A-share midday review | All stocks turn red! The Shanghai Composite Index returned to 4000 points, the Science and Technology Innovation 50 rose more than 3%, and chip stocks staged a deep V rebound.

On July 8th, the three major A-share indexes in China experienced a morning bottoming out and rebound, with the ChiNext Index falling more than 2% at one point but later rebounding strongly. By midday closing, the Shanghai Composite Index rose by 0.52% to return to the 4000 points level, the Shenzhen Component Index rose by 0.08%, the ChiNext Index rose by 0.95%, and the STAR 50 Index rose by 3.13%. Most individual stocks in the two markets fell more than they rose, with over 3400 stocks declining. The total trading volume of the two markets in the morning session was 1.7 trillion yuan, an increase of 72 billion yuan from the previous day. In terms of market performance, chip stocks staged a deep V rebound, with Brite Semiconductor, Skyverse Technology, Hua Hong Grace Semiconductor and others hitting the limit up or rising more than 10%, while Semiconductor Manufacturing International Corporation and ACM Research also surged. The precious metals sector saw a surge, with Zhaojin International Gold hitting the limit up, showing a rise for 5 consecutive days, while Beijing Xiaocheng Technology Stock, Western Region Gold, Chifeng Jilong Gold Mining, and Sichuan Gold followed the trend. The oil and gas sector showed strength against the market, with Shandong Molong Petroleum Machinery hitting the limit up, and Tong Petrotech Corp., KAITIANGAS, KLGF, and others following suit. On the downside, the battery industry chain saw a collective pullback, with solid-state batteries, sodium-ion batteries leading the decline, and Delixi New Energy Technology hitting the limit down. The humanoid Siasun Robot & Automation concept continued to adjust, with Zhejiang RIFA Precision Machinery hitting the limit down. Energy metals and lithium resource stocks declined, with Chengxin Lithium Group experiencing a large drop. The photovoltaic and organic silicon sectors declined, with Guangzhou Tinci Materials Technology leading the decline, and chemical stocks also fell. Looking ahead, Zhongtai believes that the technology market is not over yet, as the sentiment repair still places technology as the most important trend. The recent report from the multi-asset team fit the capital expenditure of major cloud companies with the total market value of technology hardware, with the pricing of core US technology stocks such as Nvidia still highly aligned with capital expenditure. After sentiment repair, technology remains the most important trend. Popular Sectors: 1. Computational power chip concept performs strongly. 2. Precious metals sector shows a surge. 3. Oil and gas sector sees strength against the market. Institutional Views: - Zhongtai believes that the technology market is not over yet, with sentiment repair still placing technology as the most important trend. - EB Securities suggests focusing on sub-sectors with good performance expectations within the technology sector due to increasing internal differentiation.