A-share midday review | Shanghai index rose more than 1% back to 4100! Big finance leads the "old listed stock" all exploded, should the style be switched?

On July 1st, the three major A-share indexes showed mixed movements in the morning session. By midday closing, the Shanghai Composite Index rose by 1.08%, the Shenzhen Component Index rose by 0.41%, and the ChiNext Index dropped by 0.39%. Over 4500 stocks in the market rose. The total trading volume in Shanghai, Beijing, and Shenzhen was 2.40 trillion yuan in the first half day, with an increase of 314.4 billion yuan compared to the previous day. In terms of market performance, there was a clear change in the market style with institutional rebalancing strategies starting to ferment. Small-cap stocks continued to perform strongly, while the big financial sector saw gains, with securities and insurance leading the way. Pigs, white liquor, and storage chip concepts also showed strong trends. In terms of declines, the PCB industry chain saw a pullback, while concepts like MPO, optical chips, optical modules, optical fiber cables, and inverters all declined. The securities sector, considered a leader in the bull market recently, continued to show unusual movements. Institutions believe that the A-share market is currently active and provides strong support for the industry's fundamentals. The valuation of various sectors is at historical lows, making them attractive for investment. Looking ahead, as we enter July, the market is expected to see new variables with the arrival of mid-year reports, potentially leading to adjustments in market trends and opportunities. Various institutions have differing views on the future market direction, with some focusing on technology stocks as the core theme while others emphasize valuation and performance of individual stocks.