A-share Midday Review | All three major indices closed lower, BSE 50 rose over 2%, more than 3,500 stocks declined.

On September 23, the three major A-share indices closed mixed. The Shanghai Composite Index opened lower, while the Shenzhen Component Index and ChiNext Index opened higher and then fell. The market showed a divergent pattern of "indices fluctuating and pulling back, trading volume shrinking significantly, more stocks falling than rising, and weak rotation among themes." As of the midday close, the Shanghai Composite Index fell 0.36% to 3,938.08 points, the Shenzhen Component Index fell 0.58% to 13,644.72 points, and the ChiNext Index fell 0.43% to 3,385.30 points; the BSE 50 rose 2.19%. In the Shanghai and Shenzhen markets, 1,874 stocks rose and 3,557 stocks fell. Half-day turnover in the Shanghai and Shenzhen markets was 1,159.1 billion yuan, a decrease of 269.2 billion yuan from the previous trading day. On the capital front, according to Cailian Press market monitoring data, in the morning session main funds recorded net inflows into sectors such as real estate, food and beverages, and optical optoelectronics, and net outflows from sectors such as communications, computers, and electronics, with the communications sector seeing net outflows of nearly 4.9 billion yuan. Market Overview On the board, on the gainers' side, sectors such as real estate services, yellow rice wine, and glass substrates led the gains, while PCB concept stocks were active; on the decliners' side, sectors such as film and cinema chains, media, oilfield services engineering, and coal led the declines. Overall, the Shanghai Composite Index opened lower and weakened in narrow-range trading, while the Shenzhen Component Index and ChiNext Index opened higher and pulled back. Turnover shrank sharply from the previous trading day, funds rotated rapidly among themes, and directions such as the real estate chain, pharmaceuticals, and PCB were relatively active. Hot Sectors 1. Real estate sector fluctuated and rose The real estate services direction led the market. Real estate stocks diverged during the session. 5i5j Holding Group and Beijing Huayuan Xinhang Holding extended gains to a third consecutive limit-up, Liaoning Shenhua Holdings hit the limit-up, and China Vanke Co.,Ltd., Shenzhen Worldunion Group Incorporated, and China Enterprise briefly touched the limit-up intraday before pulling back. Comment: On the news front, data from "Online Real Estate" showed that on September 19, Shanghai second-hand homes (including commercial) recorded 1,495 online signed transactions in a single day, a new single-day high since the second half of 2026; as of September 19, Shanghai second-hand home transactions in September totaled 15,597 units, up 28% year-on-year (The Paper, September 21 report). On the policy front, the newly revised Regulations on the Administration of Housing Provident Fund officially took effect on September 20, expanding the circumstances for provident fund withdrawals to nine types; in addition, market rumors circulated about "mortgage interest subsidies," saying that a nationwide mortgage interest subsidy policy may be implemented before National Day, with combined central and local subsidies reaching up to 100 basis points, targeting only incremental users purchasing new homes. This news has not yet been officially confirmed. 2. PCB concept stocks active PCB concept stocks were active. Dare Power Dekor Home rose for a fourth consecutive limit-up, Guangdong Ellington Electronics Technology and Hubei Zhongyi Technology Inc. hit the limit-up, and Sihui Fuji Electronics Technology and Changzhou Aohong Electronics rose more than 7%. Comment: On the news front, on September 22, Jiangxi Hongruixing Technology Co., Ltd. issued a price adjustment notice, raising the ex-factory price of copper-clad laminate products by 10%; previously, China Jushi Co., Ltd had already raised prices for electronic cloth thick cloth and thin cloth by 15% and 20% respectively in September. Consecutive price increases in upstream materials have driven expectations of cost pass-through in the copper-clad laminate and PCB industry chain. 3. Multiple CRO concept stocks surged Multiple CRO concept stocks surged. Shanghai OPM Biosciences rose more than 12%, Shanghai InnoStar Bio-tech rose more than 10%, Acrobiosystems rose more than 9%, Sino Biological,Inc. rose more than 8%, and Landfar Bio-medicine briefly touched the limit-up intraday. Comment: On the news front, on September 18, the Ministry of Industry and Information Technology and nine other departments jointly issued the "15th Five-Year Plan for the Development of the Pharmaceutical Industry" (MIIT Joint Regulation [2026] No. 210), proposing that by 2030 the innovative drug industry scale growth rate reach an average annual rate of more than 20%, the proportion of first-in-class drugs (FIC) reach more than 25% globally, and clearly developing specialized production service formats such as CRO and CDMO. The innovative drug and CRO/CDMO industry chains have gained medium- and long-term policy support; a Huayuan Securities research report also pointed out that the innovative drug industry is improving across multiple dimensions, and CRO demand is gradually recovering. 4. Yellow rice wine concept active The yellow rice wine concept was active. Zhejiang Guyuelongshan Shaoxing Wine hit the limit-up, Kuaijishan Shaoxing Rice Wine briefly touched the limit-up intraday and set a new all-time high, and ShangHai JinFeng Wine briefly touched the limit-up intraday before pulling back. Comment: According to a Shanghai Securities News report on September 18, in 2026 yellow rice wine companies clearly accelerated their pace of partnering with major baijiu distributors. Kuaijishan Shaoxing Rice Wine has signed agreements during the year with several leading famous liquor distributors, including Henan Maowujian, Baishan China Fangda Group, and Beijing Sugar Tobacco and Wine Group; on September 8, Zhejiang Guyuelongshan Shaoxing Wine signed a tripartite strategic cooperation agreement with Guangdong Yueqiang Liquor Industry and Chongqing Agricultural Materials, jointly launching a customized yellow rice wine new product "Amber Light." The market is watching progress in yellow rice wine's expansion from the Jiangsu-Zhejiang-Shanghai regional market to the national market.