A-share market closing review | The Shanghai Composite Index regained and lost the 3700-point mark! The ChiNext Index fell by 1.08%, with over 4600 stocks declining across the market.

On August 14th, A-shares rose and then fell back, with over 4600 stocks declining in the market. Total turnover for the day was 2.3 trillion, an increase of about 128.3 billion compared to the previous trading day. By the close, the Shanghai Composite Index fell by 0.46%, the Shenzhen Component Index fell by 0.87%, and the ChiNext Index fell by 1.08%. In terms of fund flows, main funds flowed out of industries such as automotive parts, communication equipment, ground armaments, general equipment, and components. On the market, the insurance sector supported the market, with China Pacific Insurance rising by over 5% at one point. The cross-border payment and digital currency concepts were also active, with Sinodata Co., Ltd. hitting the limit up. The semiconductor sector saw a sharp increase, with Canaan Inc. hitting a new high. Siasun Robot&Automation concept stocks rose, with Wolong Electric Group hitting a record high. In addition, sectors like gaming and motors performed well. On the downside, Anhui Greatwall Military Industry's flash crash dragged down defense stocks, AI hardware collectively fell back, and sectors like photovoltaics, steel, energy metals, and medical devices saw significant declines. It is worth noting that the Shanghai Composite Index once broke through the 3700-point mark during intraday trading, the first time since December 2021. Looking ahead, Central China believes that the short-term market will mainly see steady and upward consolidation, and attention should be paid to changes in policy, funds, and international markets. Popular Sectors 1. Digital currency concept rallies The digital currency concept was active, with Sinodata Co., Ltd., Hengbao Co., Ltd., Northking Information Technology Co., Ltd., etc. hitting the limit up. Beijing VRV Software Corporation, Shenzhen Forms Syntron Information, Tansun Technology followed suit. Commentary: According to China Securities Co., Ltd., the 2.0 declaration of digital asset development policy marks the official entry of the Hong Kong digital asset market from the "experimental stage" to the "implementation and promotion stage." The policy vision expands from virtual assets represented by cryptocurrencies to a broader range of tokenized real assets, and stable coins, RWA, and other digital asset formats are expected to accelerate into a new stage of vibrant development. 2. Insurance sector supporting the market Insurance and other major financial sectors supported the market, with China Pacific Insurance, New China Life Insurance, The People's Insurance, Ping An Insurance, etc. rising. Commentary: Since the beginning of the year, there has been continuous equity participation in the insurance industry. Dongguan Securities pointed out that in the long run, this will help drive insurance companies to optimize product structures, increase the development and sales efforts of floating yield products such as dividend insurance and universal insurance, meet consumer demand for certain flexible yield products through investment income sharing, and effectively relieve the pressure of rigid costs on the debt side. The insurance sector is expected to play out the "asset-liability resonance" logic in the medium to long term to achieve valuation repair. Institutional Views 1. Dongguan Securities: The future index center may gradually rise Dongguan Securities believes that it is worth noting that in this round of advances, there have been no sharp rises or falls as in the past. The overall market's buying momentum is strong, reflecting the characteristics of a mature market with low volatility and low retracements. In addition, margin funding in A-shares continued to increase, highlighting the ongoing recovery of market confidence. With short-term volume support, A-shares are expected to continue in a strong trend, but attention should also be paid to the pressure of profit-taking at high levels. Looking ahead, in the background of funding support and fundamental repair in the medium term, the market's positive trend remains unchanged, and the future index may gradually rise in stages. 2. Central China: The short-term market is expected to trend steadily upward Central China believes that domestic liquidity remains ample, with margin balances exceeding 2 trillion yuan and room for margin trading ratio to rise. The low interest rate environment supports the influx of incremental funds. Expectations for a September rate cut by the Federal Reserve have risen, and a weaker dollar favors foreign capital returning to A-shares. The latter half of August will see the peak of interim reports, so beware of the performance verification pressure faced by some high-valuation thematic stocks, with the future market likely focusing on two main themes: technological growth and cyclical manufacturing. The short-term market is expected to trend steadily upward, and attention should still be paid to changes in policy, funds, and international markets. 3. Orient: The short-term market continues to maintain a strong trend Orient believes that from a macro perspective, since the rally starting from September 24 last year, liquidity-driven characteristics have been shown, with the national team, ETFs, and leveraged funds actively participating in the market. At the same time, the policy support for the capital market has been increasing, laying a solid foundation for this round of market rallies with a truly slow bull market slowly emerging. From an allocation perspective, high prosperity industries have attracted more funds to participate, and the rise in active sectors such as communications, innovative medicine, and defense mainly comes from profit expectations and industry development, rather than simply inflated valuations. It is recommended that investors track investment opportunities brought by industry changes with a relatively long-term perspective.