A-share midday | Shanghai Composite Index up 0.20%, ChiNext Index down 2.18%, with pharmaceutical and consumer sectors performing strongly against the trend.

Market Overview On August 10th, the three major indices of the A-shares opened high collectively, but their trends diverged significantly, presenting a market pattern of "index differentiation, widespread gains in individual stocks, and continuation of structural hotspots." By the midday close, the Shanghai Composite Index rose 0.20%, the Shenzhen Component Index fell 1.13%, and the ChiNext Index dropped 2.18%. The Sci-Tech 50 Index decreased by 1.57%, and the BSE 50 fell 0.78%. Over 3,400 stocks in the entire market recorded gains, with a clear differentiation between the yellow and white lines, and a stronger performance from mid and small-cap stocks. The total trading volume in the Shanghai and Shenzhen stock markets reached 1.73 trillion yuan, an increase of about 58 billion yuan compared to the previous trading day. According to data from Financial Association Star Mining, in the morning session, major funds saw a net inflow into sectors such as pharmaceuticals, food and beverage, and power grid equipment, while there was a net outflow from sectors like electronics, telecommunications, and semiconductors, with the electronics sector alone experiencing a net outflow of over 19.9 billion yuan. Market Summary In terms of gains, the pharmaceutical sector was strong across the board, with Xinjiang Bai Hua Cun Pharma Tech achieving a five-day limit-up. The power grid equipment concept performed actively; the consumer sector rallied; the energy metals sector continued to climb; military and aquaculture sectors also showed performance. On the downside, the CPO concept continued to weaken, with Accelink Technologies nearing its daily limit down and Zhongji Innolight and Eoptolink Technology Inc. dropping over 7%; sectors such as components, telecommunications equipment, and computing hardware suffered the greatest declines. Overall, funds shifted away from high-position computing hardware sectors, moving towards defensive or lower-tier sectors like pharmaceuticals and consumption. Hot Sectors 1. Pharmaceutical Sector Experiences a Surge The pharmaceutical sector strengthened collectively in the morning session, with innovative drugs, CRO, and medical services leading the gains. Xinjiang Bai Hua Cun Pharma Tech reached its daily limit, achieving a fifth consecutive limit-up; Harbin Medisan Pharmaceutical recorded three limit-ups over five days, and Harbin Pharmaceutical Group and Zhejiang Hisun Pharmaceutical had two consecutive limit-ups. Multiple stocks, including Berry Genomics, Guangzhou Kingmed Diagnostics Group, Whole Shine Medical Technology, Shanghai Kai Kai Industrial, and Realcan Pharmaceutical Group, hit their daily limits; Sino Biological Inc. rose over 10%. Commentary: On the news front, on the evening of August 9, WuXi AppTec announced that the U.S. District Court for the District of Columbia has approved the company's preliminary injunction motion regarding the 1260H list identification application, allowing the company to avoid immediate negative impacts during the judicial challenge. Guosheng believes this ruling represents a stage victory for WuXi AppTec in protecting its rights in the U.S. Additionally, during the mid-year report catalyst period, WuXi AppTec's revenue for the first half of the year rose 38.9% year-on-year, and it significantly raised its full-year guidance, while leading innovative drug companies like BeOne Medicines Ltd. and INNOVENT BIO also exceeded expectations, further validating the upward trend in the industry. 2. Power Grid Equipment Sector Strengthens The power grid equipment sector performed actively in the morning session, with Anhui ZhongDianXinLong Science and Technology, Shenzhen JingQuanHua Electronics, Shandong Senter Electronic, and San Bian Science & Technology hitting their daily limits; Ceepower Co., Ltd rose over 14%, and Jiangsu Ankura Intelligent Electric and Eaglerise Electric & Electronic followed suit. Commentary: In news, NVIDIA has agreed to invest $2 billion in power infrastructure developer Lancium and has committed to additional investments of $1 billion as the company secures more planned power resources. Lancium, supported by Blackstone Group, is responsible for developing power infrastructure projects in Texas, serving OpenAI and Oracle's AI parks. This news highlights the ongoing growth in power infrastructure demand driven by AI computing power. 3. Consumer Sector Experiences Fluctuating Gains The consumer sector, including food and beverage, moved upward in a fluctuating manner, with Zhejiang Yiming Food, Baiyang Investment Group, Inc., and Xiangpiaopiao Food hitting their daily limits; Xiamen Kingdomway Group rose over 10%, with Pinlive Foods, Eastroc Beverage, Anhui Yingjiagongjiu, and Ligao Foods Co., Ltd also seeing gains. Commentary: According to data from the National Bureau of Statistics, in July, the national CPI rose 0.5% year-on-year, with the price of pork turning from a decrease in the previous month to an increase of 4.1%, marking the largest month-on-month increase this year. HAITONG INT'L pointed out that the leading pattern in the consumer sector has been established in the short term, with particularly strong attention warranted on traditional low-tier consumption and fertility-related fields. 4. Energy Metals Sector Continues to Rise The energy metals sector strengthened in the morning session, with Jinzhou Yongshan Lithium hitting its daily limit; Nanjing Hanrui Cobalt rose over 10%, and Ganzhou Teng Yuan Cobalt New Material, Zhejiang Huayou Cobalt, Ganfeng Lithium Group, Tianqi Lithium Corporation, and Chengxin Lithium Group followed suit. Commentary: Since the beginning of August, lithium carbonate futures have experienced a surge, with the main contract 2609 rising from the lowest point of 136,000 yuan/ton at the beginning of the month to the current peak of 145,000 yuan/ton, representing an increase of nearly 10,000 yuan/ton in just one week. Additionally, U.S. President Trump announced that the federal government would invest $3 billion in several key mineral and battery projects to promote domestic production and facilitate the development of related industries.