What happened? Global risk sentiment improved, lifting the three major A-share indices, with the STAR 50 Index surging over 3% to lead the gains. According to the latest reports, citing The Washington Post on the 24th, the United States and Iran have reached an agreement on a framework for a memorandum of understanding. Once signed, it would fully restore shipping in the Strait of Hormuz within 30 days. On May 25th, positive external market sentiment directly boosted opening sentiment for A-shares, with the three major indices collectively opening nearly 1% higher. However, the A-share market has a historical tendency for "high openings followed by sell-offs," as short-term profit-takers used the high opening to cash in, causing indices to retreat quickly. Nevertheless, hard tech sectors such as AI computing power, semiconductors, and electronics (MLCC/PCB) showed strong resilience during the pullback, with the STAR 50 Index surging over 3% to lead the market. By the midday close, the Shanghai Composite Index rose 0.57%, the Shenzhen Component Index gained 0.87%, and the ChiNext Index advanced 1.14%. The combined half-day turnover for the Shanghai and Shenzhen markets reached 2.08 trillion yuan, an increase of 299.9 billion yuan from the previous session. In terms of sectors, the semiconductor industry chain, including MLCC, advanced packaging, IGBT, analog chips, and CPUs, saw a broad rally, with stocks like Shangluo Electronics and Dongxin Co., Ltd. hitting the daily limit. The memory chip concept continued its strength, with Bomin Electronics among others reaching the limit-up. Green power and power sector stocks rose, with Huadian Energy and Jingneng Power hitting limit-ups. Coal stocks gained, with Pingmei Co., Ltd. reaching the limit-up. Baijiu (Chinese liquor) concept stocks rebounded, with Jinhuijiu and Huangtai Liquor Industry hitting limit-ups. Computing hardware concepts such as optical modules, MicroLED, and PCB remained strong, with Changhai Co., Ltd. and Pengding Holdings among others reaching limit-ups. On the downside, lithium battery concepts including lithium hexafluorophosphate, electrolytes, and lithium battery separators declined across the board, with Tianji Co., Ltd. hitting the limit-down. The oil and gas industry chain weakened, with Tongyuan Petroleum and Potential Hengxin falling over 9%. Hydrofluoric acid concept stocks pulled back. Xinduo concept stocks collectively declined sharply, with Guosheng Technology hitting the limit-down. AI application industry chains such as AI marketing, ZhiPu AI, AIGC, and AI film and television weakened across the board, with Sanrenxing and Zhongbei Communication hitting limit-downs. The domestic computing power concept pulled back, with Hongjing Technology falling over 10%. Pharmaceutical concepts like innovative drugs, weight-loss drugs, and AI medicine remained weak, with Anglikang hitting the limit-down. Chemical concepts such as dyes, phosphorus chemicals, and methanol collectively declined. Looking ahead, Huaxi Securities believes that from the perspectives of micro-liquidity, global industry trends, and policy stability expectations, the market's bottom range has solid support.
Hot Sectors: 1. Chip Industry Chain Sees Collective Surge The chip industry chain saw a collective surge, with the semiconductor equipment sector rebounding. Shengmei Shanghai rose over 10%, continuing to hit a record high, while Huaxing Yuanchuang hit a 20cm limit-up. Commentary: On the news front, on May 25th, at the International Symposium on Circuits and Systems (ISCAS 2026), He Tingbo, a Huawei director and president of the semiconductor business unit, stated that the Kirin mobile chip, set to debut this autumn, will be the first to adopt logic folding technology, significantly improving performance.
2. Ultra-Hard Materials Concept Remains Active The ultra-hard materials concept remained active, with Huanghe Xuanfeng, Boyun New Materials, and Henglin Co., Ltd. hitting limit-ups, while Huifeng Diamond, Sifangda, and Liliang Diamond followed with gains. Commentary: On the news front, diamond-copper composite materials were recently scaled up for application at the Zhengzhou Supercomputing Center, improving chip module heat transfer capacity by 80%, boosting chip performance by 10%, and reducing temperature by 5°C.
3. Computing Hardware Concept Remains Strong Computing hardware concepts such as optical modules, MicroLED, and PCB remained strong, with Changhai Co., Ltd. and Pengding Holdings among others hitting limit-ups. Commentary: On the news front, according to LightCounting forecasts, the market size for 100G and above pluggable optical modules is expected to grow from nearly $20 billion in 2025 to over $50 billion by 2030, with the CPO market size potentially reaching $10 billion by 2030.
4. Baijiu Concept Stocks Rebound Baijiu concept stocks rebounded, with Jinhuijiu and Huangtai Liquor Industry hitting limit-ups. Commentary: Dongxing Securities pointed out that as policy pressure gradually subsides, demand is expected to recover gradually under the catalysis of consumption expansion policies. The industry is currently at a low valuation level, with pessimistic expectations fully priced in, a clear direction for industry consolidation, and an increasingly clear bottom.
Institutional Views: Huaxi Securities: Market Bottom Range Has Solid Support Since mid-May, the resistance faced by A-shares has mainly come from two aspects: overseas liquidity pressure and the persistently crowded micro-trading structure in the tech sector. Although non-tech sectors have repeatedly attempted to attract funds, constrained by the reality of weak domestic demand fundamentals, they have failed to become the direction of concerted capital flow. Huaxi Securities believes that the current adjustment is a phase of consolidation within a strong structural market trend. Coupled with regulatory authorities' continuous efforts to advance risk prevention and strengthen supervision, this helps digest overheated sentiment and lays a solid foundation for subsequent healthy and sustainable upward movement. From the perspectives of micro-liquidity, global industry trends, and policy stability expectations, the market's bottom range has solid support.
Kaiyuan Securities: Digestion After Micro-Structure Crowding, But Bull Market Not Over Recent consecutive market adjustments have been driven by core concerns over micro-structure crowding. Reviewing several typical high-crowding phases in history, deterioration in micro-structure often corresponds to increased short-term market volatility but does not necessarily signal the end of a bull market. Kaiyuan Securities believes it is more likely not a "tech retreat" but a shift within the tech sector and the diffusion of the growth style to more "secondary ignition" assets. The current micro-structure approaching a sensitive zone essentially serves as a catalyst for the bull market entering its third stage. Stage one buys repair, stage two buys revaluation, and stage three buys ignition. After entering the third stage, the market no longer indiscriminately rewards elastic assets but begins to select directions that truly possess profit realization and acceleration in prosperity. The core of "secondary ignition" assets is the combination of G and ΔG: having both a high level of prosperity and a slope of continued improvement in prosperity. In other words, the market is gradually shifting from "buying repair" to "buying growth and buying the rate of change in growth."
CITIC Securities: Bullish on AI Industry Chain and Computing Power Network Construction A CITIC Securities research report pointed out that Nvidia released its FY27Q1 results, exceeding market expectations. Customer demand has gradually shifted from mere GPU procurement to encompassing full-stack aspects including switching and interconnection. It is expected that the Vera Rubin cabinet products will begin batch delivery in the third quarter, with the value of CPU, interconnection, and switching segments rising simultaneously. Future AI infrastructure upgrades will revolve around all segments. The computing power network is positioned as national-level infrastructure, with annual construction investment expected to exceed one trillion yuan, covering multiple aspects such as computing power construction, management, scheduling, and operations. As the main force in computing power network construction, operators have already launched token packages, exploring the implementation of token operations on the consumer end. Google I/O 2026 showed that Google's AI industry layout has entered a full-stack stage of "computing power infrastructure + models + application entry points + end-side devices" – TPU 8t/8i validates the long-term upward demand for training and inference computing power, while Gemini 3.5 Flash and Gemini Omni enhance model speed, cost-effectiveness, and multimodal capabilities.
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