A-share midday review | A-share market experiences huge fluctuations under three-fold pressure, "deep V temptation" reappears! Investors experience two different lives in half a day

On May 15th, the A-share market hit bottom and rebounded, with the three major indexes all turning red. The ChiNext Index had previously fallen by 2%. By noon, the Shanghai Composite Index rose by 0.12%, the Shenzhen Component Index rose by 0.24%, and the ChiNext Index rose by 0.57%. The trading volume of the Shanghai and Shenzhen stock markets was 2.17 trillion yuan by midday, down 98.4 billion yuan from the previous trading day. In terms of market performance, Siasun Robot & Automation concept stocks fluctuated and rose, with over ten component stocks including Greatoo Intelligent Equipment Inc. and China Leadshine Technology hitting the daily limit. The chip industry chain strengthened again, with semiconductor equipment fluctuating and rising. NAURA Technology Group hit the daily limit, reaching a historical high in stock price. The silicon carbide and epoxy resin concepts were active again. The chemical industry sector fluctuated upwards, with Befar Group, Do-Fluoride New Materials, and Zhejiang Zhongxin Fluoride Materials hitting the daily limit. AI application stocks rose, with gaming and cultural media stocks collectively rising, including Inly Media Co., Ltd and Guangdong Guangzhou Daily Media hitting the daily limit. Liquid cooling concepts were active again, with JinFu Technology and Zhejiang Dayuan Pumps Industry hitting the daily limit. In terms of declines, the precious metals and non-ferrous metals sectors collectively fell, with Ningbo Zhongbai approaching the limit down, and Chengtun Mining Group and Henan Yuguang Gold & Lead falling by more than 5%. The power and power grid equipment concepts fluctuated and adjusted, with Henan Yuneng Holdings and Henan Tong-Da Cable falling by over 5%. The photovoltaic equipment concept fluctuated and declined, with Hangzhou First Applied Material and Wuxi Autowell Technology Co., Ltd. falling by over 7%. The pork and breeding sectors experienced a correction. Liquor stocks went into a correction, with Jiugui Liquor and Luzhou Laojiao falling by over 3%. The port and shipping sector weakened, with Nanjing Tanker Corporation falling by nearly 7%. According to public information from the market and the latest analysis from brokerage institutions, the recent turmoil in the A-share market is not caused by a single negative factor, but rather the result of three resonating factors: internal profit-taking, external liquidity disturbances, and micro-performance shocks. Firstly, there was a mass exodus of profits at high levels. After the holidays, A-shares (especially the ChiNext Index) continued to rise, with popular sectors such as AI computing power and optical communication seeing significant gains, accumulating substantial profits. As the index approached the key resistance level of 4200 points, there was increased divergence in funds, with some major players choosing to "take profits and run," leading to a stampede-style exodus. Secondly, external disturbances, including the situation in the Middle East (repeated U.S.-Iran conflicts) and the change in expectations for a Fed rate cut. Recently, inflation data (CPI/PPI) in the United States exceeded expectations, causing market concerns that the pace of Fed rate cuts could be further delayed, leading to a rise in the 10-year U.S. Treasury yield. This directly suppressed the valuation of global growth stocks (especially AI and semiconductors in A-shares). Thirdly, there have been frequent occurrences of "shocking" performances for companies during the earnings verification period. Pre-announced earnings and actual data for popular stocks like Taiji Computer Corporation, Fujian Start Group, and Shanghai Wondertek Software showed serious deviations (some were even delisted due to falling short of revenue standards), directly triggering a wave of limit downs for those stocks. This kind of "earnings flip-flop" seriously undermined market confidence in high-valuation stocks, leading to an increase in risk aversion sentiment. Looking ahead, Cai Xin Securities believes that the current market environment has not fundamentally changed, the short-term uptrend in volatility has not completely deteriorated, and a full adjustment can help build up momentum for upward movement. In the short term, the technology sector may still be the market's main trend, with rotational trends in other directions. It is recommended to grasp the market's rotation rhythm and pay attention to opportunities for recovery in core stocks after divergences. Popular Sectors: 1. Siasun Robot & Automation concept stocks surged The Siasun Robot & Automation concept surged, with over ten component stocks hitting the daily limit, including Greatoo Intelligent Equipment Inc., China Leadshine Technology, Keli Motor Group, Zhejiang Zomax Transmission, and Shandong Daye. Analysis: On the news front, the local regulation "Hangzhou Municipal Regulation on Promoting the Development of Siasun Robot & Automation Industry" was officially implemented, marking the transition of the Siasun Robot & Automation industry from technical exploration to standardized development. 2. Fluorine chemical concept stocks strengthened The fluorine chemical sector collectively strengthened, with Befar Group, Zhejiang Zhongxin Fluoride Materials, and Do-Fluoride New Materials hitting the daily limit. Analysis: According to reports, the Korean semiconductor hydrofluoric acid supply chain is facing pressure again. After a significant increase in prices of key upstream materials, the market expects another round of price increases in June and July. Anhydrous hydrogen fluoride is the core raw material for producing semiconductor-grade hydrofluoric acid. The impact of supply interruptions caused by tensions in the Middle East has spread to the chemical market, with prices rising by about 40% since the beginning of the year. 3. AI application side rises The AI application side rose, with gaming and cultural media stocks collectively rising, including Inly Media Co., Ltd and Guangdong Guangzhou Daily Media hitting the daily limit. Analysis: On the news front, Google reportedly plans to announce a series of Android system upgrades at the I/O developer conference. Google is reportedly working to upgrade its Gemini model for chatbots to a system-level layer deployed on phones, browsers, car systems, and laptops. 4. Semiconductor equipment stocks continue to rise Semiconductor equipment stocks continued to rise, with NAURA Technology Group hitting the daily limit, with a total market value breaking through 450 billion yuan. Analysis: CMSC believes that the capital expenditure driven by CSP by 2026 is boosting the prosperity of the AI industry chain, with a clear trend of expanding domestic storage capacity and continuing good equipment orders. Institutional Views: Cai Xin Securities: Short-term uptrend in volatility is not fundamentally bad Cai Xin Securities believes that on May 14th, A-shares experienced an adjustment without significant external negative factors, mainly due to profit-taking pressure after the ChiNext hit a new high and the realization of positive news after the "Trump visit to China" event. Although the Shanghai Composite Index fell below the 5-day moving average, the market environment has not fundamentally changed, and the short-term uptrend in volatility is not fundamentally bad, with a full adjustment being favorable for building up momentum for upward movement. In the short term, the technology sector may still be the market's main trend, with rotational trends in other directions. It is recommended to grasp the market's rotation rhythm and focus on opportunities for recovery in core stocks after divergences. Zhongtai: The market has entered the "midsummer", brokerage valuations are still at a "freezing point" and this deviation may be difficult to sustain According to Zhongtai's research report, the trading activity in the market has been steadily increasing since 2025, but the brokerage sector has clearly lagged behind the overall trend, with a PB ratio of only 1.3 times currently, sharply contrasting with positive fundamental expectations. In comparison, the brokerage sector index in late April 2026 is equivalent to the Shanghai Composite Index at around 3400 points in the most recent range, a difference of about 20%. The brokerage sector usually plays the leading role of "the early warning signal in the spring", but now the market has entered the "midsummer", and the valuation of brokerages is still at a "freezing point". We believe that this deviation may be difficult to sustain. First-tier (priority allocation): low-valuation top comprehensive brokerages (CITIC, CICC, and Huatai), with ample room for valuation recovery due to strong comprehensive strength, concentration in the industry, and benefits from mergers and acquisitions and policy dividends. Second-tier (flexible allocation): feature brokerages (GF Securities, Industrial Bank, and Orient Securities) with high cost-effectiveness and clear improvement in ROE, with extensive asset-light businesses such as wealth management, asset management, and underwriting also significant. Guosheng: The trend of rising prices for computing power leasing continues The Agent and AI Coding have driven a structural leap in demand, with supply-demand gaps driving up prices for computing power leasing and cloud services. Computing leasing refers to enterprises or individuals renting the necessary computing power from service providers with large computing resources through payment of rent, essentially trading OPEX for CAPEX, with channels, customers, and capital boosting the flywheel. Looking at the North American computing rental market, NeoCloud has accelerated, with high cost-effectiveness and availability filling the high-end computing demand for major companies. In the North American market, there are two main options for renting computing power: Hyperscalers and NeoCloud. The high-end demand for computing power from leading cloud providers still has gaps that need to be filled quickly through cooperation with NeoCloud, which focuses on providing computing resources optimized for workloads in the AI field, with better cost-effectiveness and computing efficiency, and significant advantages in high-performance proprietary clusters and long-term contract optimization. Looking at the Chinese computing rental market, there is a shortage of high-end computing power, and a profitable virtuous cycle has started. The U.S. technology blockade against China has intensified, and computing power leasing can effectively alleviate the shortage of high-end chips in the short term. Internet customers are the main demand drivers in the computing rental market. There are various modes of computing power leasing, with flexible choices of independent/virtualized time sharing depending on capital and demand. Some computing leasing companies have gradually completed the delivery, acceptance, and entry into the substantive billing phase of large computing clusters deployed early, gradually opening up the business cycle, and accelerating profit release in the first quarter of 2026. This article is reprinted from "Tencent's selected stocks", GMTEight editor: Wang Qiujia.