A-share midday review | Global "AI narrative trading" market, A-shares "continue to play music and dance"! The ChiNext Index rose nearly 1% in the morning

On May 7th, the market fluctuated upwards, with the ChiNext Index showing a stronger performance and the BSE 50 Index rising over 4% intraday. By midday, the Shanghai Composite Index was up 0.25%, the Shenzhen Component Index was up 0.71%, the ChiNext Index was up 0.98%, and the BSE 50 Index was up over 2%. The total turnover of the Shanghai and Shenzhen stock markets in the first half of the day was 1.98 trillion yuan, a decrease of 97.6 billion yuan compared to the previous trading day. On the market front, a global "AI narrative trading" trend is emerging, with most thematic concepts showing upward trends and explosive localized profit effects. Concepts such as fiber optic cables, optical modules, PCBs, electronic fabrics, and storage chips continued to soar. Stocks like Tongding Interconnection Information and Focuslight Technologies Inc. hit limit up. Concepts like Robotics and Automation rebounded, with stocks like Wuhan Huazhong Numerical Control and Shanghai Hajime Advanced Material Technology hitting limit up. Photovoltaic concepts such as space photovoltaics, photovoltaic equipment, and inverters strengthened, with stocks like Hainan Drinda New Energy Technology and Shanghai Geoharbour Construction Group Co., Ltd. hitting limit up. Consumer electronics, foldable screens, and Apple concepts rose, with stocks like Gettop Acoustic hitting limit up. The Google industrial chain gained strength, with stocks like Shenzhen SDG Information hitting limit up. Concepts like semiconductors, advanced packaging, and lithography machines continued to show strength, with stocks like TKD Science and Technology hitting limit up. Concepts like electricity and grid equipment strengthened, with multiple stocks hitting limit up. The concept of commercial aerospace, satellite internet, military-industrial chain, football revitalization, and energy storage all trended upwards. In terms of declines, the lithium battery concepts such as lithium resources, electrolytes, lithium iron phosphate, and brine lithium all saw a pullback. Stocks like Shida Shinghwa Advanced Material Group and Dazhong Mining approached limit down. Chemical industry concepts like urea, industrial gases, soda ash, methanol, and phosphate chemicals all trended lower, with Shuifa Gas Co., Ltd. hitting limit down. The oil and gas industry chain, oilfield services, and petroleum concepts continued to weaken, with Hengyi Petrochemical approaching limit down. Consumer concepts like food and beverages, dairy, and retail continued to show weakness. Agriculture and aquaculture concepts continued to trend lower. Some financial sectors like banks, securities firms, and securities IT saw collective declines. Looking ahead, Guotai Haitong believes that the upward momentum in the Chinese stock market is far from over and is poised to reach new highs. They expect the post-earnings market breadth to significantly expand, and small to medium-sized themes with industrial catalysis may see investment opportunities. Emerging technologies will be the main focus in the industry, and there will also be value opportunities. Hot sectors: 1. Photovoltaic concept strengthening 2. Fiber optic concept strengthening 3. PCB concept activity 4. Industrial gas concept weakening Institutional viewpoints: - Guotai Haitong: Stock market expected to reach new highs, market breadth to further expand - China Securities Co., Ltd.: Continues to be bullish on the AI industry chain - Huatai: Focus on three major clues from the perspective of foreign investment allocation