A-shares midday review: A-shares retreated under dual pressures, with the Sci-Tech Innovation 50 index dropping nearly 3% in half a day! Is the adjustment really starting?

On May 8th, the three major A-share indexes collectively consolidated, with the ChiNext Index rising in midday trading before falling again, and the Sci-Tech 50 Index dropping nearly 3% in half a day. By the midday close, the Shanghai Composite Index fell by 0.43%, the Shenzhen Component Index fell by 0.94%, and the ChiNext Index fell by 0.98%. The total turnover of the Shanghai and Shenzhen stock markets in the morning was 1.97 trillion yuan, a decrease of 16.1 billion yuan from the previous trading day. According to publicly available market data, the market is facing dual pressures of the "external black swan event impact" and the "internal technical adjustment demand." Firstly, on May 8th local time, tensions in the Middle East escalated once again. According to CCTV news, Iran claimed that three US warships near the Strait of Hormuz were hit by the Iranian navy and there was an exchange of fire. Analysts pointed out that the market narrative has quickly shifted from optimistic expectations for artificial intelligence to concerns about the tense situation in the Middle East. Overnight, European and American stock markets fell, and this pessimistic sentiment directly transmitted to A-shares and Hong Kong stocks at the opening. Secondly, after consecutive large gains on May 6th and 7th, major index technical indicators entered into overbought territory. At the same time, the short-term gains of leading sectors such as semiconductors, computing power, and CPO in the previous period were significant, accumulating substantial profits. There were signs of "high-low switching" in the market, with funds flowing from high-end hardware to low-end AI applications, games, and other sectors. However, EB SECURITIES believes that although tensions in the Middle East are still ongoing, the market's marginal changes in response to the Middle East situation have gradually dulled after previous adjustments. The short-term disruptions caused by risk aversion sentiment are weakening marginally. Additionally, with the end of the earnings season, the uncertainty brought about by earnings disclosures will diminish. "The A-share market may continue its pattern of volatile upside." In terms of structure, it is recommended to focus on sectors where the fundamentals are expected to continue to improve, including hard technology, export chains, and natural resources. In terms of market performance, concepts such as flexible hands, decelerators, PEEK, and humanoid Siasun Robot & Automation were strong, with stocks like Est Tools Co., Ltd. and Zhejiang XCC Group reaching their daily limit up. The commercial aerospace concept continued to rise, with Beijing Aerospace Changfeng and Jiangxi Redboard Technology among the stocks hitting their limit up. The fiber optic cable concept continued to rise, and Tongding Interconnection Information reached its daily limit up. In addition, concepts like port shipping, oil services, oil and gas industry chains, domestic software, creative innovation, and AI applications all showed strength. Conversely, concepts like CPU, semiconductors, storage chip, and lithium battery membranes showed declines. Popular Sectors: 1. AI applications sector regains activity, with China National Software & Service hitting its daily limit up. 2. Humanoid Siasun Robot & Automation concepts were strong, with Greatoo Intelligent Equipment Inc. and other stocks hitting their daily limit up. 3. Commercial aerospace concepts continued to rise. 4. Computing power chips concepts were adjusting. Analysts Point of View: EB SECURITIES: Marginal changes from Middle East tensions have gradually dulled. China Securities Co., Ltd.: Lithium battery energy storage sector shows clear upward signal. Galaxy Securities: Token consumption expected to increase significantly, four major directions to accelerate benefits.