A-shares Opening Express | Shanghai Composite Index opens down 0.16%, with electric power equipment and pharmaceuticals leading the decline.

Opening Data On August 28, the Shanghai Composite Index opened down 0.16% at 3950.24 points, the Shenzhen Component Index opened down 0.21% at 14019.28 points, the ChiNext Index opened down 0.56% at 3453.73 points, and the STAR Market 50 Index opened down 0.52% at 1684.72 points. As of 9:33 AM, a total of 2286 stocks rose and 2796 fell across the two markets and the Beijing Stock Exchange, with 469 stocks flat. The top gainers included non-metallic materials, Shenzhen Agricultural Power Group processing, real estate services, fisheries, and oil services engineering; while the biggest losers included power equipment, pharmaceuticals and biotechnology, conglomerates, banks, beauty and personal care, and non-ferrous metals. Market Conditions On August 28, all three major A-share indices opened lower, with the ChiNext Index and STAR Market 50 Index leading the decline, both dropping over 0.5%. Although U.S. stocks rose overnight following Nvidia's better-than-expected earnings report, the technology sector in A-shares failed to follow suit, with semiconductor and telecommunications sectors weakening at the open. Funds shifted towards lower-tier cyclical sectors like Shenzhen Agricultural Power Group processing and oil services engineering, while non-metallic materials and advertising marketing themes were relatively active. Overall, there were more declining stocks than gainers, with the proportion of rising stocks around 40%, showing significant divergence between bulls and bears. Overnight News Brief U.S. stocks closed higher overnight Nvidia's earnings report soared: On August 27, U.S. stocks collectively rose, with the Dow Jones Industrial Average up 0.20% at 53569.44 points, the Nasdaq up 1.57% at 26541.35 points, and the S&P 500 up 0.72% at 7730.99 points. Nvidia was up 8.74%, with a second-quarter revenue of $96.2 billion for fiscal year 2027, a year-on-year increase of 106%, data center revenue of $89 billion, up 117% year-on-year, and third-quarter revenue guidance around $108 billion, surpassing market expectations. The Philadelphia Semiconductor Index rose 2.33%. Central Bank net injection of 606.5 billion yuan Profits of large industrial enterprises rose 17.6% in the first seven months: On August 27, the Central Bank conducted 103 billion yuan in 7-day reverse repos and 503.5 billion yuan in overnight reverse repos, resulting in a net injection of 606.5 billion yuan for the day. According to data from the National Bureau of Statistics, profit margins for large industrial enterprises nationwide totaled 4582.06 billion yuan from January to July, a year-on-year increase of 17.6%. The Ministry of Industry and Information Technology revealed on August 26 that the "14th Five-Year Plan" for the development of the intelligent connected new energy vehicle industry has been formulated to cultivate 500 zero-carbon factories. Semiconductor Manufacturing International Corporation and others disclosed interim results: Semiconductor Manufacturing International Corporation achieved a net profit of 4.467 billion yuan in the first half of the year, a year-on-year increase of 94.2%; China Life Insurance reported a net profit attributable to parent company of 134.489 billion yuan, a year-on-year increase of 228.6%, proposing a dividend of 3.58 yuan for every 10 shares; Tianqi Lithium Corporation reported a net profit of 4.242 billion yuan in the first half of the year, a year-on-year increase of 4925.46%; Shenzhen Sunway Communication plans to acquire a 55% stake in Yiyang Electronic Technology for 1.1 billion yuan. Market Outlook Overnight, Nvidias better-than-expected earnings report drove a surge in U.S. technology stocks, with the Philadelphia Semiconductor Index up 2.33%. However, A-shares did not follow suit at the open, with all four indices opening lower, the ChiNext Index and STAR Market 50 dropping over 0.5%, and the semiconductor and telecommunications technology sectors weakening. Funds have flowed more towards lower-tier defensive sectors such as Shenzhen Agricultural Power Group processing and oil services engineering. The Central Bank's net injection of 606.5 billion yuan on August 27, alongside a year-on-year profit increase of 17.6% for large industrial enterprises from January to July, coupled with intensive interim disclosures, has heated market sentiment. However, there were more decliners than gainers, with the proportion of rising shares around 40%, indicating continued significant divergence between bulls and bears. Institutional consensus leans towards the view that with the end of the interim report disclosures and improving expectations for overseas liquidity, the market may continue its oscillation and correction in the short term, with rotation opportunities in the technology sector. However, the Shanghai Composite Index faces resistance at its annual line, making the sustainability of any rebound dependent on accompanying trading volumes.