On July 7th, the three major A-share indices opened collectively lower. As of 9:42, the Shanghai Composite Index was down 0.33%, the Shenzhen Component Index had risen 0.20%, and the ChiNext Index had opened 0.52% lower.
In terms of sector performance, the humanoid robot concept was active, with Julong Intelligent surging to hit the daily limit-up. Wuzhou Xinchun, Top Group, Leader Harmonious Drive, and Silicon Drive followed with gains. The lithium mining concept was active early in the session, with Yahua Group hitting the limit-up at the open. Tianhua New Energy, Rongjie Co., Ltd., Shengxin Lithium Energy, Ganfeng Lithium, and Tianqi Lithium also advanced. The gaming sector saw a volatile uptick, with Star Entertainment gaining over 10%. Youzu Interactive, Kunlun Tech, Giant Network Group, and Kaiying Network followed suit.
Looking ahead, Yingda Securities believes the earlier substantial rally in the tech sector has partially priced in optimistic future expectations. With the half-year report window opening, there is significant uncertainty over whether high growth rates can be delivered as anticipated. This suggests that the period of heightened volatility for high-valuation tech stocks may have just begun. While there are signs of funds rotating towards lower-valued traditional sectors, the strength and sustainability of this shift are questionable. The market currently lacks a clear new leading theme and is overall in a phase of chaotic consolidation.
Active Market Themes
Humanoid Robot Concept Gains Traction
The humanoid robot concept was active, with Julong Intelligent surging to hit the daily limit-up. Wuzhou Xinchun, Top Group, Leader Harmonious Drive, and Silicon Drive followed with gains.
Commentary: On the news front, Zhao Yunfeng, Vice Chairman and Secretary-General of the Chinese Institute of Electronics, stated on July 6th that the 2026 World Robot Conference will be held from August 19th to 23rd at the Beijing Economic-Technological Development Area Beiren Yichuang International Convention and Exhibition Center.
Lithium Mining Sector Active at Open
The lithium mining concept was active early in the session, with Yahua Group hitting the limit-up at the open. Tianhua New Energy, Rongjie Co., Ltd., Shengxin Lithium Energy, Ganfeng Lithium, and Tianqi Lithium also advanced.
Commentary: On the news front, Yahua Group forecasted a first-half net profit of 1.1 to 1.3 billion yuan, representing a year-on-year increase of 710% to 857%, driven by higher volumes and prices for its lithium salt products.
Gaming Sector Sees Volatile Uptick
The gaming sector saw a volatile uptick, with Star Entertainment gaining over 10%. Youzu Interactive, Kunlun Tech, Giant Network Group, and Kaiying Network followed suit.
Commentary: On the news front, the National Press and Publication Administration released approval information for domestic and imported online games in June 2026. A total of 171 online games received licenses in June, an increase from 158 in the previous month.
Institutional Perspectives
Yingda Securities: Market Lacks Clear New Theme, Remains in Consolidation Phase
Yingda Securities believes the market will gradually enter a period of half-year earnings verification in July. As the intensive disclosure period for mid-year performance forecasts begins in mid-July, the pricing logic for A-shares may shift from "liquidity-driven" to "earnings-driven." The earlier substantial rally in the tech sector has partially priced in optimistic future expectations. With the half-year report window opening, there is significant uncertainty over whether high growth rates can be delivered as anticipated. This suggests that the period of heightened volatility for high-valuation tech stocks may have just begun. While there are signs of funds rotating towards lower-valued traditional sectors, the strength and sustainability of this shift are questionable. The market currently lacks a clear new leading theme and is overall in a phase of chaotic consolidation.
Caixin Securities: Market Expected to Experience High Volatility Short-Term; Lower-Valuation Sectors Have Momentum for Re-rating
Caixin Securities believes that, overall, the market is currently in a phase of style rebalancing. Lower-valuation sectors possess momentum for valuation repair, but market sentiment and investor confidence primarily depend on the performance of the science and innovation direction. As the hard tech sector has become somewhat desensitized to positive news while more sensitive to negative news recently, short-term market fluctuations may intensify, which is not conducive to repairing market sentiment. This leads to faster sector rotation and weaker sustainability in the market. Therefore, in the near term, it is advisable to observe more and act less, maintaining reasonable control over positions. Investors should wait for positive market signals, such as a timely stabilization and recovery in the science and innovation direction or the broader market showing strong, high-volume gains, before increasing participation. From a medium-term perspective, the market is in a transitional phase in July and is expected to experience relatively high volatility, suggesting a balanced allocation approach is preferable.
Guojin Securities: Lithium Battery Peak Season Nears in July; Favor Sectors with Favorable Competitive Structures
A Guojin Securities research report points out that the entire lithium battery industry chain is currently entering a window for a potential cyclical bottom reversal. As the peak season for power and energy storage demand approaches later this year, the sector is expected to usher in a main upward trend driven by both volume and price, allowing upstream, midstream, and downstream segments to fully share in the industry's growth红利. Using the competitive landscape of sub-sectors as the core criterion for judgment, the report focuses on leading companies with stable profitability and market share in their niches, as well as quality second-tier players achieving technological breakthroughs. It specifically highlights eight优质segments: lithium mining, power batteries, structural components, separators, copper foil, lithium iron phosphate cathodes, large-scale energy storage, and vehicle exports. Specifically, the upstream, midstream, and downstream segments of the lithium battery industry chain all show a pattern where leading players strengthen their positions and new technologies break through.
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