A-share midday report | ChiNext fell more than 1% after hitting a high! Defensive sectors rose, technology stocks diverged and fell, is the group falling apart?

On June 29th, the three major A-share indices fluctuated widely, with the Growth Enterprise Board Index and the Shenzhen Component Index rising and then falling back, while the Science and Technology Innovation 50 Index saw a significant decrease in gains. By midday closing, the Shanghai Composite Index rose by 0.17%, the Shenzhen Component Index fell by 1.21%, and the Growth Enterprise Board Index dropped by 1.28%. The total trading volume in the Shanghai and Shenzhen markets reached 2.5 trillion yuan in the morning session, an increase of 761 billion yuan from the previous trading day. In terms of market performance, the innovative pharmaceutical concept saw a volatile rise, with stocks like Sanesco Health, Anhui Wanbang Pharmaceutical Technology, and Fujian Cosunter Pharmaceutical all hitting limit-up, while stocks like Henan Taloph Pharmaceutical Stock and Chimin Health Management also hit limit-up. The liquor sector experienced a rebound, with Jiugui Liquor hitting limit-up during trading and Kweichow Moutai surging. The storage chip concept was active with Beijing New Space Technology hitting limit-up and reaching a historical high. On the downside, the computing hardware concept continued to decline, with stocks in the fiber optic cable and optical module sectors falling, causing Yangtze Optical Electronic and Tongding Interconnection Information to hit limit-down. Stocks in the PCB and copper foil sectors also experienced a decline, with Baoding Technology and Guangdong Guanghua Sci-Tech hitting limit-down. The cooling concept of the diamond industry entered a period of adjustment. In addition, sectors like commercial aerospace, rare earths, and port shipping performed poorly. In the morning, funds switched from the previously soaring technology hardware stocks (fiber optics, PCB, CPO) and moved into defensive sectors like pharmaceuticals and consumer goods. Although the Science and Technology Innovation 50 Index is still rising, the gains are narrowing. The trading volume increased, but the indices did not follow suit, indicating a significant difference in opinion between bulls and bears. Whether the market can stabilize in the afternoon will depend on whether the technology sector can stop its decline. Looking ahead, CITIC SEC believes that as the market reaches its current stage, the K-shaped differentiation has reached an interim peak. If there is a further tightening of real monetary policy, it could damage demand in the carbon-based world. Conversely, the K-shaped differentiation may converge temporarily. Compared to the more volatile overseas markets, the A-share market is more resilient, and there are signs of capital entering some non-AI sectors. Some undervalued sectors have a basis for recovery, awaiting the right opportunity. Popular Sectors: 1. Innovative pharmaceutical concept volatile rise 2. Liquor sector rebound 3. Storage chip concept active Institutional Views: CITIC SEC: A-share market more resilient compared to overseas markets, signs of capital entering non-AI sectors. BOC International: Should not make large style switches too early, as it can lead to trading pitfalls. China Securities Co., Ltd.: Three factors will determine the market trend in the third quarter. East Money Information: A-share index has more upside potential than downside risk in the third quarter.