A-shares at midday | The three major indices rose collectively, with most individual stocks declining, and the shipping and cultivated diamonds leading the gains.

On September 3, the three major A-share indices opened higher collectively (Shanghai Composite Index up 0.29%, Shenzhen Component Index up 0.73%, GEM Index up 0.90%), surged in the early session before experiencing a pullback, and then fluctuated upward again. The GEM Index and Shenzhen Component Index briefly turned negative during the day, showing a market performance characterized by "indices collectively closing higher, most stocks declining, with shipping and lab-grown diamonds leading the gains." By the close of the midday session, the Shanghai Composite Index had risen 0.43% to 3958.19 points, the Shenzhen Component Index was up 0.39% to 13664.14 points, and the GEM Index increased 0.43% to 3326.42 points. Over 3,100 stocks fell across the market, with 43 hitting their upper limit and 7 their lower limit. The trading volume for the Shanghai and Shenzhen markets was 1.1 trillion yuan for the half-day session, down 110.4 billion yuan compared to the previous trading day. In the early session, major funds had a net inflow into sectors such as non-bank financials, securities, and non-ferrous metals, while they experienced net outflows from electronic, communication, and semiconductor sectors, with the electronic sector seeing a net outflow of over 4.5 billion yuan; among individual stocks, Sanan Optoelectronics saw a net purchase of over 1 billion yuan, ranking first. Market Overview In terms of gains, the shipping and lab-grown diamond sectors saw the largest increases, while liquid cooling servers and humanoid Siasun Robot & Automation remained active. Large financial sectors such as insurance and securities rose amid fluctuations; on the downside, agricultural planting and grain sectors faced significant declines, with areas like dairy and pharmaceutical industries weakening. Stocks such as Jiangsu Chuanzhiboke Education Technology, Shenzhen China Bicycle, Zhejiang Yiming Food, and Elegant Home-Tech, which were previously high-flying, all hit their lower limits. Overall, the strength of the weighted and financial sectors drove the three major indices to close higher collectively, but with over 3,100 stocks falling, the profit-making effect was weak, indicating that funds are pulling back from previously high-profile themes and shifting towards news-driven directions like shipping and lab-grown diamonds. Hot Sectors 1. Shipping Sector Rallies The shipping sector surged collectively, with Fujian Highton Development, Phoenix Shipping, and COSCO Shipping Energy Transportation hitting their upper limits, GH SHIPPING rising over 10%, China Merchants Energy Shipping up more than 8%, and Nanjing Tanker Corporation, Cosco Shipping Specialized Carriers following suit. Commentary: On the news front, the Baltic Dry Index (BDI) surged by 174 points or 5.5% on September 2, reaching 3,331 points, its highest since December 2023, with the Capesize vessel index up 8.1%. Traditionally, the third quarter marks the peak season for dry bulk shipping, with iron ore, coal, and grain shipments increasing. Combined with the tense situation in the Middle East causing some ships to reroute, the effective shipping capacity is contracting, thereby supporting freight rates. 2. Lab-grown Diamond Concept Gains Strength The lab-grown diamond sector strengthened, with Henan Huanghe Whirlwind and Hengsheng Energy hitting their upper limits, HFZS rising over 10%, Sf Diamond Co., Ltd. up more than 8%, and Henan Liliang Diamond and Beijing Worldia Diamond Tools also gaining. Commentary: A report from institutions points out that lab-grown diamonds share high-temperature high-pressure synthesis technology with industrial diamonds, allowing for the production of semiconductor-grade diamond wafers through CVD epitaxial processes, indicating strong synergy in the supply chain; the rapidly growing demand for diamond functional materials is expected to transmit the effects through synergies to the lab-grown diamond segment. 3. Liquid Cooling Server Concept Remains Active The liquid cooling server concept continued to be active, with Guangzhou Jointas Chemical marked 4 consecutive gain limits, Shandong Golden Empire Precision Machinery Technology achieving 3 gains in 4 days, JinFu Technology making gains for 2 days out of 4, and Guangdong Suqun New Material rising over 10%. Commentary: Institutional reports indicate that the overall increase in AI server shipments is expected to elevate the penetration rate of liquid cooling to higher levels, opening revenue potential within the liquid cooling supply chain; Guangzhou Jointas Chemical noted in a report regarding unusual stock fluctuations that its liquid cooling silicone oil product is currently in a critical validation stage before commercialization, and it has not formed large-scale orders or sales revenue yet. 4. Humanoid Siasun Robot & Automation Concept Fluctuates Strongly The humanoid Siasun Robot & Automation concept showed strong fluctuations with Shanghai Moons' Electric and Greatoo Intelligent Equipment Inc. hitting their upper limits, and Shenzhen Zhaowei Machinery & Electronics and FENGGUANG PRECISION also following the trend. Commentary: On the news front, Tesla CEO Elon Musk stated on September 1 that the number of humanoid Siasun robots worldwide could reach 1 billion in the next decade; additionally, the humanoid Siasun Robot & Automation business under XPeng Group completed its first round of financing exceeding 900 million USD in late August, with a post-investment valuation of over 6.3 billion USD. The Ministry of Industry and Information Technology also publicly solicited opinions in late August regarding the "Guidelines for the Construction of the National Humanoid Siasun Robot Industry Standard System (2026 Edition)", continuing to catalyze the industry.