A-share Midday Review | ChiNext Index Drops 4.32%, Computing Power Hardware Plunges

September 28 The three major A-share indices opened lower collectively, then moved lower in a one-way trend with losses continuing to widen, presenting a divergent market pattern of "broad index declines, heavy selling in tech growth, and defensive sectors bucking the trend." As of the midday close, the Shanghai Composite fell 1.74% to 3,820.82 points, the Shenzhen Component dropped 3.37% to 12,868.28 points, and the ChiNext Index plunged 4.32% to 3,146.90 points; the STAR 50 fell 4.00%, and the BSE 50 dropped 2.17%. Across the Shanghai and Shenzhen markets, 676 stocks rose while 4,803 declined. Half-day turnover across the Shanghai, Beijing, and Shenzhen markets reached 1.1704 trillion yuan, up 92.4 billion yuan from the previous trading day. On the capital flow front, according to Cailianshe's market monitoring data, main funds saw net inflows in the morning session into sectors including complete automobiles, optoelectronics, and biological products, while net outflows hit sectors including electronics, communications, and semiconductors, with the electronics sector seeing net outflows exceeding 19.1 billion yuan. Market Overview On the board, on the gainers' side, commercial vehicles, yellow rice wine, and small home appliances sectors strengthened against the trend, while pork and oil & petrochemical sectors edged up slightly; on the decliners' side, computing power hardware directions including communications equipment, CPO, optical communications, and components led the declines, with precious metals and glass fiber sectors among the biggest laggards. Overall, risk-aversion sentiment intensified, tech growth tracks that had posted large prior gains faced concentrated profit-taking, low-valuation defensive directions were relatively resilient, and decliners outnumbered advancers. Hot Sectors 1. Yellow rice wine sector repeatedly active The yellow rice wine sector was repeatedly active, with Kuaijishan Shaoxing Rice Wine and Zhejiang Guyuelongshan Shaoxing Wine touching the daily limit intraday, Kuaijishan Shaoxing Rice Wine closing the morning session up over 6%, and ShangHai JinFeng Wine spiking then pulling back. Comment: On the news front, a Huatai research report judged that the volume-price logic of the yellow rice wine industry is expected to undergo restructuring, with consumption scenarios steadily upgrading, first through penetration rate increases in Jiangsu, Zhejiang, and Shanghai, then steadily expanding to the national market; in addition, the "Opinions on Promoting the High-Quality Development of Historical Classic Industries" (MIIT Joint Consumer Goods [2026] No. 204) previously issued by the Ministry of Industry and Information Technology and five other departments included brewing in the category of historical classic industries, proposing to cultivate 50 leading enterprises with 10-billion-yuan scale by 2028; the National Day holiday traditional consumption peak season is approaching. 2. Individual stocks in the complete automobile sector surged Individual stocks in the complete automobile sector surged, with Anhui Jianghuai Automobile Group Corp.,Ltd. hitting the daily limit for its third board in four days, Zotye Automobile hitting the daily limit, and BAIC BluePark New Energy Technology, Dongfeng Automobile, and Anhui Ankai Automobile among the top gainers. Comment: On the news front, the auto market entered the "Golden September" sales push period, with over 50 new models launched intensively since September; Chongqing Changan Automobile signed a strategic cooperation agreement with Brazil's Caoa Group, with the two sides set to form a joint team of more than 200 engineers to conduct adaptability testing based on Brazil's local environment. 3. Some stocks in the power sector strengthened against the trend Some stocks in the power sector strengthened against the trend, with Zhe jiang Provincial New Energy Investment Group hitting the daily limit, and Jiangsu New Energy Development, GD Power Development, SDIC Power Holdings, and Guangdong Baolihua New Energy Stock among the top gainers. Comment: On the news front, on September 24, the National Energy Administration released national electricity statistics for January-August, showing that as of the end of August, cumulative national installed power generation capacity reached 4.103 billion kilowatts, up 11.1% year-on-year, including CECEP Solar Energy installed capacity of 1.299 billion kilowatts, up 16.3% year-on-year, and wind power installed capacity of 693 million kilowatts, up 19.6% year-on-year. 4. Glass substrate concept locally active The glass substrate concept was locally active, with Yingkou Jinchen Machinery posting three consecutive daily limits, Caihong Display Devices touching the daily limit intraday and closing the morning session up over 7%, and Ledman Optoelectronic rising over 14%. Comment: On the news front, according to a report by South Korean media The Seoul Economic Daily, Nvidia is evaluating the adoption of a glass substrate solution and cooperating with German equipment manufacturer SCHMID and other companies, hoping that substrate manufacturers in South Korea, Japan, and other regions can complete glass substrate development within two years, with commercialization potentially landing as early as before 2028.