A-share midday review | ChiNext falls more than 1% in half a day, Shenzhen local stocks rise against the market, computing power hardware direction declines

On October 23, the A-share market opened weakly in the morning session, with the Shanghai Composite Index once again falling below 3900 points, and trading volume shrinking. The half-day turnover was 1.05 trillion yuan, a decrease of 50.8 billion from the previous trading day. By midday, the Shanghai Composite Index fell by 0.66%, the Shenzhen Component Index fell by 0.87%, and the ChiNext Index fell by 1.10%. It is worth noting that the dividend theme continued to be active today. According to the China Securities Journal, with the dense release of third-quarter reports, many A-share listed companies have also simultaneously announced their third-quarter dividend plans to reward investors with real money. Wind data shows that as of October 22, at least 18 A-share listed companies plan to distribute cash dividends totaling over 3.4 billion yuan. The active introduction of cash dividend plans by listed companies has also increased investor attention to dividend-related assets to some extent. Institutions believe that the short-term dividend sector is expected to become a safe haven for funds, and investors may consider low-position layouts to enhance asset allocation certainty, with a focus on specific sectors such as banks, coal, electricity, transportation, and ports. On the market front, the dividend theme was active against the trend, with coal stocks rebounding strongly and popular stock Henan Dayou Energy hitting its eighth consecutive limit up; in addition, sectors such as banking, electricity, transportation, and ports were among the top gainers. In other hot spots, the Shenzhen state-owned enterprise reform sector saw a wave of limit up, with over 10 stocks such as Shenzhen Textile hitting the limit up; the media sector was active, with Hicon Network Technology hitting the limit up. On the downside, the computing power hardware sector collectively declined, led by CPO concept stocks, with stocks like Suzhou TFC Optical Communication and Yangtze Optical Fibre And Cable Joint Stock dropping sharply, with semiconductors, new energy tracks, and pharmaceuticals leading the losses. Looking ahead, Debang Securities believes that if trading volume continues to decline, caution should be exercised due to the risk of insufficient market liquidity support. The focus of future policies during the "Fifteenth Five-Year Plan" period may become the focus of the market's new main theme. Popular Sectors: 1. The Shenzhen state-owned enterprise reform sector broke out. The Shenzhen state-owned enterprise reform sector saw a wave of limit up, with over 10 stocks such as Shenzhen Textile, Shenzhen Leaguer, Shenzhen Grandland Group, ShenZhen Properties & Resources Development(Group) Ltd., Shenzhen Zhenye(Group), Shenzhen Seg, and Shenzhen Institute of Building Research hitting the limit up. Comments: On the news front, Shenzhen City released a plan to promote high-quality development through mergers and acquisitions, with the goal of comprehensively improving the quality of listed companies within its jurisdiction by the end of 2027, and cultivating 20 companies with a total market value of over 2 trillion yuan, completing over 200 mergers and acquisitions with a total transaction value exceeding 100 billion yuan, and implementing a batch of industry demonstration cases. 2. The coal sector rebounded strongly. The coal sector rebounded strongly, with popular stock Henan Dayou Energy hitting its eighth consecutive limit up, and multiple stocks like Zhengzhou Coal Industry & Electric Power, Shaanxi Heimao Coking, and Yunnan Coal & Energy also hitting the limit up. Comments: According to reports, the strongest cold air since the second half of the year is currently in progress. This round of cold air will not only bring stronger cold weather to the north, but also end the rare hot weather in the south. After the temperature drops, temperatures in most parts of the country will hit new lows for the second half of the year. CITIC SEC stated that with improvements in policies, coal prices, and performance expectations, the probability of a fourth-quarter rebound in the coal sector is increasing. Institution Views: 1. Debang Securities: Be cautious of the risk of insufficient market liquidity support if trading volume continues to decline. Debang Securities believes that cautious sentiment prevails and maintains a balanced allocation view. Although the Shanghai Composite Index was relatively flat on Wednesday, the resilience mainly relied on heavyweight sectors like finance and energy, while the adjustment of growth stocks in the Shenzhen market may reflect a shift of funds from overvalued technology stocks to undervalued value stocks. It is advisable to maintain a balanced allocation approach. The continued decline in market turnover also indicates a decrease in market enthusiasm. If trading volume continues to decline, caution should be exercised due to the risk of insufficient market liquidity support. The Fourth Plenum of the Twentieth Central Committee is coming to a close, and the future focus of the market may be on the direction of emphasis in the Fifteenth Five-Year Plan. The big direction of technology and new segments such as "deep earth economy" may see new catalysis, and aspects such as expanding domestic demand may also be a policy focus, making the consumer sector worthy of further attention. 2. HuaJin Securities: Focus on technological innovation and expanding domestic demand. HuaJin Securities believes that looking back, the release of suggestions for the "Five-Year Plan" will have a limited impact on the overall trend of A-shares, but the performance of related industries emphasized before and after the release of suggestions for the "Five-Year Plan" may have an advantage. It is expected that the implementation of the Fifteenth Five-Year Plan may further strengthen the technology theme. Industries that may benefit include: in the direction of technology self-reliance and the construction of a modern industrial system, new productive forces related industries such as computers, electronics, communications, and Siasun Robot & Automation; in the direction of consumer stimulation and livelihood security, innovative medicines, new consumption, and related industries; in the direction of green and low-carbon transformation, industries related to "dual carbon" targets such as electric vehicles, agriculture, forestry, animal husbandry, and fishery; in the direction of new development patterns and deepening reform and opening up, industries related to "anti-inner circle" and state-owned enterprise reform, including non-ferrous metals, electric vehicles, petrochemicals; in the direction of independent and controllable and national security, industries related to aerospace, deep earth economy, marine economy, and so on. 3. EB SECURITIES: The market saw a minor adjustment with low trading volume, but the trend remains unchanged. EB SECURITIES believes that looking ahead, the market saw a minor adjustment with low trading volume on Wednesday, with the trend unchanged, and the index is expected to continue to fluctuate upward. Direction: Consumer electronics sector. The 2025 Shanghai International Consumer Electronics Exhibition will be held on October 23, showcasing cutting-edge technologies such as 5G, artificial intelligence, and virtual reality, which may stimulate related concepts. This article is reprinted from "Tencent Self-selected Stocks," GMTEight Editor: Wang Qiujia.