A-share Midday Review | ChiNext Index Falls 1.07%, Contemporary Amperex Technology Drops Over 10%, Data Elements Strengthen

On October 21, the three major A-share indices opened collectively higher, then surged and pulled back, collectively turning negative by midday, with the market showing a divergent pattern of "indices surging and pulling back, heavyweight stocks dragging down ChiNext, and structural hotspots active." As of midday close, the Shanghai Composite Index fell 0.31% to 3,723.95 points, the Shenzhen Component Index fell 0.31% to 11,764.97 points, and the ChiNext Index fell 1.07% to 2,709.96 points. More than 2,800 individual stocks across the market rose. Half-day turnover in the Shanghai and Shenzhen markets was 939.3 billion yuan, an increase of 5.9 billion yuan from the previous trading day. On the capital front, main funds recorded net inflows into sectors including electronics, communications, and semiconductors, and net outflows from the power equipment industry, home appliances, and transportation equipment, among which the electronics sector saw a net inflow of 5.87 billion yuan. Market Overview On the market, on the upside, concepts such as data elements, AI comic dramas, and Fujian local stocks strengthened against the trend, the livestock farming sector followed with active trading, and the pork and chicken concepts rose 2.35% and 2.31%, respectively; on the downside, the battery industry chain fell collectively, Contemporary Amperex Technology dropped over 10% after releasing its third-quarter report on the evening of October 20, with its share price falling more than 50% from the historical high set on May 7, Liaoning Shidai Wanheng once hit the limit down, and Shanghai Zizhu High-Tech Science And Technology, Jiangsu Azure Corporation, and others fell one after another. Overall, capital divergence increased after the morning surge, lithium carbonate futures fell over 4%, further suppressing the performance of the battery industry chain, and Contemporary Amperex Technology's sharp post-earnings plunge dragged down the ChiNext Index, which led the declines; hotspots were concentrated in policy-catalyzed directions such as data elements, and the market showed a structurally divergent pattern. Hot Sectors 1. Data elements concept strengthens against the trend The data elements concept strengthened against the trend, Linewell Software and Cnlight Co.,Ltd rose by the daily limit for the third time in four days, Beijing Vastdata Technology, Shenzhen Topway Video Communication, Taiji Computer Corporation, and RunJian Co.,Ltd. hit the daily limit, and Shenzhen Sed Industry, ZCCN INFO, Beijing Bohui Science & Technology Co.,Ltd., and CETC Digital Technology surged and followed higher. Comment: On the news front, on October 20, China Data Group Co., Ltd. was established in Xiong'an New Area, Hebei. The company was approved for establishment by the State Council and is a central enterprise, with the State-owned Assets Supervision and Administration Commission of the State Council performing investor responsibilities on behalf of the State Council, ranking 28th in the list of central enterprises. Its main responsibilities and core business are the development and utilization of data resources, aiming to advance the development and utilization of data resources, unlock the value of data elements, serve the development of artificial intelligence, and prosper the data industry ecosystem. 2. AI comic drama concept repeatedly strengthens The AI comic drama concept repeatedly strengthened, Guangdong Guangzhou Daily Media rose by the daily limit for the second consecutive day, Cultural Investment Holdings hit the daily limit, Beijing Baination Pictures rose over 5%, and H&R Century Union Corporation and others ranked among the top gainers. Comment: On the news front, Volcano Engine launched an incentive plan for premium AI dramas, offering incentives for premium AI short comic dramas produced using Seedance and launched on the Hongguo Short Drama APP. Eligible AI dramas (including AI comic dramas and AI simulated dramas) that rank in the monthly TOP 50 by Hongguo popularity value and pass review can receive up to 200,000 yuan in incentives per work. 3. Fujian local stocks pull up against the trend Fujian local stocks pulled up against the trend, Anji Foodstuff rose by the daily limit for the second consecutive day, Zhongfu Straits and Fujian Cement Inc. hit the daily limit, Strait Innovation Internet and XMRBI rose over 10%, and Fujian Jinsen Forestry, Fujian Zhangzhou Development, Xiamen Xinde Co Ltd., and others followed higher. Comment: On the news front, according to Fuzhou Customs statistics, in the first three quarters of this year, Fujian's imports and exports with the European Union exceeded 200 billion yuan, reaching 207.06 billion yuan, up 5.6% year on year, accounting for 13.6% of the province's total import and export value during the same period.