A-share midday | The Shanghai Composite Index fell 0.24%, the ChiNext Index rose 2.63%, and there was a surge in limit-up for computing hardware.

On September 7, the three major A-share indexes opened higher collectively, followed by a divergence in performance. The Shanghai Composite Index fluctuated and turned negative, while the Shenzhen market demonstrated strength in growth styles, presenting a pattern of Shenzhen strong, Shanghai weak, with growth leading and large caps retreating. By the midday close, the Shanghai Composite Index fell 0.24% to 3,920.70 points, the Shenzhen Component Index rose 1.38% to 13,703.21 points, and the ChiNext Index increased by 2.63% to 3,373.12 points. More than 2,900 stocks in the whole market rose. The half-day trading volume in the Shanghai, Beijing, and Shenzhen markets amounted to 1,254.6 billion yuan, a slight increase of 7.5 billion yuan from the previous trading day. In terms of capital flow, major funds saw net inflows into sectors such as electronics, telecommunications, and semiconductors, while there were net outflows from sectors like computing, non-banking financials, and defense industry, with the electronics sector experiencing net inflows exceeding 17.9 billion yuan. Market Overview On the market, in terms of gains, sectors related to CPO, PCB concepts, and computing hardware led the rise, while agriculture and forestry, as well as grain concepts, exhibited strong performance. The 3D printing concept was active during the session, and large consumer sectors like retail and tourism saw a pullback. On the downside, the kitchen and bathroom appliances sector opened weak and continued downward, while coal mining and processing, insurance, precious metals, and banking sectors recorded significant declines. Overall, the Shanghai Composite Index was dragged down by high-dividend-weighted stocks such as banks and coal, while funds concentrated on growth sectors like computing hardware, leading to an overall trend of more stocks rising than falling and a concentration of market gains in tech growth sectors. Hot Sectors 1. CPO Concept Opens High and Strong The CPO sector opened high and rose further, with Cig Shanghai, Dongguan Mentech Optical & Magnetic, and Shenzhen Xunjiexing Technology Corp. reaching the daily limit. Over ten stocks in the sector hit the daily limit, and Jiujiang Defu Technology and T&S Communications saw significant gains. Commentary: In terms of news, on September 4, seven departments, including the Central Cyberspace Administration, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, jointly issued the Implementation Plan for Promoting Coordinated Development of Digital and Green Transition (2026-2030), proposing support for green technology innovations such as liquid cooling and waste heat recovery for computing facilities, and promoting the coordinated development of computing and power; the Ministry of Industry and Information Technology recently released the Entrepreneurship Support Plan for Small and Medium-sized Enterprises in Artificial Intelligence (2026-2028), which aims to cultivate over 10,000 tech innovation small and medium-sized enterprises in key areas like intelligent computing within three years. This policy boost for AI infrastructure, combined with continued positive expectations for AI computing demand, has strengthened sectors like CPO and computing hardware. 2. PCB Concept Performance Active The PCB concept showed active performance, with Shennan Circuits, Shenzhen Kinwong Electronic, Huizhou CEE Technology Inc., and Zhejiang Wazam New Materials reaching the daily limit, while Shengyi Electronics, Shenzhen Yanmade Technology Inc., and Kunshan Dongwei Technology saw significant gains. Commentary: In terms of news, PCBs are part of the same AI computing hardware supply chain as CPO and optical modules, which showed collective strength driven by the increased policy support for AI infrastructure and robust demand for computing; data from Financial Association shows that major funds in the electronics sector had net inflows exceeding 17.9 billion yuan in the morning session, with continual capital inflow toward computing hardware directions. 3. Agriculture and Forestry Sector Exhibit Strength The agriculture and forestry sector showed strong performance, with Gansu Yasheng Industrial achieving three consecutive limits, Gansu Dunhuang Seed Group, and Jinjian Cereals Industry hitting the daily limit, while Hainan Shennong Seed Industry Technology, Xinjiang Talimu Agriculture Development, and Xinjiang Sailimu Modern Agriculture saw significant gains. Commentary: In terms of news, the World Meteorological Organization has confirmed the formation of the El Nio phenomenon, which is expected to peak around the end of the year and may become one of the strongest events on record, potentially threatening the yields of staple crops like corn, soybeans, and wheat until 2027. Additionally, the Ministry of Agriculture and Rural Affairs, the Central Agricultural Office, the National Development and Reform Commission, the Ministry of Finance, the Peoples Bank of China, and the Financial Regulatory Bureau recently issued the Implementation Plan for Improving the Investment Mechanism for Rural Revitalization with Prioritization on Agricultural and Rural Development, proposing improvements to the pricing mechanism for important commodities such as grain and maintaining the minimum procurement price policy for rice and wheat to ensure a safety net. 4. 3D Printing Concept Active During Session The 3D printing concept was active during the session, with Chongqing Changjiang River Moulding Material reaching the daily limit, Scantech briefly hitting the limit, with Farsoon Technologies and Ningbo Homelink Eco-iTech also gaining. Commentary: In terms of news, OpenAI released its next-generation flagship model, GPT-6 Astra, on September 3. This model can directly enter computer software environments and autonomously complete long-cycle multi-step tasks such as programming and modeling. Expectations for the spread of AI applications into industrial software, three-dimensional modeling, and other fields have intensified, driving activity in the 3D printing sector.