A-share midday review | Impact of sharp decline in peripheral markets! A-shares all fell, with more than 4500 stocks trading in red, banking stocks supporting the market.

On July 13, the A-share market fell in the morning, with over 4500 stocks declining. By midday, the Shanghai Composite Index fell by 1.54%, the Shenzhen Component Index fell by 2.61%, and the ChiNext Index fell by 2.38%. In the external markets, the major indices in Japan and South Korea experienced severe volatility. After a brief rise, the South Korean KOSPI index fell again. As of the time of writing, the KOSPI index in South Korea fell by 6%, SK Hynix fell by 10.7%, and Samsung Electronics fell by 6.6%. Earlier, the Korean Stock Exchange had temporarily activated the SIDECAR mechanism, suspending programmatic selling on the KOSPI. In terms of market performance, technology stocks plummeted across the board, including AI technology hardware such as storage and PCB. Storage chip concepts continued to decline, with Shenzhen Techwinsemi Technology hitting the limit down, Shannon Semiconductor Technology falling by nearly 19%, and PCB concepts undergoing continuous adjustment, with Han's Laser Technology Industry Group hitting the limit down. In other hot sectors, the banking sector rose against the trend, with Bank Of Suzhou leading the gains, and China Construction Bank Corporation and Bank Of Ningbo both rising by over 2%. Traditional Chinese medicine concepts were active, with Gansu Longshenrongfa Pharmaceutical Industry leading the gains, followed by Jiuzhitang Co., Ltd., BIOVALLEY, GuangYuYuan Chinese Herbal Medicine, Shijiazhuang Yiling Pharmaceutical, and GRANDPHARMACEUTICAL. The securities sector experienced abnormal rises, with Zhongtai hitting the limit up at one point. The sectors with the biggest declines included military, gaming and media, wind power, photovoltaic, and lithium batteries. Looking ahead, Guosen believes that the upward trend in the A-share market remains unchanged, with July being an important observation window. Structurally, growth within the technology sector is expected to expand to lower levels, with a focus on pharmaceuticals, finance, and resources. Popular Sectors: 1. The traditional Chinese medicine sector was active with Gansu Longshenrongfa Pharmaceutical Industry leading the gains. 2. The banking sector rose with Bank Of Suzhou leading and China Construction Bank Corporation following. 3. The gas sector saw increases with Jiangxi Jovo Energy rising for the second consecutive day. Institutional Views: - Guosen: The upward trend in the A-share market remains unchanged, with technology growth expected to spread to lower levels. - CITIC SEC: Attention should be paid to the recovery of some non-AI sectors. - Guotai Haitong: Optimistic about the continuity of the commercial aerospace theme. This article was originally published on Tencent's self-selected stock platform.