The market experienced a broad-based correction with heavy trading volume today, as all three major A-share indices closed in the red. Capital rotated from high-flying sectors to defensive plays, with banking, consumer staples, and pork-related stocks showing resilience against the downtrend. Total market turnover reached 3.3 trillion yuan, with over 4,300 stocks declining across the two exchanges.
Sector-wise, the major consumer sector was active. The pork concept saw volatile gains, with Tianbang Food hitting its limit-up twice in four sessions, while Tianyu Biology, Huatong Co., Ltd., and Shennong Group surged by the daily limit. The baijiu (Chinese liquor) concept also rose during the session, with Huangtai Wine Industry and Jinseed Liquor touching the limit-up. The chemical sector bucked the trend, with Hongqiang Co.,Ltd. and Hongbaoli Group closing at the limit-up. The silicon carbide concept rallied, with Tianyue Advanced hitting a 20% limit-up, and Kechuang New Materials and Jingsheng Co., Ltd. also reaching the limit-up.
On the downside, the gas turbine concept adjusted, with Liande Co., Ltd. falling by the daily limit. The power grid equipment sector weakened persistently during the session, with Tongda Co., Ltd. hitting the limit-down.
Looking ahead, China International Capital Corporation Limited (CICC) stated in a research report that from a medium-term perspective, it firmly believes the A-share market will continue its volatile upward trend, as overall valuations remain at reasonable levels. The report identified the realignment of the international order and China's industrial innovation trend as the core drivers for the current market rally and the revaluation of Chinese assets, suggesting the steady advance since the "924" period is likely to persist.
In terms of individual stocks, 1,047 stocks advanced, 4,387 declined, and 81 were unchanged across the two exchanges. A total of 82 stocks hit the limit-up, while 48 hit the limit-down.
At the close, the Shanghai Composite Index fell 1.52% to 4,177.92 points, with a turnover of 1,498.1 billion yuan. The Shenzhen Component Index dropped 2.14% to 15,745.74 points, with a turnover of 1,864.1 billion yuan. The ChiNext Index declined 2.16% to 3,951.14 points.
**Capital Flows** Today, major capital inflows focused on the aquaculture, banking, and chemical products sectors. Top stocks by net main fund inflows included Lingyi iTech (Guangdong) Company, GCL System Integration Technology Co.,Ltd., and Zhongji Innolight Co.,Ltd..
**Key News Recap** 1. **MIIT Conducts Research on New Energy Vehicle Battery Recycling:** The Energy Conservation and Comprehensive Utilization Department of the Ministry of Industry and Information Technology (MIIT) organized a research and symposium on the new energy vehicle power battery recycling industry in Guangzhou and Shenzhen, Guangdong province, on May 12-13, 2026. The activity involved key industry enterprises, experts, and related units to gather opinions and suggestions. 2. **China's Commercial Liquid Oxygen-Methane Rocket Enters Scale Application Phase:** At 11:00 AM on May 14, the Zhuque-2 improved variant Y5 carrier rocket was successfully launched from the Dongfeng Commercial Aerospace Innovation Test Zone. The rocket performed normally throughout the flight, with its second stage entering the预定轨道. This mission, the 7th flight for the Zhuque-2 rocket series, marked the successful maiden flight of the lengthened version of the improved variant, featuring multiple technological upgrades and signaling the entry of China's commercial liquid oxygen-methane rockets into the scale application phase.
**Market Outlook** 1. **CICC: Firmly Optimistic on A-Shares' Volatile Uptrend; Focus on High-Growth and Cyclical Recovery Themes** CICC's report noted that the all-share A index and the ChiNext Index both hit record highs today, with the "924行情" persisting for nearly two years. The firm maintains a firm medium-term bullish view, citing reasonable overall valuations. It recommends focusing on high-growth sectors with strong景气 and those benefiting from cyclical improvements, suggesting that while growth stocks still hold an advantage in 2026, their relative outperformance may narrow. An increasing number of顺周期 industries are expected to benefit from supply-demand rebalancing following a three-year de-capacity cycle and policies like "anti-involution." 2. **CSC: Structural Slow Bull Market Expected in H2 2026** China Securities Co.,Ltd. (CSC) stated in a May 14 report that the A-share market is expected to演绎 a structural slow bull行情 in the second half of 2026, driven by structural景气 and concentrated capital flows. It advises investors to follow an "景气为纲" (prosperity as the guiding principle) strategy, focusing on two main景气 lines: the "AI Computing Power Bull" and the "Recovery Bull." The AI computing power theme is far from a全面泡沫化 stage, with attention on景气 diffusion across the entire产业链. The "Recovery Bull," driven by "PPI-external demand," is identified as another key theme for the year. 3. **CITIC Securities: High景气 Likely to Persist in Tech and Energy/Chemical Sectors** CITIC Securities' research report indicated that China's Q1 GDP growth exceeded expectations, achieving a strong start with exports and PPI being the most prominent structural features. It anticipates no immediate need for broad-based policy easing, with structural policies focusing on supporting technological innovation and "anti-involution." Overseas, the U.S. economy continues to cool, Europe's growth expectations are altered by energy shocks, and Japan faces economic uncertainty due to imported inflation. The report forecasts one Fed rate cut in the second half of the year after Chair沃什 takes office in May, and a potential 25bps hike by the Bank of Japan in June. Regarding asset allocation, it expects high景气 to continue in A-share sectors like technology and energy/chemicals, with government bond yields likely fluctuating at low levels, and advises caution towards overseas bonds.
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