A-share midday review | A-share opens the repair market? The market warms up and the ChiNext rises nearly 2% in half a day, "AI cooling" becomes a new trend.

On May 22, the market rebounded, with the three major indexes fluctuating and rising, with the Shenzhen Component Index and the ChiNext Index both rising by over 1%. By midday close, the Shanghai Composite Index rose by 0.47%, the Shenzhen Component Index rose by 1.39%, and the ChiNext Index rose by 1.91%. Trading volume noticeably contracted, with the total turnover in the Shanghai and Shenzhen markets reaching 1.78 trillion yuan by midday, a decrease of 324.3 billion yuan compared to the previous trading day. In terms of market performance, the heat dissipation application of diamonds surged, nurturing the diamond concept, with Sf Diamond Co., Ltd. hitting the limit up, and Henan Huanghe Whirlwind and Hengsheng Energy also limit up; the PCB concept sparked the hardware stocks, with composite copper foil, optical module, and high-speed copper connector stocks all rising collectively, with Avary Holding, Grace Fabric Technology, and Zhuhai Bojay Electronics all hitting the limit up; the semiconductor industry chain was actively fluctuating, led by lithography machines and advanced packaging sectors; the quantum technology concept fluctuated and rose, with Koal Software hitting the limit up; the glass substrate concept continued its upward trend, with Shanghai Skychem Technology hitting the limit up; the battery industry chain rose, with Shenzhen Center Power Tech. hitting the limit up; the Siasun Robot & Automation sector rose once again, with Shenzhen Das Intellitech and other stocks hitting the limit up; the ultra-high voltage and power grid equipment sectors rose during trading, with Jinlihua Electric and others hitting the limit up. On the downside, the liquor, home appliance, and tourism sectors, part of the consumer concept, led the market lower, with Gansu Huangtai Wine-Marketing Industry, Jinhui Liquor, and others falling. Additionally, according to Caijing News, while the A-shares experienced a significant pullback yesterday, Korean investors took the opposite approach and bought into several securities, initiating a bargain-hunting mode. The securities that Korean investors bought the most on net yesterday were the Huaxia CSI Siasun Robot & Automation ETF, with a net purchase amount of 3.2111 million US dollars and no sellout amount; the second-ranked security in terms of net purchase amount was the leading PCB company in the sub-sector, Shenzhen Fastprint Circuit Tech, with a net purchase amount of 2.7576 million US dollars and a sellout amount of 0.0237 million US dollars. Korean investors also net bought into several ETFs, such as the Huaxia CSI Electric Power Equipment ETF, the Science and Technology Innovation Index ETF, and the Huaxia CSI Semiconductor Chip ETF, as well as bargained for stocks like Luxshare Precision Industry, Jiangsu Zhongtian Technology, and Shenzhen Techwinsemi Technology, among others. Looking ahead, Lianhe Securities stated that the current market is showing a clear divergence at the high end, with a decline in profitability, and extreme structural differentiation. Therefore, in the short term, it is advisable to avoid chasing high prices, focus on buying low and selling quickly, and patiently wait for the market sentiment to recover. Hot sectors: 1. Nurturing diamond concept showing strength The nurturing diamond concept was strong, with Sf Diamond Co., Ltd. hitting the limit up, and Henan Huanghe Whirlwind and Hengsheng Energy also hitting the limit up. 2. PCB concept collectively rising The PCB concept collectively rose, with Baoding Technology hitting the limit up for the 3rd consecutive day, Avary Holding, Shandong Fiberglass Group Corp., Shenzhen Q&D Circuits, and Guangzhou Fangbang Electronics all hitting the limit up. 3. Siasun Robot & Automation concept showing repeated activity The Siasun Robot & Automation concept showed repeated activity, with Hangzhou Hota M&E Holdings and Zhejiang Fenglong Electric both hitting the limit up for the 2nd consecutive day. 4. Quantum technology concept stocks fluctuating and rising The quantum technology concept stocks fluctuated and rose, with Koal Software hitting the limit up, Quantumctek Co., Ltd., GuoChuang Software, Digital China Information Service Group, and FORSTAR all following suit. Institutional viewpoints: - Yingda Securities: The market is expected to continue with a range-bound volatility in the short term, with potential for bottoming out and rebound. - Lianhe Securities: In the short term, it is recommended to avoid chasing high prices and patiently wait for market sentiment to recover. - China Securities Co., Ltd.: Fund clustering becoming a market norm, AI computing power scarcity continuing.