A-share Midday Review | ChiNext Index falls 1.27%, film and media sector sees wave of limit-up stocks, bank stocks hit new highs

On October 12, the three major A-share indices opened lower collectively, rallied in early trading before pulling back, and briefly turned positive across the board intraday before weakening again, with the Shenzhen market's growth style leading the decline. The market displayed a divergent pattern of "slight decline in the Shanghai Composite, weakness in the STAR Market and ChiNext, broad declines in individual stocks, and structural activity in AI applications and power equipment." As of the midday close, the Shanghai Composite fell 0.12% to 3,809.08 points, the Shenzhen Component fell 1.03% to 12,512.10 points, and the ChiNext Index fell 1.27% to 3,004.81 points. More than 4,000 individual stocks declined across the market. Half-day turnover across the Shanghai, Beijing, and Shenzhen markets totaled 1,022.5 billion yuan, a shrinkage of 155.8 billion yuan from the previous trading day. On the capital front, Cailian Press monitoring data showed that in early trading, main funds recorded net inflows into sectors including cultural media, electrical equipment and new energy, and power grid equipment, while recording net outflows from sectors including electronics, communications, and non-ferrous metals, with the electronics sector seeing net outflows exceeding 2.8 billion yuan. Among individual stocks, Contemporary Amperex Technology led with net main-fund buying exceeding 600 million yuan, while Avary Holding, Cambricon, and Titan Wind Energy ranked among the top in net main-fund inflows. CXMT Corporation saw net selling exceeding 700 million yuan, while Zhongji Innolight and GigaDevice Semiconductor Inc. ranked among the top in net capital outflows. Market Overview On the board, on the upside, AI application directions such as film and cinema lines and cultural media led gains, multiple stocks in the power grid equipment sector hit the limit up, and the wind power equipment and banking sectors showed active performance. On the downside, the planting and forestry and grain concept sectors pulled back sharply after rallying, while small metals, precious metals, and MLCC sectors ranked among the biggest decliners. Overall, the Shanghai Composite fluctuated in a narrow range supported by large financial weight stocks such as banks, while the growth direction in the Shenzhen market broadly corrected. Capital withdrew from high-level technology sectors such as semiconductors and consumer electronics, rotating toward low-level directions such as film and media and power equipment. Decliners outnumbered advancers, with profit-making effects concentrated in a small number of structural hotspots. Hot Sectors 1. Film and media sector sees wave of limit-up stocks The film and media sector continued to climb, with Shanghai Xinhua Media hitting the limit up at the open to notch 10 consecutive limit-up boards, Guomai Culture & Media hitting the 20CM limit up, and Decai Decoration hitting the limit up at the open. Bona Film Group, Ciwen Media Co.,Ltd., Shanghai Film, Jishi Media, Xinhua Winshare Publishing & Media, Heilongjiang Publishing & Media Holdings, and multiple other stocks hit the limit up, while H&R Century Union Corporation, IReader Technology, and Zhejiang Huace Film & TV ranked among the top gainers. Comment: On the news front, according to Sensor Tower data, ByteDance's short drama app PineDrama surpassed 100 million cumulative downloads about nine months after launch, with roughly 7 million daily active users, making it one of the fastest-growing apps in the overseas short drama track. In addition, Bona Film Group previously announced that China's first AI hyper-realistic theatrical film, "Sanxingdui: Future Past," is scheduled to hit theaters nationwide on October 23, having obtained a public screening license from the China Film Administration. According to statistics, as of October 11, total box office for the 2026 film year (including presales) had surpassed 31 billion yuan. 2. Multiple stocks in the power grid equipment sector hit the limit up Multiple stocks in the power grid equipment sector hit the limit up, with JinGuan Electric hitting the 20CM limit up, Yuan Cheng Cable notching a second consecutive limit-up board, and Zhongyeda Electric, Lanzhou Greatwall Electrical, and Jiangsu Tongda Power Technology hitting the limit up. Baoding Tianwei Baobian Electric and Delixi New Energy Technology touched the limit up intraday before pulling back (up 6.2% and 8.6% respectively at midday), while YINOW ELECTRIC, Beijing SOJO Electric, and China XD Electric followed with gains. Comment: On the news front, according to reports from CCTV News and other media, China's new-type power grid investment during the "15th Five-Year Plan" period is expected to exceed 5 trillion yuan, far exceeding the scale of the "14th Five-Year Plan" period, with a new-type power grid initially built by 2030. According to Xinhua News Agency, in the first half of 2026, State Grid's fixed asset investment exceeded 310 billion yuan, up 12.6% year-on-year, while China Southern Power Grid completed investment of 89.262 billion yuan, up 14.79% year-on-year. 3. Wind power equipment sector rebounds in volatile trading The wind power equipment sector strengthened in volatile trading, with Titan Wind Energy hitting the limit up, Shandong Shuangyi Technology and Yinchuan Weili Transmission Technology rising more than 10%, and Dajin Heavy Industry and TSP Wind Power Group ranking among the top gainers. Comment: On the news front, multiple domestic offshore wind power projects have recently launched preliminary bidding and wind turbine procurement, heating up expectations for the offshore wind power industry chain. In addition, the 2026 Beijing International Wind Energy Conference and Exhibition will be held from October 14 to 16. 4. Banking sector continues to hit record highs The banking sector extended its strength, with Bank Of China, CITIC BANK, Industrial and Commercial Bank of China, and China Construction Bank Corporation continuing to hit record highs intraday, while Chongqing Rural Commercial Bank, Bank Of Chongqing, Bank of Ningbo, and China Minsheng Banking Corp.,Ltd. ranked among the top gainers. Comment: On the news front, as of now, 21 A-share banks have disclosed their 2026 interim dividend plans, with total proposed payouts exceeding 260 billion yuan, of which 15 banks raised their dividend ratios from last year, and the six major banks uniformly raised their cash dividend ratios from 30% to 31%. In addition, the mortgage interest subsidy policy for homebuyers officially took effect on October 1, with an implementation period tentatively set at one year.