A-share midday report | The index fell on shrinking volume, with the ChiNext Index falling more than 2% at midday. The intense fund game, can the style switch be successful?

On June 23, the A-share market experienced a volatile adjustment in the morning, with all three major indices collectively weakening. The yellow-white line differentiation was evident, with small and medium-sized stocks showing relatively strong trends. By midday close, the Shanghai Composite Index fell by 0.37%, the Shenzhen Component Index fell by 1.83%, and the ChiNext Index fell by 2.27%. The total turnover in the Shanghai and Shenzhen markets in the morning session was 2.32 trillion yuan, a decrease of 187 billion yuan compared to the previous trading day. In terms of market performance, chip stocks rose rapidly during the session, with power semiconductors and MCU sectors leading the gains. Nsing Technologies Inc. and Shanghai Belling hit the limit up. The pharmaceutical sector also showed strength, with over ten constituent stocks hitting the limit up, including Shandong Xinhua Pharmaceutical, Hainan Haiyao, Hubei Biocause Heilen Pharmaceutical, and Teyi Pharmaceutical Group. The large financial sector continued its strong performance from the previous day, with Shenzhen Infogem Technologies and Changjiang leading the gains. The phosphorous chemical sector also continued its strength from the previous day, with Anhui Liuguo Chemical and others following suit. On the downside, non-ferrous metals, PCB, optical communications, and lithium battery concepts led the declines. Amidst the adjustment in the technology sector, "old players" like innovative pharmaceuticals showed signs of an uptrend. Could this be a sign of a style switch? Analysts believe that while the AI sector may have crowded chips in terms of structure, it is also the most certain track in terms of prosperity. Therefore, the success of a style switch still remains uncertain. Looking ahead, Tianfu Securities believes that as June comes to a close and semi-annual reports are set to be released, with indices and major sectors seeing an increase in both volume and price, the quality of the uptrend has been established, laying a good foundation for future market trends. The internal differentiation in technology, the acceleration of rotational speed, and the diffusion of speculative logic all indicate that the market has already realized the high congestion in the technology sector. Hence, vigilance is needed for changes in volume and the sustainability of participating sectors in rotation. Popular sectors: 1. Chip stocks rose rapidly during the session, with power semiconductors and MCU leading the gains. 2. The pharmaceutical sector showed strength, with over ten constituent stocks hitting the limit up. 3. The large financial sector continued to show strength from the previous day. 4. The phosphorous chemical sector continued its strength from the previous day. Institutional viewpoints: Tianfu Securities believes that the market has already realized the high congestion in the technology direction. CSC Securities believes that the rise in both volume and price reflects that the short-term market still has upward momentum. Huaxi believes that the A-share market saw a strong upward trend on the first trading day of the week, with the AI and non-AI sectors showing extreme differentiation. The growth in technology and innovation, as well as the sci-tech innovation board index reaching a historic high, have officially established a new trend.