China's three major A-share indices opened higher on September 21, with the Shanghai Composite Index trending upward while the Shenzhen Component Index and ChiNext Index narrowed their gains amid intraday divergence. A late-session rebound expanded gains across both exchanges.
From a sector perspective, real estate, shipping, banking, and coal stocks strengthened collectively in the afternoon, while ADC and CRO concepts led gains throughout the day. Home appliances, gold, and highway sectors remained weak. By the close, the Shanghai Composite Index rose 0.97% to 3,949.91 points; the Shenzhen Component Index gained 0.65% to 13,730.02 points; and the ChiNext Index added 0.8% to 3,399.59 points.
According to Wind statistics, a total of 4,533 stocks rose across the two exchanges and the Beijing Stock Exchange, while 932 fell and 93 remained flat. Combined turnover reached 2.0315 trillion yuan, down 45.6 billion yuan from the previous session's 2.0771 trillion yuan. Shanghai's turnover stood at 946.8 billion yuan, a decrease of 47.4 billion yuan from the prior day's 994.2 billion yuan, while Shenzhen's turnover reached 1.0847 trillion yuan. Data from Dazhihui VIP showed 160 stocks gained over 9% and seven stocks fell over 9% across the two exchanges and the Beijing bourse.
Property and pharma lead sector gains
In terms of sectors, real estate stocks surged sharply, with nearly 10 stocks including Greenland Holdings (600606), Gemdale Group (600383), Huafa Industrial (600325), World Union (002285), 5i5j (000560), and China Vanke (000002) hitting their daily limit. The pharmaceutical and biotech sector saw a wave of limit-ups, with over 30 stocks including Huaren Pharmaceutical (300110), Novogene (688315), Tellgen (300642), Jet Bio-Filtration (688026), Novoprotein (688137), and Wanbang Pharmaceutical (301520) either hitting limit-up or rising over 10%.
BOC International noted that experimental validation is a key step for the AIDD (AI-driven drug discovery) industry chain to realize long-term value, and the expansion of experimental validation demand is expected to drive synchronized growth in upstream research service-related industries. Specifically, upstream sectors such as gene synthesis, protein expression and purification, culture media, detection reagents, experimental consumables, and model animals are all expected to grow alongside downstream experimental demand expansion.
The oil and petrochemical sector climbed steadily, with Offshore Oil Engineering (600583), Huajin Chemical (000059), BOMESC (603727), Compton (603798), and Runbei Aerospace (001316) rising over 5%, while Guanghui Energy (600256), Donghua Energy (002221), and Tongyuan Petroleum (300164) gained over 3%.
Home appliances led declines, with Hisense Visual (600060), Midea Group (000333), Hisense Home Appliances (000921), and Haier Smart Home (600690) all falling over 3%. Power equipment stocks dropped sharply in the afternoon, with *ST Shijing (301030) and Huashang Chang (002980) down over 7%, while CSG Smart Science (688248), Leadmicro (688147), and Jia Yuan Tech (688388) fell over 4%. Non-ferrous metals also declined, with Hongqiao Holding (002379) and Shanjin International (000975) down over 3%, and Chifeng Gold (600988), Tianshan Aluminum (002532), Yunnan Aluminium (000807), and Shentong Coal (000933) falling over 1%.
Rebound persists but pre-holiday headwinds need watching
CSC Financial's research report indicated that A-shares have begun a second round of repair rally. The macro game triggered by overseas Middle East geopolitical conflicts pushing up oil prices and US Treasury yields has partially concluded, with oil prices and long-end US bond yields subsequently retreating. With a loose domestic interest rate environment and a stable RMB exchange rate, the market's main line has returned to earnings prosperity, opening a window for capital to flow back into high-prosperity sectors. However, continued tracking of overseas interest rates, the sustainability of oil price declines, and external disturbances from the late-October FOMC meeting remain necessary.
On allocation, a balanced and layered approach is recommended. On the offensive side, prefer AI computing supply shortages and price-increase segments (optical chips, PCB manufacturing, CCL, server assembly) along with industrial non-ferrous metals like copper, aluminum, and tin. On the defensive side, use dividend assets as a base to hedge volatility, while flexibly seizing phased opportunities in domestic-demand sectors such as agriculture, medical aesthetics, and textiles and apparel driven by policy expectations.
Huatai Securities' A-share strategy report stated that following the Fed's rate hike last week, the tech sector repaired. The short-term resolution of overseas liquidity uncertainty may open a rebound window, with tech sectors previously suppressed by overseas liquidity expectations likely to benefit. However, weak domestic economic and credit data, narrowing earnings repair breadth, and cautious pre-National Day sentiment remain restraining factors, potentially limiting upward momentum. The firm maintains a rebound-rather-than-trend view. Medium-term structural opportunities remain, though repair breadth is narrowing, and the tone shifts to neutral. Allocation-wise, position in tech, innovative drugs, and chemical chains with valuation gaps driven by easing pressures, while keeping dividend assets as a base to reduce volatility.
CITIC Securities' report argued that in the latter stages of an industrial super-cycle, institutional stocks peaking is typically followed by a round of new highs in non-institutional stocks. The current AI narrative, earnings cycle positioning, and global monetary environment are likely to constrain institutional stocks: 1) AI computing investment has not slowed, but market expectations for frontier model companies' commercialization space are adjusting; 2) All-A non-financial earnings may continue to rise quarter-on-quarter through Q3 2026, but the year-on-year growth peak may appear in Q4 this year; 3) The Fed's hawkish stance on inflation control will, at least within the year, create a tight macro liquidity environment. Viewed through an institutional lens, these factors would undoubtedly cap market upside. However, from a short-term sentiment and chip-cycle perspective, coupled with Q3 earnings catalysts, the market has soil for active capital to attack new technologies and themes. The firm recommends actively seizing the year's final offensive window.
China Galaxy Securities stated that as A-shares sequentially face the Mid-Autumn and National Day holidays, cross-holiday risk premiums coupled with quarter-end institutional assessment constraints may keep the market in a choppy, rotational pattern. At present, the impact of overseas interest rates among external factors that previously disturbed the market is marginally weakening, while geopolitical tail risks and energy inflation impacts remain recurring. On the other hand, positive expectations from China-US interactions, domestic policies, and tech industry trends are gradually accumulating. Beyond seasonal factors, the key determinant of subsequent market performance is shifting from partial digestion of external risks to whether these positive factors can form a relay.
Allocation opportunities focus on three main lines: First, select tech growth. With dense recent industry conferences and converging external disturbances, focus on high-prosperity, verifiable-earnings directions such as semiconductors and advanced packaging, optical communication chains, and AI computing chains. Second, policy expectations. Room for further policy reinforcement remains, with the "six networks" as an important lever, focusing on power grids, energy storage/power supporting, building materials, and construction machinery. Third, dividend base. Overseas high interest rates and energy risks have not yet cleared, leaving finance, utilities, and coal with allocation value.
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