Midday Review of A-shares | A-share market shows a significant differentiation, with the index of innovation and entrepreneurship rising in tandem! Semiconductor industry sees "the return of the king"

The prospect of US-Iran talks is uncertain, shaking the confidence of Wall Street bulls. Despite a significant drop in oil prices, major US stock indexes closed basically flat on Wednesday. On May 28, the three major indexes rebounded after hitting bottom, with the ChiNext Index leading the way by turning positive, dropping nearly 2% at one point during the day, while the Sci-Tech 50 continued to strengthen. By noon, the Shanghai Composite Index fell by 0.14%, the Shenzhen Component Index fell by 0.26%, the ChiNext Index rose by 0.21%, and the Sci-Tech 50 Index rose by 1.29%. The total trading volume in Shanghai and Shenzhen markets was 1.78 trillion yuan, down by 285.4 billion from the previous trading day. On the market, the power concept continued to surge, with stocks like Ningbo Energy Group and Huadian Energy hitting the limit up; the artificial diamond concept rose, with Henan Huanghe Whirlwind and Sf Diamond Co., Ltd. hitting the limit up; upstream materials of PCB such as MLCC, copper clad laminates, copper foils, and electronic fabrics all rose sharply, with stocks like Guangdong Fenghua Advanced Technology and WG Tech(JiangXi)Group hitting the limit up; the semiconductor industry chain, including IGBT, power chips, Semiconductor Manufacturing International Corporation, remained active, with stocks like Jilin Sino-Microelectronics hitting the limit up; concepts like optical modules, PCB, and optical fiber cables in the computing power hardware sector rose, with stocks like Shenzhen Colibri Technologies and Yunnan Lincang Xinyuan Germanium Industry hitting the limit up; coal stocks continued to rise, with Beijing Haohua Energy Resource hitting the limit up. On the downside, concepts like humanoid robots such as Siasun Robot & Automation, dexterous hands, and gear reducers continued to decline, with Zhejiang Zomax Transmission approaching the limit down; the AI drama concept saw a one-day drop, with Kunlun Tech falling more than 5%; large financial concepts like securities, banks, insurance, and internet finance continued to decline; the liquor and consumer goods concept saw a one-day drop, with Anhui Golden Seed Winery falling more than 7%; concepts like AI programming and AI intelligent bodies continued to decline; concepts related to lithium batteries like lithium hexafluorophosphate, fluorine chemicals, lithium resources, and lithium iron phosphate all fell; concepts like CRO, innovative drugs, and weight loss drugs in the pharmaceutical sector remained weak; concepts like domestication of computing power and computing power leasing continued to decline; concepts like glass substrates, PPO resins, small metals, gold, and solid-state transformers collectively remained weak. Looking ahead, China Securities Co., Ltd. believes that in the short term, the market is likely to exhibit the characteristics of "index mild fluctuations and accelerated style rotation", with the market focus potentially migrating from the previous growth direction of AI computing power towards low-end consumption, electricity, and semiconductor domestic substitution. Hot Sectors 1. Chip industry chain rebounds The chip industry chain rebounded, with Anhui Guofeng New Materials, Jiang Su Yida Chemical, and Kangda New Materials hitting the limit up, while Hua Hong Semiconductor rose by nearly 15%, hitting a new historical high. Comment: On the news front, Taiwan Semiconductor Manufacturing Company plans to raise its 3nm processing wafer foundry prices again in the second half of 2026, with the highest increase reaching 15%, and may further rise by 5% to 10% in 2027. 2. Cultivated diamond concept surges The cultivated diamond concept surged, with Sf Diamond Co., Ltd. and Henan Huanghe Whirlwind hitting the limit up. Comment: According to reports, composite materials of diamond and copper have been scaled up in use in the Zhengzhou supercomputing center, increasing the heat transfer capacity of chip modules by 80%, marking the first large-scale use of diamond-copper composite materials in the country. 3. Power sector shows strength against the trend The power sector showed strength against the trend, with Huadian Energy hitting its fourth consecutive limit up, Guangdong Electric Power Development hitting its second consecutive limit up, and Shenyang Huitian Thermal Power and Gepic Energy Development hitting the limit up. Comment: On the news front, at 13:44 on May 27, Guangdong Grid reached a new peak in electricity consumption this year, reaching 165.93 million kilowatts, up 0.61% year-on-year, with the first peak appearing nearly two months earlier than in previous years. 4. Real estate sector remains active The real estate sector remained active, with Shenzhen Tagen Group hitting the limit up, and Rongan Property, Tianjin Jintou State-owned Urban Development, Beijing Dalong Weiye Real Estate Development following suit. Comment: On the news front, the city of Guangzhou recently held a press conference on a series of supporting documents for "Promoting the Stable and Healthy Development of the Real Estate Market", explicitly stating that through the issuance of subsidies and market-based acquisition of second-hand homes, support will be provided for residents to "sell old and buy new". Institutional Views China Securities Co., Ltd.: The short-term market is likely to exhibit the characteristics of "index mild fluctuations and accelerated style rotation" Looking ahead, it is necessary to pay close attention to the substantial driving force of the storage industry chain after the approval of Changxin Technology's IPO, and whether hot money will form new sustainable hot spots in the directions of consumption and electricity after fleeing from high-tech sectors. In summary, the short-term market is likely to exhibit the characteristics of "index mild fluctuations and accelerated style rotation", with the market focus potentially shifting from the previous growth direction of AI computing power towards low-end consumption, electricity, and semiconductor domestic substitution. East Money Information Securities: Technology remains a relatively certain mainline trend for the whole year Chen Guo, Chief Strategic Officer of East Money Information Securities, stated in a research report that after the significant rise in the previous stage of the "return to normal trading + quarterly report market", market divergence in structure is increasing, with some funds seeking structural rebalancing and rotation. This is evident in the pullback of previously high-flying AI computing power (optical modules, storage) popular tracks and the selective profit-taking by some funds in stages. Chen Guo believes that in the medium term, the triple high-growth logic of AI industry capital expenditure, order landing, and performance realization remains unchanged, coupled with the strengthening of the K-shaped macroeconomic differentiation and the reinforcement of the profit advantage of the technology sector, technology remains a relatively certain mainline trend for the whole year. It is recommended to avoid overbought high-level themes in the early stage and prioritize the layout of hardcore sub-segments with high certainty of industrial prosperity, solid order performance, and relatively lagging previous rise. Guosheng: First flight verification of Starship V3 core capabilities, SpaceX going public may usher in a new era of commercial space travel With the accelerated process of SpaceX going public and the continuous iteration of the Starship series, it is reshaping the global commercial space competition landscape and valuation system. The leading overflow effect of SpaceX is expected to resonate with A-share industry chains. On the investment side, it is recommended to focus on upstream segments with high barriers to entry, early realization of performance, prominent docking with national satellite constellation projects, irreplaceable technological barriers, and high matching of production capacity and in-hand orders, as well as quality enterprises that directly benefit from the accelerated deployment of satellite chains.