A-shares at midday | All three major indices fell collectively, while liquid-cooled servers and real estate strengthened against the trend.

On August 31, the three major A-share indices opened lower collectively, showing weak volatility during the morning session. The market presented a differentiated pattern characterized by "collective index pullbacks, widespread declines in individual stocks, and a mix of defensive and thematic hotspots." By the lunch closing, the Shanghai Composite Index fell 0.20% to 3,944.46 points, the Shenzhen Component Index dropped 1.00% to 13,812.99 points, and the ChiNext Index decreased 1.29% to 3,380.15 points. Over 3,000 stocks in the entire market declined. The combined transaction value of the Shanghai and Shenzhen markets was 1.31 trillion yuan, a decrease of 112.1 billion yuan compared to the same period of the previous trading day. In the morning session, main capital saw a net inflow into sectors like culture and media, banking, and film and theater lines, while there was a net outflow from sectors such as electronics, semiconductors, and the new energy industry, with over 8 billion yuan net outflow in the electronics sector. Market Overview On the surface, the hotspots were somewhat scattered. In terms of increases, sectors like liquid-cooled servers, short dramas and film lines, real estate, coal, and agricultural seed industry performed actively, with the banking sector rising against the trend; Bank of China increased by over 4%, and CITIC Bank rose over 2%, setting new historical highs. On the downside, sectors like precious metals/gold, CRO/innovative drugs, photovoltaic equipment, and semiconductors declined. Overall, the indices underwent collective pullbacks, with more stocks falling than rising, as funds flowed out of high-position sectors such as electronics and non-ferrous metals, shifting towards liquid-cooled servers, banks, and media. Hot Sectors 1. Liquid-Cooled Server Concept Strong Against the Trend The liquid-cooled server concept continued to rise during the session, with RONNIE30cm hitting the daily limit. Stocks like Shanghai Karon Eco-Valve Manufacturing, Zhe Jiang Kangsheng, JinFu Technology, and Shandong Golden Empire Precision Machinery Technology also reached their daily limit, while Sanhe Tongfei Refrigeration increased by over 10% and Jiangsu Seagull Cooling Tower hit the daily limit. Shanghai Xinpeng Industry, ShenZhen QiangRui Precision Technology, and Zhejiang Dayuan Pumps Industry followed suit. Commentary: According to reports from CCTV Finance, as the Wanka Smart Computing Center accelerates its establishment and chip power consumption continues to rise, traditional air cooling is insufficient to meet cooling demands, making liquid cooling a "necessary option" for computing power deployment. A batch of liquid-cooled servers is being rapidly assembled and tested for delivery in Jinan, Shandong, while the CDU assembly line for core liquid-cooled equipment in Laixi, Qingdao has orders scheduled until the end of December. CCID CONSULTING data indicates that by 2025, the market size of China's liquid-cooled data centers will reach 15.98 billion yuan, a year-on-year increase of 45.2%. 2. Short Dramas and Film Lines Concept Gaining Strength The short drama concept showed a strong upward trend, with stocks like Mango Excellent Media, TVZone Media, H&R Century Union Corporation, Shanghai Film, and Bona Film Group hitting the daily limit, while IReader Technology and COL Global Co., Ltd. also saw increases. Commentary: According to reports, the first long drama featuring AIGC, "After Journey to the West," premiered on August 31, produced by Mango TV and airing in prime time on Hunan TV. It is the first "broadcaster-regulated, simultaneously aired" series in the country following the release of the "21 Regulations." Additionally, media reports state that IMAX China is set to achieve the strongest summer box office record in its 25 years since entering China, with total summer box office exceeding 723 million yuan as of August 29, a year-on-year increase of 39%. 3. Real Estate Sector Active Against the Trend The real estate sector was active during the session, with 5i5j Holding Group and Shenzhen Properties & Resources Development (Group) Ltd. hitting the daily limit. Shenzhen SDG Service, Shenzhen Worldunion Group Incorporated, Financial Street Holdings, and CCCG Urban Development Holding Group all fell back after opening at the limit, closing up 10.26%, 5.58%, 3.14%, and 4.70% respectively. Commentary: On August 28, the People's Bank of China and the National Financial Supervisory Administration jointly issued "Opinions on Reforming and Improving Real Estate Credit Management to Promote the Acceleration of New Mode of Real Estate Development," clarifying that development loans will adopt a lead bank system, and extending the maximum term for personal housing loans from 30 years to 40 years at most. The Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the Financial Supervisory Administration simultaneously issued a "Notice on Improving the Sales System for Commodity Housing," requiring localities to effectively and orderly promote the sale of existing commodity housing.