A-share closing report: Shanghai Composite Index fell 1%, the commercial aerospace sector exploded, the storage leader GigaDevice Semiconductor Inc. (603986.SH) set a record high in trading volume.

Today, the market trend in the early session was divergent. The afternoon saw a sharp drop in the Shuangchuang Index dragging down the indexes, with the total daily turnover approaching 500 billion yuan. Looking at the market, the Long March 10B carrier rocket successfully achieved controllable recovery of the first stage. Commercial aerospace became the only hot spot in the afternoon, with over 50 stocks including China Spacesat, Tianhuan, Beijing Highlander Digital Technology, Nanjing GOVA Technology, Beijing Aerospace Changfeng, Shaanxi Zhongtian Rocket Technology hitting the limit up. The satellite ETFs all hit limit up as well. In other hot spots, pharmaceutical stocks rebounded across the board, led by CROs, weight loss drugs, cell immunotherapy, and innovative drugs. The AI application concept was active again with media, short dramas, AI e-commerce leading the gains. Metal sector rebounded intraday with industrial metals leading the way. On the downside, leading technology stocks all saw a sharp drop, including Zhongji Innolight, GigaDevice Semiconductor Inc., Victory Giant Technology, Verisilicon Microelectronics (Shanghai) Co., Ltd., with GigaDevice Semiconductor Inc. witnessing a historical high trading volume. In terms of individual stocks, there were 3772 gainers, 1678 losers, and 80 with no change in the two markets. There were a total of 94 stocks hitting limit up and 7 hitting limit down. At the close, both markets were down, with the Shanghai Composite falling by 1.00% to 3996.16 points, and the Shenzhen Component Index dropping by 2.29% to 15046.67 points. The ChiNext Index fell by 4.37% to 3842.73 points. Looking ahead, Huatai analysis suggests avoiding pure thematic and highly crowded directions in the technology industry and focusing on four key areas. In terms of fund flow, today's main funds focused on aerospace equipment, military electronic equipment, IT services, industrial metals, and medical services. Funds were net outflowing from semiconductor, optical and optoelectronic, communication equipment, battery, and component industries. The following news was reviewed: 1. Long March 10B carrier rocket successfully achieved one stage controllable recovery. 2. National Energy Administration: Accelerate the breakthrough of key technologies such as supercritical CO2 power generation and CCUS. 3. Samsung Electronics is developing an AI PC-specific chip GAIA and has provided samples to Lenovo and HP for testing. For future judgment: 1. Huatai suggests avoiding pure thematic and highly crowded directions in the technology sector and focusing on four key clues. 2. Sinolink believes that the cycle of expansion in storage has started, semiconductor equipment demand is on the rise, and storage chip prices are rising.