Where to start
On August 14, the three major indices all closed higher, with the ChiNext Index showing stronger performance. The Shanghai Composite Index rose 0.01%, the Shenzhen Component Index gained 0.45%, and the ChiNext Index increased 1.12%.
Sector-wise, CPO concepts saw a volatile uptick, computing power leasing concepts rebounded quickly, the food and beverage sector experienced sporadic intraday moves, the pharmaceutical sector remained active, and liquid-cooled server concepts performed well. On the downside, high-priced stocks collectively fell, with Qinchuan Machine Tool & Building Parts Co., Ltd., Baoying Group Co., Ltd., Delong Energy Co., Ltd., and Jingtou Development Co., Ltd. hitting the daily limit down, while Tonglitianqi and Huangshi Group (rights protection) touched the limit down. The power sector saw volatile adjustments. Over 2,900 stocks across the market declined. The combined turnover of Shanghai and Shenzhen markets was 2.14 trillion yuan, shrinking by 408.1 billion yuan from the previous trading day.
On Thursday's afternoon session, the A-share market experienced a volume-driven sell-off, sparking some concerns. Today, the market traded with reduced volume and volatile consolidation throughout the day, with major indices seeing varying degrees of pullback, but they rebounded and turned positive in the afternoon, closing with lower shadows. The combined movements over the past two days mainly indicate two things: First, Thursday's decline was not driven by negative news but was a relatively simple profit-taking exodus by funds. Second, the continuous rebound since August may be marking a "comma." A "comma" here means the rebound trend that started in late July (bottoming out) remains unchanged, but including today, the next few trading days may see a minor adjustment cycle. On a smaller scale, perhaps Friday's intraday low could be the "bottom," but it's not necessary to expect a continued "fierce rally" next week—the market can be given more time and space.
Taking the Shanghai Composite Index as an example, some analysts believe the highs on July 22 and August 5 (both at 3884 points) can be seen as the upper edge of the previous box consolidation range; since August 6, the index has been trading in a new range above the 3884 points level and below the annual moving average. Therefore, even if there is further volatile pullback, as long as it does not materially break below the 3884 points level, the rebound trend of the Shanghai Composite Index is not over. Referring to the recent performance of the Wind All-A Index (representing the entire market), the dual-innovation indices (representing tech stocks), and the micro-cap stock index (broadly representing non-tech directions), the same judgment for the trend holds true. In summary, the broader market outlook can remain optimistic, but caution is needed in the short term, with preparedness for both scenarios (especially minor short-term declines) in operations.
Returning to the market. During Thursday's afternoon sell-off, sectors like optical communication and CPO were relatively resilient, and this strength was reinforced today, positioning them as the "key pivot" during market headwinds. Referring to the performance of sector ETFs like the Communication ETF (e.g., 515880), it experienced a peak-to-trough decline yesterday but closed slightly higher, and today it nearly reversed that decline. This sector is, after all, a direct reflection of overseas AI hardware direction performance, and recent overseas tech stocks have been relatively strong.
Among the limit-up stocks, two related to "photonics" deserve separate mention. First, Jones Tech Plc (300684), which is set to receive a strategic investment of over 1.7 billion yuan from Zhongji Innolight, recorded a 20cm "one"-character limit-up today. Some analysts suggest this transaction is viewed by the market as a significant signal of vertical integration within the industry chain, triggering a revaluation of upstream materials and component segments in the computing power hardware space. Second, Shenzhen Etmade Automatic Equipment Co.,Ltd. (300812), which surged to the daily limit again in early trading, becoming the first 20cm "five-consecutive-limit" bull stock in the second half of the year. According to Tonghuashun stock selection data, in late July, the ChiNext stock Wuzhou Medical recorded a "4.5 consecutive limit-up," meaning four 20cm limit-ups followed by a 10% gain on the fifth day. In the first week of August, Xintian Technology also recorded a 20cm "four-consecutive limit-up," but fell on the fifth day. However, they have not yet broken the year's record of a 20cm "six-consecutive limit-up" set by Zhitexinam in January.
Previously, Shenzhen Etmade Automatic Equipment Co.,Ltd. (300812) had been suspended from trading to plan a major asset restructuring involving "light pursuit," and it resumed trading only this Monday. The announcement shows the company plans to acquire controlling stakes in Lanchuang Technology from seven transaction counterparties, including Zheng Yanfei, through issuing shares and paying cash, while also issuing shares to no more than 35 specific investors to raise matching funds. Lanchuang Technology is one of the few domestic equipment manufacturers that has achieved commercial mass production in the ultra-narrow band thin-film filter (TFF) field, with equipment comprehensive output and technical stability ranking among the industry's top, and it is widely applied in optical communication, industrial lasers, medical optics, consumer electronics, and other fields.
Huaxi Securities recently noted in a research report that at the current juncture, cooling expectations for Federal Reserve interest rate hikes are improving the macro liquidity environment, providing a relatively favorable short-term environment for growth sectors. Overseas cloud vendors' capital expenditure remains at high levels overall, with Alphabet and Amazon raising their full-year guidance, and Microsoft's spending scale also at a high level. The rigidity of AI infrastructure investment is clear, continuously providing orders and performance guarantees for leading domestic suppliers of key equipment and supporting components like optical modules, high-speed connections, and liquid cooling. Wanlian Securities believes that the global AI computing power infrastructure construction is accelerating, driving sustained high demand for domestic and international optical interconnection. The 800G is accelerating its volume ramp-up, and 1.6T is gradually entering the scale deployment phase, with related order visibility continuing to improve. Relevant manufacturers have entered the performance realization phase. Domestic core enterprises, with their technological, production capacity, and scale delivery advantages, are well-positioned to fully benefit from this wave of global AI computing power infrastructure construction.
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