe Technology falling more than 10%; the lithium extraction from salt lake sector fluctuated downward, with JiangSu JiuWu Hi-Tech leading the declines; insurance stocks weakened again. It is worth noting that the market has seen a series of positive news recently, but funds have been engaged in a tug of war around the 3,900-point mark for the Shanghai Composite Index. When will the market see a breakthrough? A Sinolink research report stated that A-shares experienced a slight adjustment in early September, which may be a short-term expression of market sentiment. However, the third round of revaluation of A-sharesa "slow car" dominated by fundamentalsis gradually approaching. Popular sectors: 1. Douyin concept active The Douyin concept was active, with Guangdong Advertising Group hitting the limit up, and stocks like Easy Click Worldwide Network Technology, BlueFocus Intelligent Communications Group, Inly Media Co., Ltd, and Foshan Yowant Technology following suit. 2. Liquid-cooled server concept rebounds The liquid-cooled server sector rebounded, with stocks like Beijing Tricolor Technology and Jiangsu Lopal Tech. Group hitting the limit up. 3. Siasun Robot & Automation concept stocks strengthened Siasun Robot & Automation concept stocks oscillated higher, with several stocks hitting the limit up in the sector, including Wanxiang Qianchao and Ningbo Joyson Electronic Corp. 4. Real estate sector rises The real estate sector rose, with Beijing Capital Development, Shenzhen Heungkong Holding, and Risesun Real Estate Development hitting the limit up, and other stocks like Tianjin Hi-Tech Development, Wolong New Energy Group, and Tande Co., Ltd. following suit. Institutional Views: 1. Sinolink: Third round of A-share revaluation is approaching, recommend focusing on three asset classes Sinolink's research report stated that A-shares experienced a slight adjustment in early September, possibly reflecting a short-term market sentiment. However, the third round of revaluation of A-sharesdominated by fundamentalsis gradually approaching. Sinolink had three suggestions and directions: for investors already in the market, there is no need to rush to exit, as the current market's rise is supported by global liquidity, long-term valuation repair, and short-term catalysts. Regulatory protection and ample domestic and foreign funds provide solid support to the market. For investors not yet in the market, it is advisable to be patient and wait for a better entry point. Although the market has been repaired, future growth will depend on sustained improvement in economic fundamentals, which takes time. Finally, in the face of possible market downturns, there is no need to panic, as systemic risks are gradually dissipating, market bottoms are rising, and long-term funds are entering. In terms of specific investment directions, it is recommended to focus on three asset classes: 1) high-dividend assets, physical assets, and gold to cope with the uncertainty brought by global stagflation; 2) the technology sector to capture the hope of breakthrough in economic stagnation; 3) China's unique structural opportunities in transformation, especially high-quality companies with unique competitiveness in areas such as going overseas, industrial upgrading, and sinking consumer markets. 2. China Galaxy Securities: AI application continues to advance, game industry expected to maintain high prosperity China Galaxy Securities' research report stated that with the continuous iteration of core large model capabilities, AI applications have laid the technical foundation for development. As AI applications continue to expand into various industries, they are expected to have a transformative impact on most industries. Progress in B-end commercialization in the media sector is more pronounced, with overseas AI technology starting earlier and commercial applications relatively mature. In addition, the game market has maintained a high degree of prosperity since the summer of 2024, with major game companies' new games performing well. Considering the deferred revenue impact of later-stage game revenues and the expected continuation of outstanding performance from new games, the performance of these companies is expected to continue to grow steadily by 2025. 3. CITIC Securities: Streamline energy storage pricing mechanism, domestic energy storage is expected to grow rapidly CITIC Securities' research report stated that with the release of Document No. 136 by the National Development and Reform Commission, the energy storage industry has entered a new development mode. Based on calculations, energy storage projects currently have basic profitability in the spot market and ancillary services market. Considering that the country may introduce a capacity electricity price mechanism for adjustable resources like energy storage, the certainty of income for energy storage projects will be greatly enhanced, which is important for the investment decisions of customers such as central enterprises. With energy storage capacity at a capacity electricity price level of 100 yuan/kW, if energy storage new installations maintain a growth rate of 30%, the impact on end-user electricity prices is only 1.19%, making the energy storage capacity electricity price feasible. CITIC Securities believes that after the cancellation of mandatory storage in Document 136, the energy storage industry will shift from cost competition to value creation and is expected to optimize the industry competition landscape. They are optimistic about the top manufacturers in the energy storage industry chain. This article is reprinted from "Tencent Stock Selection," edited by Wang Qiujia.