A-share midday report: Shanghai Composite Index up 0.22%, liquid-cooled servers, pharmaceutical stocks and other sectors strengthened. WuXi AppTec once hit the limit up.

On March 4th, the A-shares hit a bottom and rebounded, with funds collectively speculating on AI concept stocks. By the midday closing, the Shanghai Composite Index rose by 0.22%, the Shenzhen Component Index fell by 0.03%, and the Growth Enterprise Market Index rose by 0.64%. On the market, liquid-cooled servers and computing power concept stocks opened with significant gains. Shenzhen Envicool Technology and Sichuan Crun hit the limit up. The precious metals concept fluctuated and rose, with Chenzhou City Jingui Silver Industry hitting the limit up. Pharmaceutical stocks rebounded collectively, with innovative drugs and CRO concept stocks shaking and rising, WuXi AppTec and Zhuhai Rundu Pharmaceutical hitting the limit up. In terms of declines, the major financial sector fluctuated and fell, with Founder and New China Life Insurance falling by over 5%. The automotive sector also fluctuated and fell, with multiple stocks including Zotye Automobile, Yangzhou Yaxing Motor Coach, and Haima Automobile falling by over 5%. In focus, Guangdong Dongfang Precision Science & Technology plunged to hit the limit down, hitting a "floor" trend with a turnover of over 1.7 billion RMB. The stock had previously seen a 6-session streak and had hit the limit down in early trading. The three major oil companies saw strong fluctuations in early trading, with CNOOC Limited rising by over 5% to hit a new high, Petrochina rising by over 2%, and China Petroleum & Chemical Corporation rising by nearly 2%. Hong Kong-listed CNOOC rose by over 2%. Looking ahead, the Li Qiusuo team at CSC Strategy believes that the short-term recovery trend is likely to continue, while the medium-term trend depends on the policy environment, especially the concerted efforts of fiscal and monetary policy. Popular Sectors: 1. Strong performance in liquid-cooled servers and computing power concept stocks. 2. Rise in precious metals concept stocks. 3. Collective rebound in pharmaceutical stocks. 4. Shaking and declining trend in hydrogen energy concept stocks. Institutional Views: Looking ahead, the Li Qiusuo team at CSC Strategy believes that the short-term recovery trend is likely to continue, while the medium-term trend depends on the policy environment, especially the concerted efforts of fiscal and monetary policy. CICC: The short-term recovery trend is likely to continue. Haitong: The pace of the short-term market rise may slow down, and there may even be the possibility of a period of consolidation.Around 25-30%; From the perspective of seasonal patterns, the current period is a spring frenzy with data gaps and frequent policy changes. Historically, the average duration of the spring market in A-shares exceeds 2 months, with an average increase of over 20% in the Shanghai Composite Index and the CSI 300 Index during this period.Comparison to historical trends, this round of market uptrend has seen a significantly faster rate of increase. The market has also accumulated a certain amount of profit-taking pressure. Going forward, it is important to note that the short-term market uptrend pace may slow down, and there is even the possibility of a phase of consolidation. Huaxi: With the successive verification of financial reports, future market trends are likely to see increased volatility and differentiation. The Huaxi Strategy Team led by Li Lifeng also pointed out that with the convening of the National Two Sessions next week, the validation of economic data and corporate financial reports after the landing of policy expectations becomes more important. Attention should be paid to the improvement of data such as February prices and inflation. It is important to note that due to the continual drag from negative growth PPI, the current A-share corporate profit expectations lack a solid fundamental resilience, and the proportion of downward revisions in profit forecasts for listed companies by A-share institutions has been increasing this year. Following the general rise in February, with the successive verification of financial reports, future market trends are likely to see increased volatility and differentiation. This article is from "Tencent Stock Picks", GMTEight Editor: Wang Qiujia.