A-shares opening express | Multiple positive factors help A-shares rebound! The Shuangchuang Index rose by more than 3%, and the Kimi concept opened significantly higher.

On July 20th, the three major indexes of A-share collectively opened high. As of 9:38, the Shanghai Composite Index rose by 1.17%, the Shenzhen Component Index rose by 1.72%, the Growth Enterprise Index rose by 3.20%, and the ChiNext 50 rose by 3.34%. In the market, early Kimi concepts saw a sharp rise. Andon Health had 5 consecutive limit up days, Zhejiang Meorient Commerce & Exhibition Inc. had a 2-day consecutive limit up, and stocks like IReader Technology, Sangfor Technologies Inc., Beijing Haitian Ruisheng Science Technology Ltd., 37 Interactive Entertainment Network Technology Group also followed the rise. The concept of computing power leasing was active, with Jiangsu Lettall Electronic hitting limit up, Xingyun Technology, Beijing Asiacom Information Technology rising by over 10%, and Glory View Technology, Zhejiang Daily Digital Culture Group, Range Intelligent Computing Technology Group following suit. The oil and gas concept was also active, with Shandong Molong Petroleum Machinery hitting limit up, KLGF rising by over 10%, and stocks like Tong Petrotech Corp., Zhongman Petroleum And Natural Gas Group Corp.,Ltd., SINOPEC Shandong Taishan Petroleum, and CNOOC Limited following the trend. Market analysis believes that the strength of the index is mainly related to the following factors: 1. "National Team" took the lead in supporting the market, and the stability mechanism continued to support A-shares. China's National New announced on the evening of the 19th that it had used over 50 billion yuan in stock repurchase and additional funds to increase its holdings of central enterprise stocks and firmly stabilize the market. On the same day, China Chengtong also announced that it had completed nearly 10 billion yuan in additional purchases and would continue to use its own funds and stock repurchase to increase holdings of central state-owned enterprises and technology companies, fully maintaining the stable operation of the capital market. 2. Rare pre-market announcements! Five central enterprises including China Shenhua Energy, CRRC Corporation, Aluminum Corporation Of China, NARI Technology, and China Coal Energy's listed companies under their umbrella released a series of announcements through asset injections, shareholder increases, share repurchases, dividends, etc., sending positive signals to the market. 3. The China Securities Regulatory Commission will hold a forum on July 20 for listed companies, securities companies, and fund institutions to listen to suggestions and opinions on promoting the stable and healthy development of the capital market. 4. On the evening of July 19th, many A-share companies issued repurchase-related announcements, sparking market discussions. Several billion-dollar private equity firms such as Lingjun Investment and Squ... Looking ahead, CITIC SEC believes that the index market is in a stage of consolidation in the middle of a medium-term trend, preparing for a new bull market, and the short-term clearing phase is approaching the end. Hot sectors: 1. Kimi concept saw a sharp rise The Kimi concept saw a sharp rise in the early market, with Andon Health hitting limit up for 5 consecutive days, Zhejiang Meorient Commerce & Exhibition Inc. hitting limit up for 2 days, and stocks like IReader Technology, Sangfor Technologies Inc., Beijing Haitian Ruisheng Science Technology Ltd., 37 Interactive Entertainment Network Technology Group following suit. Review: On the news front, the headline enterprise Moon's dark side has sent a listing proposal to investors, with an expected listing on the Hong Kong stock market in the next 6 months. Moon's dark side's recurring revenue in the previous year tripled in 3 months, and its new model Kimi K3 surpasses competitors such as Claude Fable 5 and GPT-5.6 in comprehensive capabilities. The pricing of Kimi K3 is roughly equivalent to Anthropic's Sonnet. 2. Computing power leasing concept active in early trading The computing power leasing concept was active, with Jiangsu Lettall Electronic hitting limit up, Xingyun Technology, Beijing Asiacom Information Technology rising by over 10%, and Glory View Technology, Zhejiang Daily Digital Culture Group, Range Intelligent Computing Technology Group following suit. Review: On the news front, Moon's dark side Kimi announced that it will suspend subscriptions for new C-end users and invest all existing computing power in serving subscribed users to ensure that their rights are not affected. At the same time, it is accelerating the expansion of computing power. With new computing power gradually coming in, more subscription slots will be gradually opened until normal subscriptions are fully restored. 3. Oil and gas concept active The oil and gas concept was active, with Shandong Molong Petroleum Machinery hitting limit up, KLGF rising by over 10%, and stocks like Tong Petrotech Corp., Zhongman Petroleum And Natural Gas Group Corp.,Ltd., SINOPEC Shandong Taishan Petroleum, and CNOOC Limited following the trend. Review: On the news front, Brent crude oil rose above $91 per barrel, an intraday increase of 3.77%. Institutional Views: CITIC SEC: Index market is in a stage of consolidation in the middle of a medium-term trend, preparing for a new bull market CITIC SEC's research report pointed out four judgments. First, the index market is in a stage of consolidation in the middle of a medium-term trend (characterized by the decline in the technology sector) preparing for a new bull market (requiring the initiation of new sectors with valuation expansion potential), with the short-term clearing phase approaching its end. Second, the short-term trend of the North American AI chain may be a shelter within the technology sector, and around the end of July, there may be a wave of recovery after the guidance of the North American CSP, but moving to a new level requires a new leap in AI models/products and expanding commercial realization space, with the key to breaking the valuation framework of hardware companies and achieving a new cycle of system-level uplift in hardware and applications. Third, the domestic AI chain heavily depends on catalyst and trend fund strength. The main catalysts have been gradually realized, but trend fund strength is unlikely to return quickly after experiencing a sharp retreat. The still relatively healthy financing environment domestically implies that there is currently no point for mass exits, and the convergence of valuations between Chinese and North American stocks is a more likely trend. Fourth, sectors outside the AI chain show a pattern of periodic recovery, starting from innovative drugs and non-banking sectors, transitioning to the industrial chains of non-ferrous, chemical, and lithium-ion batteries. This period is also accompanied by policy expectations in the domestic demand chain. Huaan: Emotional sell-offs are unlikely to continue, confident in a recovery market Last week, the market showed a clear trend of irrational decline. The historical comparison of past similar situations shows that the short-term market is clearly oversold, making further significant declines less likely. With continued strong performance of technology stocks, expectations for large IPOs, the market is expected to see a rebound. The main theme of the market still needs to focus on the midstream and upstream segments of the AI industry, and this structural theme is expected to continue until the end of the year. In terms of allocation strategy, emphasis should be placed on the current growth opportunities in the industry cycle, as the economic cycle remains weak. The second phase of the earnings-driven market is not over yet, and since the end of June, there has been a significant correction in the growth technology sector, providing more room for upside in the short term. Therefore, it is still advisable to closely focus on the trends in the AI industry for further positioning, with the computing power centers and supporting hardware in the midstream and upstream sectors being the most essential directions. The length of this industry chain and the capacity for investment are large enough, and institutions are currently heavily investing in this medium-term trend. Although there may be short-term trading overheating in some areas, the broad track has the ability to "park and change horses" with low turnover rates. When trading cools down to low turnover levels, bold positions should be considered. Sinolink: Adjustment nearing the second half, market trade structure adjustment completed, structural rebound begins The core contradiction in the current market may not be the switch of the mainline, but rather the final path of the AI hardware market trend. Sinolink believes that there are three possible scenarios for the future market: First, concerns about the industry chain are debunked, a non-linear technological miracle reappears, and this adjustment is purely deleveraging, even potentially breaking through the previous highs. Second, concerns about the industry chain are confirmed, after the deleveraging, it enters a long adjustment stage dominated by fundamentals. Third, which is also considered the most likely scenario, the total investment related to AI is not slowing down yet, and the reversal signal in fundamentals is not sufficient. The market trade structure adjustment is completed, opening the way for a structural rebound. This article was reprinted from "Tencent Stock Picks", edited by: Chen Siyu.