A-share midday report | Index rises and falls after hitting a high, pharmaceutical innovation and consumer goods sectors strengthen, semiconductor and other sectors adjust.

On October 15th, A-shares soared in early trading and then fell back, but turned red again near midday close. By the midday close, the Shanghai Composite Index rose by 0.1%, the Shenzhen Component Index rose by 0.00%, and the ChiNext Index rose by 0.22%. Orient believes that in terms of the intensifying short-term index fluctuations, external negative factors are causing disturbances, while internally, the market has reached relatively high levels and needs time to exchange for future upward potential. The current consolidation can still be seen as part of the sideways movement since the end of August, but the main trend is still upward movement at the opportune moment. From a strategic perspective, the core position of the large technology sector remains unchanged, and there is a continued focus on acquiring dips in the autonomous and controllable sector, as well as the cyclical sector with good prospects. In terms of the market, the hot spots are relatively chaotic with overall fluctuations. The large consumer sector continued to be strong, with beauty, retail, and food and beverage companies leading the gains. On the other hand, the rare earth sector saw multiple stocks decline, while sectors like ports and shipping, military industry, semiconductors, and securities also experienced significant drops. Looking ahead, Zheshang believes that despite external shocks, the strategic view remains optimistic, and there may be a change in market style. In terms of industry allocation, it is recommended to focus on large financial, real estate, mid-cap infrastructure, dividend stocks, etc. Popular sectors: 1. Strong performance in the consumer sector with companies like Jiangxi Guoguang Commercial Chains and Shanghai Jahwa United leading the gains. 2. Strong performance in the domestic software sector with companies like Beijing Join-cheer Software and Fujian Rongji Software leading the gains. 3. Rebound in the pharmaceutical sector, particularly in innovative drugs, with companies like Zhejiang Anglikang Pharmaceutical leading the gains. 4. Upsurge in quantum technology companies like Koal Software, Beijing Infosec Technologies Co., Ltd., and Quantumctek Co., Ltd. Institutional Views: 1. Zheshang: External shocks do not change the strategic bullish view, market may see a change in style. 2. Huatai: Market may experience fluctuations to digest pressure. 3. Orient: The main trend remains upward movement at the opportune moment.