A-share market closing review: Indexes closed higher overall with trading volume shrinking. Computing power hardware concepts surged collectively. Is the shaking over?

On June 2nd, the three major indexes of A-shares fluctuated and rose. By the close, the Shanghai Composite Index rose by 0.43%, the Shenzhen Component Index rose by 1.63%, and the Growth Enterprise Market Index rose by 2.66%. Most stocks in the market fell more than they rose, with over 3800 stocks declining throughout the day. The total turnover for the day was 2.79 trillion yuan, a decrease of 84.5 billion yuan compared to the previous day. Domestic capital was a net seller of 5.165 billion yuan in the market. The median for the rise and fall of stocks in the two markets was -1.36%. In addition, Hong Kong stocks also surged on the same day, with the Hang Seng Tech Index rising by over 4% in the afternoon. Among the components of the Hang Seng Tech Index, Tencent rose by over 10% and Alibaba rose by nearly 6%. In terms of market performance, the fiber optic concept soared rapidly, with Hengtong Optic-Electric hitting the limit to continue setting historical highs, and Yangtze Optical Fibre And Cable Joint Stock also hitting the limit. The CPO concept rebounded and fluctuated, with Yuanjie Semiconductor Technology and Advanced Fiber Resources both rising by over 10%. The PCB concept also saw a fluctuating rise, with Grace Fabric Technology briefly breaking out of the "limit-up", and Avary Holding hitting the limit. The MLCC concept continued to show strength, with Fujian Torch Electron Technology seeing its 4th consecutive limit-up day. Siasun Robot&Automation concept was active, with Ningbo Zhongda Leader Intelligent Transmission and Changzhou Kaidi Electrical Inc. hitting the limit. The non-ferrous metal sector rose, with Guangxi Huaxi Nonferrous Metal, Yunnan Tin Co., Ltd., and Jiangxi Copper all hitting the limit. On the downside, sectors such as culture and media, short video games, AI applications, power, power grid equipment, photovoltaic equipment, pharmaceutical and medical stocks, consumer goods such as food and beverage, liquor, and retail all declined. In addition, sectors such as lithium batteries, real estate, and airport transportation performed poorly. Looking ahead, Central China believes that the A-share market has entered a phase of profit-driven gains, with a medium to long-term positive trend remaining unchanged. There are no signs yet of the end of the AI bull market. Adjustments are more likely to be temporary digestion within the market, rather than a trend reversal. The Shanghai Composite Index is expected to maintain a trend of oscillation and consolidation, with close attention to macroeconomic data, changes in overseas liquidity, and policy developments. Popular Sectors: 1. Fiber optic concept shows strength against the trend The fiber optic concept surged rapidly, with Hengtong Optic-Electric hitting the limit to continue setting historical highs, and Yangtze Optical Fibre And Cable Joint Stock also hitting the limit. Analysis: According to a research report by Shenwan Hongyuan Group, with the initiation of group-level procurement by telecom companies, as evidenced by the increase in tender price limits from 2500 yuan per kilometers to 2600 yuan, the short-term demand elasticity remains stronger than the game of quantity and price. With the surge in prices driven by the drone and AI boom, and the improvement in the previously restricted core components supply, the demand for optical fibers is expected to remain strong, indicating a significant upward trend in the industry. 2. CPO concept rebounds fluctuating The CPO concept rebounded and fluctuated, with Yuanjie Semiconductor Technology and Advanced Fiber Resources both rising by over 10%. Analysis: Institutions point out that the long-term evolution logic of the computing power sector remains unshaken. With the acceleration of demand expectations for optical modules by 2027 and the gradual improvement in the shortage of core components that previously restricted deliveries, leading manufacturers' capacities and performance are expected to be released more dynamically. 3. Siasun Robot & Automation concept is active The Siasun Robot & Automation concept was active, with Ningbo Zhongda Leader Intelligent Transmission and Changzhou Kaidi Electrical Inc. hitting the limit. Analysis: On June 1st, the official website of the Shanghai Stock Exchange showed that Yushu Technology's Science and Technology Innovation Board IPO application had been approved by the review committee. Yushu Technology's Science and Technology Innovation Board IPO application was approved in just 73 days from submission, making it the fastest project to pass review this year and the second case after Changxin Technology for the pre-review mechanism of the Science and Technology Innovation Board. 4. Non-ferrous sector continues to rise The non-ferrous metal sector rose, with Guangxi Huaxi Nonferrous Metal, Yunnan Tin Co., Ltd., and Jiangxi Copper all hitting the limit. Analysis: With the rapid development of the artificial intelligence industry, the price of "computing power metal" tin has seen a significant increase, from 30,000 yuan per ton last November to around 42,000 yuan per ton currently, representing a 40% increase in half a year and reaching historical highs. In addition, overnight Comex copper futures contracts once rose by over 3%. Institutional Views: Central China: The A-share market has entered a phase of profit-driven gains, with a medium to long-term positive trend remaining unchanged With oil prices steadily falling, the impact of geopolitical risks on the A-share market has significantly decreased. If uncertainties surrounding the Fed's policy subside, market focus will return to domestic profit targets. The A-share market has entered a phase of profit-driven gains, with the medium to long-term positive trend remaining unchanged. There are no signs of the end of the AI bull market. Adjustments are more likely to be temporary digestion within the market, rather than a trend reversal. The probability of the Shanghai Composite Index maintaining an oscillating consolidation is high, with a close watch on macroeconomic data, changes in overseas liquidity, and policy developments. Soochow: As long as the overseas technology market remains strong, the adjustment in A-share technology stocks is considered benign Despite the continuous record highs of equity markets in the US, Japan, and South Korea this week, the A-share market has experienced some adjustments. However, as long as the overseas technology market remains strong, it indicates that global technological prosperity and fund recognition have not waned. In this case, the adjustment in A-share technology stocks is considered benign. Structurally, there is evidence of some funds attempting to switch between high and low positions, but from the perspective of prosperity and the continuity of fund flows, it is currently difficult to conclude that some low-priced industries will begin a major uptrend. We are more inclined to see a scenario of multiple rotation spots in the market in the future, possibly similar to the performance in October 2025, where the technology sector adjusts pressure from chips through time instead of price, waiting for the next power surge (such as the half-year performance report). Caixin Securities: The short-term market trend of style re-balancing may continue, with the index likely to remain oscillating Overall, the upward trend in the technology-related industries remains unchanged, but the previously leading hard technology sector has undergone consecutive adjustments, with the Science and Technology Innovation 50 index showing a downward trend, reflecting increased divergences among funds in this position towards large technology stocks. It will take time and space to digest the chips. Also, the short-term market trend of style re-balancing may continue, possibly showing a scenario of style and technology line internal high and low switches, and a shift from large-cap stocks to small-cap stocks. Therefore, in the short term, in a stable market environment and with active trading in the large-cap stocks, the probability of a trend downward at the index level is not great, with oscillation likely to remain predominant. This article is reproduced from "Tencent Stock Selection", GMTEight Editor: Chen Xiaoyi.