A-share market closing review | A-share counterattack, don't leave this time, it's a real "V"! The Shanghai Composite Index rebounded with light trading volume, rising by 1.78%, and more than a hundred stocks in the market hit the daily limit.

Today, the A-shares hit a bottom and rebounded, with the Shanghai Composite and Shenzhen Component Index both rising by over 1%, and the ChiNext Index turning red at the end of the day after dropping nearly 2.5% earlier. By the close, the Shanghai Composite Index rose by 1.78%, the Shenzhen Component Index rose by 1.43%, and the ChiNext Index rose by 0.5%. Overall, individual stocks in the market experienced a general rise, with over 5100 stocks increasing, including approximately 100 stocks hitting the daily limit. The trading volume in the Shanghai and Shenzhen markets was 2.08 trillion, a decrease of 348.7 billion compared to the previous trading day. How will the ongoing Middle East "Luo Shengmen" issue continue to affect the global market and how should investors respond? According to Meng Lei, a stock strategy analyst at UBS Securities in China, from a macro perspective, China's reliance on oil and gas is relatively low compared to other major economies. In terms of the index, the short-term surge in oil prices seems to have limited impact on the major indices in the A-share market. The implied volatility of major stock indices in A-shares in recent times is also lower than during the escalation of global trade conflicts in April 2025 and other major overseas stock indices, indicating that the short-term "de-risking" may be coming to an end. Bao Xiaohui, Chairman of Changli Asset Management, advises that the most important thing for ordinary investors at present is to stay calm and not be swayed by panic emotions. Focus on stability in overall operations, control positions well, avoid frequent trading, and even temporarily stay away from the market to avoid being influenced by short-term fluctuations. The current sharp decline is essentially a market cleansing, digesting excess capital and negative news. Once the panic subsides, the market will naturally stabilize and rise gradually. In terms of market performance, the military industry sector was strong throughout the day, with stocks like Hunan Tyen Machinery, Jianshe Industry Group, and Anhui Greatwall Military Industry hitting the daily limit. The green energy, power, and photovoltaic industries all saw increases, with stocks like CECEP Wind-Power Corporation, DaTang HuaYin Electric Power, and Huadian Liaoning Energy Development hitting the daily limit. The concept of power grid equipment was active, with stocks like Beijing Creative Group and Qingdao Hanhe Cable hitting the daily limit. The medical services and CRO concepts were strong, with stocks like Jiangxi Fushine Pharmaceutical and Ningbo Menovo Pharmaceutical hitting the daily limit. The environmental protection sector also showed strong performance, with stocks like Wuxi Xuelang Environmental Technology hitting the daily limit. Other sectors such as computing power leasing, optical modules, PCBs, and optical fibers also saw increases. In terms of declines, oil and gas stocks saw adjustments, with Tong Petrotech Corp., KLGF, and Geo-Jade Petroleum Corporation dropping by over 5%. The commercial aerospace sector also fluctuated lower, with stocks like Guanglian Aviation Industry and Hangzhou Oxygen Plant Group dropping by over 5%. Additionally, sectors like insurance, coal, and photovoltaic equipment showed weaker performance. Hot sectors: 1. Green energy and new energy industry chains saw increases. 2. The military industry sector was strong throughout the day. 3. The CRO concept was strong. 4. The shipping sector saw fluctuations and increases. Institutional views: - Guotai Haitong believes that the short-term impact of geopolitics on A-shares is present but not profound. - Western believes that large fluctuations provide opportunities for entering the next main line. - Ping An Securities believes that market volatility may continue until the situation becomes clear. This article was originally published on "Tencent Self-selected Stocks" and edited by GMTEight: Chen Xiaoyi.