A-share Midday Review | Shanghai Composite Index Rises 0.55%, Pharmaceutical Sector Sees Wave of Limit-Up Stocks

On September 21, the three major A-share indices opened collectively higher and then maintained gains in positive territory, with the ChiNext Index relatively leading and the STAR 50 paring gains after an early surge. The market showed a pattern of "broad index gains, pharma leading, and widespread stock advances." As of the midday close, the Shanghai Composite Index rose 0.55% to 3933.37 points, the Shenzhen Component Index rose 0.57% to 13718.23 points, and the ChiNext Index rose 0.93% to 3403.97 points. More than 4,300 stocks in the entire market rose, while more than 1,000 declined. Half-day turnover across the Shanghai, Beijing, and Shenzhen markets was 1.339 trillion yuan, an increase of 10.3 billion yuan from the previous trading day. On the capital flow side, according to Cailian Press monitoring data, main funds in the morning session recorded net inflows into sectors such as pharmaceuticals, communications, and chemical pharmaceuticals, while recording net outflows from sectors such as semiconductors, electronics, and the electrical equipment and new energy industry, with the pharmaceutical sector seeing net inflows exceeding 5.4 billion yuan. Market Overview On the board, on the upside, medical services, CRO concept, innovative drugs, and biological products sectors led the gains, while chemical pharmaceuticals, film and cinema, and travel and hotels also moved higher in tandem, and PCB concept stocks strengthened in selected areas; on the downside, home appliances and precious metals sectors led the declines, the insurance sector pulled back slightly, and the banking sector fluctuated and adjusted. Overall, stocks in the two markets showed widespread gains, funds clearly concentrated toward the pharmaceutical and biotech direction, while previously defensive directions such as precious metals and insurance saw capital outflows. Hot Sectors 1. Medical services and CRO concepts led the gains Medical services and CRO concept sectors opened higher and moved up, with Novogene Co., Ltd. hitting the 20CM limit-up, Landfar Bio-medicine notching a third consecutive limit-up, Whole Shine Medical Technology, Jiangsu Aoyang Health Industry, and Xinjiang Bai Hua Cun Pharma Tech hitting the limit-up, Novoprotein Scientific Inc. hitting the 20CM limit-up, Hitgen Inc. rising more than 14%, and Anhui Wanbang Pharmaceutical Technology rising more than 13%. Comment: On the news front, the State Council executive meeting held on September 18 deployed the implementation of a medical rehabilitation and nursing capacity expansion and improvement project, proposing to strengthen the medical rehabilitation and nursing service system with a focus on the grassroots level, promote the extension of rehabilitation and nursing resources to communities and families, and dynamically adjust the catalog of rehabilitation medical and long-term care service items. 2. Innovative drug sector set off a wave of limit-ups The innovative drugs and chemical pharmaceuticals directions showed strong performance, with Harbin Pharmaceutical Group, Shandong Xinhua Pharmaceutical, Realcan Pharmaceutical Group, Shanghai Shenqi Pharmaceutical Investment Management, and Jinghua Pharmaceutical Group hitting the limit-up, HERYI PHARMA hitting the 30CM limit-up, and Asiainfo Pharma and InnoCare Pharma among the top gainers. Comment: On the news front, on September 18, the Ministry of Industry and Information Technology, together with the National Development and Reform Commission, the National Medical Products Administration, and other ten departments, issued the "15th Five-Year Plan" for the development of the pharmaceutical industry, proposing that by 2030 the operating revenue of pharmaceutical industrial enterprises above designated size exceed 3.5 trillion yuan and that first-in-class innovative drugs account for more than 25% globally, and deploying 25 key tasks across 8 aspects including innovation-driven development and precision diagnosis and treatment, and clearly developing CRO and CDMO specialized production service formats. 3. Film and cinema sector fluctuated higher The film and cinema sector pulled up during the session, with Zhejiang Huazhi Digital Media hitting the 20CM limit-up, while H&R Century Union Corporation, Beijing Baination Pictures, China Film Group, and Zhejiang Huace Film & TV followed the gains. Comment: On the news front, the Maoyan Professional release calendar on September 20 showed that as of now a total of 9 films have been scheduled for release during the National Day holiday period, among which the film "Rebirth 2" officially announced a release date of October 3; in addition, the Ministry of Culture and Tourism released the "15th Five-Year Plan" for the development of the cultural industry on September 18, proposing to promote the application of artificial intelligence in cultural creation, production, dissemination, consumption, and other links. 4. PCB concept stocks strengthened in selected areas, with the fiberglass direction also active PCB concept stocks strengthened in selected areas, with DELTON hitting the limit-up, Shenzhen Xunjiexing Technology Corp. rising more than 12%, and Shenzhen Kinwong Electronic following the gains; the fiberglass direction also moved higher, with Sinoma Science & Technology touching the limit-up during the session and closing the morning up more than 7%, while China Jushi Co., Ltd, Shandong Fiberglass Group, and Chongqing Polycomp International Corporation followed the gains. Comment: On the news front, China Jushi Co., Ltd raised prices for electronic cloth thick cloth and thin cloth by 15% and 20% respectively in September, and Kingboard and overseas substrate manufacturers adjusted quotations in tandem, with the price increase chain transmission from upstream electronic cloth to midstream copper-clad laminates continuing.