A-share midday review | What happened? A-share differentiation, ChiNext 50 soars more than 3%! Funds aggressively attack technology and growth.

On April 27, against the backdrop of the ongoing tensions between the US and Iran, the Asia-Pacific markets saw an independent trend of "ignoring risks" with South Korea, Taiwan, and Japan all hitting historical highs in their stock markets. Market analysis once again confirmed that investors are no longer fixated on the twists and turns of the Iran situation, but are refocusing their attention on positive factors such as chip supply shortages that are beneficial to the AI industry. In the A-share market, the market experienced narrow fluctuations in the morning session, with the three major indexes showing mixed movements, and the Sci-Tech Innovation 50 Index rising by over 3%. By midday close, the Shanghai Composite Index rose by 0.15%, the Shenzhen Component Index rose by 0.52%, and the Growth Enterprise Market Index fell by 0.20%. The total turnover of Shanghai and Shenzhen markets in the morning session was 1.7 trillion yuan, a decrease of 28.7 billion yuan compared to the previous trading day. In terms of the market performance, the semiconductor sector saw a steady rise, with national major funds holding stocks in storage chips, advanced packaging, and other related companies leading the gains. Shanghai Fullhan Microelectronics and Dosilicon Co., Ltd. rose by over 10%. The AI computing hardware concept continued to strengthen, with companies in the light modules, fiber optic cables, PCB, and MicroLED sectors leading the gains. Companies like Luxshare Precision Industry reached the daily limit to hit historical highs. Looking ahead, China Securities Co., Ltd. believes that the situation in the US-Iran negotiations is currently in a stalemate, and oil prices have fluctuated back above $105. Although this will continue to be a disruptive factor in the market, the tail risks of the situation spiraling out of control are relatively limited. Additionally, A-shares have become less sensitive to geopolitical concerns. The performance of the AI computing sector may face some disruptions, but it still remains a scarce and highly prosperous direction. Popular Sectors: 1. Strong performance in AI computing hardware sector, with companies like Shennan Circuits reaching historical highs. 2. Semiconductor sector saw a steady rise, with companies like Shanghai Fullhan Microelectronics leading the gains. 3. Active performance in the fiber optic sector, with companies like Jiangsu Zhongtian Technology reaching historical highs. 4. Weak performance in the AI computing leasing concept sector, with companies like Hang Zhou Iron & Steel and Zhejiang Daily Digital Culture Group experiencing declines. Institutional Views: China Securities Co., Ltd.: External risks are controllable, focus on three main industry lines - AI computing, energy security, and midstream manufacturing, especially in the new energy sector. EB SECURITIES: Short-term market may continue to fluctuate in an upward trend. CMSC: Focus on first-quarter financial reports for validation and direction of continued prosperity. This article is reproduced from "Tencent Stock Selection", GMTEight edited by Wang Qiujia.