A-shares closing assessment: Shanghai index fell by 0.49%, the Science and Technology Innovation 50 index rose against the market, and chip stocks staged a deep V rebound.

Today, the market surged and then fell back, with major indices showing a slight decline, while the sci-tech innovation 50 index rose against the market. In terms of market performance, chip stocks staged a deep V rebound, with Brite Semiconductor and Skyverse Technology, Hua Hong Grace Semiconductor rising by over 10%, and Semiconductor Manufacturing International Corporation, ACM Research, and others also rising significantly. Precious metal stocks surged, with Zhaojin International Gold hitting the limit up, and other stocks like Beijing Xiaocheng Technology Stock, Western Region Gold, Chifeng Jilong Gold Mining, and Sichuan Gold following suit. The oil and gas sector strengthened against the trend, with Shandong Molong Petroleum Machinery hitting the limit up, and Tong Petrotech Corp., KAITIANGAS, KLGF, and others following suit. On the flip side, the battery industry chain collectively pulled back, with solid-state batteries, sodium-ion batteries leading the decline, and stocks like Delixi New Energy Technology hitting the limit down. The humanoid Siasun Robot & Automation concept continued to adjust, with stocks like Zhejiang RIFA Precision Machinery hitting the limit down. Energy metals and lithium resource stocks declined, with Chengxin Lithium Group seeing significant losses. The photovoltaic and organic silicon sectors fell, led by Guangzhou Tinci Materials Technology, while chemical stocks also declined. Looking at individual stocks, out of the 5383 stocks, 1593 rose, 3790 fell, and 145 remained unchanged, with 58 stocks hitting the limit up and 47 hitting the limit down. At the close of trading, both markets trended downwards, with the Shanghai Composite Index falling by 0.49% to 3970.88 points and the Shenzhen Component Index falling by 1.87% to 14939.73 points. The ChiNext Index fell by 1.70% to 3845.35 points. Looking ahead, EB SECURITIES stated that market differentiation in the technology sector is intensifying, and attention should be paid to sub-sectors with good performance expectations. Fund Flow Today, major funds focused on investing in IT services II, computer equipment, communication equipment, software development, and communication services, while net outflows were seen in the semiconductor, battery, components, general equipment, and automation equipment industries. News Recap 1. The Japanese and South Korean stock markets collectively declined, with the Korean stock market confirming entering a technical bear market. On July 8th, the Japanese and South Korean stock markets both closed down, with the Nikkei 225 Index falling by 2.11% to 66819.05 points, and the Korean Composite Index falling by 5.35% to 7246.78 points, hitting its lowest closing price since May 20th. The index fell by over 20% from its June high, confirming a technical bear market. 2. The Ministry of Industry and Information Technology issued a risk warning: Anthropic's AI programming tool Claude Code has security backdoor risks that are serious. Recently, the Ministry of Industry and Information Technology's network security threat and vulnerability information sharing platform (NVDB) monitored and found security backdoor risks in the AI programming tool Claude Code, which is considered to be a serious threat. It is recommended that relevant units and users immediately conduct a comprehensive inspection and uninstall or upgrade to the latest secure version for terminals with affected versions installed. Additionally, enhancing control over external access permissions and monitoring traffic in the core business network segment to prevent unauthorized transmission of sensitive data is advised. 3. Several "Apple supply chain" insiders: It is expected that the Apple foldable phone can be delivered normally, no news of product delay. There have been rumors in the market recently that Apple's first foldable phone product may be delayed due to complex product assembly and low yield rates. However, several insiders from the Apple supply chain stated in interviews with financial reporters that the Apple foldable phone product plan has already been finalized, and related companies have entered the peak production season, with the product in normal mass production. They also mentioned that delivery in September should be "no problem," and they have not heard of any product delay in sales. Market Analysis 1. EB SECURITIES: The current market differentiation in the technology sector is intensifying, and attention should be focused on sub-sectors with good performance expectations. EB SECURITIES believes that with the peak period of mid-year performance forecasts disclosure, the market pricing logic has shifted to full profit verification. Coupled with the continued overseas liquidity expectations and the completion of high valuation digestion in high-tier races, the market's wait-and-see sentiment remains unchanged. Short-term trends may still be dominated by low-volume weak shocks and structural differentiation. With profit-taking in the previous period, risk appetite continues to decline, and the market is more concerned with sectors that can digest high valuations with good earnings prospects. Sub-sectors with performance support, such as advanced packaging, semiconductor silicon wafers, PCBs, and edge AI chips, are active against the market trend. Sectors like gaming and new energy, with expectations of performance improvement, also show some performance. Overall, the market differentiation in the technology sector is intensifying, and attention should be focused on sub-sectors with good performance expectations. 2. Tianfeng: Firmly optimistic about investment opportunities in the core targets of the computing power industry chain, focusing on core companies in the industry chain. Tianfeng believes that in the complex background of overall macroeconomic changes, grasping core high-growth industries and assets is an important choice. They are firmly optimistic about investment opportunities in the core targets of the computing power industry chain. AI-driven core targets in the computing power supply chain are expected to achieve good business growth, with a focus on core companies in the industry chain. Overall, they are positive about the continued high demand for AI infrastructure in China in 2026, and applications are expected to continue to bear fruit. Both China and the US are making progress in AI, while the inference end continues to advance. They recommend continuing to pay attention to AI industry dynamics and investment opportunities in AI applications. In the medium to long term, they suggest continuing to focus on investment opportunities in the core targets of "AI + overseas expansion + satellite": Overseas core direction in AI such as optical modules & optoelectronic devices, liquid cooling, and other areas are worth noting, and are core recommendations. In addition, domestic computing power targets such as domestic servers, switches, AIDC, liquid cooling, and other directions are core targets that are recommended to pay close attention to. 3. Zhongtai: The tech market is not yet over, and emotional recovery remains the most important theme. According to Zhongtai's research report, with the disclosure of mid-year performance forecasts in July and the disclosure of overseas big companies' financial reports, the stage for phase opportunities in the equity market is expected to increase, leading to improved profitability and structural diffusion of the technology theme and recovery at the bottom of non-tech directions. Zhongtai believes that the tech market is not yet over. The multi-asset team mentioned in the latest report that by fitting the capital expenditures of major cloud vendors with the total market value of technology hardware, the pricing of core US tech stocks like Nvidia and others still matches capital expenditures. After emotional recovery, tech remains the most important theme.