A-shares midday review | Indexes fall sharply on high volume! ChiNext falls more than 2%, tech stocks are volatile, how should investors respond?

On June 10th, the three major A-share indices continued to weaken. By the midday close, the Shanghai Composite Index fell 0.58% once again below the 4000-point mark, the Shenzhen Component Index fell 1.94%, and the ChiNext Index fell 2.29%. Most stocks in the two markets fell more than they rose, with over 4300 stocks declining; the total trading volume in the two markets in the morning was 1.73 trillion yuan, an increase of 116.4 billion yuan compared to the previous day. On the market front, the hot spots were relatively scattered. The CPU concept showed a strong and oscillating trend, with Hygon Information Technology rising over 11%, and companies like China Greatwall Technology Group, Loongson Technology Corporation, and Montage Technology following suit. Banking, insurance, and brokerage stocks collectively rose, with China Construction Bank Corporation rising over 2% to a new high. The PCB concept continued to be strong, with copper-clad board and electronic resin leading the way, and companies like Goldenmax International and Jinan Shengquan Group Share Holding showing strong performances. On the downside, hardware stocks such as optical modules, optical fiber cables, and copper cables for high-speed connections saw collective adjustments; sectors like smart grids and power equipment trended lower, as did the consumer electronics sector. The Siasun Robot & Automation sector experienced a sharp decline, and the coal sector continued to weaken, with the gold sector seeing losses across the board. Looking ahead, EB Securities believes that the short-term market will see a structural trend driven by "oversold growth recovery + event catalysts". However, the continued decrease in trading volume may indicate a convergence of market preferences, and local wait-and-see sentiments should not be ignored. Given the ongoing volatility in overseas capital markets, combined with a strong desire for phase-end cash realization and unreleased pressures on high-tech themes, it is likely that the short-term market will maintain a feature of "index oscillation recovery, sustained rotation of hot spots". Popular Sectors: 1. The CPU concept showed a strong and oscillating trend, with companies like Hygon Information Technology, China Greatwall Technology Group, Loongson Technology Corporation, and Montage Technology performing well. 2. The banking sector saw an upside, with financial stocks like China Construction Bank Corporation rising over 2% to hit new highs. 3. The PCB concept remained active, with companies like Goldenmax International, Jinan Shengquan Group Share Holding, and Shandong Fiberglass Group Corp. showing good performances. Institutional Views: - EB Securities: The short-term market is likely to maintain a feature of "index oscillation recovery, sustained rotation of hot spots". - Cai Xin Securities: The current risk of a rapid decline in A-shares is not high, and the market has some restorative momentum after a sharp drop. - Tianfu Securities: With volume decreasing, a cautious approach is needed to assess the future market development. This article was originally published on Tencent Self-selected Stocks and edited by Wang Qiujia.